Sei sulla pagina 1di 129

tN I~

Iit)

----I

LOSS PREVENTION GUIDES

10-------------

BILLS OF LAI)ING

A GUIDE TO

GOOD PRACTICE

10------------- BILLS OF LAI)ING A GUIDE TO GOOD PRACTICE MIL and orth of England PI '

MIL

and orth of England

PI

' oei

tion

ANCHORAGE.

PRE

~

Published by Anchorage £'rcss

27 - r /f.l::tr~(S Rood

' n"ickcrlham n; ! IP

Telephone

RI>: +44

I!.-ma il un homgc@Cil rt'l pw;crVC.t:u lI1

44 18 1 892990$

91 l46Z

18 l

All righ rs reserved. lored in 3 reuieval

0 part 0 rhi pub li :!rion m:ly be

rep roduced,

tem or Hun milled in 3n

form m by a ny mt::lns

(e1ecrroni • mechanical. photOcop ·ing. recording or odlem isc) wilhout

lhe wrim:n penmssion of the publi hel.

Cop)-nghl e

[ephen lIIills and die

PS: 1 ssociarion 199

ID

A

~.

rh

0953178-28

r.

S r epnen Mill s

Prinred and bo und in [he UK

'onh uf England

The publisher and

urhor ",ish lO I hank IIIe l niled t\a~ions

lkp~ttmcnr (\

Public Infonn"tlon for pcnlll

Ion 10 publish the

Ilambur~ Rul s, The CoIlIToller 9f Hcr M j Sty's

permis£ion

Sl1I.lione.ry Office fur

[0 publ~ h Lilo: ~bguc.Vi,1

I~ulc~ (permission rc:fercn c

9BOOIM,l)

an d The ' &!Jck a_n d I ntCffi!lfinn~ 11 M aririme

Cou n c i l for

perm ission ro p ub lis h (he Congt:nhi ll rr.tlilio n '19' 4,

"l'hi ' publicaeion is inte nd ed lilT l/;c:nC:1\I1gu idance on ly

[Q assist in [he

Hlidan c of dispur

and prob lems un.>,n' from improper lISt: of bill uf

IJding. Re:Jde rs hoold mke re lO cll!>ure thal Ihe recommendation oontaint:d in this publication arc appro mre ror a parricular sim3Lion

ber. ~ implementing (hem. "l1c~ <:\'1: 1) dTo" has bcc.n Imde to

en -urc .ha! ra::ommcndanons arc comprch nm

,die publisheL die

'nnh nfF I1g!and

P&l Associalion and Ihe author do nOl under an •

ircumsrances wilatsoever accept rc.>pon ibili

for CITOIS, omission and

mis- rarcmcnts or for [be conseqIJen

• of 'implememin

or:u rempLing

CONTENTS

(,'hap,I""

r KoDucrrol

LO&~ prevention and bills of lading How to u e this guide

( HIC :I>. 1(1 .1- 1'. 111 . ;"'t Le

Ho\

co use ,his seClio~

Page

J

7

The bill of ladi ng - , qu ick glJidc to il5 rolc and its proble m

I

I 11"

'

I

, iglling bills of fading (ptmJgmph.r I - 14) De livering the cargo at djs~harg" porr (puragrop/ls 15 - lS)

AI''iPi ,I bi l.l or Jndi n~ - theBt f

(poT/lJ[frJphs Z(j 46)

OCilngenbill

11 11-11 1{) History and £Onlext fltorogrttfi/« 47 . 1)/)

igning rhe bill of ladln~ (/Jtlrnr,rUpJH 92 · 160)

Sources

i\·lovemem of rhe bi ll of lading und'er che sale conrrncr (/XIt'(IgTYi/lN 1/6 . 186)

of info rmatio n for t he bill of

la ding (pur'W"phs l6 ! - 17:>7

The \'\ly.tge - deviation. delivery, ID•• and dal'l1:1ge 10 cargo

(/Xlmgrtl/lhs "'17-Z(6) Delivery of [he cargo I,fxtragmplts !iTl l2J)

rher m.tlcr; IpomgropllJ 224 · l34)

Glossary of terms

11

31

79

86

U

Recommended _tancb.rd letter of amhori ry [0 issue bills of hIding

III

Recommended standard terrer or ddiver), of cargo \ ithoU[ production

of b~l of ladi n~

IV Rccommended smndard

lener for change of destination

V

Hague R11les

VI

Hague-Visby Ru les

VII

Hamburg Rules

VLU

Lis t of w unrrics .ppl ring the:. conventions

IX

UK Carriage of(loods hy Sea Ac t 1992

X

Bibliogr:lphy

INTRODUCTION

lOSS PREVIENTION AND BILLS OF LADING

In 1

ICUc.lC

rhe

orth of England p&r

iation '

ued a imple qlJelitionru.U1'C to

of i~ IO!>S prt:1f-enrion m:wslcrtcr'

igllllls· . It asked fot their c:xperie

. , wid'!

regard [0 Ihe is:;ue of bills of lading :!Od ubsequenr delil"el)' of I."lHgD ~n l Ih

bill. ofl:!dlng. The: majorl[}' of aJ\S\ 'ers

-en; recciVt:d from

hipO\ ners' oOioc

fmm m SU:I:l. with agents, Oper.iIOI!>, lillun ie:

and others also rt:sponding.

f\ number of spec ifi c-prob lems,

[ll re urring theme

or

pressure 011 Lhe masler to issue clC311 bi ll s of lading

dis;l WClenU!nt bc",,,een ship'

and . h n: liglJf(:S

'.

agcJ1l

ig,ning bil ls of lading withol.ll reference to the mate'

receipt

. ceSs of their Elllthotiry from rhe nustcr

or in

rcque r ' to deliver me cargo wLlh(Jur

roducrion of the origin .aJ bill of lading.

cncrul paim also

emerged \\ hich can be

ummafbt:d by onc

member' comment

'r Itot~lIotletd a dislina

t(I,J'l/flIIlI'.ss by slrippn"J;

f"1I(!Wt'rs (Jntl tllfd agtllfJ 01

/(}{Jdldisrhllf]!l /lOfts about

flit impor/tJfIa 10 flu mtJJ1('f"

ofbill alluding. Condllwm:

IIry Of"f' wtrJrmll of ifs ~al

purfJfJStiS·'

tfOng words, bu( po&Sibl (rue. though the bill of lading is a key

d cumenc in a rransa. cion where the cmgo and freight mgcth r may be: worth

millio ns of dollars, a

several

m:l$[cr who i diligcnr or

C3uriou

~n hi

hnn dl i!lg of

[h:!t documenr ma

of~en be

, 'n by orhers lIS ob ITUCUVC

or 3W~ anl Ir masters are to

7
7

3

mnd (hei r ground and j uS[ify t heir smnce, then the

mu

need (0 know nor only

what they have to do. but why they an:: doing it.

