Sunday, November 27, 2022

Liability

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Liability of the shipper on the bill of lading

There have been several questions about the “liability of a shipper on a bill of lading”.. As we have discussed, any one can be a shipper on the bill of lading and may not necessarily be the actual exporter or seller of the goods that are covered in the bill of lading..

It is not uncommon for a Seller to be pursued by the Carrier for unpaid charges incurred in relation to the cargo, say, due to the Consignee failing to come forth and take delivery.

More often, this comes as a shock to the Seller given that they may have received payment under their contract for sale of goods and subsequently transferred the negotiable Bill of Lading by endorsement (either to a named party or in blank).

The Seller generally presumes that they do not bear any liability and instead believe that the Carrier only has a right to pursue the Consignee.

The below article by Muthu Jagannath explains the liability of the entity who is listed as a Shipper in the Bill of Lading (“BL”)..

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