Mirza Mohammad Rifat.:Types of bill of lading & Charterer’s duties under a charter.

Types of bill of lading.

There are two types of bill of lading.

  1. The straight bill.

  2. The order bill.

A straight bill of lading is a non-negotiable document, made out to a specifically named consignee, from which the steamship company acknowledges receipt of the freight and agrees to move it to its destination.

An Order bill of lading is a document that is made out to the order of the foreign importer or its bank, or the order of the export firm, its bank, or another designated party.

The bill of lading must contain the following information:

1.      Name of the shipping company;

2.      Flag of nationality;

3.      Shipper's name;

4.      Order and notify party;

5.      Description of Goods;

6.      Gross net weight;

7.      Freight rate/Measurements and total freight.

A bill of lading can be used as a traded object.

1. To acknowledge receipt by the carrier of the exporter's goods.

2. To indicate the carrier's contractual obligation to transport the goods to their destination in exchange for payment.

3. To record transfer of title from the seller to the buyer when payment for the goods takes place. 

A bill of lading is a contract of carriage of goods.

A bill of lading is not merely a contract of carriage of goods but also a receipt and a document of title as well. The bill of lading is a commercial document. Moreover, bills of lading are the classic contract of carriage of goods. While charter parties are the classic contract of hire of a ship and so the bill of lading is a contract in respect to the goods.

Contract of carriage' covered by a bill of lading or any similar document of title, so such document relates to the carriage of goods by sea, including any bill of lading. Such bill of lading or similar document of title regulates the relations between a carrier and a holder of the same.

Charterer’s Duties.

The charterer’s duties under a charter are as follows.

                         1. To nominate safe port.

                         2. To load non –dangerous goods.

CHARTERER'S IMPLED DUTY TO NOMINATE SAFE PORT

Generally nomination is to be made by the chatterer or his agent, The chatterer should nominate the port of loading and discharging and this nomination is not limited by any consideration of the ship owner’s convenience or expense. The object of nominate a safe port is to protect the interest of the ship owner-

                       1. Ship will not be damaged and

                       2. Cargo interest will protect from danger of loss.

If an unsafe port is nominated, a ship owner is entitled to ask the chatterer to re-nominate another port. If the chatterer refuses, the ship owner may terminate the charter party or he may send the vessel to the nominated unsafe port but reserve his right to claim damages. The Evia (No.2) [1982] 2 Lloyd’s Rep 307.

CHARTERERS IMPLIED DUTY TO LOAD NON-DANGEROUS GOODS.

Under the common law the chatterer impliedly undertakes not to ship dangerous or hazardous goods without the knowledge of the ship-owner. This duty can also be expressly provided in the contract. Dangerous goods are those goods which by reason of their nature, quantity or mode of stowage are liable to endanger the lives of persons on ship or near the ship or to imperil any ship. However, where the ship owner is given notice of the dangerous goods which he accepts, if damage occurs afterwards, the ship owner shall be held liable.

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