The aim ofrhis guide'

[0 assi

[ 'hip'

ollicer. opcfmor and m:mage:r

irHhe

understanding of hill

of Ilading and che probJems and practical i. III Ii

UITounding

rheir e'Veryda

use. The hope i ' that cltey \\~II rhen be

ble [Q de:1l with these

ilmuion

and the man

other:; that arise ill connecti 11 \\ IIh what i

a \;tal and

unique documen'L

HOWTO USETHIS GUIO:E

The gui d e has four main COIOlf-coded sectio

quick reference (red)

prnnical guidance (orange)

theory (green)

legal n o tcs (blue).

Q1I id- n :fn l/ 11 Cf'

T he qUick refere nce seu ion i for du)Sc occasioll s when guida nce is needed

(j

u ic kl y a nd [he re is n o o p porHmi

to re. d about or understand r h . u nd e rl yi ng

p ri nci ples of rhe bill of

lad ing. O n rhc'c occ:J.sion.~ [he quiCK

indicates th c part of the book which i mo"[ like ly to he l p. It

refer n > 'ec[Jon

is a ~un

'C

of

referelloc and reassurance and

houlLl nOt be seen

proper guidan e from owners, the i, P& l du

' or

h

a

su bsdlUtc for . eeking

if lu"

'pj.

flral f 1(411 "IW/CIII et

The praclical section gives specific guid:mc:e on bills of lading!lJ1d del~1:r:yor cwgo. It then anal}'

ea h part of the Congenbill, :l \\~delyused bill of ladin

I

nin

. and refu ing 10 sign,

pm ti

\;ewpoim

from

A , pccimem bill i

illldudtd in this section.

Common problem arteaS :m: txamilll!:d 3IlId some guid n

these pmb l CITll sbould be handled from or operawr.

h

paim

fvi","'w 0

given

ch

m

to hm

~er. hipolmer

Each pa:ragrnph has a unique numlx:r for ease of cm s-rcfcrencing.

Tln'ol)'

.n,tl th eory se ct ion eXBm ine,~ t h e evo l ution of I h e b ill o f lad 'in g fro m its sim pl e

4

he inning fa ir.-; modem role U~ u fund:Jmcnml document in [11 . irm:mmion.1 1 ' ale

,11 10 ct l lTiage of goods . The tf<ic.llll()f'l[ 11 three -p art analy s i s o f mhe bi ll of I3ding a~ a

n:cci pr, n comr3 • of ourbgc and 11 d oc um e nt of dde is nO[ follow >d - ins tead

[here 18 Jnnly~is of the parh rht: hi ll of lading will follm

from jr

i~llJe to fuIfiJmelH

and lh" probl IllS [ha~ can he In "(along rhe "Way.

The:ma1

·il; in hides dIe problem., in describing (he n run: qllamiry and

condillon orlhe good

put on board rhe H:ssel; rhe aJr.l

0

::ma Implied

p~

[cm"" ~LarUlc , l.wes and colllvcmions wilhin which [he hill of rllding opef",I.[C

and rh

re larionship of [he bi ll of lading ,,~thi the underl mg

. le contrncr.

It i.1 nor essentia l [0 re

pmcLi(.'al secrioll.

I d, . theory se cion in order to undcrsund d,e

lIin, d/ch paragraph ha.~:L unjque number

for

se of cross I"tlferencing.

5

Legal7wtes

Both die practical guidance an d theo

~C[l(lns ale sup plemented by

kg;IJ

_ are gathered oogerher in a separme section. T he purpo.'Ie of th

nu[(:~ indicated by

symbol in the teXl. To a oid di.mncdon. these nOles

notes, essemiall~

Legal in narure, i ' to idcrltify for those who ma be ked W Il i [ the m [er (e.g.

) (he leg.1l basi

hipowner • club or their lawye guide.

~hi

of (he

dvice being offered b

Reader

hould also nme the '-0110\ ing.

Low

dvice in this guide is based [In Engli h law.

'Clausi,tg' and 'el/dOl'sillg'

In this guide the verb ' to clause m eanS to write UIl a ! ill of lading a commem

which castS doubr on rhe appan:nt good oed 'r and condidon of the cargo. ll1c verb '[I) endorse' means to stamp and OJ sig n the btlck of a bi ll of lading in order [Cl

effect lega l t:ransfer

o f rights llnd er

che bill of ladi ng co ~nother person. Th is

disti nction is made throughout the g uid e, I)u t ie il ' rccog ni 'cd t h ' lt within the

indus try [he word 'e n.dor e' is often IJsed to describe hoth fun·ct1ons.

'Shipowner' and 'carrier'

The words 'shi pOwner- and 'carrie T' ,hould be:: u ed ')'111 n mous Jyas it i.,

hipowner is the master' e mployer and, when the master i

assumed mat tile

a bill of lading, he will bind me shipowner as carrier. I-TO\ ,t;;VCf, in cer tain cilrcumscancc • other panies Ilch as chllI1erers or fn:ight forwarders ma be the llegal if not ph , ical 'carriers'.

