A document issued by a carrier, or its agent, to the shipper as a contract of carriage of goods.

It is
also a receipt for cargo accepted for transportation, and must be presented for taking delivery at
the destination.

Among other items of information, a bill of lading contains

(1) consignor's and consignee's name,
(2) names of the ports of departure and destination,
(3) name of the vessel,
(4) dates of departure and arrival,
(5) itemized list of goods being transported with number of packages and kind of packaging,
(6) marks and numbers on the packages,
(7) weight and/or volume of the cargo,
(8) freight rateand amount.

It serves as a proof of ownership (title) of the cargo, and may be issued either in
a negotiable or non-negotiable form. In negotiable form, it is commonly used in letter of
credit transactions, and may be bought, sold, or traded; or used as security for borrowing money.
A bill of lading is required in all claims for compensation for any damage, delay, or loss; and for
the resolution of disputes regardingownership of the cargo. The rights, responsibilities,
and liabilities of the carrier and the shipper under a bill of lading (often printed on its back) are
governed generally either by the older Hague rules, or by the more recent Hague-Visby rules. Se

A bill of lading is a receipt, evidence of contract of carriage a document of title depending on

whether the holder of the bill of leading is the shipper, consignee, and endorsee-Explain.

Introduction.

A bill of lading is a type of document/receipt issued by the ship-owner or by the master, captain
of the ship or other agent after the goods have been placed on board for being carried to a
specific destination. The term derives from the noun “bill”, a schedule of costs for services
supplied or to be supplied, and from the verb “to lade” which means to load a cargo onto a ship
or other form of transport. Although bill of lading involves the use of at least two different
modes of transport from road, rail, air, and sea.

A bill of lading is used when the goods shipped from only a part of the cargo of a general ship. It
must be stamped and signed by ship-owner or his agent. [The An Jang (2003) 45 SLR 348].

There are two basic types of bill of lading.

1. The straight bill.

2. The order bill.

A straight bill of lading is a non-negotiable document, made out to a specifically named

consignee, from which the shipping company acknowledges receipt of the freight and agrees to
move it to its destination.
An Order bill of lading is a document that is made out to the order of the foreign importer or its
bank, or the order of the export firm, its bank, or another designated party.

The bill of lading must contain the following information.

• Name of the shipping company

• Flag of nationality
• Shipper's name
• Order and notify party
• Description of Goods
• Gross/net/tare weight,and
• Freight rate/Measurements and total freight of goods.

Rules governing Bills of Lading.

There are several major international legal regulatory frameworks governing Bills of Lading,
including-
The Hague Rules, 1924 and The Hague-Visibly Rules and The Hamburg Rules, 1978.With
respect to the regulatory frameworks, Bills of Lading facilitate international trade by specifying
the regulatory framework governing the particular transaction. Indeed, for a particular regulatory
framework to be enforceable over a Bill of Lading, it has to be incorporated by the Bill of Lading
through the General Paramount Clause. The General Paramount Clause may also specify the
period during which the goods will be covered by the specified rules.

Additionally, the Bill of Lading will normally state the particular goods within the consignment
that are covered by a particular set of rules.

Hence, bills of lading play a very important part in international trade. Depending upon the rules,
which are followed, there are different implications for different parties, which are involved.
This assignment gives specific description of the nature and functions of the bill of lading.

A bill of lading is a contract of carriage of goods.

A bill of lading is not merely a contract of carriage of goods but also a receipt and a document of
title as well. The bill of lading is a commercial document. Moreover, bills of lading are the
classic contract of carriage of goods. While charter parties are the classic contract of hire of a
ship and so the bill of lading is a contract in respect to the goods.

Contract of carriage' covered by a bill of lading or any similar document of title, so such
document relates to the carriage of goods by sea, including any bill of lading. Such bill of lading
or similar document of title regulates the relations between a carrier and a holder of the same.
The bill of lading has three characteristics:

(1) Receipt for the goods shipped.

(2) Evidence of the terms of the contract of affreightment.
(3) Document of title to the goods specified in the Bill of Lading.

Contract of carriage' applies only to contracts of carriage covered by a bill of lading or any
similar document of title, in so far as such document relates to the carriage of goods by sea,
including any bill of lading or any similar document as aforesaid issued under or pursuant to a
charter party from the moment at which such bill of lading or similar document of title regulates
the relations between a carrier and a holder of the same.

The Receipt Function.

The receipt function of the Bill of Lading is governed by Article III Rule 3 of the Hague Rules.
Which indicate the identification of the shipped goods, the number of packages, pieces, quantity,
or weight of the goods shipped, and the apparent order or condition of the goods at the time of
loading.

The receipt function of a Bill of Lading therefore is evidenced by the document itself since
information as to the nature and quantity of goods, and the port and time of receipt of goods is
stated in designated fields.
In Grant v Norway case emphasized that the signature on the Bill of Lading by the ship’s
master, affirming that he has received the goods is what makes the Bill of Lading an official
receipt.

