BILL OF LADING

CONTRACT OF CARRIAGE

Article 1, Paragraph (b) of the Hague-Visby Rules gives the definition of the contract of carriage.

The "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 bill of lading is not an ordinary "contract of carriage". Because the Hague-Visby Rules are of public order, its Rules are only applicable to a negotiable bill of lading which, in fact has been negotiated. This means that only the third holder will be able to take advantage of the public or imperative character of the Hague-Visby Rules. If it has been determined that the holder of the bill of lading is also the shipper, who was at liberty to accept the terms of carriage, the Hague-Visby Rules do not apply and all exoneration clauses or exceptions which were incorporated in the bill of lading are valid. (See also deck cargo and live animals.)

The Hague-Visby Rules are not applicable to the charter party, on the understanding that, if, for goods carried under the terms of a charter party, negotiable bills of lading have been issued, these bills of lading have to comply with the Hague-Visby Rules from the moment they determine the relationship between the carrier and the third holder of the bill of lading.

If the bill of lading shows the mention "all terms and conditions, liberties and exceptions of the charter party, dated overleaf, are herewith incorporated" , this creates a clear situation and both parties shall, in case of a dispute, refer to the clauses of the charter party except for the cases foreseen by the Hague-Visby Rules which are of public order and who, in case of contradiction, will destroy the clauses or agreements of the charter party. In other words, if in the charter party something has been agreed which is in contradiction with the Hague -Visby Rules, than this agreement is invalid and the Hague-Rules have to be applied.

See: Gencon Charter party, Clause 9, Bills of Lading; Congenbill, Conditions of Carriage.

If the charterer keeps the bill of lading, in other words, if the bill of lading is not negotiated, than it serves as a mere receipt.

It is evident that the Visby-Rules are also applicable to the negotiable bill of lading for combined transport, through transport or multimodal transport.

In the U.S, Canada and Scandinavia and now also in Europe, a "Short Form Bill of Lading" and a "Blank Back Bill of Lading" are used. See further, "Types of Bills of Lading".

NOTE

For details relating to the contract in general, see appropriate reference books or law books on that subject.

Quick Reminder

The bill of lading is a special type of contract of carriage on which the Hague-Visby Rules are compulsory if it is negotiated.

If, under the terms of a charter party, negotiable bills of lading have been issued, they have to comply with the Hague-Visby Rules (if negotiated).

If the bill of lading is not negotiated it serves as a mere receipt.

Useful WWW links

http://www.waltonsandmorse.com/resources/decisions/parsons/

http://www.waltonsandmorse.com/resources/bulletins/cogsa/

http://www.forwarderlaw.com/Cases/happy1.htm

http://ourworld.compuserve.com/homepages/pntodd/cases/cases_e/el_amria.htm

[ back to top ]