Bills Of Lading

Bills of Lading & Related Documents in Maritime Law

Note: There is more information on maritime/admiralty law here.

The following is a definition of Bills of Lading & Related Documents, produced by Tetley, in the context of admiralty law: a) Bill of lading [Translation of Bills of Lading & Related Documents in French:”connaissement”] [Translation of Bills of Lading & Related Documents in Spanish: “conocimiento de embarque”] [Translation of Bills of Lading & Related Documents in Italian: “polizza di carico”] [Translation of Bills of Lading & Related Documents in German: “Konnossement”] – Originally called a “bill of loading”, a bill of lading is not necessarily the complete contract of carriage of goods but is usually the best evidence of the contract. It is, as well, a receipt signed by the master or on his behalf indicating in what apparent order and condition the goods have been received on board. Finally, it is also a document of title and thus a document of transfer, but not a negotiable instrument. It is usually a standard form contract, prepared and issued by the carrier (see this maritime law term in this legal dictionary) or his agent. (Tetley, M.C.C., 4 Ed., 2008 at pp. 523-539, 550-552; Tetley, Int’l. M. & A. L., 2003 at pp. 65-68, 71-77). There are many standard forms of bill of lading, including, for example, the “BIMCO Liner Bill of Lading” (Code Name: “Conlinebill 2000”) of BIMCO (see this legal term in this law dictionary), which is reproduced in Tetley, Int’l M. & A. L, 2003, Appendix “P” at pp. 861-862.

i) Bearer bill of lading [Translation of Bills of Lading & Related Documents in French: “connaissement au porteur”] [Translation of Bills of Lading & Related Documents in Spanish: “conocimiento al portador”] [Translation of Bills of Lading & Related Documents in Italian: “polizza di carico al portatore”] [Translation of Bills of Lading & Related Documents in German: “Inhaberkonnossement”] – A bill of lading (see this maritime law term in this legal dictionary) providing for the delivery of the goods to whomever holds the bill. The bill is a bearer bill of lading if: i) it is explicitly identified as such; ii) it names the consignee (see this maritime law term in this legal dictionary) as “bearer”; iii) it is an order bill of lading (see this maritime law term in this legal dictionary) which fails to mention to whose order it is; or iv) it is an order bill of lading endorsed in blank. A bearer bill is negotiable by its mere delivery. (Tetley, M.C.C., 4 Ed., 2008 at pp. 450, 488, 494, 505, 471; Tetley, Int’l. M. & A. L., 2003 at p. 67).

ii) Clean bill of lading [Translation of Bills of Lading & Related Documents in French: “connaissement sans réserves” or “connaissement net”] [Translation of Bills of Lading & Related Documents in Spanish: “conocimiento sin reservas”, “conocimiento limpio” or “conocimiento neto”] [Translation of Bills of Lading & Related Documents in Italian: “polizza di carico netta”] [Translation of Bills of Lading & Related Documents in German: “reines Konnossement”] – The face of a clean bill of lading bears no notation of the bad or questionable order of the goods. It means that the goods have been received on board in apparent good order and condition and stowed under deck. (Tetley, M.C.C., 4 Ed., 2008 at pp. 1569-1570; Tetley, Int’l. M. & A. L., 2003 at pp. 75-77).

iii) Long form bill of lading [Translation of Bills of Lading & Related Documents in French: “connaissement intégral”] [Translation of Bills of Lading & Related Documents in Spanish: “conocimiento completo”] [Translation of Bills of Lading & Related Documents in Italian: “polizza di carico integrale”] – A form of bill of lading (see this maritime law term in this legal dictionary) issued by the carrier (see this maritime law term in this legal dictionary) setting forth all the terms of the contract of carriage. The long form bill of lading can usually be obtained at the carrier’s head office, and its terms are incorporated by reference in the carrier’s short form bill of lading (see this maritime law term in this legal dictionary). (Tetley, M.C.C., 4 Ed., 2008 at p. 552-553; Tetley, Int’l. M. & A. L., 2003 at pp. 67-68).

