Project Ⅱ Task 6 Bill of lading

Section 2 III. Bill of lading A bill of lading (sometimes referred to as a B/L) is a transport document issued by a carrier or his agent, acknowledging that specified goods have been received for shipment to a particular destination and to the consignee. In other words, the bill of lading shows the information that what goods have been consigned for shipment, to which company it has been consigned, which company did the consigning, where the goods were shipped from, and where they are going. There are three functions of a bill of lading. The first one is that it is a receipt of goods shipped. It is a receipt signed by the carrier or its agent confirming whether goods match the contract description and have been received in good condition. The carrier will be liable to the consignee for any discrepancies between the quantity, apparent order and conditions of the cargo acknowledged in the bill of lading and of the cargo delivered to the consignee.

Section 2 III. Bill of lading The second one is that it is evidence of the contract of carriage between the consignor/exporter and the carrier/shipping company. On the back of it, there are the full terms of the contract which stipulate the obligations and rights of both parties. When goods are lost or damaged in transit or short delivered, these terms are the basis on which exporter or importer may be able to pursue a claim against the carrier. The third one is that it is a document of title which provides its holder with the exclusive right to demand delivery from the carrier. As the goods will only be released at the port of discharge against the bill of lading, possession of the document amounts to possession of the goods. As a document of title, it is also a negotiable document and the goods may be sold by endorsing another authorized party, even while the goods are still at sea. A bill of lading often refers to ocean/marine bill of lading. It may contain the following information:

Section 2 III. Bill of lading (1)the name of the shipper Shipper’s name and address should be shown on the bill of lading. Shipper is also called consignor, he may be the exporter/beneficiary of the credit or the third party. Under UCP 600, the shipper or consignor of the goods indicated on any document need not be the beneficiary of the credit. (2) the name of the carrier and signature A bill of lading should state the name of the carrier who takes control of the shipment and causes its delivery to the consignee. The carrier shall be responsible for the goods from the time when the goods are received by him at the port of loading until the time of delivery at the port of discharge to the consignee.

Section 2 III. Bill of lading A bill of lading should be signed by the carrier, the master or their agents. When the carrier, master or their agents sign the bill of lading, they must identify as that of the carrier, master or agents. When signing the bill of lading, an agent must indicate whether he has signed for or on behalf of either the carrier or the master. For example, an agent may sign a bill of lading as follows: GHL SHIPPING COMPANY AS CARRIER SHINE TRANSPORT LOGISTICS LIMITED AS AGENT FOR CARRIER Martin

Section 2 III. Bill of lading (3)the name of the consignee Consignee is the party who has the right to pick up the cargoes at the place of the destination. The consignee is the addressee of the bill of lading. The bill of lading can be addressed in two ways. One is “named consignee” which means the name of a specific person whom the cargoes will be consigned to and should be shown on the bill of lading. The other is “to order”. It can be made out “to order”, “to order of issuing bank/applicant/shipper” or “to bearer”. If the bill of lading is addressed in the second way, it is a negotiable bill of lading which means it can be transferred by its consignee to a third party by endorsing. Under credit term, the name of the consignee should be addressed according to the credit specification. For example, the credit states “a full set of bill of lading, make out (to order), blank endorsed”. The consignee of the bill of lading should be “to order”.

Section 2 III. Bill of lading (4)notify party The notify party is the person whom the shipping company will notify on arrival of the shipment, normally the importer or his agent. (5)the number of bill of lading (6) the name of the carrying vessel, the port of loading and port of discharge In credit transaction, the bill of lading should show shipment from the port of loading to the port of discharge stated in the credit. If the bill of lading indicates a place where the goods were received by the carrier different from the port of loading stated in credit, the bill of lading must contain an “on board” notation indicating the port of loading as named in credit and the date of shipment and the name of the vessel is required.

Section 2 III. Bill of lading (7)description of cargo The description of cargo should include shipping marks, name, package, quantity, gross weight, measurement and so on. The description of the goods can be in general terms not conflicting with their description in the credit. (8)details of freight Under CFR and CIF terms, “Freight Prepaid” or “Freight Paid” should be shown on the bill of lading. Under FOB and FAS terms, “Freight Collect” or “Freight Payable at destination” should be shown on the bill of lading.