Evidence of Contract of Carriage Function.

It is evidence about a valid contract of carriage of goods by sea. A bill of lading is itself a piece
of paper which create relation between the carrier and shipper, whereas carrier issued it to the
shipper through this paper it make the ground of acknowledge about the particular goods which
have been received as cargo. A charter party normally lays down the terms and conditions of
carriage, including specifying the vessel that shall ferry the goods, the ports of loading and
unloading, and mode of payment, a description of the goods to be ferried. The charter party is a
separate contract from the sale contact between the buyer and the seller of goods. This proof is
provided by the Bill of Lading.
A bill of lading can be considered as a trade purposes. In short the bill of lading is evidence of
the contract of carriage of goods. So, it is not a contract but it is only evidence of the contract.
Essentially, the transfer of a Bill of Lading imposes rights and liabilities on the subsequent
holder vis-a-vis the carrier.

Bill of lading is a document of title.

The bill of lading is a typical document of title. The bill of lading is invested with particular
attributes of great practical importance commercially. This enables it to become one of the key
instruments in international trade. A document of title to goods is a written document which
proves that the person indicated therein as the owner of goods has title to them, and which when
transferred from the indicated owner of the goods to another party, transfers title to those goods
to that other party, even though the goods may not be in the physical possession of the original
owner.
A Bill of Lading is considered by merchant custom as a document of title to goods specified
therein. The passage of title to goods specified in a Bill of Lading is customarily done by
endorsement. Endorsement enables title to the specified goods to pass even though the goods are
in transit. As such, the endorsee is entitled to claim the goods once the ship carrying them docks
at the port of discharge.

Endorsement of bill of lading.

The consignee as mentioned in the Bill of Lading and the actual receiver of the goods may vary
under the conditions in which the Bill of Lading has been or intended to be, negotiated. Thus the
goods contained in the Bill of Lading may be consigned to:

(1) A named person or firm.

(2) A named person or firm or to an order or assign.
(3) To Bearer.

Rights under bills of lading to vest in consignee or endorsee.

Every consignee in a bill of lading, and every endorsee of a bill of lading to whom the property
in the goods therein mentioned shall pass, and such consignment or endorsement shall have
transferred and vested him all rights of suit.

Nothing shall prejudice or affect any right of stoppage in transit, or any liability of the consignee
or endorsee. Bill of lading in hands of consignee is conclusive evidence of the shipment as
against master, etc. Every bill of lading in the hands of a consignee or endorsee for valuable
consideration, representing goods to have been shipped on board a vessel, shall be conclusive
evidence of such shipment as against the master or other person signing the same.

Electronic Bill of Lading

An electronic bill of lading is not simply an electronic version of the paper bill of lading. Rather
it is a combination of a legal framework and technology which can replicate the functions of a
traditional paper bill of lading.

Specifically, the Bolero eBL solution comprises the Bolero Rulebook, the Bolero Title Registry
and the Bolero Exchange:

Bills of lading Electronic registry organization : BOLERO

The Bolero Rulebook is a common user (legal) agreement entered into by all Bolero users by
way of the enrolment process

The Bolero Title Registry is a repository and an application which manages the transfer of title of
the eBL

The Bolero Exchange is a common infrastructure for all Bolero solutions, and in the case of the
Bolero eBL, provides two distinct advantages over ‘database’ solutions:

Allows the eBL to replicate the traditional paper process supporting the ‘sending’ of the eBL
from party to party

Delivers to the holder the eBL without the need for the holder to interact directly with the
application. This also ensures ease of integration by detaching the eBL from the specific
technology solution

Key benefits:

Removes paper based bills as part of the trade process

Supports full electronic presentation of Letters of Credit under eUCP

Reduces risk of fraud

Support for Open Account presentations

Removes the requirement for Letters of Indemnity

Facilitates adoption of the new Bank Payment Obligation (BPO)

Unlike alternative solutions, Bolero eBLs have been designed to work in conjunction with the
corporate and carrier communities existing systems, rather than forcing all parties to converge on
a single platform.

By reducing the barriers to entry, this approach has been key in ensuring the rapid adoption of
the eBL and the delivery of full benefit to the participants in the trade chain.
Sometimes misspelled as “Bill of Landing,” the Bill of Lading (BOL) is a legal document
between the shipping carrier and your business stating that your shipping carrier has received the
goods you’re shipping with them. For most every type of shipping there is a unique Bill of
Lading layout that provides specific instructions for the shipping carrier.
Before discussing the 12 common types of Bill of Lading forms, let’s talk more about what
BOLs are.
What Is A Bill of Lading?
A Bill of Lading, in its simplest form, is a receipt. The document states that the carrier has
received the shipment and contains information about the shipper and the receiver. There are
several alternate names and abbreviations for the term “Bill of Lading:”

 Bill of Landing (Common misspelling.)

 BOL
 B/L
 Waybill (Common alternate name in the US and Canada)

Time to talk about all of the types of BOL forms and when to use them (in plain English)!

