Exporting and Logistics Saturday, 7 October 2017 By Pal Bob Kantas

Who am I? Born in Amsterdam, on June 15th 1958. Graduated in Information Management in 1983 at University “VUE Amsterdam”

The role of the freight forwarder and the required export documents

Learning target What is the role of the freight forwarder What is the Bill of Lading and its function? Key classification of the Bill of Lading What is the difference between the Master Bill of Lading and the House Bill of Lading?

Bill of Lading There are two types of bill of lading. These are house bill of lading, or HBL and master bill of lading, or MBL. House Bill of Lading A House Bill of Lading is a transportation contract which takes place between a customer and a forwarder. This legal document is issued by a freight or cargo forwarder to each exporter, for goods to be shipped or transported in a group. Hence, a HBL is also referred to as a groupage document or certificate. Master Bill of Lading The second type of bill of lading the master bill of lading, or MBL. Just like a house bill of lading, MBL is a transportation contract between a customer and a forwarder. However, unlike the HBL, the master bill of lading is issued by the shipping company or carriers. The document summarises the different quantities of cargo that is to be hauled for transport by the vessels or other modes of transport. The master bill of lading is also known as the ocean bill of lading.

What is the Bill of Lading and its function? The Bill of lading was invented in the 13th century. Its functions were gradually created by the practical needs of substantial and tangible evidence of contract for all primary parties (i.e. shipper, carrier and consignee) alongside technical development over time. The Bill of Lading of is a document that establishes the terms of contract between a shipper and a transportation company and is one of the most important documents in the shipping industry Its most import functions are: a proof of receipt of shipment by the carrier a transferable document of title to the goods thereby enabling the holder to demand the cargo A negotiable document used as evidence for a contract of carriage (affreightment)

Contents of bill of lading The contents of a B/L consists of every liner company in the world has its own B/L form and clauses, but the basic contents are stipulated according to the International Convention for the Unification of certain Rules of Law Relating to Bill of Lading. On the face of the B/L, the following particulars are to be noted: Shipper Consignee or order Notify party Vessel and Voyage Port of loading (shipment) and port of destination (freight) Place of delivery Place of receipt Freight payable Container and seal numbers Description of the goods, weight and measurement

Clauses on the back of Bill of Lading Clauses on the back of B/L can be classified into compulsory and non-compulsory. Compulsory clause restrains parties in B/L from breach maritime laws, international convention and harbors practices related. Non-compulsory clause is regulated by the carrier to define those which are not concluded adequately in compulsory clause. Clause on the back of B/L constitutes the evidence of liabilities and obligations and disputes settlement for parties involved in B/L.

Clauses on the back of Bill of Lading The contents of back clause are various for every signal carrier but normal contains the following items: Definition for merchant; Paramount clause for dispute settlement; Jurisdiction Clause Carrier’s responsibility and period of responsibility clauses; Exception and claim clauses; Packing and mark clause; Freight clause; Lien clause Transshipment clause; Discharging and delivery clause Animals, plants and on deck cargo clause Dangerous cargo clause

Difference between House Bill of Lading And Master Bill of Lading Unless required otherwise by the L/C, the HBL can also be used as a negotiable document and can be considered the title of goods and receipt of cargo same as an MBL. In the interest of the NVOCC operator and their insurance coverage/exposure, it is recommended that all the details except the shipper, consignee and notify details on the HBL remain the same on the MBL.

Difference between House Bill of Lading And Master Bill of Lading House Bill of Lading (HBL) is issued by the Freight Forwarder to the actual customer Master Bill of Lading (MBL) is issued by the Shipping Line (Carrier) to the Freight Forwarder - also known as Ocean Bill of Lading House Bill of Lading will be an EXACT replica of the Master Bill of Lading issued by the actual Shipping line in respect of cargo details.. The only difference will be that the shipper, consignee and notify party details will be different in the HBL and MBL.

In the Master Bill of Lading the Shipper will usually be their agent or the Freight Forwarder. the Consignee will usually be the destination agent or counterpart or office of the Freight Forwarder the Notify could be the same as Consignee or any other party The rest of the details like vessel/voyage information, cargo description, number of containers, seal numbers, weight, measurements etc etc will all remain the same.

Sample Master Bill of Lading

In the House Bill of Lading the Shipper will usually be the actual shipper/exporter of the cargo (or as dictated by the L/C) the Consignee will usually be the actual receiver/importer of the cargo (or as dictated by the L/C) the Notify could be the same as Consignee or any other party as dictated by the L/C)

Sample House Bill of Lading