Rol

of the nra5Jer

ues

'he assumption made duougbour this guide -:md indeed (he asmmption

m:lde in most printed fonns of chatterpart)' and bill I dlllg - ' thac the master wiU

check and sign the bill of lading:lt [he jlQR 0 I lading in rerum for delivery of !'he broods at me di

IieSponsi biliry for me bill ofla d ing ~u:dly lies with {he m' {er and me . hipownct

ding and "iU receive the bill of harge porr. 1ni i bccallSe legal

However; fo r practical and commercial reason ,th re mn

be an array

r

harterers, age;nts. broke rs and f

igln fOlW:mIers between rhe master and [he biU of

lading and a ma8!er ma

rarely or never 'c:,c a bill of lad in

!lnle

a probl e m occurs.

6

QUICK REFERE

CE

HOW TO USETHIS SECnON

All words and expressions shown in hold printare: in the index at the md of

.his guide. The indc:.'!( refers to unique paragraph numbers in the I r

I

I

~ I 11

and/or rhen" sccrion.> where rhese subjcctS and renns are de cribed and

discussed in more detail.

THE BILL OF LADING - A QUICK GUIDE TO ITS ROLE AND ITS PROBLEMS

In most imemaoonal sales uansacdons where tbe goods are to be carried by

sea, the seller of the good

promises to do t\vo trung'>

pm me goods on board a ship

provide the commercial documents required b\i the contracr, the cenrr-a1 one

usually being (he bill of lading.

M1he fI1<JSter can do is' describe !he ,apparent 0Idet and ~

of the CDrgo - in /his case th e outfr

C!lVer$ of tM rolled $teel

cargo are in 'opfIGl'Mt good onter and condition'

7

' Ine bill oflaillng say · a lot ofthing~ to ( ho

wh(IlXJrne into I

"session of ir.

• It help

la idendfY the

owner 0

the good~ - In rhl, re

I

[I!

i,

d

wnent

of title.

idcmif!e

It

the p:my woocan reccive rhe good~- :lgai n :IS :I docum

nl of tiUe,

Co :I means o f trdl'lSfcrring lidl; from onc person (0 anOtllcr.

I t

h provide

information on

• the description of good

• the condition of goods

• the quantity of goodJ

• the loading port and date 0 :.hiPIUCIll

- the di.scharg

• the name of me

port

hip

- whether freight has been paid

• rh

tcrnl

of carriage under which the car 0 i '

ing

rri

- delivelY instruction ' (c.g. cb

notif

part

or con ij!ncc) .

d

I n th i~ respect me bi ll of lading is both I 1 t1eC ·i!'ll Cl r r h e

ood ,

(;vidcTIL"C uf the contract of curringe.

hipped lnd

s rhe various functions of bills of ladi ng:re > ·s~'flli:11 [0 inr 'rI1·}tional sa le

mlfl ', ,tion s, it IS important that 'illfurnJ<ltion )l;ivcn in car.:h bill is

mC:3llingfu l and

consistent in

pression.

t e mpts te) e n sure rh i~ h :lVC gi

cn ri, • [O :lgf

d code

and conventions

,md recognised pmcti ccs.

Agreed codes and convcntion

include:

• . CP 500 (

• Hague Rules

• Hagu - ISby Rules

• Hamburg Rules

• Inoolenn'.

nifonn Cu 'corns and Practice for I

'umcma

Credits),

Recognised pra cices in ludc u~del

ccepccd IcrminolOf,'Y for

Iou .ng (c.g.

in rcspecf of tee!! cargoes) and the use of wid'l

und r:smod

bbrc\;:uion

These include FOB and II~ DAF, DES, DEQ , DD

and (I

frequ ntl ).

:\( fi

' J

and DDI~ all of \ hi

h

re Incotcrnl .

.

PR, CP r,

It is imporr3m iliar (he informalion in

bill

ing i

ITeC I. H Qwever, the

m [ er when issuing me bill o f lading mn

responsibiliry fOf infonna r ion which he i

This has given ri c ro me use of co mmonly u s d words or d scripL]On in bill

lading such a

(ju. rifiab l ) wi ' h to l imir

n

l in '

po iti

11 10

le

hi ·

k for 11

urn

of

• 'weighl, measure, quantity, cond:ilion, ,contents mul

• ·sh.ipper's lond and COLI nl'

alue unknown'

8

• 'apparent orde r a nd condition'

• 'said to be'.

Som e cim es .an e mp

(S are made. or p ress ure pur o n [h e mas te r, [ 0 hi de

info mm tion that will make rhe bill of lading Ics

at rracdve to me bu 'e r of the

l:3rgo, Th is gives rise ro req ues ts fm the is 'lie of clean bins of lading \\,'he n,

b OG,l USC of dle

(w hic h ~hould

which say the ' will protec t the issu er o f the bill of lad ing.

cond ition of t he ca rgo , t he b ill s shou ld be

la used. 'These requ es ts

be refusc d) arc oft e n made with p romises of letters of indemni ty

. num ber of im porran t 4 uestions n eed to be a d dresse d .

Must rh e mas te r sign an

bill of ladin g as prese nted ?

Who

prc p;n es the bill of ladi ng?

Wh o eI e has rhe rigJn: of signing the bill o f lading un rlle mas ter's behalf?

Wha t is the auth ori ty of c h arterers or age nts?

Wh a t is th e mas t e r t o do wh e o as ked to d e l.iver rhe

argo [Q a c h a n ge o f

d es tination from ma r named in rhe bi ll

of lading?

n [he maste r delivcrtht; c rgo without presentation of the biIJ of lading ? . lI1 rhe master deliver [Q on e pe rson wh ere more t han onc person d emands

d e livery und e r {he b ill of lading?

I

dlese qu,esciolls are d isc u ssed in th e pr ,lllll.1I 'tII.l.lIll

a nd rhco~

>ectio ns, 1 n a ddi tio n , t ht; fo llo win g more speci fIC topic

a re cove re d

t h e purpose of (h e b iU of l:ld iJ1g i n a pra c r ica l and legal scn.~c wha! information the bill of lading musr cQn(ain the sources of rhe mos t accurate infonn ation. if! part icular

the mate'/!j reCe ipl

- {he shipping note

• (he sh ippe r

- sutlleyors and in pectQI"S

- (he draught survey

- (for liq uid c;ugoes) uUages

- certificates of origin. quantity and qu.ality.