12 Common Types of Bill of Lading

1. Straight Bill of Lading: This is typically used when shipping to a customer. The “Straight
Bill of Lading” is for shipping items that have already been paid for.
2. To Order Bill of Lading: Used for shipments when payment is not made in advance. This
can be shipping to one of your distributors or a customer on terms.
3. Clean Bill of Lading: A Clean Bill of Lading is simply a BOL that the shipping carrier has to
sign off on saying that when the packages were loaded they were in good condition. If the
packages are damaged or the cargo is marred in some way (rusted metal, stained paper, etc.),
they will need to issue a “Soiled Bill of Lading” or a “Foul Bill of Lading.”
4. Inland Bill of Lading: This allows the shipping carrier to ship cargo, by road or rail, across
domestic land, but not over seas.
5. Ocean Bill of Lading: Ocean Bills of Lading allows the shipper to transport the cargo over
seas, nationally or internationally.
6. Through Bill of Lading: Through Bills of Lading are a little more complex than most BOLs.
It allows for the shipping carrier to pass the cargo through several different modes of
transportation and/or several different distribution centers. This Bill of Lading needs to include
an Inland Bill of Lading and/or an Ocean Bill of Lading depending on its final destination.
 7. Multimodal/Combined Transport Bill of Lading: This is a type of Through Bill of Lading
that involves a minimum of two different modes of transport, land or ocean. The modes of
transportation can be anything from freight boat to air.
8. Direct Bill of Lading: Use a Direct Bill of Lading when you know the same vessel that
picked up the cargo will deliver it to its final destination.
9. Stale Bill of Lading: Occasionally in cases of short-over-seas cargo transportation, the cargo
arrives to port before the Bill of Lading. When that happens, the Bill of Lading is then “stale.”
10. Shipped On Board Bill of Lading: A Shipped On Board Bill of Lading is issued when the
cargo arrives at the port in good, expected condition from the shipping carrier and is then loaded
onto the cargo ship for transport over seas.
11. Received Bill of Lading: It is simply a Bill of Lading stating that the cargo has arrived at
the port and is cleared to be loaded on the ship, but does not necessary mean it has been loaded.
Used as a temporary BOL when a ship is late and will be replaced by a Shipped On Board Bill of
Lading when the ship arrives and the cargo is loaded.
12. Claused Bill of Lading: If the cargo is damaged or there are missing quantities, a Claused
Bill of Lading is issued.
There are many more types of Bills of Lading, so how do you choose which ones you’ll need?
Talk to your shipping carrier to find out which types of Bills of Lading you’ll need for your
shipments
Approximately 90% of goods traded internationally are transported by sea. The Negotiable Bill
of Lading (B/L) is a key document in almost all international trade transactions where the cargo
is intended to be sold between trading partners during the course of its transportation by sea.

As a result, a huge amount has been written by legal practitioners and operators about the
purpose and function of a B/L. This guide tries to distil some of what has been written into an
easily digestible source material to provide a good starting point for anyone interested in the
complex world of Bills of Lading. The guide is based on English law and is intended to
continuously evolve to address those aspects of a Bill of Lading which are of interest to its
readers. Any feedback would be gratefully received at legal@essdocs.com.

History of the Bill of Lading

The use of a paper Bill of Lading can be traced back to the 14th century. In its primitive form, it
was a receipt indicating the nature of the cargo and the quantity. In the early days, the owner of
the goods would often travel with the cargo and sell it at destination. At that time, the function of
the Bill was simpler: when the vessel arrived at its destination, the Owner of the goods would
produce the Bill to the Master and direct him to release the cargo to his Buyer. As commerce
became more complex and volumes increased, traders did not travel with the goods and needed
to give the Master instructions: the custom therefore developed off writing Delivery Orders on
the Bill telling the Master who to contact at the discharge port.

By the 19th century, the utility of Bills of Lading was developed further as documents of title
capable of automatically transferring contractual rights under the bill to the endorsee of the Bill.
Legislative developments in the 20th century, including the Hague and Hague-Visby Rules,
further defined the rights and obligations applying to the carriage of goods under Bills of Lading.

The 21st century has seen a yet further, and in some ways long-overdue, development: the
acceptance of electronic Bills of Lading (eB/Ls).

For interesting facts about the historical development of Bills of Lading (B/Ls), check out our
Bill of Lading History page.

Functions of the Bill of Lading

The Bill of Lading is a document issued by a Carrier which acknowledges receipt of the cargo,
contains terms of carriage and may operate as a document of title. Taking each of these key
functions in turn:

(a) Receipt: The B/L records the fact that the cargo has been loaded on the vessel and is evidence
of the facts stated in it. Therefore, a statement in a B/L that a specific quantity of goods were
shipped on board in apparent good order and condition is evidence of the quantity and external
condition of the goods at the time they were shipped. As a general rule, an endorsee of the B/L
can rely on these facts when taking delivery of the goods and can claim against the Carrier if the
goods do not match their description in the B/L.

