Checklist before signing bills of lading

To recap our discussion, in this section, we are placing a checklist to comply with prior to signing the bills of lading.

- The form of the bill of lading should be as mentioned in the charter party.

- All terms of the charter party are incorporated in the bill of lading.

- The name of vessel is stated correctly. (sometimes it is overlooked because the template may contain a name of a vessel of previous shipment)

- Both the place of loading and the place of discharge are stated correctly. Sometimes, the bills of lading may mention places of receipt and delivery other than the place of loading and discharge (depending on the conditions of carriage).

- The date and place of cargo receipt are accurate, i.e. if the vessel has been under loading ops for several days, the last day of completion/sailing is the date to be mentioned.

- Accurate description of the goods and the relevant Master's clausing are stated accordingly.

- The clause "Shipped on deck" is duly introduced if the cargo so carried.

- Check whether the carriage term e.g. LILO (liner in, liner out) or FIFO (free in, free out) defining the carrier's scope of responsibility are applicable or not.

- The Master signs only correct number of originals of bills of lading, each of which is identical and stamped "Original".

- Any copy of a bill of lading is stamped as "Non-negotiable copy".

- The Master should be cautious if the cargo value is mentioned in the bill of lading. The Master's company should be informed as the extra insurance or freight may be applicable, moreover, the bills of lading with stated cargo value are not generally P&I covered.

- The carriage instructions (e.g. temperature regime) inserted in the bills of lading should be checked with the shipper.

- If the cargo is shipped to the U. S., a unique series of numbers, assigned to the carrier, must be mentioned in the bills of lading (e.g. the carrier bond)


- Last but not least, the Master signs the bills of lading at the bottom of the bill of lading face as appropriate and not elsewhere as may be requested by the shippers.

Clausing the bills of lading with "ship's figures"

If, by reasonable inspection, the Master and/or his representative have been able to determine the number, quantity and weight loaded on board, but the shippers' figures stated in the bills of lading are different from the Master's figures by an amount beyond a "normal" difference (we will discuss the normal difference later), the Master should request the shippers to remove their figures from the bills of lading. In no circumstances the Master is obliged to issue the bills of lading with false figures ( even provided by the shippers/charterers). However, should the shippers/charterers be insisting on their figures to be shown, the ship's figures should be used as well. The Master clauses the bills of lading with the ships's figure, for instance with a wording "ship's figures, as per draft survey 27'942 mts" or "3 big bags in dispute".

It is not sufficient to clause the bills of lading with "number, weight and quantity unknow", given that the Master has determined the number, weight and quantity and found that the difference with shipper's figures is beyond normal. However, if the difference is equal to or less than normal, the clause "number, weight and quantity unknow" can be applied.


So, what is the normal difference?

It may become disputable in some cases, but the accuracy of the properly executed draft survey is 0.5%. Apparently, if the shippers' figures exceed the Master's figure given by draft survey by more than 0.5%, the bills of lading should be claused. To avoid possible claims for shortage at destination, it is in practice of shipowners to order a draft surveyor from the P&I corespondent (at the port of loading).

Interestingly that the Master can fairly clause "number, quantity and weight unknown", if the Master's figure exceeds the shipper's figure in the bill of lading presented for signature.

Both the ship and the shore should recalculate their figures as mistakes are well possible.

The Master should be beware of the "shippers'" clauses like "shipped on board" or "clean on board", as such statements may be interpreted that cargo was loaded in accordance with shipper's figures. The Master should deal with such clauses as we discussed on the ... of June in section "General Clausing".

If the Hamburg rules are applicable, the Master should be cautious to specify all inaccuracies or the absense of reasonable means of checking.

Clausing the bills of lading with "number/quantity and/or weight unknown"

We continue our small talk on the clausing the bills of lading. Today, we will look into a situation when the Master and/or his representative were unable to determine the number, quantity or weight by reasonable inspection.

The Master should request the shippers to delete/omit the respective figures of the "number, quantity or weight" of cargo loaded, only if such figures were not / can not be determined by the Master and/or his representative by the reasonable inspection. In such circumstances, the Master is not obliged to issue the bills of lading showing the respective figures. However, if the the figures can not be omitted, the bills of lading should be claused with "number unknown", "quantity unknown" and/or "weight unknown". It is not recommended to use such wording as "weight/number/quantity said by the shippers to be" as being less protective! Stating a reason, in the bills of lading, as to why the number, quantity and weight are unknown is advisable.

