Bill of lading

Bill of lading is the equivalent of waybill in maritime transport. This is proof of acceptance of the cargo indicated in document to be transported on a ship. It is also a document giving legitimacy to dispose of the cargo and its reception. Properly drawn up bill of lading allows the presumption of acceptance by the freight carrier to ship the item amount covered by it. A bill of lading constitutes the legal relationship between the carrier and the recipient of the cargo. For the carriage by sea also shall apply the provisions of the contract of carriage, but only if the bill of lading refers to them.

The bill of lading can function as a security. It represents an item for which it has been issued and is entitled to the goods and, in particular, the right to dispose of it. It is the subject of commercial transactions, and can be sold and bought.

Elements of the Bill Of Lading

In accordance with the provisions of the Maritime Code bill of lading should contain:

• name of the freight carrier,
• name of the shipper,
• designation of the recipient
• name of the vessel,
• identification of the load indicating type, weight, quantity, volume,
• external identification,
• status of the cargo and its packaging,
• special attributes necessary to establish the identity of the cargo,
• designation of freight,
• name of the loading point,
• name of the place of discharge,
• the number of copies issued,
• date and place of issue of bill of lading,
• signature of the carrier or the ship's captain or another representative of the carrier,

Bill of lading may be issued:

• to name determining the recipient (personal bill of lading),
• on behalf of a shipper or designated entity (bill of lading to order),
• for document bearer.

The Bill of lading is tradeable valued paper (security), so it can be transferred to another person, and by transferring that person acquires the rights to dispose of the cargo

Types of bill of lading

There are many kinds and varieties of this document:

• clean bill of lading - is a confirmation of the good condition of the goods,
• dirty bill of lading - is one in which the carrier posted a reference to the poor state of cargo,
• direct bill of lading direct - used in multimodal transport,
• load bill of lading - states that the cargo was loaded on a specific date on the ship.

See also:

• Waybill

Examples of Bill of lading

• A Straight Bill of Lading is usually used when goods are shipped directly from the shipper to the receiver. It is a non-negotiable document and it is used to transfer ownership of the goods from the shipper to the receiver.
• An Order Bill of Lading is a negotiable document and it is used in cases where the goods are being shipped from the shipper to a third party. It is transferable, meaning that the ownership of the goods can be transferred to a different third party without the involvement of the shipper.
• A Through Bill of Lading is a document used when the goods are being shipped from one party to another through several carriers. This document is used to ensure that the goods are delivered to the final recipient. It is also used to show the route and the cost of shipping the goods.
• A Transport Bill of Lading is a document used when goods are being shipped from one place to another by a third party. This document is used to show the route and the cost of shipping the goods. It also serves as proof of the goods being shipped and it is used to transfer ownership of the goods from the shipper to the receiver.

Advantages of Bill of lading

A Bill of lading is an essential document for any shipment. It provides legal protection to both the shipper and the carrier, as well as the goods being transported. Here are the main advantages of using a Bill of lading:

• It acts as a receipt, confirming that goods have been received by the carrier and are ready to be transported.
• It documents the type and quantity of goods being shipped, as well as the terms of delivery.
• It also serves as a contract between the shipper and the carrier, outlining the rights and responsibilities of each party.
• In case of any damage or loss to goods in transit, it serves as proof of ownership, ensuring that the shipper is compensated for their losses.
• It can also be used as a financial instrument for the payment of goods.
• It is also essential for customs clearance, as it provides a detailed description of the goods being shipped.
• It also serves as proof of delivery, confirming that the goods have been received by the intended recipient.

Limitations of Bill of lading

A bill of lading has several limitations:

• It does not guarantee quality of the goods as it does not describe the goods in detail.
• It does not guarantee safe delivery of the goods as the carrier is liable only for the damages caused by their negligence.
• It does not guarantee payment of freight charges as it is the responsibility of the shipper to pay the freight before delivery.
• It does not guarantee delivery of the goods to the rightful recipient as it is the responsibility of the shipper to provide the correct details about the recipient.
• It does not guarantee that the goods are not dangerous as it does not state any information about the goods.
• It does not protect the shipper from any legal liability arising from the goods as it does not specify any information about the goods.

Other approaches related to Bill of lading

The Bill of Lading is an important document in maritime transport, and there are various other related approaches that should be taken into consideration. These include:

• The bill of lading should clearly indicate the details of the carrier and the freight, including any special instructions or requirements. This helps to ensure that the cargo is properly loaded and delivered safely.
• The bill of lading should also include the details of the consignee, so that the carrier can contact them in case of any discrepancy with the shipment.
• The bill of lading should also include the details of any insurance for the cargo, and the terms and conditions of the policy. This is especially important for high-value items.
• The bill of lading should also include the details of any applicable liability limits and restrictions. This helps to protect both the carrier and the shipper from any potential losses.
• Finally, the bill of lading should also include the details of any dispute resolution procedures that may be in place. This helps to ensure that any potential disputes between the parties are handled in a timely and fair manner.

In summary, the Bill of Lading is an important document in maritime transport, and there are various other related approaches that should be taken into consideration. It should include details of the carrier and the freight, the consignee, any insurance, liability limits and restrictions, and any dispute resolution procedures. This helps to ensure a smooth and efficient process for both parties.

Bill of lading — recommended articles

Contract of affreightment — Ocean bill of lading — Master bill of lading — Shipping note — Free carrier (FCA) — Shipping terms — Dispatch note — Waybill — Acknowledgement of receipt

References

• Stapleton, Drew M; Pande, Vivek; O'Brien, Dennis. EXW, FOB OR FCA? Choosing The Right Incoterm And Why It Matters To Maritime Shippers, "Journal of Transportation Law, Logistics, and Policy" No 81.3 (Third Quarter 2014): 227-248.
• Richard Aikens, Richard Lord, Michael Bools, Bills of Lading, CRC Press, 2015