5 Points That Must Be Considered Before Signing The Bill Of Lading
A bill of lading is a legal document that serves as a receipt of goods being shipped internationally. They also function as an agreement between the carrier and the shipper. In technical terms, it is also defined as the title document of goods on the ship, and they contain various necessary information regarding the shipment.
There are various types of bill of lading, and they are classified based on carrier, payment, consignee, and transportation. A bill of lading is an essential document for all the stakeholders of a shipment, whether they be the seller, buyer, shipper, or carrier.
Due to its immense importance, it is essential for the shipper, who is also the owner’s representative, to examine the bill thoroughly before signing it.
In the following paragraphs, we will discuss five points, which you must consider before signing a bill of lading and its types. Ignoring these checkboxes might land you in a difficult situation, and therefore, it is recommended you ensure to tick all of them before signing and confirming a bill of lading.
1. Identity Of The Shipper
The shipper is one of the parties of the contract along with the carrier. It means that both the parties have to be liable for any information furnished in the bill of lading. To correctly identify the shipper, they must provide complete details such as name, identity, and correspondence address.
Irrespective of the types of bill of lading, the carrier needs to check and match these pieces of information thoroughly.
2. Date And Port Of Loading And Discharge
The carrier should make sure that the date and place of loading should match the one mentioned in the mate’s receipt. The information is necessary to determine the accurate customs duties to be paid. It also ensures that the classification and amount of goods are within the legally permissible limits.
Like the information regarding the port of loading, the information related to discharge needs to be accurately furnished. In addition to it, the ship must sail to the nominated port of discharge only to avoid the deviation charges. However, there are some specific cases like weather-related incidents and geopolitical factors when the ships may need to deviate.
3. Description And Condition Of Goods
In all bill of lading and its types, the carrier should ensure that the actual consignment is true to the quantity and description mentioned in the bill. A general way of doing that is by counter-checking the cargo documents against the mate’s receipt.
Regarding the condition of the goods, a carrier should thoroughly examine the condition and quality, as mentioned in the bill of lading. In case of any short-loading or presence of dead-freights, they should look for the same in the description.
Finally, the overall condition of the consignment should match with the details in the bill. A more thorough check is required in the case of perishables, medicines, FMCG, etc.
4. Freight
It is the responsibility of the carrier to validate the actual status of freight payment. In cases where the bill of lading is marked as ‘freight paid’ or ‘freight prepaid,’ a more precise verification needs to be done, and it is always better to get a written confirmation for the same.
5. Conflicts
The carrier should make sure that there are no conflicting clauses between the charter parties. Finally, the number of bill of ladings issues should match the actual numbers stated.
How To Avoid The Monotony Involved?
Verification and checks are something that adds to the hard work involved in the trade business. An excellent way to avoid it is by using data intelligence software, which has pre-modulated tools to conduct the necessary checks on behalf of the person concerned.