(b) Contract of Carriage: It contains or evidences the contract of carriage. Normally, the terms on
which the Shipper will be entitled to use the carrier’s ship are set out in the Charterparty between
the Carrier and the Shipper. However, in the hands of a Buyer to whom the B/L has been
transferred by the Seller, the terms of the B/L will prevail over the terms of the Charterparty,
although the terms of the Charterparty will often be incorporated into the Bill (to a certain extent)
by reference.

(c) Document of Title: if the Bill is negotiable (as to which, see Types of B/Ls below), it is a
document of title which identifies who can demand the goods at the discharge port. Linked to its
function as a document of title is the fact that it provides a mechanism for the transfer of rights
arising under the B/L to, and for the imposition of liabilities arising under it on, persons who
were not originally parties to the B/L. A B/L endorsed to a Buyer thereby entitles the Buyer to
demand delivery of the goods and to bring a claim against the Carrier under the B/L if, for
example, there is a short delivery or the goods delivered are damaged.
Types of B/Ls

(a) Liner B/L: A Liner Bill of Lading derives its name from break bulk general dry cargo vessels
trading on a regular “Liner” service and the term covers any Non-Charterparty Bill of Lading. A
fully set out liner Bill can stand alone, although it is often preceded into existence by a booking
note or space charter.

(b) Charterparty B/L: A Charterparty Bill is a Bill of Lading which is designed for use with a
voyage Charterparty and derives the majority of its terms from the governing Charterparty.

(c) Negotiable and Non-Negotiable B/Ls:

If a B/L uses the words ‘To Order’ or ‘Bearer’ or ‘Holder’ or is left blank in terms of who is the
Consignee, then the B/L is negotiable and can be transferred by delivery or endorsement.

A Non-Negotiable B/L is a B/L which is only transferable from the Shipper to the Consignee. If
the Consignee box in the B/L is filled in with a name and the words ‘To Order’ or similar are not
included, then the B/L is Non-Negotiable. If a B/L is not negotiable it cannot be transferred to
any other person. Also known as a Straight B/L.

(d) Bearer B/Ls: a Bill need not contain the name of the person or entity intended to take delivery
of the cargo. In some cases, the identity of such entity will be unknown at the time of shipment
or it will be confidential. In these circumstances, the ‘Consignee’ box is left blank and
possession of the Bill is crucial: whoever has physical possession of a bearer Bill may demand
delivery of the cargo.

(e) Charterer’s B/L: If a Charterer signs the B/L in his own capacity, and not as Agent for the
Shipowner, then the Charterer will be the Carrier under the B/L responsible for the safe delivery
of the cargo. This would be rare in the tanker business. The normal course if for the signature to
be by, or on behalf of, the owner or demise Charterer or his servant (employee), which makes the
Bill an ‘Owner’s’ Bill.

Transfer of a Negotiable B/L

Endorsement and transfer of a Negotiable B/L transfers the right to possession of the cargo.
There are three types of endorsements:

(a) Endorsement “in full”, i.e., the signature of the Holder is accompanied by the name of the
Endorsee, making him for the time being the Consignee;

(b) Endorsement “in blank”, as a result of which the Bill becomes deliverable to the Bearer or to
his order. The right to possession of the cargo may be transferred by simple physical delivery of
a Bill with the Consignee box blank, a “Bearer” Bill and a Bill endorsed in blank.
(c) “Straight” Endorsement, which converts a Negotiable B/L into a Non-Negotiable B/L by
consigning it to a specific Consignee (without words such as to order).

Key Terms of a Charterparty B/L

A B/L clearly identifies the Consignor/Shipper, the Consignee (unless it is a bearer Bill), the load
and discharge port, the quantity and quality of cargo loaded, etc. What are its other, key terms
which are generally included?

(a) Terms on the back of the B/L: short form Charterparty B/Ls tend to have few terms on the
reverse. These usually consist of a Clause Paramount (which contractually incorporates the
Hague or Hague Visby Rules if they do not automatically apply), General Average (which
specifies the general average regime which will apply in case of dispute), New Jason Clause
(regarding the parties’ obligations to contribute to general average) and the Both-to-Blame
Collision Clause (which deals with cross and counterclaims in the event of a collision). Other
clauses depending on the trade route may include War Clauses, Ice Clauses and Strike Clauses.

(b) Charterparty Terms: A Charterparty B/L will always have on the front a space to refer to the
governing charter. Depending on the scope of the incorporating clause, the courts will determine
which of the Charterparty terms the parties intended to be incorporated in the B/L. (The very
general expression “all terms as per charter dated [ ]” will only serve to incorporate those terms
which strictly relate to the loading, carriage and discharge of the cargo: in such a case the
arbitration clause in the Charterparty will likely not be deemed incorporated. Compare this to a
broader term such as that found in the CONGENBILL “All terms, conditions, liberties and
exceptions of the Charter Party dated as overleaf, including the Law and Arbitration Clause, are
herewith incorporated”, which will incorporate the arbitration clause as well as any charter
exceptions. In either event, however, an effective incorporation clause will not result in all the
terms of the Charterparty being incorporated in the B/L. This is primarily because third parties
are likely to acquire rights and obligations under the B/L, and so the courts have developed
detailed rules which govern what terms can be incorporated. The terms incorporated must make
sense in the context of a bill of lading and must not be inconsistent with its express provisions.

