Bills of Ladingemirateslogistics.net/ebook/e-book/bill_of_lading_presentation_2012.… · Types of BL Charterparty BL - A bill of lading that indicates that it is subject to a charter

Bills of Lading What is BOL? Terms Legal Aspects – Marine Transport Contract Types of BL Switch BL Roles of BL BL Content BL Preparation Risks in Preparation of BL Switch BL Preparation Release of Delivery Order

SL/HR/ebook-notes -BL / 2013

Evidence of a Contract of Carriage between Carrier and Shipper –evidences of terms and conditions of carriage

Terms of carriage – B/L details the terms and conditions of carriage; i.e.load port to discharge port; freight prepaid or collect, cargo on deck etc

Receipt of Goods – into carriers /agents custody.

Document evidencing cargo description - Contains description andquantity of goods as well as appropriate notations on the condition of thegoods, if it is not in apparent good condition.

Document of Title – The holder of the Original can claim title / ownershipof cargo.

Document of Transfer - Negotiable– Endorsable - it can be used by a thirdparty to take delivery of goods.

What is BOL?


Cargo delivery given against surrender of duly endorsed B/L.

Rights and immunities of a carrier are set out in the B/L (reverseside)

Carrier is not obliged to release Cargo until receipt of all chargespayable.

Legal document issued by Carrier / Master/ Agents.

Article 258 states that the B/L should contain marks of cargo,quantity and visible condition and quality;

Article 259 gives liberty to carrier to put reservations/ remarks inthe B/L.

Article 260 deals with letter of indemnity to be issued by shipperfor issuance of clean B/L.

Article 268 states that delivery order has to be issued onsurrender of B/L by the consignee

Terms


The UAE Maritime code (Federal Law No. 26 of `1981) is the lawthat governs maritime issues along with other laws. The maritimecode is in pari materia with the English Carriage of Goods by SeaAct

Article 256 – Under the marine transport contract, thetransporter (Carrier) undertakes to transport a cargo from oneport to another for a fee payable by the shipper.

The carriers responsibility is extended as from the taking over ofthe cargo by the Carrier or deputy(agent) until it is delivered tothe Port of Discharge.

Article 257 states that a marine transport contract is proved by aBill of Lading. The transporter (carrier) or his deputy shall issue aB/L and it shall contain the name of Transporter(Carrier), Shipperand Consignee, specification of cargo and date of receipt, port ofloading and discharge, place and date of issuance etc.

Legal Aspects – Marine Transport Contract


Types of BL

Charterparty BL - A bill of lading that indicates that it is subject to a charter.Charterparty bills of lading, e.g. Congenbill, characteristically contain farfewer detailed terms on their reverse than do other bills of lading, for thevery reason that most of their detailed terms are set out in the materialcharter.

Claused / Dirty BL - A bill of lading that contains a positive notation of adefective condition or shortage either of the cargo covered or, wherematerial, of its packaging.

Clean BL - A bill of lading that contains no positive notation of a defectivecondition or shortage either of the cargo covered or, where material, of itspackaging.

Combined Transport / Multimodal Transport BL - A B/L that covers not onlycarriage of cargo on an ocean going vessel but all or other stages and/orforms of carriage. The issuer of such a bill of lading generally acceptsprimary responsibility as carrier for all stages and forms of carriage.


Received for Shipment bill - A B/L containing an acknowledgement by thecarrier that the cargo has been received for shipment, e.g. at a containeryard etc.

Shipped/Shipped on Board/On Board BL - A B/L containing anacknowledgement by the carrier that the cargo has been loaded on board avessel.

Short Form BL - a B/L with fairly standard face format, but which includes aclause that incorporates the carrier’s standard conditions, and with a blankreverse, e.g. BIMCO’s Blank Back Bill.

Straight BL- This bill states that the goods are consigned to a specifiedperson. It is not usually transferable by either delivery or endorsement anddelivery, e.g. because it is marked “not negotiable”

Transhipment / Through bill - A B/L involving at least two different modesof transport from road, rail, air, and sea (or, sometimes, more than oneform) of carriage.


