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New Delhi, 20 November 1962

In pursuance of the provisions of Article 7 of the Agreement signed New Delhi on the 6th April, 1956, between the Government of the Public of India and the Government of the Union of Soviet Socialist Publics negotiations were held in New Delhi on October 15 and 16, 2 and in Bombay on October 17, 18 and 19, 1962, between an Indian Delegation led by Dr. Nagendra Singh, Director General of Shipping and Additional Secretary to the Government of India, Ministry of Transport and Communications, Department of Transport, New Delhi and a U.S.S.R. Shipping Delegation led by Mr. V.I. Jarkov Chief of General Shipping Department, Member of Board at Ministry Marine Fleet, Morflot, Moscow. The discussions between the two delegations related to the operation and the further strengthening of Indo-Soviet Shipping Service between the ports of India and the Jet Black Sea ports. Both the parties, in reviewing the operation of the service to date, noted with satisfaction the successful working of the service and the progressive improvements which had been noted by mutual endeavour and cooperation.

Having regard to the growing friendly relations and the developing Atomic collaboration between the two countries, both the parties a, as a result of the aforesaid negotiations, reached the following agreement

I. Expansion of the Shipping Tonnage engaged in the Indo-Soviet Shipping Service

At present the Indian and the U.S.S.R. Shipping Lines are operating 7 vessels each, that is a total of 14 vessels, in the Indo-Soviet Shipping Service. In the context of the expanding trade and the developing economic collaboration between India and the U.S.S.R., the parties consider it necessary to increase the number of ships in this service to 10 by each party, that is a total of 20 vessels. It shall be the aim of the parties to introduce additional vessels as aforesaid as soon as possible.

II. Allocation of Cargoes

The parties have noted that the principle of freight parity in respect of Westbound cargoes from India to U.S.S.R. has produced mutually satisfactory results. The parties have noted with full satisfaction that the Eastbound ships are fully loaded. They have further agreed that they should continue to endeavour to improve the balancing of deadweight and measurement cargoes of each vessel loaded in the Soviet Black Sea ports, with a view, as far as possible, to maintaining parity in freight earnings, making due allowance for the space/deadweight utilised for Rumanian cargoes in Indian ships.

Appreciating that for the transportation of tramp cargoes additional tonnage, separate from the tonnage employed in the Indo-Soviet Shipping Service, may be required from time
to time, both the parties agreed to make the first offer to each other of such cargoes before chartering tonnage in the open market.

III. Revision of Freight Rates

The parties have agreed to revise freight rates in respect of cargoes transported by the vessels of the Indo-Soviet Shipping Service as follows

(1) General Cargoes-On General Cargoes, there shall be an increase of 5% over the current tariff rates both ways, i.e. ex. Black Sea Ports and ex. Indian Ports, provided that this increase of 5% shall not be applicable to the following items:

(a) Machinery and Equipment

(b) Motor Cars

(c) Any other items for which specific rates have been agreed to, such as metals, firebricks, ammonium sulphate and cement

Note - In calculating the revised freight rates based on an increase of 5%, decimals of .5 and below shall be omitted and decimals of above 5 shall be rounded off to the next higher unit.

(2) Freight rate on specific commodities

(a) There shall be no increase on the existing freight rates for Firebricks and Metals.

(b) The existing rate of Rs 55 per metric ton FIO. on Ammonium Sulphate in bags shall continue.

(c) The freight rate for Cement shall be reduced to Rs 45 per metric ton FIO

(3) Freight rates for commodities not enumerated in the Tariff

Unless either party to this Protocol suggests a special rate of freight, it is agreed that the rate of Rs. 42 per cubic metre/1,000 kilos shall apply to unspecified commodities.

