The Format and Main Clauses of a Bill of Lading

What are the formats and main clauses of a bill of lading? Since each shipping company has its own bill of lading format, there are many types in actual business, but the basic content is roughly the same. The contents of a bill of lading generally include a front side and a back side. The main contents on the front side of the bill of lading include: shipper, consignee, notify party, port of loading, port of destination, vessel name, voyage number, marks, case numbers, description of goods and quantity, weight and volume, freight预付 or freight collect, number of original bills of lading, signature and seal of the shipping company or its agent, place and date of issue of the bill of lading, etc. The contents on the back side are the specific terms of carriage. There are detailed provisions on issues such as the carrier's liability, the shipper's liability, claims, and litigation. These provisions will become important legal basis when disputes arise between the two parties. The back side of most shipping companies' bills of lading includes the following contents:

1. Definition Clause

This defines key terms used in the bill of lading, such as "Carrier" and "Shipper." For example, it explains that the "Carrier" is the shipowner or charterer who enters into the contract of carriage with the shipper. "Shipper" also refers to the consignor, consignee, and owner of the bill of lading and the goods.

2. Applicable Law Clause

This stipulates which international convention, agreement, or law governs the bill of lading. In case of any dispute between the parties, it will be resolved by that law. Since laws of different countries often have different provisions on the same issue, and different international conventions have different scopes of application, therefore, in actual business, most shipping companies clearly stipulate in the bill of lading that the laws of the company's country apply or that international conventions such as the Hague Rules apply. For example, the Direct or Transshipment Bill of Lading of China National Foreign Trade Transportation Corporation stipulates that the carrier's obligations, responsibilities, rights, and immunities in the bill of lading are interpreted according to the Hague Rules.

3. Jurisdiction Clause

This specifies which court has the right to hear and resolve disputes. The jurisdiction in the bill of lading is agreed upon by the parties to the contract. For instance, China Ocean Shipping Company's bill of lading stipulates that all disputes arising from or relating to this bill of lading shall be resolved in accordance with Chinese law in the courts of the People's Republic of China or through arbitration in the People's Republic of China.

4. Carrier's Responsibility and Exemption Clause

The carrier's responsibilities and obligations are generally stipulated according to relevant laws or conventions. China's COSCO and Sinotrans companies all base their stipulations of the carrier's responsibilities and obligations on the Hague Rules. According to the Hague Rules, the carrier's main responsibilities and obligations are as follows:

• The obligation to ensure the vessel is seaworthy
• The obligation to properly and carefully care for the cargo
• The period of the carrier's responsibility: i.e., the period during which the carrier is responsible for the cargo. According to Article 1 of the Hague Rules, the period of carriage of goods is from the time the goods are loaded onto the ship until the time they are discharged from the ship. Therefore, the carrier's period of responsibility is from the time the goods are loaded onto the ship until the time they are discharged from the ship, excluding containerized goods.
• The carrier's limit of compensation

Article 4, Paragraph 5 of the Hague Rules stipulates that neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or in connection with goods in an amount exceeding 100 pounds sterling per package or unit, or the equivalent of that sum in other currency, unless the nature and value of such goods have been declared by the shipper before shipment and inserted in the bill of lading. This provision effectively partially exempts the carrier from liability for compensation for loss or damage to goods caused by them.

5. Packing and Marks

It requires the shipper to properly pack the goods and to affix correct and clear marks on the goods. The port of destination must be clearly marked on the exterior of the goods in letters not less than 5 centimeters tall. All fines and expenses arising from inadequate or unclear packing or marks shall be borne by the shipper.

6. Freight and Other Charges

This mainly stipulates the method, time, currency, and calculation method for freight payment. Freight payment methods include freight prepaid and freight collect. When freight is prepaid, the shipper is generally required to pay it after the goods are loaded on board but before the bill of lading is delivered. When freight is collect, the freight and other charges payable must be paid before the consignee takes delivery of the goods upon the vessel's arrival at the port of destination. Regardless of the freight payment method, if the vessel or goods suffer any loss or damage, the freight is not refundable, nor shall it be deducted. If the freight is not paid in full as stipulated, the carrier may exercise a lien on the goods or sell the goods.

7. Lien Clause

It stipulates that the carrier may exercise a lien on the goods and any documents for unpaid freight, dead freight, demurrage, and any other amounts payable by the cargo interests, any general average contributions payable by any other person, and expenses incurred in recovering such amounts, and shall have the right to sell or dispose of the goods. If the proceeds from the sale of the goods are insufficient to cover the amounts due and the expenses incurred, the carrier has the right to recover the shortfall from the cargo interests.

8. Carrier's Exceptions

Generally, bills of lading list 17 specific exceptions for the carrier's liability according to Article 4, Paragraph 2 of the Hague Rules, which are divided into two categories: one is exceptions for negligence; the other is exceptions without negligence. Article 4, Paragraph 2(a) of the Hague Rules stipulates that the carrier shall not be liable for loss or damage caused by the act, neglect, or default of the master, mariner, pilot, or the servants of the carrier in the navigation or management of the ship. This exception for negligence is unique in liability systems for other modes of transport and clearly favors the interests of the carrier.

9. General Average

Generally, bills of lading stipulate which rules shall be used for adjusting general average if it occurs. The most widely used internationally is the York-Antwerp Rules. Once the parties choose to apply these rules and they are stated in the bill of lading, they have legal binding effect between the parties. Chinese shipping companies more commonly adopt the Provisional Rules for General Average Adjustment of the China Council for the Promotion of International Trade, i.e., the Beijing Adjustment Rules.

10. Dangerous Goods, Contraband Clause

According to Article 4, Paragraph 6 of the Hague Rules, goods of an易燃, explosive, or dangerous nature to the shipment where the carrier, master, or agent of the carrier has not consented with knowledge of their nature and character may at any time before discharge be landed at any place, or destroyed or rendered innocuous by the carrier without compensation; and the shipper of such goods shall be liable for all damages and expenses directly or indirectly arising out of or resulting from such shipment. If the carrier knows the nature of the goods and has consented to their shipment, and they become dangerous to the ship or cargo, they may similarly be landed at any place, or destroyed or rendered innocuous by the carrier without liability, except where general average applies. In addition to the main contents above, the back side of the bill of lading may also include clauses on deviation and change of route, transshipment, and litigation, etc.  

博丰物流专业提供国内集装箱海运、国际海运（FCL/LCL）、香港澳门物流专线及拖车报关仓储等一站式物流服务。联系电话：130-7567-8958（黄经理），立即致电获取专属报价！