BILL OF LADING

Types of Bill of Lading

The CONLINEBILL 2000

(See also the comments made by Bimco by clicking here)

The Conlinebill 2000 is a BIMCO liner bill of lading. The face of the bill of lading (page 1) has boxes or spaces for the necessary details which have to be properly typed and the back of the bill of lading (page 2) has numerous printed clauses giving the conditions of carriage (The Conlinebill is thus a typical long form bill of lading).

The Conlinebill has been specially drafted for the liner services for the carriage of general cargo from port to port.

CLAUSE 1 - Definition

Clause 1 gives the definition of a much used term in the bill of lading namely, the "merchant". It includes:

-the shipper;

-the receiver;

-the consignor;

-the consignee;

-the holder of the bill of lading;

-the owner of the cargo;

-any person entitled to possession of the cargo.

For more details on the chapter "Persons and Businesses related to shipping".

CLAUSE 3 - Liability for Carriage between Port of Loading and Port of Discharge

For details, see chapter: "Limitation of Liability".

We draw your particular attention that according to this bill of lading, the responsibility of the carrier for loss of or damage to cargo arising prior to loading, after discharging or with respect to deck cargo or live animals.

The last alinea of sub-clause a) clearly states that the carrier is not responsible for loss of or damage to cargo arising prior to loading , after discharging, or with respect to deck cargo or live animals.

Sub-clauses b) and c) clearly states the limits of liability of the carrier.

CLAUSE 4 - Law and Jurisdiction

In case of dispute, it is important for the carrier to seek settlement in the courts of his own place of business, where he has knowledge of the law and the uses and customs of the place.

Some bills of lading show a clause where disputes are settled in accordance with the flag of the ship. Other bills of lading may refer to a particular Arbitration Commission.

CLAUSE 5 - The Scope of Carriage

Since the vessel is engaged in a liner service, the intended voyage (carriage) shall not be limited to the direct route but may include any proceeding or returning to or stopping or slowing down at or off any ports or places, provided they are reasonable and connected with the carriage including bunkering, loading, discharging or other cargo operations and the maintenance of the vessel and crew.

CLAUSE 6 - Substitution of Vessel

According to clause 6, the carrier may carry the goods or part thereof directly or indirectly to the port of discharge, either by the said vessel or by another vessel or vessels belonging to him or to others or even by other means of transportation.

CLAUSE 7 - Tansshipment

Clause 7 allows the carrier to tranship, lighter, land and store the cargo either on shore or afloat and reship and forward the same to the port of discharge.

CLAUSE 8 - Liability for Pre- and On-Carriage

In case of pre-carriage or on-carriage of the cargo, the carrier shall contract as the merchant's agent only and the liability of the carrier for loss or damage of the goods shall be limited to that part of the carriage between the port of loading and the port of discharge even if he collected the freight for the whole carriage.

This clause is typical for goods shipped in through transport. As mentioned before, the CONLINEBILL may be used for "Port to Port" transportation thus as a Ocean Bill of Lading, or for through transport, thus as a Through Bill of Lading. On the front of the bill of lading (page 1), the boxes with an asterisk: "Pre-carriage by", "Place of receipt by pre-carrier", "Place of delivery by on-carrier" also have to be filled in. These boxes only have to be filled in when the document is used as a through bill of lading. See further: Through Bill of Lading.

CLAUSE 9 - Loading and Discharging

This clause deals with who has to arrange the handling of the goods:

-the loading and discharging: the carrier or his agent;

-before loading and after discharging: the merchant.

Further, this clause also deals with the tendering and the reception of the goods.

It is customary in the liner trade for the agent of the carrier to take care of the loading, discharging and delivery of the goods except otherwise agreed.

This is completely in agreement with the uses and customs in the liner trade where, in the harbour, the agent acts as a mandatory or trustee of the carrier. In the chapter "Persons and Businesses Related to Shipping", sub-paragraph "The Liner Agent", we pointed out that the liner agent has duties as a cargo broker (canvassing, bookings, quotes, etc.), as a dispatcher of the vessel and with regard to the incoming and outgoing cargoes.

Sub-paragraph c) of clause 9 is important if, on arrival of the ship, nobody presents himself to take reception of the goods:

"c) Loading and discharging of the goods may commence without prior notice".

Notwithstanding the fact that the master may, according to this clause, discharge the goods officially, he will, according to the jurisprudence, not be discharged of his duty to take good care of the goods which means that he will have to take all necessary measures to guard and to protect them against damage. The costs for discharging, warehousing, and watching the goods will be for the merchant.

If the goods are not applied for within reasonable time, sub-paragraph e) allows the carrier to sell them in an amicable settlement or by auction:

"Should the cargo not be applied for within reasonable time, the Carrier may sell the same privately or by auction."

