OBJETIVES OF THE BILL OF LADING

The Bill of Lading is a document, which fulfills three main functions:

1.1 It is THE EVIDENCE OF THE CONTRACT between the carrier and the merchant.

THE BILL OF LADING AS A CONTRACT

The Bill of Lading is evidence to the existance of a contract for the carriage of cargo
between the carrier and the Shipper.

Every detail which appears in the Bill of Lading, as well as every important detail which
was left out from it, legally obliges the carrier.

For these reasons, the Bill of Lading is inspired by 3 factors:

a) The agreement between Shipper and Carrier.

b) The remarks of the Tallyman and Chief Officer.
c) Important standard remarks, which are, added by the carrier according to the goods
data, country of destination etc.

1.2 It is A CONFIRMATION OF THE RIGHT OF POSSESSION of the goods.

The Bill of Lading is a negotiable document wherethrough its delivery to another party
(on the condition that ii is endorsed), the possession rights, on the goods (or cargo) are
transferred.

THE BILL OF LADING AS A CONFIRMATION FOR THE RECEIPT OF THE GOODS.

Handling over the Bill of Lading to the Shipper means giving confirmation to him that the
carrier received the goods as it is described in the Bill of Lading (in the box entitled
“DESCRIPTION OF GOODS”), and that he (the carrier) has assumed responsibility for
them.

1.3 It is A RECEIPT and confirmation of loading the goods on board the vessel.

THE BILL OF LADING AS A CONFIRMATION OF THE RIGHT OF POSSESSION

A properly endorsed original Bill of Lading gives the right to the possession of the goods
covered by such Bill of Lading.

The cargo will not be delivered by the Carrier to the holder of the Bill of Lading if it is
not properly endorsed.

The following illustration describes those three functions of the Bill of Lading which are
part of the Sea Commerce procedure.

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2. THE LEGAL BASIS OF THE BILL OF LADING

As we have seen the Bill of Lading serves three purposes: A Receipt, A Contract of
Carriage and A Negotiable Instrument for use in international trade.

The first two purposes are based on International Conventions and local laws giving
such conventions the status of local legislation. The third purpose is based on long
established commercial practices and local laws.

3. DESCRIPTION OF THE BILL OF LADING

3.1 General Description

The Bill of Lading is a document, which is written on both sides:

On the upper side (face) will appear details about goods and their way of carriage.

On the reverse side (back) will appear those terms and conditions of the contract of
carriage which do not vary from one shipment to another.

Both sides of the Bill of Lading constitute the complete contract. (See example on the
next page).

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3.2 Bill of Lading – Original and Copy

It must be distinguished between the original Bill of Lading and its copy:

A. Original - A Bill of Lading on which the word ORIGINAL is printed across it’s face.

B. Copy – A Bill of Lading on which the word NOT NEGOTIABLE is printed across its
face.

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ORIGINAL

Only the original Bill of Lading validly fulfills, the three purposes mentioned and that only
on the condition that it is properly endorsed on it’s reverse side.

The number of original Bills of Ladings to be issued depends on the agreement between
the carrier and merchant.

On the Bill of Lading there is a special provision where this number will appear.

Below, you may see an example of an original Bill of Lading and the section where the
number of original Bills of Ladings requested will appear.

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COPY

A Copy of a Bill of Lading serves all those who are involved in the business and need
particulars about the goods and their carriage. The Carrier issues a number of copies
according to the merchant’s wish.

3.3 Details of the Cargo and it’s Carriage

On the face of the Bill of Lading the following details will appear:

1. Particulars of the Shipper, Receiver and the receiver’s representative as well as the
notified party.
2. Particulars concerning the course of the cargo carriage.
3. Sender’s remarks.
4. Detailed description of the goods as provided by the Shipper, sometimes ascertained
by the Carrier.
5. Particulars concerning the freight and Carrier’s remarks.
6. Various administrative particulars (such as No. of original documents issued, the
number of the Bills of Lading, Agent’s signature for and on behalf of Master, etc.).
7. Carriers remarks and additional remarks of the Shipper who do not harm the Carrier.

