WKE

CARRIAGE OF GOODS BY SEA

Cargo documentation

By:
Sulaiman Olanrewaju Oladokun
 ELEMENTS OF MARITIME LAW

• LABOUR LAW
• SOLAS
• STCW
• MARPOL
• CLASSIFICATION SOCIETY
• MARINE SAFETY
• CARRIAGE OF GOOD
 OBJECTIVES
Familiarization of marine engineers to areas
of Maritime law relating to Cargo
Documentation in the carriage of good by
Specific-
 LIABILITY ISSUES
• A concept known as limitation of liability arises often in
maritime law.
• This is where a ship owner or vessel owner seeks to limit
liability to the post-casualty value of the vessel following
a marine incident or accident if he or she did not have
privity and knowledge of the circumstances giving rise to
the loss.
• In other words, if the owner could show that they didn’t
have control over the elements giving rise to an accident
or other loss, they could limit their liability.
 DEFINATIONS
• 1. "Carrier" means any person by whom or in whose
name a contract of carriage of goods by sea has been
concluded with a shipper.
• 2. "Actual carrier" means any person to whom the
performance of the carriage of the goods, or of part of
the carriage, has been entrusted by the carrier, and
includes any other person to whom such performance
has been entrusted.
• 3. "Shipper" means any person by whom or in whose
name or on whose behalf a contract of carriage of goods
by sea has been concluded with a carrier, or any person
by whom or in whose name or on whose behalf the
goods are actually delivered to the carrier in relation to
the contract of carriage by sea.
• 4. "Consignee" means the person entitled to take
delivery of the goods.
 DEFINATIONS
• 5. "Goods" includes live animals; where the goods are
consolidated in a container, pallet or similar article of transport
or where they are packed, goods includes such article of
transport or packaging if supplied by the shipper.

• 6. "Contract of carriage by sea" means any contract whereby

the carrier undertakes against payment of freight to carry goods
by sea from one port to another;

• 7. "Bill of lading" means a document which evidences a

contract of carriage by sea and the taking over or loading of the
goods by the carrier, and by which the carrier undertakes to
deliver the goods against surrender of the document. A
provision in the document that the goods are to be delivered to
the order of a named person, or to order, or to bearer,
constitutes such an undertaking.
 CARGO DOCUMENTS

1) CARGO PLAN
2) CARGO MANIFEST
3) MATE RECEIPT
4) BILL OF LADEN
5) WAYBILLS
6) LETTER OF INDEMNITY
 CARGO PLAN
The purpose of cargo planning and plans is to facilitate the
following:

• Order of gangs
• Discharge of equipment
• Stability and trim calculation
• Heavy lift equipment
• Optional cargo operations
• Fire fighting
• Ship layout
• Port stay

Types of cargo plans:

• Working cargo plan- During loading

• Finished cargo plan – Post loading
 Contents of cargo plans
• Marks
• Numbers and weight
• Goods and packaging types
• Stowage
• Cargo separation
• Heavy lift
• Bill of laden
 BILL OF LADEN(B/L)
Bill of laden represent the receipt for
carriage of cargo Its main functions are :

• A receipt of good shipped or in the ship-

owners custody
• Evident of existing contracts
• Document of title to the goods mentioned
 INTERNATION REGULATIONS-
COG AND B/L
• HAGUE RULE
• VISBY RULE
• HARMBURG RULE

• OTHERS- COGSA
 SCOPE OF HAMBURG RULE
1. The provisions of this Convention are applicable to all contracts
of carriage by sea between two different States, if:

• (a) the port of loading as provided for in the contract of carriage

by sea is located in a Contracting State, or
• (b) the port of discharge as provided for in the contract of
carriage by sea is located in a Contracting State, or
• (c) one of the optional ports of discharge provided for in the
contract of carriage by sea is the actual port of discharge and
such port is located in a Contracting State, or
• (d) the bill of lading or other document evidencing the contract
of carriage by sea is issued in a Contracting State, or
• (e) the bill of lading or other document evidencing the contract
of carriage by sea provides that the provisions of this
Convention or the legislation of any State giving effect to them
are to govern the contract.
 HARMBURG RULE
• 2. The provisions of this Convention are applicable
without regard to the nationality : of the ship, the carrier,
the actual carrier, the shipper, the consignee or any
other interested person.

• 3. The provisions of this Convention are not applicable to

charter-parties. However, where a bill of lading is issued
pursuant to a charter-party, the provisions of the
Convention apply to such a bill of lading if it governs the
relation between the carrier and the holder of the bill of
lading, not being the chatterer.

• 4. If a contract provides for future carriage of goods in a

series of shipments during an agreed period, the
provisions of this Convention apply to each shipment.
However, where a shipment is made under a charter-
party, the provisions of paragraph 3 of this article apply.
 Article 14. Issue of bill of lading

• 1. ISSUANCE-When the carrier or the actual carrier

takes the goods in his charge, the carrier must, on
demand of the shipper, issue to the shipper a bill of
lading

• 2. DELEGATION- The bill of lading may be signed by a

person having authority from the carrier. A bill of lading
signed by the master of the ship carrying the goods is
deemed to have been signed on behalf of the carrier.