Ln addition there is di~us ion of sinmtiQns freq ue nrly e n coume re d . Th ese

include

blending liquid CllrgoeS

mh:ing dry ca rgoes

mu ltiple ' et of bills oflading

backdating (ante.cJating, pro-dating) or post-datin g bills of lad ing amending bill s of lad ing con flic t w ieh mate's receipts

9

[he relevance ,of [he sale contra t

where pressure or dU TCS' is put on the master (0 'ign

reqllest:; for shipped or received for shi pmeni bill. of I ding

describing [he quality of [he £llIgO

offers of letters ofind mnit

me relationship with letters 0

(he bill of lading and me charterp-art)'

how a peP.iOn acqllin:s a bill of lading: endorsemenl and consiltnm nl

respoll!Sibi.li~for packag'ing and mar . 19 of go

credit

[enns

[0 freight

cargo damaged afrer loading bUl befOJ"1: it ·\.Ie of bill of I ding

d ela

m me vessel, delay in i

uing, (he bill of lading

charterer's bill ,> of lading

place of issue omer than at [he loading 1>O[t.

rlh c r;c is also a

bri ef di.scussion of rypc

of bills ofbding and re la ted

documents including

' h i p 's d ~J ivery QI-uier!)

sea waybills

groupage, house or service bills of hlding

stnUght or non-negotiable bills of lading

shipped and receiverl for shipment bi lls uf I· dingo

10

PRAC

CAL GUIDA

CE

SIGNING

BILLS O F LADING

I.

ne of t he most i mpo rtan t fu nc t ion

of a b ill of lad ing is th a[ it p ro vi des

infoml a ti on as to [ he desc ri ptio n

Iluant iry of the guods, the loading pon: and da te of shipment, t he discharge POrt, [he name of t he sh ip, wh e the r freight has been paid and the te rm s of carri age. As

rhese fu nc t io ns arc essential ro erade it is im port.1 [l[ t hat

uf ladi ng is accurate . Failu re [() e ns ure accuracy can give ril'e [0 liab ili cy o f fit:

~ h ipow n er.

of .he goods, the condir ion of the

goods, rh e

informatio n give n in a bill

2. The essential ru le is m ac in no circumstances, othe r cha n those desc ri bed at

rXlr.l.graph I1 (J I,

houl d

the master sign a docume m whieh he kn ows 00 be untru e ,

ur which he believes m ay be untrue, or where he has (l ot given careful t h oughr [0 rhe fa [S contained in it.

3 T h e follow1n

m a n c r s ar e importam. If the mas t e r ca nn oc COnt ac T the

~hipo\~ner or o b tain gu id ance from i r, rhe fo llowing general p rincip les

sho u ld be

appJied.

 

I

,

he mas rer

mllst e nsure ma t rhe informa tion on the bill of lading

agrees wi rh

chac on t he marc'

receipt(s).

Where there is nberty to corry OO.gD on deck it ;s essetllidllflat the bill 0( /ddill g stares mar. the cargo

oClua~ is being oorricd on cfec/r In such cirollllWlnces it would also be. usual (or lire shlpawr>er to

,nse rt prolectNe ciooses pkldflg the risk of deck cargo on the shipper

I

I

The maS'tcr must check me fact

ge

aoout [he l':IIb'O. It would

unu$uuJ for [he bill of lading is

mas(Cr or [he ship's

usually prepared by tile

for me master [Q check me information :loom !h

m to plC pare the hill of kldin g. 111

hipper 0

the

hipper'

agent. 11 i!llltt'Ord in gl. essential

rgo in the bill of

la ding.

-llIe ma,[er willno[ !mmv uJl of the Ii ct

abour rh'

rgo th.1[ !lppe-Jr on die bLU

of I ding which he is being asked m sign, This problem i dc-.ur Wilh pccifiically in tile section entitled 'lnfonnablln in the bill of I dill '(par-J aph ).

The master mu I check (he fa [l,.:loom [he ~·o.

e. Ir [he place or wile 0

loading is incorrect, or if the di5Ch:uge port

the master should ref\lse to

ign.

l~ oll[l,ide rhe

h rr rparry range.

It is recognised that refu sal 10 sign is nor al\\':1 ':' . arc or p

pm deal guidance sec ti on of me book Ih

be

ma

hould ~efer [0 paragraph

1 for guidam:t:.

I c r i

lldvi

d

I. Wh ere in rhi!!

-d [0 refu se to

i gn.

bifonnatiof1, i11 the bill 0/ lading

.4

his section deals wim ways of describing the mr () :lnd rhe voy-agc. It is

imended [0 give (he master guid[IOCC where he i

rhe s hipowners. It may i1lso as~i!;[ [he mam:.r in it! mif) ' ng wh~[ is

wha t IS an unusual s i tuation.

f '" Som e of [he informniol'l in che bill

unable [

ohm!n guida rlce from

a usual and

ma s rcr 's knowl e d ge,

f kldin 1 i~ wiehin lh

for example [he port of shiplllent, th e d~te of

compl lion or loading of [he

parcel described in rht: 'bill of ladil'lg or rh ' d3l e uf iss ue 0 th e bill of lading. Ir

I I

[ h eo;e faclS are not correct th e mas te r ~h ou ld r

fll '

[

ign che bi 11 o f lading.

me tn foml;uion in [he bill of ladin

mOlY noc be wimin the prc isc

kno,wled~ !)f the masrer. for example the quami

condirion of the goods loaded. The

QI/antity The master hou/d if possible: . dd lite word!. • hipper'

or wei~h{ or '[he :lcmal

m;j~ '

illt.

following ru le

figure' or ' holiC

figure$ ' lO any S[llcement:as ~o quanriry

If the masterdocs nOe kno\ ' rhe wd' [ o r qlJ3Jldr)' loaded (bec3use th e re

has been no opponunity for a mJJy or an accumte dmu~lu u"

uld be wri n en alongsi d e me

figure.

r weigh!

n the bill of I di

.

