Checks when signing Bills of Lading

I) Quantity of Cargo

a) The Master must not sign a B/L acknowledging the receipt of goods which
he knows have not been loaded. Unfortunately, the measurement of bulk
cargoes with precise accuracy is for all practical purposes impossible, and
so the problem frequently arises of deciding at exactly what point the
Master can say that the B/L figure is incorrect. This usually depends on
many factors, such as type of cargo, the size of ship and conditions in the
port, but common practice is that, if the B/L figure differs from the ship’s
figure by more than 0.5%, then the Master must query the accuracy of
the B/L figure.

b) If the discrepancy between ship and B/L figures exceeds 0.5%, every
effort must be made to establish the reason for the difference. If this is
not possible, then the Master is to adopt one of the following courses :-

1) delete the B/L figure and insert the ship’s figure, initialling the
alteration, or
2) endorse the B/L with the reservation “x tons in dispute:, or
3) refuse to sign it, but pass it to the agents with the appropriate
instructions in writing, or
4) advise the company immediately and contact the local P & I
correspondent

c) If the B/L figure is within 0.5% - of the ship’s figure, (as established by
draught survey and/or volumeric calculation), then it is probably in order
to sign it. However, if the B/L figure is in excess of the ship’s figure by
more than 0.1%, the Master should issue a letter of protest to Charterers
and Shippers, notifying Owners of what he has done.

d) The above will also apply when the vessel is employing an Early
Departure Procedure.

II) Description & Condition of Cargo

The Master must satisfy himself that the description of the cargo contained in
the B/L is accurate, and complies with the description of that given in the
charterparty or voyage orders. He should also ensure that, if any part of the
cargo is not in good condition, he should clause the B/L accordingly, (e.g.
condition of steel product cargoes). If in doubt, the Master must advise the
vessel’s Operator and where appropriate call in the local P & I Surveyor.
III) Date of B/L

The Master must not sign an inaccurately dated B/L.

IV) Description of Voyage

a) The Master must not sign a B/L for a voyage or destination which is
patently inconsistent with any Charter Party governing his vessel’s
employment, or with his voyage instructions.

b) Unless specifically instructed by Owners to do so, the Master must not

sign B/L’s for a port or destination which his ship is physically
incapable of reaching in safety.

c) The Master must not sign a B/L which explicitly forbids transhipment if
he knows that this is envisaged by Charterers, or that it is inevitable
through physical restrictions such as draft.

d) The Master must not sign a B/L which he knows contains fraudulent
information, e.g. false port of discharge.

In all the above circumstances, he should notify the office immediately.

V) Terms and Conditions

a) Most forms of B/L in common use for bulk cargoes incorporate such
words as “This shipment is carried under and pursuant to the terms of
the C/P dated ….between ….and ….and all terms, clauses, exceptions
and conditions thereof apply to and govern the rights of the parties
concerned in this shipment”. Whenever possible, the blanks are to be
filled in. If this is resisted, then the Master is to protest in writing to
both Shippers and Charterers, notifying Owners.

b) Certain forms of B/L contain no such provision. This does not matter
provided the B/L does incorporate the Hague Rules or HagueVisby
Rules in some form or other.
VI) Payment of Freight

a) A B/L which contains no reference to freight having been paid in whole or

in part is a receipt only for cargo, but a B/L marked “Freight Paid” or
“Freight Prepaid” may constitute a receipt for both cargo and freight
money.

b) Accordingly, the Master is only to sign such a B/L where:-

• he is specifically instructed to by the Company (or where appropriate,

Time Charterers – but not Voyage Charterers), or

• he has good evidence that the freight has indeed been properly paid
and received by Owners (or Time Charterers), e.g. a direct instruction
by telex from the Company, Owners or Time Charterers.

c) Unless one of the above conditions is satisfied, the Master must not sign
the B/L without first deleting the relevant words and initialling the
alteration. If this proves impossible, he is to pass it to the agent with a
written instruction not to issue it without explicit instructions from the
company.

IF THE MASTER HAS ANY QUERIES AT ALL RELATING TO THE SIGNING OF BILLS
OF LADING, HE SHOULD NOT HESITATE TO CONTACT THE COMMERCIAL
OPERATOR AND/OR MANAGEMENT OFFICE IMMEDIATELY.