4. SOURCES OF THE BILL OF LADING

4.1 The Shipping Declaration

This is a document which is filled out by the Shipper / Forwarding Agent.

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The Shipping Declaration will be presented to the owner’s agent together with, of after
ordering the space for carriage.

The document contains details about the goods/cargo and the way of carriage requested
by the Shipper.

Additional importance of the Shipping Declaration: the Bill of Lading will be written later,
according to the details appearing on the shipping declaration.

4.2 Remarks as per Shipper’s request

A. Remarks that the Carrier was requested to add to the Bill of Lading, which do not
harm the Carrier himself.
B. Remarks which oblige only the owner of the goods (for which special sections are
allotted).

4.3 Chief Tallyman’s Remarks

Remarks and data concerning the condition of the goods, before or during loading the
cargo on board the vessel, as noted by the Chief Tallyman.

4.4 Chief Officer’s Remarks

Remarks and data concerning the condition of the goods, as noted by the Chief Officer
during loading of the cargo.

4.5 Carrier’s Remarks and Specifications

Remarks and specifications relating to the carrier, containing:

A. Administrative particulars.
B. Vital remarks resulting from the form of carriage (House to House, Pier to Pier, etc.),
sort of cargo, it’s condition, or country of destination.

5. PARTIES TO THE BILL OF LADING

The data which appears in these boxes are taken from the shipping declaration.

5.1 SHIPPER/EXPORTER (NAME & ADDRESS)

Meaning: Name and address of the Shipper or Exporter.

In the box of this heading the full name of the Shipper or Exporter will appear, as agreed
with the carrier, as well as his exact address.

Some times, the name of the exporter and the forwarding agent will appear together in
this place.

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5.2 CONSIGNEE (NAME & ADDRESS)

Meaning: Name and address of the receiver.

This article is very important for checking the endorsement at the port of destination.

5.2.1 Main entry possibilities in this article:

A. NAME OF RECEIVER AND HIS ADDRESS, when a direct deal has been made
between Shipper and Receiver.
B. TO ORDER

1. The term TO ORDER itself, when the Bill of Lading is a Bearer Bill of Lading.
2. TO ORDER OF BANK, When a bank is involved in the deal.

5.3 NOTIFY (NAME & ADDRESS)

Meaning: To inform…………………………. (Name and Address)

In this box will appear the name of the person we should inform when the cargo reaches
it’s destination.

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6. CARGO CARRIAGE BOXES (UNDER CARRIER’S RESPONSIBILITY).

6.1 The Carriage Boxes

The data of these boxes is drawn from the Shipping Declaration filled in by the
exporter/shipper, and from the agreement between the shipper and the carrier.

Filling-in of the particulars in these boxes should be done very carefully because every
detail obliges the carrier.

As shown in the illustration above, these boxes may be divided into 3 main parts:

A. A land stretch prior sea.

B. A Maritime stretch.
C. A land stretch to final destination.

The asterisked boxes are of particular importance. A definition and explanation of each
such asterisked box appears in clause 2, on the back of the Bill of Lading.

6.1.1 INITIAL CARRIAGE BY (MODE)

Meaning: The mode of transportation by which the goods were carried, from the place
where the carrier received them under his responsibility, until the port of loading.

If two means of transport were used, then both should appear in the box.

If carrier responsibility commences at the port of loading, this box should not be
completed.

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The mode of carriage must be entered in the box of this heading if carrier responsibility
for the goods commences at a place other than the port of loading.

6.1.2 PLACE OF RECEIPT OF GOODS* (IF CONTRACTED FOR)

Meaning: The place, other than the port of loading where the carrier’s responsibility for
the goods commences.

It is the place where the carrier received the goods, and from where they are under his
sole responsibility.

If carrier responsibility commences at the port of loading this box should not be
completed.

6.1.3. LOADING VESSEL * VOY.

Meaning: The name of the first vessel in which the cargo was loaded, and the number
of its voyage.

If the vessel has a long name, it is permissible to exceed the bounds of the box.
Abbreviations can not be used.

6.1.4 PORT OF LOADING *

Meaning: The port at which the goods were loaded on board the vessel. Short names
for ports may be used only if they are known worldwide.

