Learning target: 1. What are B/L and its function? 2. Key
classification of B/L. 3. What are AWB and its function? 4. What is
the difference between B/L and AWB? 5. What is multi-modal
transport and the main document involved?
Slide 3
Transport documents can be described as the receipt evidence
issued by carriers to the exporters and acts as the documents of
necessity for cargo delivery, complaints as well as settlement or
negotiation to banks. According to different modes of
transportation, shipping documents mainly refer to marine bill of
lading, seaway bills, airway bills, railway bills, multi-modal
transport documents, etc. This chapter will mainly illustrate
marine bill of lading, airway bill, airway bill and multi-modal
transport documents.
Slide 4
9.1.1 Definition and functions of marine bill of lading Marine
bill of lading or ocean bill of lading, abbreviated as bill of
lading (B/L), in accordance with the regulations in Maritime Law of
Peoples Republic of China, means a document which evidences a
contract of carriage by sea and the taking over or loading on board
of the goods by the carrier, and by which the carrier undertakes to
release the goods against surrendering of the document.
Slide 5
In accordance with the definition of marine B/L, its functions
are mentioned below: B/L is evidence of the contract of carriage
between the consignor and the shipping company. The rights and
obligations of the two parties are listed on the B/L. B/L is a
receipt for the goods issued by the ship owner or his agent
evidencing the receipt of the goods mentioned in B/L. B/L is a
document of title to the goods. Any lawful holder of B/L may take
the delivery of the goods from the shipping company against the
B/L, or transfer the title to the goods by transferring the B/L or
secure loans against the B/L from the bank before the arrival of
the shipment.
Slide 6
Parties in marine bill of lading include carrier, shipper,
consignee, notify party, transferee and the bearer. Carrier.
Carrier refers to such persons who sign the shipment contract with
shipper as shipping company or charterer without shipping vessel.
Shipper. Shipper is the party who reach the shipment contract with
carrier. Shipper could be the consignor or the consignee in
accordance with the trade terms. Consignee. Consignee may be the
payee, bearer or the specified person written in named B/L.
Importer is often the consignee.
Slide 7
Notify party. Notify party is the target one who is informed by
the shipping company the arrival of shipment. Notify party could be
importer or its agent. Transferee. Transferee is the receiver of
B/L after the endorsement or transfer and could claim the shipment
to the carrier. Bearer. Bearer is defined as the legal holder of
B/L. The holder could be the consignee or the assignee.
Slide 8
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. See
B/L sample (9-1) for reference. On the face of the B/L, the
following particulars are to be noted: Consignor /Consignee/Party
to be notified/Name of the vessel/Ships nationality/Voyage/Port of
shipment and port of destination/Freight
Slide 9
Number of the copies of the B/L, date, signature of the
ship-owner or his agent or capital of the steamer. Main particulars
regarding the goods loaded on the steamer: description, marks,
number of package, weight or measurement. Declaration shall be made
that the goods have been loaded on board in apparent good order and
should be discharged at the port of destination or the port as near
as the vessel may safely get and be always afloat.
Slide 10
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. The contents of back clause are various
for every signal carrier but normal contains the following
items:
Slide 11
Definition for merchant; Paramount clause for dispute
settlement; Jurisdiction Clause Carriers 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
Slide 12
9.1.4.1 shipped on board and received bill of lading Criteria
vary and classification of B/L could be various. According to
whether the goods have been loaded on board the vessel, the B/L is
divided into shipped on board B/L and received for shipment B/L. A
shipped on board B/L is evidence that the goods have been loaded on
board a certain steamer. According to general trade practices, only
the shipped on board bill of lading is accepted by banks for
payment under a letter of credit. A received for shipment B/L is
evidence given by the ship owner that the goods have been received
for shipment but have not yet been actually loaded on a particular
ship. It is therefore uncertain whether the goods would be shipped
or loaded on board a vessel within a short period of time.
Slide 13
9.1.4.2 clean B/L and unclean B/L. According to whether there
are notes on the bill of loading, it falls into two kinds: clean
B/L and unclean B/L. A clean B/L shows that the goods have been
shipped on board a vessel in apparent good order or condition. A
clean B/L is issued to the shipper when the goods do not have any
exterior defects at the port of shipment. Actually on every B/L,
there are words shipped in apparent good order and condition. The
carrier will not modify this statement if the goods are in good
order, therefore making the bill of lading clean. The carrier
undertakes full liability for the goods and will carry and deliver
them in the same good order as he received them. The carrier will
be liable if the goods are found damaged.
