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Slot charter meaning

HC settles 'slot charter industry issue regarding taxability of slot charter income of Balaji to the meaning of the term 'slot charters. A carrier’s chartering of slots/spaces on other carrier’s vessels. slot-charterers ' right to limit The judge considered that a slot-charter had some features in In any event he was of the view that the ordinary meaning of.

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Teare J took account of the purpose of the Convention, which he described as being the encouragement of international trade by way of sea carriage. It was in order to prevent this eventuality that charterers were given the same right to limit as the owners. Found in 24 ms. However, on this issue, the High Court held that the tonnage tax provisions cannot be of assistance as the definitions therein are for the limited purposes of that Chapter alone. From the hub port, the Taxpayer's containers are trans-shipped on the mother vessel, which are owned or leased by the Taxpayer, and from the hub port it is carried to the final destination port.

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Slot-Charterers’ Right to Limit Confirmed

Based on the facts, the Tribunal held that there is complete linkage of the voyage between the Indian port to the hub port through a feeder vessel and from the hub port to the final destination port through the mother vessel owned or leased by the Taxpayer and, therefore, the entire profits derived from the transportation of goods carried on by the Taxpayer are to be treated as profits from the operation of ships eligible for the benefit of Article 8 of the Malaysia Treaty.

Detailed discussion Facts The Taxpayer is a tax resident of Malaysia. The Taxpayer is engaged in the business of shipping in international traffic. The Taxpayer operates ships that are either owned by it or taken on lease. Insofar as the shipping business from India is concerned, the Taxpayer books cargo from shippers and customers in India up to the final destination port, with all risks and responsibility.

The bill of lading is issued for the entire voyage. The Taxpayer, under a slot charter arrangement, arranges for transport of cargo from the Indian port to the hub port, using the service of feeder vessels which are owned by a third party.

From the hub port, the Taxpayer's containers are trans-shipped on the mother vessel, which are owned or leased by the Taxpayer, and from the hub port it is carried to the final destination port. The Tax Authority contended that Article 8 of the Malaysia Treaty applies only when the taxpayer is the owner, lessee or charterer of a ship.

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EurLex-2 It is apparent from paragraphs to of the response to the statement of objections and from the title of that part of the response, Price competition within vessel sharing agreements VSAs , that the TACA parties sought by that evidence, by reference in particular to Hanjin's situation on the trade in question, to rebut the Commission's argument at paragraphs , and of the statement of objections that the slot-chartering arrangements entered into between the TACA parties and the independent shipping lines, in particular the one to which Hanjin was a party, had the effect of restricting price competition between the parties to such agreements and therefore between the conference members.

Giga-fren Key alliances serving Vancouver with selected members are: Giga-fren There are two types of container: Types of Slot Charter There are two main forms: MultiUn Cooperation between container shipping companies in many different forms of partnership such as slot purchase, slot exchange, vessel-sharing agreements or joint services has been an essential feature of the industry for a long time EurLex-2 The Commission understands that the comment of the representative of Mitsui OSK Line was intended to suggest that consortia such as vessel-sharing agreements have the effect of reducing the number of independent actions entered into by their members.

EurLex-2 There has been a consequent trend towards much simpler accords such as technical agreements between carriers to form e. EurLex-2 16 Connective carrier arrangements concern the inclusion in vessel sharing agreements VSAs of provisions such as the following, "A party may utilise space made available to it hereunder to provide space to a non-party ocean common carrier pursuant to another agreement.

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EurLex-2 24 In addition to six vessel-sharing agreements currently in effect among various TAA parties agreements outside the TAA framework , the TAA makes provision for additional slot-charter activity and equipment exchange. EurLex-2 34 Hyundai entered the trade by way of a vessel sharing agreement with SeaLand. EurLex-2 Third, the applicants consider that the Commission's analysis of competition between the TACA members lacks reasoning as regards i its finding at paragraph that consortia such as the vessel-sharing agreements of which the TACA parties are members have the effect of reducing the number of independent actions entered into by their members; ii the absence of information at paragraph as to the respective sizes of the transpacific and transatlantic trades; and iii its decision to use the data for a single year as the basis for concluding at paragraph that the majority of TACA members do not compete to participate in service contracts with NVOCCs.

Giga-fren Commercial consequences a Apart from the fact that ordinary Slot-Charter involves payment and Vessel Sharing Agreements do not involve payment, the legal implementation of the two types of charter are the same. EurLex-2 The fact that a high number of vessel-sharing agreements have been accepted by the FMC shows, however, that that body makes no link between the existence of that type of agreement and the level of independent action activity engaged in by its members.

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