According to sub-paragraph d) of clause 9, the merchant or his agent must tender the cargo when the ship is ready to load and as fast as the ship can receive, and - but only if required by the carrier - also outside the ordinary working hours, notwithstanding the uses and customs of the port. If the goods are not tendered as described in this clause, the carrier shall be relieved of any obligation to load such cargo and he shall be allowed to leave the port without further notice. The merchant will have to pay for deadfreight and other costs incurred by the carrier.

"Deadfreight" is the space on a ship booked by a merchant or by a charterer to load cargo and which, for some reason, is not used or shopt-shipped.

In sub-paragraph e) of clause 9, a similar arrangement is taken with regard to the reception of the goods. Failing to do so, the carrier may discharge the goods and the contract of carriage shall deemed to have been fulfilled. He can, if necessary, also apply Clause 12, Lien.

In practice, in the liner trade, merchants must consult the local specialised press (e.g. the Lloyds) to know when a ship is expected in the harbour and when and where their goods have to be tendered for loading. They also have to contact the local liner agent for the latest information re the tendering of cargo. Because there are in the liner trade often thousands of different shipments on board the same ship (nowadays mainly in containers) and consequently also thousands of bills of lading, the holders of an original bill of lading must also consult the local specialised press to know where and when they have to present themselves to the liner agent to exchange their bill of lading against a delivery order which will allow them to take receipt their goods.

CLAUSE 10 - FREIGHT, CHARGES, COSTS, EXPENSES, DUTIES, TAXES AND FINES

According to paragraph a) of clause 10, the freight which must be prepaid - whether actually paid or not - shall be considered as fully earned upon loading and is non-refundable in any event. Freight and/or charges are payable by the merchant to the carrier on demand, unless otherwise specified.

LIBOR or L.I.B.O.R. is the London Inter-Bank Offering Rate, this is the rate of interest London Banks offer to each other on occasions.

All costs and expenses made for fumigation, gathering and sorting loose cargo and weighing onboard, repairing damage to and replacing packing due to excepted causes, and any handling of the cargo for any of the aforementioned reasons, in other words all costs and expenses made to load the goods in accordance with the master's requirements, shall be for account of the merchant. This may also include the loading of the goods in a particular or indicated spot on board, special stowage of the goods, the conditioning of the goods in accordance with their description in the Mate's Receipt and consequently also in the bill of lading (e.g. regarding the marks, packaging, etc.). Important points or elements which can jeopardize the liability of the carrier (and thus also of the master) must be entered in the logbook.

According to paragraph c) of clause 10 the merchant shall also be liable for any dues, duties, taxes and charges which may be levied on the basis of freight, weight of cargo or tonnage of the vessel.

According to paragraph d) of clause 10 the merchant shall be liable for all fines, penalties, costs, expenses and losses which the carrier, vessel or cargo may incur through non-observance of customs regulations and/or import or export regulations.

In accordance with paragraph e) of clause 10, the carrier may in case of incorrect declaration of contents, weights, measurements or value of the cargo, claim double of the amount of freight which would have been due if such declaration had been correctly given. In order to ensure himself of the actual facts, the carrier has the right to obtain the original invoices from the merchant and to inspect the goods for its contents, weight, measurement or value.

CLAUSE 11 - Lien

As mentioned before already, the carrier has a lien on all cargo for any amount due and for the cost of recovering the same and he is entitles to sell the cargo privately or by auction to cover any such claim.

Usually the carrier will try to obtain a court order to proceed to such action. In some countries such a court order is compulsory.

CLAUSE 12 - General Average and Salvage

Clause 12 of the CONLINEBILL 2000 gives the following text about General Average and Salvage:

"General Average shall be adjusted, stated and settled in Lon- don according to the York-Antwerp Rules 1994, or any modification thereof, in respect of all cargo, whether carried on or under deck. In the event of accident, danger, damage or disaster before or after commencement of the voyage resulting from any cause whatsoever, whether due to negligence or not, for which or for the consequence of which the Carrier is not responsible by statute, contract or otherwise, the Merchant shall contribute with the Carrier in General Average to the payment of any sacrifice, losses or expenses of a General Aver- age nature that may be made or incurred, and shall pay salvage and special charges incurred in respect of the cargo. If a salving vessel is owned or operated by the Carrier, salvage shall be paid for as fully as if the salving vessel or vessels belonged to strangers."