) [hen

rhe

wo rd~ ' eight and quantity unknown'

I

I r) rf the snip has it.'i oWn figures and t hese d i er from [ha

in [he bill of

lad ing, men the ship's figure

figllfes and/or the vord

hould be

wrirt en ~Ion ide rhe shipper's

'weighr and quantiry lJJnkn wn' added

I Ir in siruadon (iil} [he masLer is not permined lO add rh e ship's figures

and if the difference ocrwl:cn [he ship pd. figures and the ship'

12

figuJCS

is mure d lafl could reasona b ly be exp lained

draught surveys or tallying then {he master should refuse (0 sign the bill

of lading. Ir the di fTerence

b

th

practical imprecision of

is small h e shOldd follo~ (ii) above.

C(mditiotl

Usual l. tbe master only knows [hc app-.rrcnt condition of the cargo.

Accordingly if he C:ln

loaded he should

and condirion' ~ .

ee no apparent pro blem with rhe goods when

mark the bill ofl a<.ling 'received

in apparel)[ good orde r

; ,' I f the master can see that t he goods are damaged i.n some wa th e n he

should say o. more difficult q ues t io n

rhe goods may Ix: defective or subs tandard, for examp le because th ey

appem dirty, mixed wirh foreign particles or debri , or are di coloured or

odou mus. He may need guidance - , ce paragrnph I',S. If su

are appropriate he should do his beSt to explain ill ordinary language in wriringon rite r~ceofthe bill of lading what he believes is wrong with [he condidon of the C'MgO. If he: requires [0 add an addi rionaJ heet of papc::r then he should [,ne (in writing on th e bill of lading) how man. sheer of

paper are ;Ictached to each bill of ladillg. lie shou ld see k guidanoc

is w hc l1: the master thinks l h ar

h commcO(

from

Contoiners are usually sealed and !he masrer would not havI: an oppwnmiry of inspecting !he COIlle/J13 -

il is ther!!/Dre audaJ!hat the master mal<es "suitobk remarl< 011 !he m ~s receipt and biIJ oflad"mg to indicate gny (lbYiou~ damage to the cooroiner itself. In a serious case such as dils it Il1<l)' be appropriate

to arrange {or !he conwiner ro beoperted prior to shipment and the contents inspected

113

(he P&l club or ilts loc.1~ corre pondent or age m or from a surveyor as 'to

the precise wording co be used,

Iyii ile is always useful to de~cribe the n!uure of the packaging of goods, far

example 'in paper bags' or

damaged the bill of l ading should say so, such a~ 'about 4-7 ltY.lgs com'. If

only a rough esrimne can be made of [he quantity damaged. however,

'in polythene sacks' .

If these are tom or

thi'S shou ld be stated,

dam~ged'. Whether it is on the basj~ of ~ wHy or estifl1~HC, thc m3StC[ must have evidence co support his remarks.

for examplc ' aOOm 10 % wm' or 'aboU[

5000 bags

(\uil Special ciausi!1gi are often u~ed, for example for timber or

rod cargoes,

and if possible the shipowner or rhe P&l club correspondent should be consu lte d (for fu nh er djsc!Jssion see paragraphs 153 ~Ilt.l 1 .~ 4 ).

(I ) lrin situation (vi

or (vii) , the master is nor permirred ro add comments

which aocUfdtely describe apparent dcfects ill the good

should refuse to sign rhe bill of lading.

or packing, he

QIHmWy .(:md CQnditi01l

1\, The words 'weighl, measure, qU3miry, COlldidon. comenrs and value

(ll

I,mknown' area useful and dc.-;i

iblc

words to ~dd to a bill oflading if they

are not already part of che printed form,

Oll(llif]'

i'Ul The m3srer need nm describe the

fur we avoidance of doubt the maste.r

quality of the cargo (see paragrnph 1.7 ).

hould place his signature and/or rhe

ship's

mmpal dle foot ofrhe biU oflading only ~

.

Specific situations

5. Freight I hire / demurrage / lilms

The master may be worried that a bi ll of lading p[~ented ~Q him does not give

the shipowne r sufficit:Dt prote ction in

tenns of freiglH. hire or demurrage, or liens

for any of chose , or he may be worried about othe.r terms of c-,mi3gc. l'h~ arc; all

mancrs for tbe sh ipowner or its P&l club ro consider. The master shou ld always

check wirh the

to be added, bur leave the decision (Q them. tf it is impossible [0 get guidance from [he shipowne r then see paragraph .;.

6. Charterparty bills oflnditlg

Wherever there is lit reference to 3 charte.rparty in me printed form of a bill of

hipowner's managcr.~ as to whether they rcquire;<; prQ[eccive [erms

ladlng (for example in the Gencon chanerp;my). the

rhe shipowner as ro rhe dare of the chmerparty [0 be inserted in the bil l of lading

(in the absence of guidance ee paragraph 232),

ma.~[cr shouJd c heck with

14

DecA' cargl)

Excep r in purpose-builr conraine r shi ps or in special [fad es wh ere cargo is

c ustomari ly mJTicd on deck , cnm agc of cargo on deck s hould :!lways bc checked

wir h rhe sh ipowner. Whe re cargo is carri ed on d ec k lr

is e

se m ia l W SI3re on the

1: Il:c uf [he b il l of lai.ling [hat cargo is being carrie d un Jeck. I [ is fo r [ he m& tcr (0

c i1eck with [he s hipowne r and for [h e sh ipowne r to ens ure [h a! such carriage is pt.:rmissible.

!I

How mUIIY bilL~ '1/lading to be sign.ed

Th e ma.~[ershotl~d check

with [he sh ipper and wirh rhe charterparty.

l Ie

, llOuld also check th e rerms of rhe bill s oflading rlu:msdvt:s as rhey may show me

\.led.

be is, ued fo r a pmcel

Il wnbe r W be i

There L no gene ra l rule as w what number s hou ld or mu .H of cargo ~

.

Q . Bltmding I CQ-1fl itlgl:ing of ()il carg()cs

, I O il cargoes arc unu sual in that charterers and tra ders mil

wish to co-mingle

,I

I

cargoes s hipp e d from differem pons on d i ffe rem dB((:~, gnd of]:en with

diffe renr specifications.