Slide 14
Unclean bills of lading are generally marked insufficiently
packed, carton old and stained, -- -packed in damaged condition
etc. But not all bills of lading which are noted are unclean bills
of lading. The following kinds are not regarded as unclean bills of
lading. The notes do not indicate clearly that the goods or packing
are unsatisfactory, e.g., old packing or old carton etc. The
purpose of the note is to emphasize that the carrier shall not be
responsible for the risks resulting from the quality of the goods
or packing. The bank will not accept the unclean B/L until the
buyer agrees accordingly.
Slide 15
9.1.4.3 named, order and blank bill of lading According to
whether the B/L is transferable, it is divided into 3 kinds:
straight B/L, order B/L, and blank B/L A named B/L is made out so
that only the named consignee at the destination is entitled to
take delivery of the goods under the bill. The consignee is
designated the shipper. The carrier has to hand over the cargo to
the named consignee, not to any third party in possession of the
bill. This kind bill of lading is not transferable. The shipper
cannot pass the bill to a third party by endorsement. So the bill
is of very restricted application. When the goods are shipped on a
non-commercial basis, such as samples or exhibits, or when the
goods are extremely valuable, a straight bill of lading is
generally issued.
Slide 16
An order bill of lading indicates that the bill is made out to
the order of any person named in such a bill. This kind of bill may
be transferred after endorsement. When the bill is made out to
order of shipper it is necessary for the shipper to endorse the
bill either in blank or in full, to the consignee to whom he wishes
the delivery of the goods is to be made. If the shipper does not
endorse such a bill, he reserves the right to dispose of the goods
to himself. A blank bill of lading is also called open B/L or
bearer B/L. It refers to the bill in which the name of a definite
consignee is not mentioned. There usually appear in the box of
consignee words like to bearer and the holder of the B/L can take
delivery of the goods against the surrender of B/L.
Slide 17
9.1.4.4 long form and short form of bill of lading According to
the contents of the B/L, it can be divided into 2 forms. A Long
Form B/L refers to the bill of lading on the back of which all the
detailed terms and conditions about the rights and obligations of
the carrier and the consignor are listed as an integral part of the
bill. A long form B/L is applicable for all countries. A short form
B/L is a document which omits the terms and conditions on the back
of the B/L. Only America accepts short form B/L.
Slide 18
9.1.4.5 freight prepaid and freight to be collected bill of
lading According to the time for payment of freight, it can be
divided into 2 types. A freight prepaid B/L means that all the
freight is paid by the consignor when the B/L is issued by the
carrier. A freight to be collected B/L refers to the B/L on which
freight payable at destination is indicated.
Slide 19
9.1.4.6 Master and house bill of lading According to the
issuance party of B/L, it can be divided into 2 categories. A
Master B/L means the B/L is issued by the actual carrier directly
to the consignor. A House B/L is issued by NVOCC Non-vessel
Operating Common Carrier to the consignor under the authorization
of the shipping company.
Slide 20
9.1.4.7 Other Types of B/L Ante-dated, On Deck and advanced
bill of lading 9.1.4.7.1 Ante-dated B/L When the actual loading
date is slightly later than the date of shipment stipulated in the
L/C, the carrier sometimes, at the request of the shipper, will
issue the bill of lading to the shipper an ante-dated B/L so as to
meet the requirement of the L/C. The shipping carrier does not
issue ante-dated bill of lading.
Slide 21
9.1.4.7.2 On Deck B/L On Deck B/L is issued when the goods are
stowed on deck. The carrier shall not be responsible for the damage
to and losses of the deck goods. In accordance with UCP600, the on
deck B/L is not be accepted by the bank provided that specified in
L/C.
Slide 22
9.1.4.7.3 advanced bill of lading Advanced bill of lading is
issued at the date which is prior to the shipped on board date.
Similar to anti-dated bill of lading, the advanced bill of lading
is required by the shipper for meeting requirement specified in
L/C. The shipping carrier does not issue ante-dated bill of
lading.
Slide 23
International laws and rules critical to B/L are: General Rules
of Law Relating to Bills of Lading (The Hague Rules), Protocol to
Amend the International Convention for the Unification of Certain
Rules of Law Relating to Bills of Lading (The Visby Rules) and
United Nations Convention on the Carriage of Goods by Sea, 1978
(The Hamburg Rules). In China, Maritime Law in 1993 was the first
law with regard to maritime transport and carriers. This law
follows the belief of The Visby Rules and introduces some rational
parts in The Hamburg Rules.
Slide 24
Every B/L has its original and negotiable forms in triplicate
and non-negotiable copies. After one of the original B/L has
accomplished the formality of taking delivery, the others stand
null and void. The non- negotiable copies are only for kind
reference. Provided that the B/L is lost, when claiming cargo to
the carrier, the consignee cannot deliver the goods until the
shipper agrees the consignee with a banks letter of guarantee at
hand to certify. The carrier requires publicly loss of B/L without
any dissent for a certain period of and then releases the cargo to
the consignee.