Section 2 III. Bill of lading A bill of lading (sometimes referred to as a B/L) is a transport document issued by a carrier or his agent, acknowledging that specified goods have been received for shipment to a particular destination and to the consignee. In other words, the bill of lading shows the information that what goods have been consigned for shipment, to which company it has been consigned, which company did the consigning, where the goods were shipped from, and where they are going. There are three functions of a bill of lading. The first one is that it is a receipt of goods shipped. It is a receipt signed by the carrier or its agent confirming whether goods match the contract description and have been received in good condition. The carrier will be liable to the consignee for any discrepancies between the quantity, apparent order and conditions of the cargo acknowledged in the bill of lading and of the cargo delivered to the consignee.

Section 2 III. Bill of lading The second one is that it is evidence of the contract of carriage between the consignor/exporter and the carrier/shipping company. On the back of it, there are the full terms of the contract which stipulate the obligations and rights of both parties. When goods are lost or damaged in transit or short delivered, these terms are the basis on which exporter or importer may be able to pursue a claim against the carrier. The third one is that it is a document of title which provides its holder with the exclusive right to demand delivery from the carrier. As the goods will only be released at the port of discharge against the bill of lading, possession of the document amounts to possession of the goods. As a document of title, it is also a negotiable document and the goods may be sold by endorsing another authorized party, even while the goods are still at sea. A bill of lading often refers to ocean/marine bill of lading. It may contain the following information:

Section 2 III. Bill of lading (1)the name of the shipper Shipper’s name and address should be shown on the bill of lading. Shipper is also called consignor, he may be the exporter/beneficiary of the credit or the third party. Under UCP 600, the shipper or consignor of the goods indicated on any document need not be the beneficiary of the credit. (2) the name of the carrier and signature A bill of lading should state the name of the carrier who takes control of the shipment and causes its delivery to the consignee. The carrier shall be responsible for the goods from the time when the goods are received by him at the port of loading until the time of delivery at the port of discharge to the consignee.

Section 2 III. Bill of lading (9)the number of original The bill of lading is often made out in a set of three originals. Under UCP 600, the bill of lading should be the sole original one or the full set as indicated on the bill of lading if issued in more than one original. (10)the terms and conditions of carriage UCP 600 stipulates that the bill of lading should indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit by pre- printed wording or an “on board” notation indicating the date on which the goods have been shipped on board. If the B/L includes the notation “intended vessel”, it must also contain an “on board” notation of a named vessel along with the date of loading.

Section 2 III. Bill of lading The date of issuance of the bill of lading will be regarded as the date of shipment. But if there is an “on board” notation indicating the date of shipment on the bill of lading, the date stated in the “on board” notation will be regarded as the date of shipment. The bill of lading contains no indication that it is subject to a charter party. A bank will only accept a clean transport document. A clean transport document is one bearing no clause or notation expressly declaring a defective condition of the goods or their packaging. The word “clean” need not appear on a transport document, even if a credit has a requirement for that transport document to be “clean on board”.

Section 2 III. Bill of lading

Section 2 III. Bill of lading (9)the number of original The bill of lading is often made out in a set of three originals. Under UCP 600, the bill of lading should be the sole original one or the full set as indicated on the bill of lading if issued in more than one original. (10)the terms and conditions of carriage UCP 600 stipulates that the bill of lading should indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit by pre- printed wording or an “on board” notation indicating the date on which the goods have been shipped on board. If the B/L includes the notation “intended vessel”, it must also contain an “on board” notation of a named vessel along with the date of loading.

Section 2 III. Bill of lading The date of issuance of the bill of lading will be regarded as the date of shipment. But if there is an “on board” notation indicating the date of shipment on the bill of lading, the date stated in the “on board” notation will be regarded as the date of shipment. The bill of lading contains no indication that it is subject to a charter party. A bank will only accept a clean transport document. A clean transport document is one bearing no clause or notation expressly declaring a defective condition of the goods or their packaging. The word “clean” need not appear on a transport document, even if a credit has a requirement for that transport document to be “clean on board”.