The second function of the bill of lading is the evidence of the contract of carriage between the carrier and the shipper. This function is equally applicable to bills of lading being either negotiable or not.
The reverse side of the bill of lading usually contains the terms of carriage. If the carrier and the shipper have negotiated special terms of the carriage, the relevant charter party should be incorporated in the bill of lading.
One may be inquiring why there is a need to incorporate a charter party in the bill of lading? The answer is very simple. In fact, the bill of lading may end up in the hands of a third party who is not even a charterer. Therefore, to limit the carrier’s obligation only to the terms of the charter party, such terms should be incorporated in the bill of lading by using a reference to the charter party on the face-side of the bill of lading. For example, basic general wording such as “all terms and conditions of the charter party dated … are herein incorporated” may be used.
Don't forget to ask your Master to ensure that the reference is given to a correct charter party date!
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