This box must always be completed, regardless of the place of receiving the goods.

6.1.5 PORT OF DESTINATION *

Meaning: The final port to which the goods are destined.

6.1.6 FINAL DESTINATION * (IF CONTRACTED FOR)

Meaning: The final place to where the goods are to be transported by the Carrier, only if
earlier agreed to between the Carrier and the Shipper.

This box should therefore be filled-in only if the Shipping company (the Carrier)
undertakes to carry the goods to some inland destination beyond the port of destination.

As already mentioned previously, should be completed with data only if agreed upon
between the Carrier and the Shipper.

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7. PARTICULARS AND DESCRIPTION OF GOODS (AS FURNISHED BY SHIPPER)

7.1 General

The particulars and description of goods is a main box in the format of the Bill of Lading.
It contains particulars taken from the Shipping declaration, and further notes of the
Carrier.

The description of goods is an important factor from two aspects:

A. Within the frame of buyer and sellers agreement>

The payment to the seller for his goods is conditioned, among other things, to the
particulars appearing in that description.

B. As a factor that obliges the Carrier:

Handing over the Bill of Lading to the seller (shipper) is a confirmation of the receipt of
the goods exactly as they appear in the description.

If the description of the goods is long and the space for filling in is not sufficient, an
additional list can be attached.

7.2 The construction of the box

As can be seen from the illustration below, the section describing particulars of the
goods is divided into four columns:

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A. MKS. & NOS./ CONT. NOS.
B. DESCRIPTION OF GOODS
C. WEIGHT
D. MEASUREMENT

The four columns should be concisely filled in for each kind of goods (whether in
containers or packages), leaving some space between each item.

7.3 Specification of the boxes in the goods particulars.

7.3.1 MKS & NOS. / CONT. NOS.

Meaning: Seals and numbers/serial numbers of the containers.

In this box a distintion must be made between cargoes which are shipped in containers
and cargoes which are shipped as packages:

A. Cargo in Containers

Concerning cargo packed in containers, the following particulars will appear on the Bill of
Lading:

1. The marketing letters and number of the container.

2. The number of seal, slash, and the length of the container in feet.

B. Cargo in Packages

Cargo shipped as packages will appear as follows:

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1. Marks, as they appear on the packages.
2. Numbers appearing on the packages, indicating the serial numbering of the
packages.

7.3.2 DESCRIPTION OF GOODS

Meaning: The description of the goods. The data in this column should be filled in as
follows:

A. Notation of the number of containers and packages.

B. Remarks added by the carrier indicating the responsible factor towards the contents
and counting of the goods.
C. Specification of the kind of cargo.
D. A note indicating the weight of the container itself: “CONT. TARA WEIGHT” (only if
the cargo is packed into one whole container).

7.3.2.1 The number of containers or packages notation.

The number of containers in which the cargo is stuffed in, or number of packages of the
same kind of cargo will appear before the description of the cargo.

When the packages are stuffed into a container partly loaded, enabling such cargo to be
stuffed alike into the same container, then the remark “STUFFED INTO CONT.” should
appear, and underneath, the marking letters and number of the container followed by a
slash and the seal number.

7.3.2.2. Remarks added by the Carrier

The remarks added by the carrier depend upon the form of carriage of the goods.

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A. If the transportation of goods is carried out in containers under HOUSE TO HOUSE
or HOUSE TO PIER terms then the following two critical remarks must be
inserted in full wording.

1. “SAID TO CONTAIN” , which emphasized that the Shipper is responsible for

contents of the container/package and quantities appearing in the description of
goods, which he submitted.
2. “SHIPPER’S LOAD STOWAGE & COUNT”, which points out the Shipper is
responsible for the stuffing of the goods into the container as well as for their
packing and quantities, because he has carried it out (usually as his place).

B. If the transportation of the goods is under PIER TO HOUSE or PIER TO PIER

terms, then the Carrier is responsible for the number of packs (packages, cases,
cartons, bags, pallets, etc.) which were counted by him while stuffing the container.

The Carrier, however, is not responsible for the number of items each such package is
containing.

