The Bill of Lading — a Document of Title to the Goods
A bill of lading is a document of title to goods which confirms the contract of carriage by sea and the taking over or loading of the goods by the carrier. Three functions merge in this definition: the bill proves the existence of the contract, evidences the carrier's taking over of the goods, and — as a dispositive document — determines how authority over the goods is exercised. That is why the law provides directly: upon presentation of the bill of lading the carrier is obliged to deliver the goods — the presenter acquires the right to receive them, and the carrier no longer searches for another consignee. To whomever the bill of lading is transferred, the fate of the goods attaches — which makes this document the central instrument of the commercial circulation of a sea carriage.
Issuance of the Bill of Lading and Alternative Documents
After taking over the goods the carrier is obliged, at the shipper's demand, to issue to him a bill of lading — or a sea waybill — confirming that the carrier has taken over the goods indicated in the bill of lading. Instead of a bill of lading or sea waybill, the carrier may issue another document confirming the taking over of the goods for carriage; such a document constitutes primary evidence both of the carrier's taking over of the goods as described in the document and of the contract of carriage by sea. The bill of lading is drawn up on the basis of a document signed by the shipper containing the data indicated in subparagraphs „a“ to „k“ of the Code. The rule of liability is particularly important here: the shipper answers to the carrier for the consequences of the entry of incorrect, inexact or incomplete data in the document — the accuracy of the data is thus the shipper's concern, not the carrier's.
The Required Contents of the Bill of Lading
The law defines the mandatory contents of the bill of lading in detail. The following must be indicated in it: the general characteristics of the goods, the principal identification marks, an express statement of dangerous or special properties, and the number of places or objects and the weight or quantity — all as presented by the shipper; the apparent order and condition of the goods; the carrier's name and the address of its principal place of business; the shipper's name; the mode of delivery — to a named consignee (straight bill), to the order of a named person (order bill) or against presentation (bearer bill); the port of loading and the date of taking over of the goods; the port of discharge; the number of originals where more than one is issued; an indication whether the carriage is governed by the 1924 International Convention for the Unification of Certain Rules of Law relating to Bills of Lading — the Hague-Visby Rules — or the 1978 United Nations Convention on the Carriage of Goods by Sea — the Hamburg Rules; the possibility of deck stowage; the freight payable by the consignee; the place and date of issue; and the carrier's signature or that of a person acting on its behalf. This catalogue is not a formality: in a later dispute over shortage, damage or delay, each entry becomes a means of proof.
Originals and Delivery at the Port of Destination
The carrier is obliged to issue to the shipper several originals of one and the same bill of lading; the total number of bills issued is indicated in each of them, and after delivery of the goods against one original, all other counterparts become void. At the port of destination the goods are delivered to the holder of an original of the bill of lading, according to its type: under a straight bill — to the consignee indicated in the bill or to the person to whom the bill has been transferred by a named transfer entry or by another form established for the transfer of claims; under an order bill — to the consignee or the shipper, according to whose order the bill is drawn up, and where transfer entries exist — to the person indicated at the end of the continuous chain of entries or to the bearer of the last bill endorsed in blank; under a bearer bill — to the presenter. This rule completes the dispositive nature of the document: whoever lawfully holds an original holds the right to claim the goods.
Frequently Asked Questions
Below we answer the questions most frequently asked on this subject.
What does a bill of lading confirm?
The contract of carriage by sea and the carrier's taking over or loading of the goods; upon presentation of the bill, the carrier is obliged to deliver the goods.
Can another document be issued instead of a bill of lading?
Yes — a sea waybill or another document confirming the taking over of the goods for carriage, which serves as primary evidence of the receipt and the contract.
Who answers for inaccurate data in the bill of lading?
The shipper — to the carrier, for the consequences of incorrect, inexact or incomplete data entered in the document.
How are the goods delivered at the port of destination?
To the holder of an original, according to type: a straight bill — to the named consignee or transferee; an order bill — according to the order and the chain of endorsements; a bearer bill — to the presenter. Delivery against one original voids the rest.
How We Help on Legal.ge
A bill-of-lading dispute — conflicting originals, inaccurate data or wrongful delivery — demands command of the documentary framework and the international rules. On Legal.ge a maritime-law lawyer will check the bill's contents, assess the prospects of the dispute and protect your interests. Submit a request on the site and receive qualified assistance.