Maritime Law: Bill of Lading - Coursework Example

Maritime Law ID: Lecturer: Word Count: 1578 Table of contents Introduction a) Function of “Bill of Lading b) Types of “Bill of Lading” 2 c) “Bill of Lading” Related To Cargo Claims 4 d) Cases Related To “Bill of Lading” 6 e) Summary and Conclusion 7 References 8 Bibliography 9 Introduction Bill of Lading is a legal document which states details relating to the quantity as well as type along with destination of the shipment of goods among the shipper and the carrier of the goods. It serves as a receipt note for the shipment or consignment related to the goods when delivered to its destination. The document is required to be signed by designated personnel like the shipper as well as the receiver along with the carrier (Soliman, 1990). The purpose of the bill is to provide assurance to the importer about receiving the consignment and the exporter gets the payment for the shipment of the goods. a) Function of “Bill of Lading” The bill of lading serves three main purposes or function such as. 1. Receipt of the Shipment of Goods: It serves a as receipt note for the goods which are shipped stating the details of the goods like type as well as quantity along with condition and the destination where it is to be delivered. It guarantees the importer about receiving the merchandise. It also provides evidence to the exporter for the shipment of the goods and for the clearance of the payment (Lasytaya, 2006). 2. Evidence of the Contract of Carriage: Bill of lading is a legal document stating the important terms as well as conditions necessary for the shipment and carriage of the goods. It should clearly notify the responsibilities about all the parties involved in the consignment or shipment of the goods. It is a proof of the consignment of goods in between the parties in international trade (Lasytaya, 2006). 3. Document of Title: Bill of lading when formulated or prepared, it serves as a legal document for the goods and bears a title for the goods. When the ownership in relation to the consigned goods passes to certain other person, then the possession of the goods along with the document passes to that person (Lasytaya, 2006). Therefore, the functions of the ‘Bill of Lading’ are straightforward and clear about protecting the parties involved in the consignment of the goods, such as the importer receives the merchandise as mentioned in the document and the exporter is paid with the payment. b) Types of “Bill of Lading” There are various types of ‘Bill of Lading’ which are as follows: 1. Bearer Bill of Lading- A bill when formulated or prepared without identifying or mentioning the name of the consignee is termed as bearer Bill of Lading. 2. Charter Party bill of Lading- A bill which is formulated on the terms of charter party when full or part of a vessel or ship is hired by exporter. 3. Claused Bill of Lading- A bill which has bad remarks relating to the condition as well as order of the goods. 4. Clean Bill of Lading- A bill which notifies that the goods loaded on the ship are in good condition as well as order. 5. Combined Transport Bill of Lading- A bill is issued stating the transportation mode which exceeds in excess of one. 6. House/Groupage or Forwarding Bill of Lading- A bill issued when similar cargo for different groups as well as exports are collected in a single shipment. 7. Ocean liner Bill of Lading- It is issued when goods are to be consigned by the use of sea route. 8. Short form Bill of Lading- A bill in which a few of the terms as well as conditions related to the contract is not mentioned for the carriage. 9. Freight Paid or Collect Bill Of Lading- A bill which mentions that the goods are shipped or exported and the consignor pays for freight. 10. Order Bill of Lading- A bill which states the consignee’s name. 11. Through Bill of Lading- A bill which is issued stating that the goods are carried by one carrier and are delivered to its destination by certain other carrier. 12. Direct Bill of Lading- A bill which is issued stating that the goods will be taken from the port of shipment to the ultimate destination directly. 13. Negotiable Bill of Lading- A bill is negotiable when the ownership related to the goods can be transferred from one person to the other person. 14. Custody and Port Bill of Lading- A custody bill is issued at the time of goods received for shipment by the carrier company. Port bill is issued when goods are not loaded in the carrier after its arrival. 15. On Deck Bill of Lading- It is issued when the goods are available for storing upon the deck. 16. Container Bill of Lading- It is issued when the goods reach their concluding destination. 17. Third Party Bill of Lading- It is issued when the shipments of the goods is done by certain other person instead of the consignor. 18. Ship Bags Bill of Lading- It is issued when goods are required to be packed in ship’s bag along with the same cargo. 19. Steamship Bill of Lading- It is issued when a consignee sends a consignment or shipment without hiring the whole carrier. 20. Stale Bill of Lading- It is issued when goods are shipped by the consignee in confirmation. 