(4) Machinery and Equipment

(a) The freight rates for machinery and equipment and also for Motor Cars shall be revised as follows:

Per Metric Ton F.I.O Per Cubic Ton F.I.O
Machines, Machine Tools, Equipments
and Motor Cars:
(a) Ordinary not exceeding I ton in weight Rs 99.00 Rs 42.00
(b) Exceeding I ton but less than 5 tons in weight Rs 104.00 Rs 44.00
(c) Exceeding 5 tons but less than 10 tons in Rs 115.00 Rs 48.00
(d) Exceeding 10 tons but less than 50 tons in Rs 125.00 Rs. 52.00
(e) Exceeding 50 tons in weight Rs 139.00 Rs. 62.00
Note: The shipowners shall have the Option of choosing either the measurement basis or the weight basis for applying freight rates as enumerated above.

(b) In the current Tariff, the freight rate for Trucks and Tractors is specified as being the same as for motor cars. It has been agreed that until a suitably revised rate has been mutually accepted for these items, the existing freight rate on weight basis for Motor Cars, but increased by 5% shall be applied. The said revised rate shall be determined by correspondence.

(5) Freight Rates on Certain Specified Commodities

The freight rates in respect of commodities enumerated below shall be as follows:
From 1. 1 . 1963
Per Metric Ton FIO
Till 31.12.62
Per Metric Ton FIO
Parcel Board in cover Rs. 105 Rs. 100
Tea chests Rs. 105 Rs 100
Ferro-Tungsten Rs 171 Rs. 163
Sovtel Rs. 100 Rs. 100
Sculpture not antique Rs. 210 Rs 200
Plywood Rs. 105 Rs 100

(6) The revised tariff as agreed to under this agreement shall be applied to shipments effected by ships commencing to load on/or after Ist January, 1963.

(7) The revised tariff shall continue to be in force until either party to this Protocol gives notice of its intention to seek a further revision and a new tariff is mutually agreed upon. It is agreed, however, that such notice shall not be given before the Ist July, 1963.

(8) Transhipment cargo ex through Bills of Lading

It has been agreed that this matter should be pursued further and settled expeditiously by discussions between the representatives of Sovfracht in India and the Secretariat of the Indo-Soviet Shipping Service.

IV. Shipment of Rumanian Cargo by Indian Vessels

Under Clause Cc) of Article 2 of the Agreement dated 9th October, 1958 and Article 7 of the Agreement of 3 July, 1959 between the Director General of Shipping, Government of India, and Messrs. Sovfracht, Moscow, the parties have agreed that Indian Lines may accept Rumanian cargoes upto the maximum of 1000 -tons (60,000 cubic feet space) without prior consultation with Messrs. Sovfracht, Moscow. In all other respects, however, the existing arrangements for consultations shall continue to be applicable.

It has been further agreed that information about Rumanian cargoes booked by Indian Lines shall be communicated to Messrs. Sovfracht as soon as possible in order to facilitate complete stowage of cargoes from Soviet ports. It has been further agreed that the aforesaid arrangements may be jointly reviewed if desired by either party.

V. Expeditious turnaround of vessels and other connected matters

1. Loading and discharging of cargoes

The parties have noted with satisfaction that loading and unloading operations at Soviet ports and improved since the beginning of 1962. In pursuance of their mutual desire to secure further improvements at Soviet and Indian ports, both the parties have agreed that the possibility of laying down appropriate norms for the loading and unloading of different types of cargoes may be discussed further after the Director General of Shipping, Government of India, has collected necessary additional information. Such norms were intended to provide guidance in maintaining a watch over the operation of the service.

2. Number of loading/ discharging ports

With a view to achieving satisfactory results from the operation of this service, the parties have agreed to keep the number of loading and discharging ports to the minimum possible.

3. Transmission of Cargo Documents

The parties have agreed to airmail complete shipping documents within 5 days following the sailing of a vessel from the last loading port in either country.

VI. Stowage of Cargo

The parties have agreed to take the following measures with a view to securing proper stowage of cargo, minimization of cargo claims and the avoidance of sorting charges at ports of destination :

(1) The shippers shall be requested by Masters of vessels to tender cargo for loading in such a manner as to enable its stowage Bill of Lading-wise.

(2) The Masters of vessels and Steamer Agents shall be instructed to ensure that Bills of Lading are suitably claused in order to facilitate the recovery from shippers of any additional charges which may be incurred in the sorting of cargoes tendered with mixed marks or in any other manner which precludes stowage Bill of Lading-wise.