Sales and Purchase : bulker for sale

Our sellers offer a chance to inspect a vessel for sale (a bulker with dwt of 53'483 mts) at Taboneo , Indonesia, where she is under loading ops now. (Our Ref.: 483516)

SELLERS INVITE BEST O/R OFFER BY COB 15TH JULY, TAIPEI TIME BASIS
PROMPT CP FREE DELIVERY.

SHIP-NAME : D DUCKLING
DWT : 53483
DRAFT : 12.3M
BUILT-YEAR : 2006
BUILDER : JAPAN
FLAG : PANAMA
CLASS : NK SS 3/11 DD 03/11
HA-HO : 5/5
GRAIN-BALE : 68927/65526CBM
GEARS : CR 4X30.5T
MAIN-ENG : MAN-B&W 6S50MC-C BHP 12889
SPEED/COMP. : 14 KN
DIMENSIONS : 189.94X182X32.26X17.3M

(ALL DETAILS GIVEN IN GOOD FAITH W.O.G.)

SELLERS ARE KEEN AND DEFINITE ! PLS TAKE CHANCE TO INSPECT THE VESSEL !

STEELS: ITAGUAI - Brazil / KAOHSIUNG

Gentlemen, the following hot stem is in the air! Our Ref.: 483500

40,000 MTONS STEELS +/- 10% MOLCHOPT
ITAGUAI (EX-SEPETIBA) - BRAZIL / KAOHSIUNG
2.700mt/workable hold/wwd SHINC max 3 holds / FIOS CQD COP (COILS MIN 15 / MAX 25 MT)
20-25TH AUG
c/p GENCON 94 + REVISED RIDDER
2,5 TTL COM


DEAD LINE FOR OFFERS JULY 14TH - 12:00 HS RIO TIME
OFFERS MUST VALID TILL JULY 16TH - 12:00 HS RIO TIME

COMPLETE ORDER AND PACKING LIST AVAILABLE UPON REQUEST.

- Vessel shall be geared with minimum 25 metric tons per crane
- Minimum outreach of cranes shall be of 6 metres from side of vessel and not from crane.
- Minimum LOA of vessel shall be of 160 metres.
- Maximum LOA of vessel shall be of 210 metres.
- Gangway ladder both sides to be located at aftewards.
- Vessel?s age maximum 20 years


BEST OFFER are INVITED, as usual !

The terminal of the future

It is true that so many exciting things can be found in the internet! A great insight into a container terminal of the future gives a link, which the author placed to "My Favorites". Thanks to the artists, we can witness how multimodal transport will deliver the containerized goods from overseas to the hinterland one day in the future to come. It is a kind of an eye-opening video that reveals the true meaning of the word "trans-port", which should be read separately in two parts, and, then, back again as a single entity. It is questionable, how much could such a project cost!? Yet, very exciting video!

Case study : part 2

The cargo marks were apparently unknown to the Master. Indeed, in this situation, the Master is not obliged to issue the bills of lading showing the cargo marks, but given that the marks can not be neglected, the bills of lading should be claused with "cargo marks unknown".

Due to a great deal of work to be done with the cargo inspection, a surveyor was appointed by the shipowner to cooperate with the Master.

However, both the Master and the surveyor have not determined that some cargo marks, presented in the bills of lading, are different from their findings. Otherwise, surely, they would clause the bills of lading to reflect such discrepancy.

Moreother, some generals were stowed on weather deck, and the marks on them were not clear enough by the time of stowage. Apparently, such marks would not remain legible until the end of the voyage, but this was not claused in the bills of lading with "marks not clear", or "Master suspects that marks will not remain legible until the end of the carriage".

Fortunately, there were no conflicting statements to the Master's clausing, which the Master should have been beware of e.g. "shipped on board" or "clean on board". (Frankly, the Master was very apathetic to clausing, and delegated all the work to the surveyor). Besides, the Hamburg Rules were not applied. Otherwise, the Master would have to specify any inaccuracy, grounds of suspicion or the absence of reasonable means of checking.

To be continued ...

New cargo orders

Our work, interrupted by a short term break caused by the summer lull and the author's vacation, is resumed with a new order. Our readers, involved in the chartering activities, may find the following one very interesting.

Please offer firm!

Ref.: IN482403

For acct ADM
25.000 mts 5% wheat stw abt 44'
Galveston / Fortaleza
laycan 15/25 July
6000 sshex / 8000 shinc
5 pct addcom past us

Need gear min 15 mt.

Pleased to hear!