21. A Clause Bill of Lading- It contains clauses which limit the responsibility of the carrying company Source: (LawCrux, n.d.). c) “Bill of Lading” Related To Cargo Claims ‘Bill of Lading’ is a legal document which contains details relating to the goods that are to be traded. It contains ‘terms and conditions’ about the consignment or shipment of the goods. When the shipments of the goods reach their destination, a thorough check of the goods is conducted. If there is any damage to the goods or the delivery of the goods does not commence within the due date as mentioned on the Bill of Lading, then the consignee or importer may lodge a complaint against the shipping or carrier company to ‘International law governing the carriage of goods’. The governing law will conduct an investigation in accordance with the complaint lodged as well as terms and conditions stated in the Bill of Lading. If the officials of the governing law seek that there is a breach in the Bill of Lading contact in respect of recoverable of damages, then necessary steps or actions will be taken against the shipping company for the benefit of the consignee. If the cargo is insured by an insurance company then the insurance company will conduct a survey of the damages and reimbursement of the loss will be provided to the importer or consignee. The Bill of Lading should be handed to the claimant before discharging the cargo from the ship. Therefore, Bill of Lading is an important document which is necessary for procurement of the loss (Countryman & McDaniel, n.d.). d) Cases Related To “Bill of Lading” Examples of case related to Bill of Lading are as follows: “Cargo claims under bills of lading - title to sue and the Carriage of Goods by Sea Act 1992 – The Pace. Pace Shipping Co. Ltd v. Churchgate Nigeria Ltd [2009] EWHC 1975 (Comm)” (Ince & Co International LLP, 2012). In this case, the cargo was discharged devoid of having the Bill of Lading, presuming to have a ‘Letter of Indemnity (LOI)’. The Bill of Lading was given to an employee of the company instead of the lawful holder. The consignee or claimant received the Bill of Lading at the time when the ship left the bank after discharging the cargo. The consignee later complained about the damages but the damages were irrecoverable as the cargo is no longer in the ship. Therefore, from this case, it is evident that Bill of Lading should be handed over to the lawful holder and that it is acquired by the claimant before discharging the cargo from the ship. This will help the claimant in claiming the damages of the cargo from the shipping company (Ince & Co International LLP, 2012). In a case of SS Alca, 710 F. Supp. 497 brings out that Cogsa stands for Carriage of Goods by Sea Act, which guarantees that a claim will be litigated under American law. A New York court dismissed an American cargo action as the Bill of Lading contained a ‘forum selection clause’, in which disputes had to be determined in a Turkish court. Thus, it is apparent that the ‘forum non conveniens’ is a valid action on the Bill of Lading dependent on Cogsa which makes it possible to resolve disputes in foreign courts (Clark, 1989). e) Summary and Conclusion Bill of Lading is a legal document stating the type as well as the quantity of the goods for shipment. It serves as a receipt note for the consignee to receive the goods and guarantees the exporter about the payment to be made. There are various types of Bill of Lading. It is a document which states the lawful holder of the consignment of the goods. It should be procured by the consignor before discharging the cargo from the ship to provide a valid claim for the damages on the cargo. It serves as an evidence of the contract in between the consignor and the consignee. It is an important document which includes essential terms and conditions for the shipment of the goods. It is document of title for the goods consigned to the owner. Therefore, it is necessary and an important document for the carriage of goods over the sea in international trade. References Countryman & McDaniel, No Date. Index of Claims Procedures for Intl Ocean Freight. The Cargo Letter. [Online] Available at: http://www.cargolaw.com/claims.ocean.html [Accessed August 13, 2012]. Clark, P. D., 1989. Despite Cogsa, Cargo Claims Can Wind up in Foreign Courts. Sea Law, Vol. 1. Ince & Co International LLP, 2012. Cargo Claims Under Bills of Lading - Title to Sue and the Carriage of Goods by Sea Act 1992 – The Pace. Article. [Online] Available at: http://incelaw.com/whatwedo/shipping/article/shipping-e-brief-october-2009/cargo-claims-under-bills-of-lading [Accessed August 13, 2012]. Lasytaya, Y., 2006. Role of Bills of Lading in International Seaborne Trade. Center for Maritime Economics & Logistics, pp. 1-34. LawCrux, No Date. Bill of Lading. The Various Types of Bill Of Lading. [Online] Available at: http://lawcrux.org/data4T/it/itbank/itwrie_manage_doc_11.htm [Accessed August 13, 2012]. Soliman, U., 1990. The Bill of Lading. Solimanadvocates. [Online] Available at: http://www.solimanadvocates.com/Publications/article14.pdf [Accessed August 13, 2012]. Bibliography DT Group, No Date. Bill of Lading. Media. [Online] Available at: http://www.dt-asia.net/en/media/BILL%20OF%20LADING%20.pdf [Accessed August 13, 2012]. Gold, E. & et. al., 2003. Maritime Law. Irwin Law. Tetley, W. & et. al., 1988. Marine Cargo Claims. Éditions Y. Blais. Todd, P., 2007. Bills Of Lading and Bankers Documentary Credits. Informa Healthcare. Read More