iv) Multimodal or combined transport bill of lading [Translation of Bills of Lading & Related Documents in French: “connaissement de transport multimodal”, “connaissement de transport combiné”] [Translation of Bills of Lading & Related Documents in Spanish: “conocimiento (de transporte) multimodal”, “conocimiento (de transporte) combinado”] [Translation of Bills of Lading & Related Documents in Italian: “polizza di carico per trasporto multimodale o combinato”] [Translation of Bills of Lading & Related Documents in German: “Multimodales oder Kombiniertes Transport Konnossement”]- A through bill of lading (see this maritime law term in this legal dictionary) which involves at least two different modes of transport – road, rail, air and sea. (Tetley, M.C.C., 4 Ed., 2008 at pp. 2261-2262.)

v) Named (nominate) bill of lading [Translation of Bills of Lading & Related Documents in French: “connaissement à personne dénommée” or “connaissement nominatif”] [Translation of Bills of Lading & Related Documents in Spanish: “conocimiento nominativo”] [Translation of Bills of Lading & Related Documents in Italian: “polizza di carico nominativa”] [Translation of Bills of Lading & Related Documents in German: “Namenskonnossement”] – A bill of lading (see this maritime law term in this legal dictionary) providing for the delivery of the goods to a named person, without also specifying “to order or assigns”. The named consignee (see this maritime law term in this legal dictionary) obtains delivery of the goods by surrendering one of the originals of the bill to the carrier (see this maritime law term in this legal dictionary) or his agent. Although a document of title, the nominate bill of lading is not negotiable. (Tetley, M.C.C., 4 Ed., 2008 at p. 446-449; Tetley, Int’l. M. & A. L., 2003 at pp. 66-67).

vi) Ocean through bill of lading [Translation of Bills of Lading & Related Documents in French: “connaissement de bout en bout”] [Translation of Bills of Lading & Related Documents in Spanish: “conocimiento directo”] [Translation of Bills of Lading & Related Documents in Italian: “polizza di carico diretta”] [Translation of Bills of Lading & Related Documents in German: “Durchkonnossement”] – A bill of lading (see this maritime law term in this legal dictionary) invoking a series of contracts to carry goods to a final destination by two or more successive ocean carriers (see this maritime law term in this legal dictionary). A “pure” ocean through bill of lading is a bill of lading whereby the issuer undertakes to be responsible for the carriage of goods by successive ocean carriers from the point of reception to final destination. (Tetley, M.C.C., 4 Ed., 2008 at pp. 2261, 2262-2269).

vii) Order bill of lading [Translation of Bills of Lading & Related Documents in French: “connaissement à ordre”] [Translation of Bills of Lading & Related Documents in Spanish: “conocimiento a la orden”] [Translation of Bills of Lading & Related Documents in Italian: “polizza di carico all’ordine”] [Translation of Bills of Lading & Related Documents in German: “Orderkonnossement”] – A bill of lading (see this maritime law term in this legal dictionary) providing for delivery of the goods to the order of a specified person, by words such as “consigned to XYZ Co. Ltd. or to order or assigns”. An order bill is negotiable by endorsement and delivery of the document to the endorsee (see this maritime law term in this legal dictionary) ((Tetley, M.C.C., 4 Ed., 2008 at p. 450). In the United States, under the Pomerene Act of 1916, rec
odified in 1994 (49 U.S. Code 80101-80116)) (see this maritime law term in this legal dictionary), an order bill of lading may be negotiated by endorsement (49 U.S. Code 80104(a)) or by transfer (i.e. by its delivery, accompanied by an agreement specifying that title to the goods is being transferred thereby) (49 U.S. Code 80106(a)). (Tetley, M.C.C., 4 Ed., 2008 at p. 450). Note: The 1994 recodification of the Pomerene Act changed the term “order bill of lading” to “negotiable bill of lading”. See 49 U.S. Code sect. 80103(a).

viii) Received for shipment bill of lading [Translation of Bills of Lading & Related Documents in French: “connaissement re?u pour embarquement”] [Translation of Bills of Lading & Related Documents in Spanish: “conocimiento recibido para embarque”] [Translation of Bills of Lading & Related Documents in Italian: “polizza di carico ricevuto per l’imbarco”] [Translation of Bills of Lading & Related Documents in German: “?bernahmekonnossement”]- A bill of lading (see this maritime law term in this legal dictionary) issued when goods have been received for shipment by a carrier (see this maritime law term in this legal dictionary) or his agent but have not yet been loaded aboard the ship. (Tetley, M.C.C., 4 Ed., 2008 at pp. 552, 2264; Tetley, Int’l. M. & A. L., 2003 at p. 67.)