(c) Mandatory Conventions: there are a series of conventions which provide a legal regime
governing the rights and obligations of shippers, carriers and consignees. As noted by Stephen
Mills in his guide to Bills of Lading, “The intention of the conventions is to provide a balanced
regime of rights and obligations so that the Cargo Owner can expect a certain standard of care
from the Shipowner in maintaining his ship and in caring for the cargo; and the Shipowner can
be protected from claims where, despite his maintenance and care, the cargo is damaged.” Their
terms are compulsorily applicable to B/Ls issued in a country which has implemented one of
these Conventions in its own domestic law: any provisions in the B/L which are inconsistent
with the applicable Convention are deemed void. The 3 key Conventions which are in effect
currently are The Hague Rules 1924 (the US is a key contracting state), The Hague-Visby Rules
1968 (these are in force in the majority of key trading nations) and The Hamburg Rules 1992
(which have had very limited uptake). A new set of Rules, The Rotterdam Rules, were recently
signed but have yet to come into force. These will be covered in greater detail in the context of
electronic Bills of Lading.

(d) Law and Jurisdiction: Bills of Lading rarely expressly include a choice of law clause. Most
commonly, and assuming a sufficiently wide incorporation clause, the law and jurisdiction
provisions of the Charterparty will therefore apply. Arbitration clauses are very common for
disputes arising in connection with Charterparties and Bills of Lading.

A Liner B/L essentially incorporates the same type of information and clauses, but does so in one
document, rather than incorporating terms by reference. Of course, mandatory Conventions will
also apply to Liner B/Ls.

Bill of Lading Endorsement

The Bill of Lading Endorsement is a kind of financing where part of the original bills of lading
entitled to ABC under the L/C are sent directly to customers and such bills of lading are
presented to ABC for endorsement if the documents under the L/C have not been received while
the goods have arrived at the port of destination.

Functions

This service enables customers to take delivery of goods on a timely basis without the need for
ballast, minimizing the warehousing costs due to deferred delivery of goods at port and avoiding
losses caused by the changes in market conditions and the quality of goods. It also enables
customers to reduce the locking of funds and improve cash flow.

Procedures

1. The customer submits the Application for Bill of Lading Endorsement, the copies of the
invoices, part of the original bill of lading, the notice of readiness sent by the carrier or other
evidences that prove the arrivals of the goods.

2. The customer provides the security for payment such as guarantees as required by ABC.

3. After examination, ABC issues one endorsed original bill of lading to the customer for taking
delivery of goods from the carrier.

Tips

1. In order to endorse the bill of lading, the following conditions must be satisfied: (a) the trade is
inshore trade; (b) the port of destination is a port in China; and (c) the payment is made through a
letter of credit which shall require part of the original loaded bills of lading entitled to the issuing
bank while the issuing bank shall be ABC.
2. In the case of discrepancies between the original bill of lading received and the documents
submitted by customers for application of endorsement, ABC will refuse to make payment
before accepting the documents presented after the relevant situation is verified.

When bills of lading are made out, or endorsed, to a named consignee, then only that consignee
can take delivery of the shipment. A B/L made out to a named consignee can be endorsed only
by that consignee, not the shipper. Once a consignee has been named the original shipper no
longer has any power to alter the B/L in connection with title to the shipment.

If the consignee is not known at the time the shipper instructs shipment on a particular vessel
then the bills of lading may also be made out to order. In this case, only the party to whom they
are endorsed with the words 'deliver to …' or 'deliver to the order of …' can take delivery. This
endorsement is made by the shipper who is named on the B/L. Occasionally buyers stipulate in
their shipping instructions that the goods be consigned to order.

A bill of lading is a negotiable instrument and can be passed from a shipper through any number
of parties, each party endorsing it to assign title to the next party. The only condition is that title
can be assigned only by the party shown on the bill as having title at the time. Any failure to
respect this condition breaks what is known as the chain of title; all purported assignments of
title after such a break are invalid. Before paying for documents a buyer will therefore carefully
examine the bill of lading to see that they are named on it as consignee, either on the face or on
the reverse in an endorsement. In the latter case, the buyer will also make sure that the
endorsements show an unbroken chain of title through to them.

There is one exception to the general rule that a consignee must be named on a bill of lading to
take delivery of a shipment. This is when the bill is a bearer bill. In this case, anyone holding (or
bearing) the bills (or one bill of the set) can take delivery. Bills are considered bearer bills when
the word bearer is entered in the space marked consignee when the bills are first made out.
Alternatively a title-holder endorses the bills with the words deliver to bearer, or a named title-
holder endorses the bills in blank, i.e. by stamping and signing them without naming any other
party in his endorsement. Although this may be simple and convenient, it means that anyone who
obtains all or any of the originals (including a thief or a buyer who has not yet made payment)
can take delivery of the shipment.