Therefore, in such cases, the number of packs counted will appear in the Bill of Lading
without any further comments but the remark SAID TO CONTAIN should be inserted in
regard to the contents of the packs, as shown in the illustration below:

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7.3.2.3 Specification of the kind of cargo

Meaning: The description of the kind of goods or cargo.

Sometimes the merchandise carried belongs to a particular type of cargo or goods which
requires a special treatment or attendance, because of their special nature.

This is the group of special cargoes.

The group of special cargoes include:

A. Cargoes or goods, classified as dangerous.

Regarding those goods, the shipper is required to add particulars, according to those
agreed in an international convention, and hand over to the carrier a declaration defining
the kind of cargo together with the full name and imprint of the manufacturer.

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There are two worldwide classifications for dangerous goods:

One, used for the U.S.A.: C.F.R.(Code of Federal Regulations). Other, used by the rest
of the countries: I.M.O. (Inter – Governmental Maritime Organization).

This classification is accompanied by a U.N. number of the substance or article being

transported, to ensure their easy identification during transport.

In the Bill of Lading must appear the cargo classification which is in use at the trade area
of the port of discharge and the port of destination.

No shipping declaration or Bill of Lading for dangerous goods, should be approved

unless it includes the required classification.

B. Refrigerated cargoes

The storage temperature required for these goods, which need to be kept cool, should
appear in the description of goods.

Hints and Guide Lines:

1. Make sure that the temperature appearing are in centigrades.

2. Ensure that the temperature of the container when delivered fits the temperature
appearing on the documents.
3. A refrigerated container (named also reefer) keeps the temperature. It does not chill).

7.3.3. WEIGHT

Meaning: The weight in Metric Tons.

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On the right of the container’s/packages description, in the “WEIGHT” column, the
weight of the cargo should be inserted.

On the right of the CONT. TARA WEIGHT remark, in the same “WEIGHT” column, the
weight of the container itself should be inserted.

Be sure that three figures will always appear, to the right of the decimal point.

7.3.4 MEASUREMENT

Meaning: The volume capacity of the cargo in cubic meters.

The volume of the cargo (in cubic meters) should be inserted in the “MEASUREMENT”
column to the extreme right of the container/package description (3 digits to the right of
the point).

7.3.5 TOTAL

Meaning: The total weight and the total volume of all the cargoes noted in the
description of goods.

The numeric figures should appear to the right of the word TOTAL, in their respective
columns.8.1 FREIGHT PAYABLE AT

Meaning: The place and term of the freight payment.

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The payment of the freight is related to two main factors:

a) The place of payment, which could be any place in the world where the shipping
company (the Carrier) has an agency.
b) The term of payment, as agreed between the carrier and the shipper, namely:

1. PREPAID, when the freight is paid in advance, before handing over the Bill of
Ladings. The term “PREPAID” should then be inserted in the box of this heading. In
such cases, there is no need to fill in the freight specifications in the Bill of Lading.
2. COLLECT, when the freight is paid after the cargo arrived to the port, or place of
destination, before delivering the goods to the receiver. The term “DESTINATION”,
or the name of the place of payment, should then be inserted in the box of this
heading. In such cases, the specifications of the freight must be filled in the Bill of
Lading.
8.2 Form of Carriage

The shipper may use the containers in one form out of 4 ways of carriage described as
follows:

a) House to House.
b) House to Pier.
c) Pier to House.
d) Pier to Pier.

The form of carriage (except “PIER TO PIER”) should appear as a remark in the
“REMARKS” or “DETAILS” box, on the Bill of Lading.

8.3.1 HOUSE TO HOUSE

Meaning: It was agreed upon that:

a) The Carrier will put at the Shipper’s disposal a container for the specific period of
time.

The Shipper will transport the empty container to his house or plant; stuff the goods into
the container; and ship the container back to the port of loading, within that specific
period of time.

All the expenses in connection with drawing the empty container, transporting it to the
Shipper’s house or plant, stuffing in the cargo, and returning the container to the port of
loading are on Shipper’s account.

b) After the container’s arrival at the port of destination, the Carrier will put the container
at the Receiver’s disposal, for a specific period of time.

