AGREEMENT BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT OF THE UNITED ARAB REPUBLIC REGARDING THE TERMS FOR THE SHIPPING SERVICE
New Delhi, 20 March 1964
In pursuant to the Government Agreement on Shipping dated 2nd January, 1964 concluded between the Government of the United Arab Republic
and the Government of India, the following Competent Authorities designated by the respective Governments namely :
(1) The Egyptian General Organization for Maritime Transport an authority appointed under the U.A.R. Law No. 12 of 1964 for the purpose
of exercising or discharging the powers, authority or duties conferred or imposed under that law and competent to designate the Organization
for the implementation of this Agreement, has so designated the United Arab Company for Maritime Transport, Cairo, U.A.R. hereinafter
referred to as “MARTRANS”.
(2) The Director General of Shipping, India, an authority appointed under the Indian Merchant Shipping Act, 1958 for the purpose of exercising or discharging the powers, authority or duties conferred or imposed under that Act and competent to
designate the Organization for the implementation of this Agreement, has so designated the Shipping Corporation of India Ltd., Bombay,
hereinafter referred to as “The Corporation”;
HAVE agreed as follows :
The distribution of all cargoes assigned to this service shall be effected on the basis of 50% for each side, regardless of the terms
of purchase, F.O.B., C.I.F., C & F. etc., provided that either flag will secure 50% of the total payable freight at the end of
The cargoes are to be specified for distribution purposes into two main kinds, namely, General cargo and Bulk cargo. Each party will
be entitled to a share of 50% of each of the above two mentioned kinds, separately, to be carried by national vessels.
Basically the cargo shall be shipped by the national liner vessels of both sides running the regular service.
Cargo exceeding the capacity of the national liner vessels operating regularly in the India-U.A.R. Shipping Service may be carried
by other vessels.
The terms, rates of freight and conditions concerning the liner vessels of this service shall be negotiated and fixed from time to
time by the Competent Authorities of the respective parties.
With a view to ensure the smooth carriage of cargoes in due time without delay the following system will be applied :
A. “The Corporation” will collect all information for the cargo to be shipped from Indian ports to U.A.R. ports. Information for F.O.B.
cargo shall be supplied by “MARTRANS”.
B. “MARTRANS” will collect all information for the cargo to be shipped from the U.A.R. ports to Indian ports. Information for F.O.B.
cargo shall be supplied by “The Corporation”.
C. “The Corporation” will handle the booking of all cargoes moving on regular service vessels from Indian ports to U.A.R. ports in
connection with and upon confirmation by “MARTRANS”.
D. “MARTRANS” will handle the booking of all cargoes moving on regular service vessels from the U.A.R. ports to Indian ports in consultation
with and upon confirmation by “The Corporation”.
E. Not later than the fifteenth of each month, each party will inform the other party of the booking position at his end and the needs
for shipment by vessels other than those of the regular service.
On receipt of the above information it will be the responsibility of each party to arrange for necessary shipping space expeditiously.
F. Each party will endeavour to maintain parity in the allocation of cargoes. There shall be quarterly review of the allocation of
cargoes and if there is any disparity found at the end of each quarter, the same shall be rectified by suitable adjustments during
the next quarter. At the end of the year the entire system will be reviewed and in the light of the experience gained a method will
be devised for the maintenance of parity in the allocation of cargoes and freights between the two parties.
G. In case of need for chartering vessels “The Corporation” will be responsible for fixing chartered vessels for cargoes sold from
India on C.I.F. and C and F basis and purchased from U.A.R. on F.O.B. basis. Likewise “MARTRANS” will be responsible for fixing chartered
vessels for cargoes sold from U.A.R. on C.I.F. and C and F basis and purchased from India on F.O.B. basis.
A commission of 5% of the freight will be collected by the booking authorities of the parties concerned for cargoes booked on the
For chartered vessels, a commission of 5% of the freight shall be paid by the Shipowners to the Organisation booking the cargo. The
commission collected in both cases will be divided equally between the parties annually.
Both parties agree to exchange monthly statements regarding shipments effected between the two countries.
Both parties will periodically exchange information regarding the cargo movements and the market situation in general and will mutually
co-operate in all matters leading to the development of the shipping interests of both countries.
For the purpose of studying the fulfilment of obligations under this Agreement by the parties thereto, exchanging experience and
development of further contacts the parties shall arrange meetings of their representatives when necessary.
Any alterations and amendments to this Agreement are to be agreed to by both parties in writing.
Any dispute arising under or out of this Agreement is to be referred to the final judgement of arbitration in Cairo if the Indian
party is asking for arbitration or in New Delhi, if arbitration is asked for by Arab party.
Each party involved in the dispute shall appoint its arbitrator within 4 weeks of the demand of arbitration with power to such arbitrators
to appoint an Umpire. Should any party fail to nominate its arbitrator, this arbitrator shall be nominated by the President of the
Chamber of Commerce of the country of that party. Should the arbitrators disagree in respect of the Umpire to be appointed, arbitrators
shall ask the President of the Chamber of Commerce of the defendant's country to nominate an Umpire. The award of the majority shall
be binding, the Umpire to have the casting vote.
Payment of the costs of arbitration shall be settled by arbitrators.
This Agreement shall come into force from the date of signatures and shall remain valid till the 3lst December, 1966. It will continue
thereafter in conformity with the prolongation of the Agreement between the two respective Governments.
DONE and signed in English in two originals one for each Party both being equally authentic, in New Delhi on the 20th March, 1964.
(1) The Competent Authority for the Republic of UAR
Chairman of the Egyptian General Organisation for Maritime Transport.
(2) The Designated Organisation
Chairman of the United Arab Company for Maritime Transport.
(1) The Competent Authority for the Government of India
The Director General of Shipping to the Government of India and Additional Secretary, Ministry of Transport.
(2) The Designated Organisation
Managing Director The Shipping Corporation of India Ltd.