The Hague-Visby Rules - The Hague Rules as Amended by the Brussels Protocol 1968 and
later amended by Hamburg Rule 1978

Article I

In these Rules the following words are employed, with the meanings set out below:

(a) 'Carrier' includes the owner or the charterer who enters into a contract of carriage with a
shipper.
(b) 'Contract of carriage' applies only to contracts of carriage covered by a bill of lading or
any similar document of title, in so far as such document relates to the carriage of goods by
sea, including any bill of lading or any similar document as aforesaid issued under or
pursuant to a charter party from the moment at which such bill of lading or similar
document of title regulates the relations between a carrier and a holder of the same.

(c) 'Goods' includes goods, wares, merchandise, and articles of every kind whatsoever
except live animals and cargo which by the contract of carriage is stated as being carried on
deck and is so carried.

(d) 'Ship' means any vessel used for the carriage of goods by sea.

(e) 'Carriage of goods' covers the period from the time when the goods are loaded on to the
time they are discharged from the ship.

Article II

Subject to the provisions of Article VI, under every contract of carriage of goods by sea the
carrier, in relation to the loading, handling, stowage, carriage, custody, care and discharge
of such goods, shall be subject to the responsibilities and liabilities and entitled to the rights
and immunities hereinafter set forth.

Article III

1. The carrier shall be bound before and at the beginning of the voyage to exercise due
diligence to:

(a) Make the ship seaworthy;

(b) Properly man, equip and supply the ship;

(c) Make the holds, refrigerating and cool chambers, and all other parts of the ship in which
goods are carried, fit and safe for their reception, carriage and preservation.

2. Subject to the provisions of Article IV, the carrier shall properly and carefully load,
handle, stow, carry, keep, care for, and discharge the goods carried.

3. After receiving the goods into his charge the carrier or the master or agent of the carrier
shall, on demand of the shipper, issue to the shipper a bill of lading showing among other
things:
(a) The leading marks necessary for identification of the goods as the same are furnished in
writing by the shipper before the loading of such goods starts, provided such marks are
stamped or otherwise shown clearly upon the goods if uncovered, or on the cases or
coverings in which such goods are contained, in such a manner as should ordinarily remain
legible until the end of the voyage.

(b) Either the number of packages or pieces, or the quantity, or weight, as the case may be,
as furnished in writing by the shipper.

(c) The apparent order and condition of the goods.

Provided that no carrier, master or agent of the carrier shall be bound to state or show in the
bill of lading any marks, number, quantity or weight which he has reasonable ground for
suspecting not accurately to represent the goods actually received, or which he has had no
reasonable means of checking.

4. Such a bill of lading shall be prima facie evidence of the receipt by the carrier of the
goods as therein described in accordance with paragraph 3 (a), (b) and (c). However, proof
to the contrary shall not be admissible when the bill of lading has been transferred to a third
party acting in good faith.

5. The shipper shall be deemed to have guaranteed to the carrier the accuracy at the time of
shipment of the marks, number, quantity and weight, as furnished by him, and the shipper
shall indemnify the carrier against all loss, damages and expenses arising or resulting from
inaccuracies in such particulars. The right of the carrier to such indemnity shall in no way
limit his responsibility and liability under the contract of carriage to any person other than
the shipper.

6. Unless notice of loss or damage and the general nature of such loss or damage be given in
writing to the carrier or his agent at the port of discharge before or at the time of the
removal of the goods into the custody of the person entitled to delivery thereof under the
contract of carriage, or, if the loss or damage be not apparent, within three days, such
removal shall be prima facie evidence of the delivery by the carrier of the goods as
described in the bill of lading.

The notice in writing need not be given if the state of the goods has, at the time of their
receipt, been the subject of joint survey or inspection.

Subject to paragraph 6bis the carrier and the ship shall in any event be discharged from all
liability whatsoever in respect of the goods, unless suit is brought within one year of their
delivery or of the date when they should have been delivered. This period, may however, be
extended if the parties so agree after the cause of action has arisen.

In the case of any actual or apprehended loss or damage the carrier and the receiver shall
give all reasonable facilities to each other for inspecting and tallying the goods.

6 An action for indemnity against a third person may be brought even after the expiration of
the year provided for in the preceding paragraph if brought within the time allowed by the
law of the Court seized of the case. However, the time allowed shall be not less than three
months, commencing from the day when the person bringing such action for indemnity has
settled the claim or has been served with process in the action against himself.