ix) Shipped bill of lading [Translation of Bills of Lading & Related Documents in French: “connaissement embarqué”] [Translation of Bills of Lading & Related Documents in Spanish: “conocimiento embarcado”] [Translation of Bills of Lading & Related Documents in Italian: “polizza di carico a bordo”] [Translation of Bills of Lading & Related Documents in German: “Bordkonnossement”] – A bill of lading (see this maritime law term in this legal dictionary) issued when goods have been loaded aboard the ship. (Tetley, M.C.C., 4 Ed., 2008 at p. 552; Tetley, Int’l. M. & A. L., 2003 at p. 67; Hague and Hague/Visby Rules (see this maritime law term in this legal dictionary) art. 3(7); Hamburg Rules (see this maritime law term in this legal dictionary) art. 15(2)).

x) Short form bill of lading [Translation of Bills of Lading & Related Documents in French: “connaissement abrégé” [Translation of Bills of Lading & Related Documents in Spanish: “conocimiento abreviado”] [Translation of Bills of Lading & Related Documents in Italian: “polizza di carico abbreviata”] – A form of bill of lading (see this maritime law term in this legal dictionary) issued by the carrier (see this maritime law term in this legal dictionary) incorporating by reference the terms of the contract of carriage set forth in the carrier’s long form bill of lading (see this maritime law term in this legal dictionary). (Tetley, M.C.C., 4 Ed., 2008 at pp. 552-553; Tetley, Int’l. M. & A. L., 2003 at pp. 67-68).

xi) Straight bill of lading – A non-negotiable bill of lading (see this maritime law term in this legal dictionary) as described in the United States Pomerene Actof 1916 (49 U.S. Code Appx. 81-124, recodified in 1994 as 49 U.S. Code 80101-80116) (see this maritime law term in this legal dictionary). A “straight bill” states that the goods are consigned or destined to a specified person. It is marked “nonnegotiable” or “not negotiable” on its face. It may be transferred by its holder by delivery, accompanied with an agreement (express or implied) to transfer the title to the bill or to the goods it represents. A straight bill cannot be negotiated free from existing equities; its endorsement confers no additional rights on the transferee. (Tetley, M.C.C., 4 Ed., 2008 at pp. 468, 2307-2308, 2368-2369). Note: The 1994 recodification of the Pomerene Act changed the term “straight bill of lading” to “nonnegotiable bill of lading”. See 49 U.S. Code 80103(b). See Tetley, Int’l. M. & A. L., 2003 at p. 129. The term “straight bill is also sometimes used outside the United States. See The Brij [2001] 1 Lloyd’s Rep. 431 at p. 434 (Hong Kong High Ct.). It has been held that a “straight” (also sometimes called a “straight consigned”) bill of lading is a document of title subject to the Hague Rules and the Hague/Visby Rules. See The Rafaela S. [2005] 1 Lloyd’s Rep. 347, 2005 AMC 913 (H.L.).

xii) Through bill of lading – A bill of lading (see this maritime law term in this legal dictionary) providing for the carriage of goods by water, from their point of origin to their final destination, either by successive ocean carriers (see ocean through bill of lading (see this maritime law term in this legal dictionary)) or by more than one mode of transportation (see multimodal or combined transport bill of lading (see this maritime law term in this legal dictionary)). (Tetley, M.C.C., 4 Ed., 2008 at pp. 2259-2262).

b) Waybill (Sea waybill) [Translation of Bills of Lading & Related Documents in French: “lettre de transport maritime”] [Translation of Bills of Lading & Related Documents in Spanish: “carta de porte mar?tima”] [Translation of Bills of Lading & Related Documents in Italian: “lettera di trasporto marittima”] [Translation of Bills of Lading & Related Documents in German: “Seefrachtbrief”] – A waybill is a non-negotiable receipt issued after receipt of the goods by the carrier (see this maritime law term in this legal dictionary). It is clearly marked “non-negotiable”. It is usually employed in the container trade for normal shipments with consent of the shipper (see this maritime law term in this legal dictionary) who does not insist on being issued a negotiable bill of lading (see this maritime law term in this legal dictionary). It is not a document of title, so that delivery of the goods shipped is made, not by presentation of a document, but by the consignee (see this maritime law term in this legal dictionary) nominated on the waybill identifying himself. Only one original waybill is usually issued to the shipper. Although it is not a document of title, it is a contract of carriage. The Hague orHague/Visby Rules (see this maritime law term in this legal dictionary) do apply to a waybill in virtue of the waybill’s terms and conditions and also because, when it is used in ordinary commercial shipments, art. 6 of the Hague or Hague/Visby Rules does not exclude it from the application of the Rules. (Tetley, M.C.C., 4 Ed., 2008 at pp. 2297-2316; Tetley, Int’l. M. & A. L., 2003 at pp. 68, 80.)