If cargoes ~hipped from separa te pons, O[l separare dates and/or of 5eparate orig ins are to -min gle i.l , then comp lie.ltions arise as w [ he aceur<}[e d escription of [he pO rT of sh. ipm e m, date of shipmcn t and type o f cargo in the b i Us of

I~ding. fu rt her prob lem may llrise at che discharge pan ir che cargo mixed in

[he ran ks no longer re t:mbk:~ cllL

argo dt;~cribt;d in om: or more of [ht:

original bills of lad ing.

\~'herever the re is co-m ingling of cargo sh ippt:d on differem dates from

difTerem pons and of d iffe rcm lYpes , it ~ essem ial [hat the shi powner' s

insU\lct irm, arc ob tained before b ills

insU1.lcrions canno( be obtained [he master should refuse w sign and should expla in his reasons fot doing so by refere nce [Q (b) 3bo~·t:.

elf lading arc i ·sued. If thc shipowner's

I c,. Letters of ind",mz ily

I1 is nor for a master to agree to ign a bill of lading in rerum for s. lerte r of mdemniry. Thlll is for [he h ipowne r [Q dec id e. 1f (h e s h ipowner can not b e m macte d [hen till: master shou ld refuse [Q sign . It is better for the mascer to IlI lInw the steps a[ p aragra ph I I [ h3.11 tn accept a lerter of indemni ry wi rho U[ rhe ,I ll! owne r's aurhoriry ~ .

Neji,sai to sign

I

I .

I n c i. rcurf}sranCC S where che rna.,{er fcd ~ [h ar he sho u l d rdu st:. r t) ~ign !l bi ll of

l : rJing he shou l d

currespondent. if no gu idanct can be ob mined. rhe follo wing ge neral princi ples

,lIou ld be ap plied .

ee k guidance f rom (he s hipow n e r or from the P&r cl u b o r

i~

I~

I. tI

r f the refusal ohhe master [0 sign a cl

tuncm i' met wit h physical threats or

coercion against the

hip or iler masrer or ere\ , rhen rh

ma. (cr shllJld sign

rhe doc:ummr. When rh

s;Ifecy, the mas[er (or d'le

vessel has sailed and upon rca hing a po ilian

hipo\ ner. if iu is now in conract with the ma.'l:ccr)

ma , give notice of protest [0 all parties and

thar the document has been igned under dUf' 'S and th . shipowner and tile

m leC con ider themselves not bound by the masler', • i

thought mu t be given ru. to whether the ~hip, m:IMcr or:ln si [cr l>hip i

likely to rerum (0 crus daAgerous regime).

[er to . ign. The mosr

common example will be where the hip ' operdling under a charrCiparcy.

The hmerparry ma, list the master" obligati of lading. fur example he m3 have 10 ign bill

and similar expressiuns do nor mean char rhl: masrcr mu. [

lading whatcver i[s rerms. The ma ' ter can refu [u sign a pre'lCnred' ifil

. rd [0 . igning bill prc emcd'. This ign :my bill of bill of ladlllg ' as

mhoriric

oncerned re rhe effecl

3W£e. (OfcoullSe

,I Sometimes legal pressure will be exerted on Ihe rn'

n~ wi rh re of lading 'a

" comail1s faeL~ about [he c;Jrgo whi h ~r ;n

rAAlllnd \ ,vlll(;h C:lunar ht:

sadsfacwri ly

' Informa tion in tbe bill of lading' (p:lrllgruph I)

dealr with by fol!owing, rhe ticeps in (he ~cction enilr led

1111 contains faCtS abouc the voyage which arc ill 'orrect ne name discharge

porrs o;J[s ide th

ch!1Herp.my f"Jng

I1II says mal deck cargo is bcingcHrricd under de k

I I contaill.') (erm

lading.

wruch the charterparty~. pres ly prohibit

in the.: bill of

However. if the master i required by rhe ch:ln~rvJIry to ~ign hill oi luding ':IS

presented' be

marked, for example 'liner out', or becau it contains some forcigl'l

houId not refu~ to

ign:J bill ofladin

impl

becall

' ir is

jurisdiction clause. These art: not filers bur [erms

f [he shipper' or

charlcrer's :rade. They are maners [or Ilhe hipowner 10 argue ;looUl with tlile

charterer if necessary. If the master i requested co sign 'freight pre·paid' bills

of lading his position is ~ligh[1y I ' s clear. od r fercl'! e

hould be

m2de 10

pa11IgT.Iphs 11-1111 and p-dJ'"'dgraph _ l.

 

metime.~ commercial pr

sure will be e ened

n the ma.~l!;r 10

sign in

circumstances wl1e.:R: he shOUld, as ad\~ ·d ~bovc, rcfu elOign. I [ is for the

shipowner t Q make commer<.:ial de ision in spon ' . [0 lIeh pressure.

The

shipowner may wisb [0 nel:0tiate, take [he commercia l risk or accept a

leerer

of in demnity. The master, however, ds nOl ha 'the.~ options. lie should maintain his refusal to sign. Delay to [h • v . 's(;;1or Odl(;;r o(ln,~cquenccs of

16

threar

followin

made by [he

reps.

hipper or charterer may then perhnpl be

\

id

db , the

TIle JroS1er hould ign d"e document in the form dm he ' pre

roe example. in rhe case ofa bill of lading \\ here dle quantity or dcscripri n 0 the cargo is in dispme. me masrer should ign 3 bill of ladin howi ng the quamity or descripcion which he 00 i~ to be aCCUt.l1 . Th blll f lading

red to ghe .

hould be k.-J:t with the ship" agem (and a pnm:clin

:lgC11I appoinlcd

r [hiB

purpo if possible). I otiet: can then be given chat:J bill on ding r, r [h e

cargo has been

igned and issued and i '.aV'dilabl

for coil

lion.

• I f\Jte mll[ivel y, .he ma.'5ter should give notice [hilt he

has given authority ro

[he ship'

prmcccing agem [0 sign biJls of I~dingon hi bch[llf ubje [ £0

instru~tions and approval from the shipvwncr \ h '1'1 tll'£liltlble.

The mast :er sho uld not sign bill s of lad i n g in b l~n k,

Where any person coming on bo;ud i!lsist~ [hac [h e ma: re r rakes d elivery of

Llo ' UlIlCIH from [hem he should mark it 'Ibr receip[ only'.