7, After the goods are loaded the bill of lading to be issued by the carrier, master, or agent
of the carrier, to the shipper shall, if the shipper so demands be a 'shipped' bill of lading,
provided that if the shipper shall have previously taken up any document of title to such
goods, he shall surrender the same as against the issue of the 'shipped' bill of lading, but at
the option of the carrier such document of title may be noted at the port of shipment by the
carrier, master, or agent with the name or names of the ship or ships upon which the goods
have been shipped and the date or dates of shipment, and when so noted, if it shows the
particulars mentioned in paragraph 3 of Article III, shall for the purpose of this article be
deemed to constitute a 'shipped' bill of lading.

8. Any clause, covenant, or agreement in a contract of carriage relieving the carrier or the
ship from liability for loss or damage to, or in connection with, goods arising from
negligence, fault, or failure in the duties and obligations provided in this article or lessening
such liability otherwise than as provided in these Rules, shall be null and void and of no
effect. A benefit of insurance in favour of the carrier or similar clause shall be deemed to be
a clause relieving the carrier from liability.

Article IV

1. Neither the carrier nor the ship shall be liable for loss or damage arising or resulting from
unseaworthiness unless caused by want of due diligence on the part of the carrier to make
the ship seaworthy, and to secure that the ship is properly manned, equipped and supplied,
and to make the holds, refrigerating and cool chambers and all other parts of the ship in
which goods are carried fit and safe for their reception, carriage and preservation in
accordance with the provisions of paragraph 1 of Article III. Whenever loss or damage has
resulted from unseaworthiness the burden of proving the exercise of due diligence shall be
on the carrier or other person claiming exemption under this article.
2. Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting
from:

(a) Act, neglect, or default of the master, mariner, pilot, or the servants of the carrier in the
navigation or in the management of the ship.

(b) Fire, unless caused by the actual fault or privity of the carrier.

(c) Perils, dangers and accidents of the sea or other navigable waters.

(d) Act of God.

(e) Act of war.

(f) Act of public enemies.

(g) Arrest or restraint of princes, rulers or people, or seizure under legal process.

(h) Quarantine restrictions.

(i) Act or omission of the shipper or owner of the goods, his agent or representative.

(j) Strikes or lockouts or stoppage or restraint of labour from whatever cause, whether
partial or general.

(k) Riots and civil commotions.

(l) Saving or attempting to save life or property at sea.

(m) Wastage in bulk of weight or any other loss or damage arising from inherent defect,
quality or vice of the goods.

(n) Insufficiency of packing.

(o) Insufficiency or inadequacy of marks.

(p) Latent defects not discoverable by due diligence.

(q) Any other cause arising without the actual fault or privity of the carrier, or without the
fault or neglect of the agents or servants of the carrier, but the burden of proof shall be on
the person claiming the benefit of this exception to show that neither the actual fault or
privity of the carrier nor the fault or neglect of the agents or servants of the carrier
contributed to the loss or damage.

3. The shipper shall not be responsible for loss or damage sustained by the carrier or the
ship arising or resulting from any cause without the act, fault or neglect of the shipper, his
agents or his servants.
4. Any deviation in saving or attempting to save life or property at sea or any reasonable
deviation shall not be deemed to be an infringement or breach of these Rules or of the
contract of carriage, and the carrier shall not be liable for any loss or damage resulting
therefrom.

5 (a) Unless the nature and value of such goods have been declared by the shipper before
shipment and inserted in the bill of lading, neither the carrier nor the ship shall in any event
be or become liable for any loss or damage to or in connection with the goods in an amount
exceeding the equivalent of 666.67 units of account per package or unit or units of account
per kilo of gross weight of the goods lost or damaged, whichever is the higher.

(b) The total amount recoverable shall be calculated by reference to the value of such goods
at the place and time at which the goods are discharged from the ship in accordance with the
contract or should have been so discharged.

The value of the goods shall be fixed according to the commodity exchange price, or, if
there be no such price, according to the current market price, or, if there be no commodity
exchange price or current market price, by reference to the normal value of goods of the
same kind and quality.

(c) Where a container, pallet or similar article of transport is used to consolidate goods, the
number of packages or units enumerated in the bill of lading as packed in such article of
transport shall be deemed the number of packages or units for the purpose of this paragraph
as far as these packages or units are concerned. Except as aforesaid such article of transport
shall be considered the package or unit.

(d) The unit of account mentioned in this Article is the special drawing right as defined by
the International Monetary Fund. The amounts mentioned in h_visby/art/art04_5asub-
paragraph (a) of this paragraph shall be converted into national currency on the basis of the
value of that currency on a date to be determined by the law of the Court seized of the case.

(e) Neither the carrier nor the ship shall be entitled to the benefit of the limitation of liability
provided for in this paragraph if it is proved that the damage resulted from an act or
omission of the carrier done with intent to cause damage, or recklessly and with knowledge
that damage would probably result.

(f) The declaration mentioned in sub-paragraph (a) of this paragraph, if embodied in the bill
of lading, shall be prima facie evidence, but shall not be binding or conclusive on the
carrier.