A waybill is useful in these times of speedy carriage where cargo often arrives before the documents. It is also useful for transactions where the shipper (see this maritime law term in this legal dictionary) and consignee (see this maritime law term in this legal dictionary) are related or are subsidiaries of one another and where the rigid production of banking documents is unnecessary. Waybills are also used in large, long-term transactions in which the shipment is only part of a major, well-secured, long-term agreement between the shipper and consignee. Generally waybills are useful wherever financing is not provided in exchange for documents, e.g. open account sales. (Tetley, M.C.C., 4 Ed., 2008 at pp. 2285-2377). There are many standard forms of waybill, including, for example, the “Non-Negotiable Liner Sea Waybill” (Code Name: “Linewaybill”) of BIMCO (see this maritime law term in this legal dictionary), which is reproduced in Tetley, Int’l M. & A. L., 2003, Appendix “Q” at pp. 863-864.

c) Ship’s delivery order – The U.K. Carriage of Goods by Sea Act 1992 (U.K. 1992 c. 50) at sect. 1(4) provides for ship’s delivery orders as follows:

“References in this Act to a ship’s delivery order are references to any document which is neither a bill of lading nor a sea waybill but contains an undertaking which:

a) is given under or for the purposes of a contract for the carriage by sea of the goods to which the document relates, or of goods which include those goods; and

b) is an undertaking by the carrier to a person identified in the document to deliver the goods to which the document r
elates to that person.”

d) Electronic document: an electronic carriage of goods by sea document proposed but not adopted in the United Kingdom. See the U.K. Carriage of Goods by Sea Act 1992, U.K. 1992, c. 50, sects. 1(5) and (6) and 5(1), (see this maritime law term in this legal dictionary). Australia, however, has enacted legislation contemplating the use of electronic documents as “sea carriage documents”. See Australia’s Carriage of Goods by Sea Act 1991, No. 160 of 1991 (Cth.) as amended, at Schedule 1A (Schedule of Modifications) enacted by the Carriage of Goods by Sea Regulations 1998, Statutory Rules 1998, No. 174, at art. 1(1)(ba) and 1(1)(h) and art. 1A.

Bills of Lading Act, R.S.C. 1985, C. B in Maritime Law

Note: There is more information on maritime/admiralty law here.

The following is a definition of Bills of Lading Act, R.S.C. 1985, C. B, produced by Tetley, in the context of admiralty law: 4 – The Canadian statute, virtually identical to the U.K.’s Bills of Lading Act, 1855 (see this maritime law term in this legal dictionary), similarly conferring rights of suit in contract upon consignees (see this maritime law term in this legal dictionary) and endorsees (see this maritime law term in this legal dictionary) ofbills of lading (see this maritime law term in this legal dictionary) to whom ownership in the goods pass upon or by reason of such consignment or endorsement.

Bills of Lading Act, 1855, 18 & 19 Vict., C. 111 in Maritime Law

Note: There is more information on maritime/admiralty law here.

The following is a definition of Bills of Lading Act, 1855, 18 & 19 Vict., C. 111, produced by Tetley, in the context of admiralty law: The United Kingdom statute which, amongst other stipulations, conferred upon consignees (see this maritime law term in this legal dictionary) and endorsees (see this maritime law term in this legal dictionary) of bills of lading (see this maritime law term in this legal dictionary) the right to sue the carrier (see this maritime law term in this legal dictionary) in contract for loss or damage to the goods covered by such bills, provided that the ownership of the goods concerned passed to the consignee or endorsee of the bill upon or by reason of its consignment or endorsement. The Bills of Lading Act, 1855 was repealed and replaced by the Carriage of Goods by Sea Act 1992, U.K. 1992 c. 50 (see this maritime law term in this legal dictionary).

Bills of Lading in Admiralty Law

For information on bills of lading in this context, see the entry on bills of lading in the maritime law encyclopedia.

Bills of Lading in Admiralty Law

For information on bills of lading in this context, see the entry on bills of lading in the maritime law encyclopedia.