BILL OF LADING - SIGNING

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One of the most important functions of a bill of lading is that it provides

information as to the description of the goods, the condition of the goods, the
quantity of the goods, the loading port and date of shipment, the discharge port,
the name of the ship, whether freight has been paid and the terms of carriage.
As these functions are essential to trade it is important that information given in
a bill of lading is accurate. Failure to ensure accuracy can give rise to liability of
the ship owner.
The essential rule is that in no circumstances should the master sign a document
which he knows to be untrue, or which he believes may be untrue, or where he
has not given careful thought to the facts contained it
The following matters are important. If the master cannot contact the shipowner or obtain guidance from it, the following general principles should be
applied.
The master must ensure that the information on the bill of lading agrees with
that on the mates receipt(s).
The master must check the facts about the cargo. It would be unusual for the
master or the ships agent to prepare the bills of lading. The bill of lading is
usually prepared by the shipper or the shippers agent. It is accordingly essential
for the master to check the information about the cargo in the bill of lading. The
master will not know all of the facts about the cargo that appear on the bill of
lading which he is being asked to sign.
The master must check the facts about the voyage. If the place or date of
loading is incorrect, or if the discharge port is outside the Charter party range,
the master should refuse to sign.
It is recognized that refusal to sign is not always safe or practical. Where in this
practical guidance section of the book the master is advised to refuse to sign, he
should refer to paragraph 11 for guidance.

BILL OF LADING - SIGNING

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Precautions before signing bill of lading

Whosoever, master or agent, signs a B/L should check the following:

That the goods have actually been shipped

That the B/L form is a proper from i.e. usually ship owners own from or as
prescribed by the C/P
That the date of shipment is correct as stated on mates receipt
That any clausing of the corresponding M/R is also contained in B/L
That B/L is not marked freight paid or freight prepaid if same is not
true
That any marginal clauses as required (only those really necessary and
lawful) have been duly inserted
To show apparent order and condition and quantity
That any C/P terms do not conflict with B/L terms
That any demurrage due which has not been paid is endorsed on the B/L
(if C/P has reversible lay days)
That any charges against the cargo such as unpaid freight, advanced
freight has been endorsed
That the no of original B/L in the set is stated and all are signed