See also paragraph "General Average"

CLAUSE 13 - Both to Blame Collision Clause

Clause 13 of the CONLINEBILL 2000 writes the following about the Both to Blame Collision Clause:

"If the Vessel comes into collision with another vessel as a result of the negligence of the other vessel and any act, negligence or default of the Master, Mariner, Pilot or the servants of the Carrier in the navigation or in the management of the Vessel, the Merchant will indemnify the Carrier against all loss or liability to the other or non-carrying vessel or her Owner in so far as such loss or liability represents loss of or damage to or any claim whatsoever of the owner of the cargo paid or payable by the other or non-carrying vessel or her Owner to the owner of the cargo and set-off, recouped or recovered by the other or non-carrying vessel or her Owner as part of his claim against the carrying vessel or Carrier. The foregoing pro- visions shall also apply where the Owner, operator or those in charge of any vessel or vessels or objects other than, or in addition to, the colliding vessels or objects are at fault in respect of a collision or contact."

CLAUSE 14 - Government Directions, War, Epidemics, Ice, Strikes, etc.

Clause 14 of the CONLINEBILL 2000 writes the following about the Government Directions, War, Epidemics, Ice, Strikes, etc.:

"(a) The Master and the Carrier shall have liberty to comply with any order or directions or recommendations in connection with the carriage under this Contract given by any Government or Authority, or anybody acting or purporting to act on behalf of such Government or Authority, or having under the terms of the insurance on the Vessel the right to give such orders or directions or recommendations.

(b) Should it appear that the performance of the carriage would expose the Vessel or any cargo onboard to risk of seizure, damage or delay, in consequence of war, warlike operations, blockade, riots, civil commotions or piracy, or any person onboard to risk of loss of life or freedom, or that any such risk has increased, the Master may discharge the cargo at the Port of loading or any other safe and convenient port.

(c) Should it appear that epidemics; quarantine; ice; labour troubles, labour obstructions, strikes, lockouts (whether onboard or on shore); difficulties in loading or discharging would prevent the Vessel from leaving the Port of loading or reaching or entering the Port of discharge or there discharging in the usual manner and departing there from, all of which safely and without unreasonable delay, the Master may discharge the cargo at the Port of loading or any other safe and convenient port.

(d) The discharge, under the provisions of this Clause, of any cargo shall be deemed due fulfilment of the contract of carriage.

(e) If in connection with the exercise of any liberty under this Clause any extra expenses are incurred they shall be paid by the Merchant in addition to the freight, together with return freight, if any, and a reasonable compensation for any extra services rendered to the cargo."

This clause is completely in agreement with Article IV, paragraph 2 of the Hague-Visby Rules which states that neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from:

-Act of war;

-Act of public enemies;

-Arrest or restraints ...;

-Quarantine restrictions;

-Strikes or lockouts ....;

-Riots and civil commotions.

If above mentioned situations can be foreseen or if for one of the above mentioned situations the vessel cannot reach or enter the port of loading without delay or without the necessary security, or if the ship needs to be repaired, the carrier may cancel the contract before the bills of lading have been issued.

CLAUSE 15 - Defences and Limits of Liability for the Carrier, Servants and Agents

"(a) It is hereby expressly agreed that no servant or agent of the Carrier (which for the purpose of this Clause includes every independent contractor from time to time employed by the Carrier) shall in any circumstances whatsoever be under any liability whatsoever to the Merchant under this Contract of carriage for any loss, damage or delay of whatsoever kind arising or resulting directly or indirectly from any act, neglect or default on his part while acting in the course of or in connection with his employment.

(b) Without prejudice to the generality of the foregoing provisions in this Clause, every exemption from liability, limitation, condition and liberty herein contained and every right, defence and immunity of whatsoever nature applicable to the Carrier or to which the Carrier is entitled, shall also be available and shall extend to protect every such servant and agent of the Carrier acting as aforesaid.

(c) The Merchant undertakes that no claim shall be made against any servant or agent of the Carrier and, if any claim should nevertheless be made, to indemnify the Carrier against all consequences thereof.

(d) For the purpose of all the foregoing provisions of this Clause the Carrier is or shall be deemed to be acting as agent or trustee on behalf of and for the benefit of all persons who might be his servants or agents from time to time and all such persons shall to this extent be or be deemed to be parties to this Contract of carriage."

With regard to the content of clause 15, we refer to the paragraph "The Relationship Agent - Owner". The carrier or the master can consequently never be exempted of his responsibility under the pretext that he didn't sign the bill of lading but that the agent did. The carrier who acts as principal, is and remains responsible at all times for the goods that he carries. Only he shall be able to invoke the exemptions or exonerations foreseen by the law (HVR). The agent who signs for and in the name of the principal (carrier or master) must add after his signature the words "as agents only". (See also chapter "Content of the Bill of Lading", sub-paragraph "Signing of the Bill of Lading".)

