Tuesday 16 June 2009

A look into the history of bill of lading

A curious mind may ask a question like when the bill of lading became known? May an answer be that so long ago as when the trade in the Mediterranean began to grow?

Anyway, goods to be shipped had to be recorded in a ship's register. There was no need for a bill of lading in a sense as it is understood today as long as a Merchant travelled with goods on board of his ship.

The practice began to change when the Merchant felt that he had become too old for sea voyages. He started to send goods to his agent at the port of destination. He diligently wrote instruction on the type of cargo being sent and how to deal with it: either to sell in the market or to deliver to an existent Buyer.

The Merchant found that it may be too complicated to maintain a ship, and decided to outsource a good boat. The Captain of the boat earned for living by transporting goods. That's how the first function of bill of lading (as receipt for the goods to be shipped) became active.

There was no proof for the consignee's entitlement since the carrier (Captain) knew from his copy of receipt to whom delivery to be made. The need for proof of entitlemement became evident when the goods started to be dispatched before the receiver of the goods had become known to the shipper. At those times, the cargoes were not supposed to be traded many times during the sea voayge, as they are today. Yet, the delivery could now be made either to the shipper's agent or to a third person (the buyer of the goods).


The first function of the bill of lading (being the evidence of receipt) is applicable to either negotiable or not bills of lading. The evidence of receipt implies stating the date of receipt and condition of goods (type and true state of cargo, its weight, volume and number) to the bill of lading. Ensuring accuracy of such information is very important. Master or one of the Mates checks the actual state of cargo and clauses the cargo with remarks in Mate’s receipts, and then, transfers this information to the bills of lading. Clausing bills of lading means writing a remark reflecting actual findings in condition of cargo.

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