Bill of Lading

Can cargo be released without an original Bill of Lading?

Only in exceptional cases and usually against a Letter of Indemnity (LOI), but this carries huge risks for the carrier.

What is a "To Order" Bill of Lading?

It is a negotiable document where ownership can be transferred to another party by endorsement, making it a tradable instrument.

Who is liable for cargo damage noted on the B/L?

If damage is noted on the B/L at loading, the shipper is likely liable. If clean on loading but damaged on arrival, the carrier is usually liable.

Is a Sea Waybill the same as a Bill of Lading?

No, a Waybill is not a document of title and does not require surrender for cargo release, whereas a Bill of Lading does.

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The Bill of Lading (B/L or Konosamenti in Georgian maritime law) is the most important document in maritime trade. It serves three main functions: it is evidence of the contract of carriage, a receipt for the goods, and, most importantly, a Document of Title. This means that whoever holds the Bill of Lading owns the cargo. Errors or disputes related to this document often lead to cargo being stuck in port, huge financial losses, or loss of cargo. Legal services related to Bills of Lading include correct drafting of the document, risk analysis, and dispute resolution in case of cargo damage or delay.

What Does the Bill of Lading Service Cover?

The service covers all stages of the Bill of Lading's lifecycle, from issuance to cargo delivery. Specialists ensure:

  • Document Analysis: Reviewing B/L terms to ensure they accurately reflect the Charterparty conditions and protect your interests.
  • Dispute Resolution: Legal assistance in situations such as "Clean" vs. "Dirty" (claused) Bills of Lading, discrepancies in cargo quantity or quality.
  • Cargo Delivery Disputes: Situations where the carrier refuses to release cargo without the original B/L, or conversely, released cargo without presentation of the document.
  • Endorsement Procedures: Correct transfer of the B/L to third parties (during sale/purchase) without legal loopholes.
  • Lost Bill of Lading Recovery: Managing the complex legal procedure in case the original document is lost (bank guarantees, court orders).

Common Scenarios and Needs

Problems related to Bills of Lading often arise in the following cases:

  • Cargo Damage: When cargo arrives damaged at the destination port, and liability needs to be claimed against the carrier based on the B/L.
  • Using LOI (Letter of Indemnity): When the original B/L is delayed, and a letter of indemnity is needed to release the cargo, which involves significant risks.
  • Antedated Bill of Lading: When the loading date stated in the B/L does not match reality, which is a violation of letter of credit terms (fraud).
  • Switch Bill of Lading: When a new B/L needs to be issued mid-transit for trading purposes to conceal the shipper's identity.
  • Carrier Liability: Disputes over who is liable for cargo shortage — the shipper or the carrier.

Georgian Legal Framework

In Georgia, the legal status of the Bill of Lading is defined by the Maritime Code of Georgia (specifically, Book Four - Carriage of Goods by Sea). The law regulates in detail the particulars of the B/L, carrier liability, and rules for document transfer. For international shipments, the Hague-Visby Rules often apply, principles of which are reflected in Georgian legislation. In case of a dispute, it is important to determine which country's law applies according to the terms on the back of the B/L.

Service Process: What to Expect

The lawyer will first examine the text of the Bill of Lading and related commercial documents (invoice, contract). In case of damage, an independent Surveyor will be involved to record facts. The lawyer will prepare a Claim against the carrier and negotiate with the insurance company (P&I Club). In case of litigation, the specialist will defend your title to the cargo.

Why Choose Legal.ge?

A Bill of Lading is not just a piece of paper — it is a security and the key to the cargo. Errors associated with it are costly. On Legal.ge, you will find maritime law experts who understand the nuances of international trade. Protect your cargo and finances with qualified legal support. Find a specialist on Legal.ge and manage your logistics risks wisely.

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