{le Tclub cover

All [he L"Ommemary in paragraphs I - I , isimporrant tU the 'hipowner

Io.:causc signing a document, and in particula~a bill of Jading, whi

111I:nrrc I infommion can expose me hip [0 liabililies which i[ w uld nor

I>lhcn\' i f ce. In addition ro faci:lg those liabilitie ,rhe hipown r m lose Ih

"

onmin

I,mlc lion of it

P&l insurance ifinac:cuf3tc bills of lading

re

igned :md e pose

Iht: ~hipo\\"l1cr to increased liahilily.

DELIVER NG THE CARGO AT IO'ISCHARGE PORT

e m3S(Cr can deliver me ClIgO to the holder of a ' bearer' bill of lading (see

ItlrJg;mph 1H.~(t."J) rfa bill of lading ho"

('CC paragraphs 1&iI aud I S6 ) me person dcnlancling delivery of [he cargo mu . t

provide some evidence [hat: it is the person idenfified in [he bill of I din. lllll of lading would lIsually be presentcd rhmugh die sh.ipowner' · r lim .

a named c.on~igntlCor named end rsec

the

L h'lrtcrers' age nts whic.h are local 10· and fam il ia! with the cli

harge p rt, the m

(cr

proba bl

need only be worrie-d aoom idcmificalion of Iht: person dt:m:wding

Lk livery if the master has actual reason for bel ieving there has be n r ud, ,that rh

I,ill

f lading may h,WC been stOlen, [hat rh e person i ' not emided to cl ' im rh ,

I-(md , or if Ile has been notified o( a compet ing claim for (he goods

~

The problems which usuall uise are where

no bill of lading is available at the di.-cllarge port

del ivc . of cargo iB requcsted ae a port which i1; not che n~rned discharge port.

17

In che ahsence of de~r !!Uidunr: fru111 the shiJlowner~ or Ih· 11I(,;::1i 1'&1

corr~spondt:nr. the master 'hot:l ld mkc oote nf rille

The unav-di labillry 0

:I bil l of bdin~:I[ rhe dl~

problem. I r I. rhe problem 0

[he bU\cr~ :lIltl

fol lowing pilincs,

Ihar~ 'port is not d1C master'

'lIIer, of rhe t,lr~o,

The ma [er hould nor a~ee to Ol eh:lr~c the 'ar~o :.tp.ain\~ a Icucr or

imkmni~ ' (unlcs , rhe .hif1O\\'ncr h:t, e prc, I~

Dcla~ to the \ 'essd while wairing for the bill of "'dlng \\ ill u u' llIy be paid for

~rc ' d ro rhh),

ham::rpaIt'- in rhe funn ,.f hin: or d 'murrJ~ (or:1.' p:1fl 01 the

under rhe

I \'lime which h:l been ~id for In cl

frciglu p:l~mcm). EI'cn i f [he v _'lel i

Ihrc-atenL:d wirh the co. [()

me dcla,: rh:n Ihr 011

h uld IlOt jUMif) ddilcry of

rhe

Deli"erywirhoU[ proJut:[ion of the bi ll (j

3 b re::Jch of rhe renns of

rhe

rgo \ irhour proJucriun () rhr.: bill (If l;Jliin!!,lIr :1I rh, wTong porr.

bdin!\, m .If rh 'wrong l1<n, wil l be

hipOll1ler's P& l

'wrong l1<n, wil l be hipOll1ler's P& l insur:mce and there will be nu i n,

insur:mce and there will

be nu i n, urance i f in co nsequence a claim i

sub$cq ucnrly b roughc by

I

{le

rme cargo ow ner.

.

In some jurisdic[ion~ rhe

cargo can be di sc harge d

(at [he named di , Charge

porr) imo [he cuswd'y of

[he port or :I priv.ue

warehouse where i [ will rcmain under the 1e,2al umml oflhe masrer unciI me bill of lading

h been produced. 11le m [cr hould in.otigatt: this, if possible rhrou"h the P&l correspondem.

-

this, if possible rhrou"h the P&l correspondem. - pecifrc i 'sues I I J'tters of illdem

pecifrc i 'sues

I I J'tters of illdem 11ity

le gi \~ng of k:t[cr~ of

ind mniry in rewrn for

dclivclY of cargo ar the

wfOng dis chctrgc

Many o/PllS or WrgD may be dwna~ as Cl re£uit or /wndling

prior to shipment · any sucli oomagt shO!{1d be carefUlly

nOled and recorded on li re mat e's receipt and bill or lading

po rt or

18

IIl tl.iIt produ don of the origin31 bi ll of bding 11> no! wron ', nor i. ie lInll~U!11. It i ,

I II 1' 1 U, J maller fur [he .hipoII ner to d el· id c lt l~(JI1. I t i~ ~I cO l nme r c ia l de(;ision

, I( IfIlllake :1I1d onc which i r will rnakt:

mking illt o co n~ id l.:ra(i(ln Ih '

1'. 11.:( lhl1l ir

" \ It,I\'e no P&l ~I)V r as:J conscque lwc of doing ~o,

Ik c:()mmern dcd sranda rd lettcrs or ,ndem rlllY urt: inclucl ·cl in t h e Llpp ndi cc,.

11t~'l' ~l:lI1dard fonn ' show l'ollllter-sigll:ltllr

by a bunk

U~IIk.';JJ ' f"Jrc ly pn.:parctl

• "g n :111 indemni . for unqllamiJi ' d amOllm~_ Fl'I:qll 'ndv, lhcrt:fi)rc, rhe leuer i~

,,- pled without a bank'

counter- ' ign:1turc,

Icmari, 'ch ~ limit

I,

1" lue of the

:I1go) LS placed on the bank's liJbili~ under Ih

' '>C

.lre collllller illl de Isions for rhe ~hill()\\n r 10 lake.

l:.g. 1"0 ,». of

I<.:[lcr. J

'illII,

/ '1IQI(I Q/1)' or fa 'ed hjlls of/(ldill ,

" 1II

llme.,

the m:JSlcr i asked to ddi\'Cr .lg.tin~r u cOP' or Jxed bill of I.lding, the

,,:.:mJI bemg una\':J.ibble, t 'nJe

pecl.lI aJroll1 'emem' ha\c Ix:cn made 111 \\ nllllg

.\

1I c

hipowner (0 accept

u h iI bill of l'lding. 1.11:11\ Cr\ 'h

uld he n.:fu

~d. The

" " .,1 rule:: " that dclin:~'shall be gin:n agalll' t p

.