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The Receiver will transport the container to his house or plant; unstuff the container of
it’s goods; and send back the empty container to the port of discharge, or any other
place agreed upon with the maritime carrier, within that specific period of time.

All the expenses involved in carrying the container to the Receiver’s house or plant,
emptying it from the goods, and sending back the empty container to the port of
discharge, or any other place agreed upon, are on Receiver’s account.

Note: If the Shipper, or Receiver, deviates from the limits of the specific fixed period of
time, they will have to pay demurrage for the expenses caused by the delay.

8.3.2 HOUSE TO PIER

Meaning: It was agreed upon that:

a) The Carrier will put at the Shipper’s disposal a container, as mentioned already
above.
b) The container will be emptied at the port of discharge, and the Receiver will receive
his goods there.

8.3.3 PIER TO HOUSE

Meaning: It was agreed upon that:

a) The goods will be stuffed into the Carrier’s container, at the port of loading.
b) The Carrier will put the container at the Receiver’s disposal, as mentioned already
above.

8.3.4 PIER TO PIER

Meaning: It was agreed upon that:

a) The goods will be stuffed into the Carrier’s container, at the port of loading.
b) The container will be emptied at the port of discharge and the Receiver will receive
his goods there

Conclusion:

These definitions, appearing as remarks, are related to the form of carriage. They do
not define, by any means, the monetary agreement between the Maritime Carrier and
the Shipper/Receiver.

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GLOSARIO DE TERMINOS DEL BILL OF LADING

Siglas Inglés Castellano

A.F. Advanced Freight Flete adelantado

Ad.Val Ad Valorem Según Valor

BAF Bunker Adjustement Factor Factor Ajuste Combustible

B/L Bill of Lading Conocimiento de Embarque

B/N Booking Note Nota de reserva de espacio

B.S. Bunker Surcharge Sobrecarga por Combustible

b.t. Berth Terms Términos de Línea Regular

C.A.D. Cash Against Documents Al contado contra documentos

C.A.F. Currency Adjustement Factor Factor Ajuste por Divisa

CBF Cubic Feet Pies Cúbicos

CBM Cubic Meters Metros Cúbicos

cld Cleared Despachado de Aduana

CI Consular Invoice Factura Consular

CO Certificat of Origin Certificado de Origen

C.O.B. Cargo on Board Mercancía a Bordo

C.O.D. Cash on Delivery Entrega contra reembolso

C.O.S. Cash on Shipment Pago Contado al Embarque

C.S. Congestion Surcharge Recargo Congestión Puerto

CS Collection Surcharge Recargo Cobro Flete Destino

C.T. Combined Transport Transporte Combinado

CWE Cleared Whitout Examination Despachado sin Inspección

dd Delivered Entregado

d.f. Dead freight Falso flete

Dis. Discount Descuento

D.O. Delivered Order Nota de Entrega

D/P Documents against payment Entrega Documentos contra pago

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Dy. Delivered Entregado

E.L.S. Extra Lenght Surcharge Recargo Bultos Extralargos

E.W.S. Extra Weight Surcharge Recargo por Bultos Pesados

FBL FIATA Combined Transport Bill of Lading Conocimiento de Embarque Combinado

FIATA FCL Full Container Load Contenedor completo

FILO Free In Liner Out Flete (no gastos carga, si descarga)

Frt. Freight Flete L/C Letter of Credit Carta de Crédito

LCL Less than Container Load Menos de Contenedor Completo

LIFO Liner In Free Out Flete (si gastos carga, no descarga)

LT Liner Terms Condiciones línea (Flete si carga/descarga)

LT Long Ton Tonelada Larga (1.016 Kg)

M.R. Mate¦s Receipt Recibo del Piloto

m/s Motor Ship Motonave

m/v Motor Vessel Motonave

MT Metric Ton Tonelada Métrica

O/D Over Deck Sobre Cubierta

o/o Order of A la orden de

o/a Overall Medidas Máximas Extremas

ppd Prepaid Prepagado

r.o.b. Remaining on Board Que quedan a bordo

SB Short Bill Of Lading Conocimiento Abreviado

STC Said to Contain Que se dice contiene

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