According to sub-paragraph c) of clause 15, we can say that an appointee or agent of the carrier bears no responsibility towards the merchant.

CLAUSE 16 - Stowage

The Carrier may stow cargo by means of containers, trailers, transportable tanks, flats, pallets, or similar articles of transport used to consolidate goods.

He may also carry containers, trailers, transportable tanks and covered flats, whether stowed by the Carrier or received by him in a stowed condition from the Merchant, on or under deck without notice to the Merchant.

This clause is important as it shows us clearly that the CONLINEBILL 2000 may be used for ordinary general cargo and for the carriage of containers.

The containers, trailers and transportable tanks may be either filled and stowed by the carrier himself or may be received in a filled and stowed condition from the merchant and may be carried on deck or under deck without the consent of the merchant.

Such goods, which are carried on deck are covered by the Hague-Visby Rules, just as if they were carried under deck. These goods will contribute in general average and will also be compensated in general average.

CLAUSE 17 - Shipper-Packed Containers, Trailers, Transportable Tanks, Flats and Pallets

Clause 17 reeds as follows:

(a) If a container has not been filled, packed or stowed by the Carrier, the Carrier shall not be liable for any loss of or damage to its contents and the Merchant shall cover any loss or expense incurred by the Carrier, if such loss, damage or expense has been caused by:

i. negligent filling, packing or stowing of the container;

ii. the contents being unsuitable for carriage in container; or

iii. the unsuitability or defective condition of the container unless the container has been supplied by the Carrier and the unsuitability or defective condition would not have been apparent upon reasonable inspection at or prior to the time when the container was filled, packed or stowed.

(b) The provisions of sub-clause (i) of this Clause also apply with respect to trailers, transportable tanks, flats and pallets which have not been filled, packed or stowed by the Carrier.

(c) The Carrier does not accept liability for damage due to the unsuitability or defective condition of reefer equipment or trailers supplied by the Merchant.

This is a typical clause as used in a combined transport bill of lading. Since most liner ships carry containers, the carrier does not have to insert the clause "On deck at shipper's risk" when he carries containers.

CLAUSE 18 - Return of Containers

Clause 18 is self explanatory and reeds as follows:

(a) Containers, pallets or similar articles of transport supplied by or on behalf of the Carrier shall be returned to the Carrier in the same order and condition as handed over to the Merchant, normal wear and tear excepted, with interiors clean and within the time prescribed in the Carrier's tariff or elsewhere.

(b) The Merchant shall be liable to the Carrier for any loss, damage to, or delay, including demurrage and detention incurred by or sustained to containers, pallets or similar articles of transport during the period between handing over to the Merchant and return to the Carrier.

ADDITIONAL CLAUSE

U.S. Trade. Period of Responsibility

i. In case the Contract evidenced by this Bill of Lading is subject to the Carriage of Goods by Sea Act of the United States of America, 1936 (U.S. COGSA), then the provisions stated in said Act shall govern before loading and after discharge and throughout the entire time the cargo is in the Carrier's custody and in which event freight shall be payable on the cargo coming into the Carrier's custody.

ii. If the U.S. COGSA applies, and unless the nature and value of the cargo has been declared by the shipper before the cargo has been handed over to the Carrier and inserted in this Bill of Lading, the Carrier shall in no event be or become liable for any loss or damage to the cargo in an amount exceeding USD 500 per package or customary freight unit.

This additional clause is only valid on this bill of lading if the contract of carriage is subject to "Carriage of Goods by Sea Act of the US, 1936 (US, COGSA).

According to the US COGSA 1936, the limit of responsibility is USD 500.00 per package or customary freight unit instead of the equivalent of 10,000 francs per package or unit or 30 francs per kilo (Hague-Visby Rules 1924 amended by the Brussels Protocol of 1968) or the equivalent of 666.67 units of account per package or unit or 2 units of account per kilo of gross weight (Hague-Visby Rules 1924 amended by the Brussels Protocol of 1979).

Click here to see a worked out model of a conlinebill.

CONCLUSION

From the aforementioned we can conclude that it is very important to read the terms and conditions that governs the bill of lading very carefully before it is drawn up and signed. If the Hague-Visby-Rules apply to the bill of lading and it is negotiable - and it has in fact been negotiated - none of the clauses on page 2 may be in contradiction with the Hague-Visby Rules which are of public order.

Although every negotiable bill of lading is legally subject to the Hague-Visby Rules, most bills of lading have their own specific terms and conditions which should be carefully read and understood.

In the following bills of lading only the terms and conditions which are different to the ones in the CONGENBILL will be briefly discussed. For sake of briefness only the most current bills of lading will be considered.

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