Page 33 - Insurance Times May 2024

SS Armistan: Bill

of Lading,

Agreement, Libel

or an Estopple? Dr. Soumi Mukherjee

M.A., PH.D

- Historical Maritime Fraud

"A bill of lading (BL or BoL) is a legal document issued by a carrier (transportation company) to a
shipper that details the type, quantity, and destination of the goods being carried. A bill of lading
also serves as a shipment receipt when the carrier delivers the goods at a redetermined destination.
This document must accompany the shipped products, no matter the form of transportation, and
must be signed by an authorized representative from the carrier, shipper, and receiver."

A bill of lading (BL or BoL) is a legal document issued always pay close attention to details such as loading

procedures, weight verification, cargo handling practices
by a carrier (transportation company) to a shipper
and document preparation to avoid errors or discrepancies
that details the type, quantity, and destination
of the goods being carried. A bill of lading also
serves as a shipment receipt when the carrier delivers the on Bills of Lading. If a bill of lading is not clean, it can lead
to several complications:
goods at a redetermined destination. This document must 1. Delays in Customs Clearance: Unclean bills of lading can
accompany the shipped products, no matter the form of cause delays in customs clearance. Customs authorities
transportation, and must be signed by an authorized typically require a clean bill of lading for clearance.
representative from the carrier, shipper, and receiver. 2. Refusal of Shipments: Importers may refuse a
shipment if it comes with a clause bill of lading. This is
A ‘clean’ Bill of Lading is issued when goods are received in because the importer pays for a certain quantity of
good condition and do not contain any damage or goods in a specific condition. If there are goods missing
discrepancies, which is crucial for the carriage of goods. Not or they are damaged, this will cause a loss to the
having a Clean Bill can lead to legal disputes and financial importer.
losses. Furthermore, a Clean Bill of Lading should accurately 3. Financial Losses for Importers: Without a clean bill,
reflect what has been shipped, how it has been packed and importers may face financial losses!. This is because they
its destination. It helps avoid disputes about damages or may not receive funds for the shipment if a bank has
missing items during transport and provides proof that the issued a letter of credit.
carrier has fulfilled its obligation to deliver goods in original
4. Disputes Between Parties: Not having a clean bill of
condition. The bill also acts as a receipt for payment by the
importer. lading can lead to disputes between the parties involved
in the transaction.
To ensure maximum protection from possible problems 5. Impact on Banks: Banks often require clean bills of
arising from incorrect documentation, shippers should lading to facilitate smooth transactions.

30 May 2024 The Insurance Times