(g) By agreement between the carrier, master or agent of the carrier and the shipper other
maximum amounts than those mentioned in sub-paragraph (a) of this paragraph may be
fixed, provided that no maximum amount so fixed shall be less than the appropriate
maximum mentioned in that sub-paragraph.
(h) Neither the carrier nor the ship shall be responsible in any event for loss or damage to,
or in connection with, goods if the nature or value thereof has been knowingly mis-stated by
the shipper in the bill of lading.

6. Goods of an inflammable, explosive or dangerous nature to the shipment whereof the

carrier, master or agent of the carrier has not consented with knowledge of their nature and
character, may at any time before discharge be landed at any place, or destroyed or rendered
innocuous by the carrier without compensation and the shipper of such goods shall be liable
for all damages and expenses directly or indirectly arising out of or resulting from such
shipment. If any such goods shipped with such knowledge and consent shall become a
danger to the ship or cargo, they may in like manner be landed at any place, or destroyed or
rendered innocuous by the carrier without liability on the part of the carrier except to
general average, if any.

Article IV

1. The defences and limits of liability provided for in these Rules shall apply in any action
against the carrier in respect of loss or damage to goods covered by a contract of carriage
whether the action be founded in contract or in tort.

2. If such an action is brought against a servant or agent of the carrier (such servant or agent
not being an independent contractor), such servant or agent shall be entitled to avail himself
of the defences and limits of liability which the carrier is entitled to invoke under these
Rules.

3. The aggregate of the amounts recoverable from the carrier, and such servants and agents,
shall in no case exceed the limit provided for in these Rules.

4. Nevertheless, a servant or agent of the carrier shall not be entitled to avail himself of the
provisions of this article, if it is proved that the damage resulted from an act or omission of
the servant or agent done with intent to cause damage or recklessly and with knowledge that
damage would probably result.

Article V

A carrier shall be at liberty to surrender in whole or in part all or any of his rights and
immunities or to increase any of his responsibilities and obligations under these Rules,
provided such surrender or increase shall be embodied in the bill of lading issued to the
shipper. The provisions of these Rules shall not be applicable to charter parties, but if bills
of lading are issued in the case of a ship under a charter party they shall comply with the
terms of these Rules. Nothing in these Rules shall be held to prevent the insertion in a bill of
lading of any lawful provision regarding general average.
Article VI

Notwithstanding the provisions of the preceding articles, a carrier, master or agent of the
carrier and a shipper shall in regard to any particular goods be at liberty to enter into any
agreement in any terms as to the responsibility and liability of the carrier for such goods,
and as to the rights and immunities of the carrier in respect of such goods, or his obligation
as to seaworthiness, so far as this stipulation is not contrary to public policy, or the care or
diligence of his servants or agents in regard to the loading, handling, stowage, carriage,
custody, care and discharge of the goods carried by sea, provided that in this case no bill of
lading has been or shall be issued and that the terms agreed shall be embodied in a receipt
which shall be a non-negotiable document and shall be marked as such.

An agreement so entered into shall have full legal effect.

Provided that this article shall not apply to ordinary commercial shipments made in the
ordinary course of trade, but only to other shipments where the character or condition of the
property to be carried or the circumstances, terms and conditions under which the carriage
is to be performed are such as reasonably to justify a special agreement.

Article VII

Nothing herein contained shall prevent a carrier or a shipper from entering into any
agreement, stipulation, condition, reservation or exemption as to the responsibility and
liability of the carrier or the ship for the loss or damage to, or in connection with, the
custody and care and handling of goods prior to the loading on, and subsequent to the
discharge from, the ship on which the goods are carried by sea.

Article VIII

The provisions of these Rules shall not affect the rights and obligations of the carrier under
any statute for the time being in force relating to the limitation of the liability of owners of
sea-going vessels.

Article IX

These Rules shall not affect the provisions of any international Convention or national law
governing liability for nuclear damage.

Article X
The provisions of these Rules shall apply to every bill of lading relating to the carriage of
goods between ports in two different States if

(a the bill of lading is issued in a contracting State, or

(b) the carriage is from a port in a contracting State, or

(c) the contract contained in or evidenced by the bill of lading provides that these Rules or
legislation of any State giving effect to them are to govern the contract;

whatever may be the nationality of the ship, the carrier, the shipper, the consignee, or any
other interested person.

(The last two paragraphs of this Article are not reproduced. They require contracting States
to apply the Rules to bills of lading mentioned in the Article and authorise them to apply the
Rules to other bills of lading).

(Article 11 to 16 of the International Convention for the unification of certain rules of law
relating to bills of lading signed at Brussels on August 25, 1974 are not reproduced. They
deal with the coming into force of the Convention, procedure for ratification, accession and
denunciation and the right to call for a fresh conference to consider amendments to the
Rules contained in the Convention).

UCP 600

Uniform Customs and Practices as issued by ICC in year July 2007 i.e. UCP 600.

UCP applies on practices relating to Performa, format and description of B/L.. Once accepted
parties are bound By the Rules

Note: Include all the cases as discussed in the class..