(3) Instructions shall be given to Masters to take every possible precaution for securing the safety of cargoes loaded on their ships with special attention to valuable cargoes.

VII. Observance of Schedules

The parties have agreed that further efforts shall be made by the Shipping Lines Operating this Service to adhere to schedules, to give timely information about any likely changes in scheduled arrival dates and to give Agents at the loading and discharging ports a five days' notice of the expected date of arrival of any vessel.

VIII.Tally of Cargoes at Indian Ports

It was stated that at Indian ports after the discharging of cargo, out turn reports were not prepared immediately resulting in the loss of cargo and additional expenditure. The Director General of Shipping undertook to enquire into this matter with a view to taking measures for the improvement of the present position.

IX. Supply of Bills of Lading

It has been agreed that the Indian Lines shall place on board each vessel bound for Soviet Ports 4000/5000 blank Bills of Lading forms to obviate the utilisation by Inflot of Soviet Bills of Lading.

X. Cargo Allotments to Vessels

Recognising the need for the most economic operation of the vessels employed in this service, the parties have agreed that every effort should be made to ensure a balanced allocation of deadweight and measurement cargoes for each vessel.

XI. Remittance of Freight

It has been agreed that Messrs. Sovfracht would arrange for the remittance of 75% of the total estimated freight earned by Indian vessels at Black Sea Ports of USSR., such remittance to be made within a period of 5 days after receiving the cargo manifests from the respective loading ports. The Indian Lines agreed on their part to prepare the final freight bills within a week of the receipt of the cargo manifests from the Soviet Port Authorities and forward the same to Messrs. Sovfracht through the Trade Representation of U.S.S.R. in Bombay. Thereafter, Messrs. Sovfracht would arrange for the remittance of the balance of freight expeditiously. The procedure stipulated in the Indo-U.S.S.R. Trade and Payments Agreement in force would always be strictly adhered to in respect of all payments of freight.


Both the parties agreed to continue their mutual efforts towards securing further improvements in the service and strengthening the friendly shipping relations between the two countries.



Additional Secretary to the Department, Member of
Government of India, Ministry of Board at Ministry of
New Delhi.



Director General of Shipping and Chief of General Shipping
Transport and Communications, Marine Fleet, Morflot,
Department of Transport, Moscow.

New Delhi, 20th November, 1962 New Delhi, 20th November, 1962



Additional Secretary to the Government of India.




New Delhi November 1962

Dear Mr. JARKOV,

In pursuance of Article 111 (8) of the protocol relating to the strengthening of the Indo-Soviet Shipping Service signed on November 20, 1962 in New Delhi, the question of through freight rates commodities moved from Odessa to Karachi, Colombo, Chittag Rangoon was discussed in Bombay and I have pleasure in confirming the minutes of the meeting held on October 31, and November between the representatives of SOVFRACHT and the Indian Companies. A copy of the minutes of the aforesaid meeting is, herewith. I have to add that while approving the schedule of freight rates, annexed to the minutes of the meeting, it has been agreed between you and me today that 25% of the stipulated in the schedule would be payable in free currency balance of 75% would be payable in accordance with the Trade and Payment in force. The payment of 25% of the freight free currency will cover the entire expenses of the second charges from an Indian port to the ports of third countries as states in the minutes. I shall be grateful for confirmation of the understanding.

Yours sincerely,


Chief of General Shipping
Department, Member of Board at
Ministry of Marine Fleet, Morflot,
Moscow, C/O The Embassy of U.S.S.R. New Delhi.

New Delhi, 22nd November, 1962


I have the pleasure of acknowledging receipt of your letter as above. I confirm that the above sets out correctly the understanding reached between us today.

Assuring you of my highest consideration,

I remain,
Yours sincerely,


Additional Secretary to the Government of India,
and Director General of Shipping, Ministry
of Transport and Communications,
Department of Transport, New Delhi.

India Bilateral

Ministry of External Affairs, India

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