Types of BL.. Cont’d

Feeder/Service/Memo/ B/L - A B/L issued by a sub-carrier to the maincarrier under a combined transport or through bill of lading, which coversonly the stage and form of carriage performed by the sub-carrier.

Freight Forwarder’s/House bill - generally, a document issued to a shipperof cargo by a freight forwarder.

Liner bill - A bill of lading issued by a particular shipping line that offers aregular, scheduled service between specified load and discharge ports.

Order Bill of Lading - This bill uses express words to make the billnegotiable, e.g. it states that delivery is to be made to the further order ofthe consignee.

Prepaid B/L - Freight is prepaid – It could also be freight payable/collect.

Stale BL: According to international commercial practice, BL along withother documents must be presented to the bank, not later than 21 days ofthe shipment as given in BL. In some case the importer may indicatenumber of days within which documents are to be presented from thedate of shipment.


Types of BL.. Cont’d

“Switch” bills of lading are a second set of bills of lading issued by thecarrier (or by the carrier’s agent) in substitution for the bills of ladingissued at the time of shipment. The agent who is asked to issue thesecond set is often at a port other than the load port.

The B/L is switched at the request of a consignee seller to replace theoriginal bill of lading issued to that seller’s supplier as shipper, so as toshow the consignee seller as shipper and its own sub-purchaser asconsignee. Such bills of lading are intended to keep the identity of thesupplier from the sub-purchaser and thus to prevent future directdealings between the supplier and the sub-purchaser.


Switch B/L

1. Evidence of Contract - Document issued by Carrier - signed by Master/Agents.

2. Receipt of goods.

3. Conclusive evidence of condition of cargo

4. Terms & Conditions of carriage

5. Document of Title; Negotiable & endorsable

6. Delivery given against surrender of duly endorsed B/L


Roles of BL

BL Content

Bills of lading often are prepared by shippers and carriers, if they

prepare bills of lading, must rely principally on information supplied

by shippers. The information set out on the face of a bill of lading is

conclusive and carriers are at risk given the fact that carriers have

little opportunity, in the course of loading, especially in

containerised shipments, independently to confirm all that is said

by shippers as to the nature, condition and quantity of their cargoes.


Carrier – Issuer of the B/L – could be ocean carrier/ forwarder/charterer/ Line

Shipper/ Consignee/ Notify Party (AWB must have name and address ofconsignee whereas a B/L can be “To order”)

Name of vessel/ Port of Loading/ Discharge

Description of cargo – Marks & numbers, weight

Date of B/L (Date is deemed to date of shipment)

Signed by Master /Agents

Freight payment details


BL Content


SubmitShipping

Insructions

Review B/LDraft

Edit B/LDraft

ReviewRevised

Draft

ApproveDraft

Print & Sign

BL Preparation

Risks in issue of BL

Shipped on Board when actually not shipped

Wrong description of cargo

Clean on Board when remarks are there (LOI is a fraud against thirdparty)

Wrong dating of B/L’s (Pre dating is a fraud)

B/L should specify whatever is stated in the Mates receipt.


Switch BL Preparation


Obtain writteninstructions from

Principal onswitching

Second set of B/L’sto be issued only

against surrender offirst complete set

All otherdetails/descriptionto be the same in

the 2nd set

LOI’s, if any, to beas per principals

instructions.

Do not incorporateincorrect

information in the2nd set.

Release of Delivery Order

Release D.O. only against original B/L.

No Original B/L ?? (Release against Bank Guarantee & L.O.I. – Onlyafter written approval from principal and confirmation from theshipper to release without original B/L) – Remember that obtaining aLetter of Indemnity does not relieve the carrier of liability to the cargoowner, it only provides for compensation from the party or partiesissuing the Indemnity for amounts which the carrier may have to payto the holder of the original bill of lading.

In the tanker trade, delivery against LOI and not a Bill of Lading is thenorm rather than the exception. The difficulty is that the LOI mayoften turn out to be worthless.


Release of D.O.

D.O. CounterOriginal B/L

Customs

Documentation


RELEASE

OF

DO

Thanks


Documents

Bills of Ladingemirateslogistics.net/ebook/e-book/bill_of_lading_presentation_2012.… · Types of BL Charterparty BL - A bill of lading that indicates that it is subject to a charter