'fl[acion of ar lea"

onc original

11111 ,,1' bding,

.1/nlfiple OI'i inals

11,11- 411' bding ,ue often i sued in set f .mee n[ four origin:I"- 11,e bill of I. ding I I IlIu!>ually provide:: on itS face that production or any 011 • or [huse llrigin~Js will be

" \ q}[ablc. Al the Sllm, rime, lhe uril,r ori~imll :lIC ~ n '1I.krcd t

•• 11 tn: IIcd.

lx.' \ Old

a nti

IM ention of'he original bill of [adillJ!,

I ht: m3,ter ~h{)u ld r etai n th e o ri gi n al b ill of l a d i n g agail1!>[ whi ·h c~

go has been

tlt'ill'c r ed. I loweve r, originals are somer

il m: .

" Juired by le - 11 oni c i:d ~ ( I r cu ' WillS

".d in those circums t ance

rhe mast I' s h ould cns ur c

thal he (ur l1i~, a~cnr) i~

,alloll'ed to see th e origin:d bill of I:lding

1' 1t,,!(lCopy uf the front an d reverse ' idc

I n

"I rh ' original bill of lading which i ' now:lcromp!i hcd·.

~nd rhat he i ' :llloIVcd [0

IIf the llr igin.1. Th

r min:l

is ,hould, if fl s~ibl ,be

Hied byrhe recei er or his

oem as fo llow: 11,i ' i ' cc tl ificd to be 3 [rue copy

Mare thall ofte persOI) ,denlllltaiffg aelivet), 0

Ih" siruarion may arise where

the catto

no bill, of J ding are ll\'ail bJe at the dio;charl1l

more rhan one SCI of bill oflading has been placcd In

porr

o \ hi h an: unaurhmi

d

irculalion, all or 50me

lhe original hipper Ius paned with rhe hill, of IJdln and I~" erring [hac lhe holder has nor complied lIiul it obliguuon!> ul1der lh' .>a!e ( Illr.ll.'t, for e . mple i( has 5Omebo"- acquued the blU~ of h1din " 'i[hour m3king Jl:1ym nr.

19

1

Ea h of [he SitU3tlOn

places [he master (und the ~hipowner) in a vcry difli ull

posilion and can 'vc rise [0 complex Legal ~-suc: nd m3 in\'Olve compl . commercial :md legal lurions. Th best advic • rh ,C3Jl Ix: given to [he m f' ·r. if

he cannOt obra in guidnn . from [he -hiplJ,orocr, i (I I. our in pardgr'".lph • I .

25. Chatlge ofdestilllltic/II d ur i-nt vuyage

So m etimes lhe maste r m~y be. as ked [0 d lal1 e d e tinm io l1 during (h a y:.);c and

to proceed to a llischarge port other than that named in th e bill of

maner for the sh ipown ' r [0 give instructiDn upon. In [he absence of clear guidance from the hipowner or the loc'3i P&l (; rrc ponden[' lhe m~lCr hou ld

take note or the follo\ ; ng.

lading

rha t is,a

,

I

Even if the

of lading hilli been issued naming a discharge pon, [hat destination sh uld he rre.:u e d as if wriCt 'n inw rh charterpar , .

di charge porr . onCe a bill

\' 'ming chartcrpaHY giy

a mn

co

nil

So far a:; che bill of lad i ng hol d e r is cooc med , [he diversio n of rh e Yes c l co u

d i ffe r ent disch, rge POrt will

seriolls for [he Cllrricr.

be a

d evi~[ion, he consequence~ of whi c h C'1rt be

Promi

. - b . :1 parry

eking to change the de rin:uion (be it c harte rer;

hipper

ur receiver) rh:)t j( holds all ohhe

ri~n

I bill

of lading or rnar [he pam

With bagged ~ugar cargo the moner wauld ,usudllr be III!wlct.ed to descrlb.ing the apparent QnJer aoo c.onditi o ns o( rhe bogs . In tl1is ca s e me cons i gnment would appear to be irl apparent good omer and concfltion

10

hulding !:he bills of lading have agreed {O

mcanin less and at worST unrrue. U SlIch parties are genuine! in a po 'ition to

make proper arrangemems for me chan e of destination dlen [hey hould be

111 :J position to provide:l lerre[ of indernniry (see

rhe change, ffi:l)':I[ be.~[ be

I below) including an

un dertaking for me rerum uf aI.1uf [he originalllilb uf lailillg,

\s

[3[ed al paragraphs

and

',the provision oflertelS ofindemniry in

n .-mm fur delivery of cargo at a different d tin:niulil i llI;lt unusu:1il. H owever. .he randard wordin a for a change of desrination letTe r ofillldemnity (see appendi.x ) expressl pro id for dt rerum of all of the original bill of

lading and an

should be regarded as inadequale and rejecred.

leerer of indemnil)' \vhich omirs (his fun

menw provision

TYPICAL BIU O:F LADING· THE BIMCO CONGENBILL

\ mndard printed form ofbiU ofladirng is repruduced on pages 22 and Z3 at

,. 1'[-

17

e.

The

randard BIMCO Congenbill

has been selected because of its

, ltkspread use. Each item in lhe bill oHadin o has been madled with an mange

ILllll lx:r which refers lO rhe relev-.lIl[ paragraph number in rbe teX[ below. [hough

II.UI. 0

the tcnns and conditions

hown on me reverse of the bill ofladingare

.- l:ori\'CI)' ~hort and simple comparetl wi th those

of a more de:ailed

"nbi ned mmsport bill, rhe essencial information comained in die \ I-cal of all bill ofladlng

liner or

CongenbiU is

, hipper '

·1 ne shipper lvill

frequent!

be che parry which pfcpar

(he biU of lading and

" 'I'plies much of rbe information w go in it- This information must