This article explains and clarifies the difference between Pre-Carriage, Carriage and On-Carriage and how these come together to provide the full spectrum of services to the customer..
A Bill of Lading is one of the most important documents in the shipping cycle and comes in different forms such as Negotiable or Order Bill of Lading, Seaway Bill of Lading or Express Bill of Lading and Straight Bill of Lading with further permutations and combinations such as Port to Port Bill of Lading, Combined Transport Bill of Lading or Multimodal Bill of Lading and Through Bill of Lading ..
As most of you may know by now, a Bill of Lading has 3 basic purposes or roles..
- Evidence of Contract of Carriage;
- Receipt of Goods; and
- Document of Title to the goods
In its role as Evidence of Contract of Carriage, the emphasis is on the term “Evidence” because contrary to popular belief, a Bill of Lading is neither
- a contract between the Seller and the Buyer nor
- a contract of carriage between the Carrier and Shipper
So if the bill of lading is the evidence of the contract of carriage, then what is the contract of carriage..??
This is the question in the minds of many in the industry and I will try to shed some light on this issue here..
Limitation of liability is a concept that allows a carrier to limit their liability for maritime claims up to a limited sum regardless of the actual monetary value of the claim.. In short, there is a limit on the maximum amount of compensation that a carrier may need to pay..
Despite the varying forms, the main characteristic of the limitation of liability is that, while in principal the carrier may be liable for damages, the extent of their liability is reduced by this limitation..
Limitation of liability is governed by a number of Conventions adopted by the International Maritime Organization (IMO) and is expressed in Special Drawing Rights (SDR)..
There are a few popularly used conventions and rules covering the Carriage of Goods by Sea and this article by Ali Shami compares the limitation of liability in the various contracts of carriage by sea..
We all know what a bill of lading is and what a contract of carriage is.. But do you know when a bill of lading become a contract of carriage..?? This article examines this question in detail..
This interesting insight on the impact of extreme weather on contracts of carriage has been reproduced from Gard..
Intermodal vs Multimodal – These two terms are often used loosely and interchangeably, but the question is what is the difference..
Here, we will discuss what they mean and what they represent in day to day shipping and freight environment..
A reader of this blog had asked a question as below : What is the limitation on 3 OBLs? Why 3….I’ve had customers request 5+ OBLs to be issued. When … Read more here..
As advised in one of my very first articles – Article 2 – The Documents – a Bill of Lading – abbreviated to read B/L is a document that serves as a document … Read more here..
Ocean, Sea waybill & Memo Bill of Lading are often confused and thought to be the same..
This article examines these three bills of lading, their differences and their uses..