• 3. SIGNATURE- The signature on the bill of lading may

be in handwriting, printed in facsimile, perforated,
stamped, in symbols, or made by any other mechanical
or electronic means, if not inconsistent with the law of
the country where the bill of lading is issued.
 CONTENTS OF BILL LADDEN
The bill of lading must include, inter alia, the following particulars:

• (a) the general nature of the goods, the leading marks

necessary for identification of the goods, an express statement,
if applicable, as to the dangerous character of the goods, the
number of packages or pieces, and the weight of the goods or
their quantity otherwise expressed, all such particulars as
furnished by the shipper;
• (b) the apparent condition of the goods;
• (c) the name and principal place of business of the carrier;
• (d) the name of the shipper;
• e) the consignee if named by the shipper;
• f) the port of loading under the contract of carriage by sea and
the date on which the goods were taken over by the carrier at
the port of loading;
• (g) the port of discharge under the contract of carriage by sea;
 CONTENTS OF BILL LADEN
• (h) the number of originals of the bill of lading, if more than
one;
• (i) the place of issuance of the bill of lading;
• (j) the signature of the carrier or a person acting on his
behalf;
• (k) the freight to the extent payable by the consignee or
other indication that freight is payable by him;
• (l) the statement referred to in paragraph 3 of article 23;
• (m) the statement, if applicable, that the goods shall or may
be carried on deck;
• (n) the date or the period of delivery of the goods at the port
of discharge if expressly agreed upon between the parties;
and
• (o) any increased limit or limits of liability where agreed in
accordance with paragraph 4 of article 6.
 CONTINUE…
• 2. After the goods have been loaded on board, if the shipper so
demands, the carrier must issue to the shipper a "shipped" bill
of lading which, in addition to the particulars required under
paragraph 1 of this article, must state that the goods are on
board a named ship or ships, and the date or dates of loading.
If the carrier has previously issued to the shipper a bill of lading
or other document of title with respect to any of such goods, on
request of the carrier the shipper must surrender such
document in exchange for a "shipped" bill of lading. The carrier
may amend any previously issued document in order to meet
the shippers demand for a "shipped" bill of lading if, as
amended, such document includes all the information required
to be contained in a "shipped" bill of lading.
• 3. The absence in the bill of lading of one or more particulars
referred to in this article does not affect the legal character of
the document as a bill of lading provided that it nevertheless
meets the requirements set out in paragraph 7 of article 1.
 Article 16. Bills of lading: reservations
and evidentiary effect
• 1. SUSPISION- If the bill of lading contains particulars
concerning the general nature, leading marks, number of
packages of pieces, weight or quantity of the goods which
the carrier or other person issuing the bill of lading on his
behalf knows or has reasonable grounds to suspect do not
accurately represent the goods actually taken over or,
where a "shipped" bill of lading is issued, loaded, or if he
had no reasonable means of checking such particulars, the
carrier or such other person must insert in the bill of lading a
reservation specifying these inaccuracies, grounds of
suspicion or the absence of reasonable means of checking.
• 2. If the carrier or other person issuing the bill of lading on
his behalf fails to note on the bill of lading the apparent
condition of the goods, he is deemed to have noted on the
bill of lading that the goods were in apparent good condition.
 EXCEPTION
• 3. Except for particulars in respect of which and to the extent to
which a reservation permitted under paragraph 1 of this article
has been entered:
• (a) the bill of lading is prima facie evidence of the taking over
or, where a "shipped" bill of lading is issued, loading, by the
carrier of the goods as described in the bill of lading; and
• (b) proof to the contrary by the carrier is not admissible if the bill
of lading has been transferred to a third party, including a
consignee, who in good faith has acted in reliance on the
description of the goods therein.
• 4. A bill of lading which does not, as provided in paragraph 1,
subparagraph (k), of article 15, set forth the freight or otherwise
indicate that freight is payable by the consignee or does not set
forth demurrage incurred at the port of loading payable by the
consignee, is prima facie evidence that no freight or such
demurrage is payable by him. However, proof to the contrary by
the carrier is not admissible when the bill of lading has been
transferred to a third party, including a consignee, who in good
faith has acted in reliance on the absence in the bill of lading of
any such indication.
 Guarantees by the shipper
• 1. The shipper is deemed to have guaranteed to the
carrier the accuracy of particulars relating to: the
general nature of the goods, their marks, number, weight
and quantity as furnished by him for insertion in the bill of
lading. The shipper must indemnify the carrier against
the loss resulting from inaccuracies in such particulars.
The shipper remains liable even if the bill of lading has
been transferred by him. The right of the carrier to such
indemnity in no way limits his liability under the contract
of carriage by sea to any person other than the shipper.
• 2. Any letter of guarantee or agreement by which the
shipper undertakes to indemnify the carrier against loss
resulting from the issuance of the bill of lading by the
carrier, or by a person acting on his behalf, without
entering a reservation relating to particulars furnished by
the shipper for insertion in the bill of lading, or to the
apparent condition of the goods, is void and of no effect
as against any third party, including a consignee, to
whom the bill of lading has been transferred.
 Guarantees by the shipper
• Such a letter of guarantee or agreement is valid as
against the shipper unless the carrier or the person
acting on his behalf, by omitting the reservation referred
to in paragraph 2 of this article, intends to defraud a third
party, including a consignee, who acts in reliance on the
description of the goods in the bill of lading. In the latter
case, if the reservation omitted relates to particulars
furnished by the shipper for insertion in the bill of lading,
the carrier has no right of indemnity from the shipper
pursuant to paragraph 1 of this article.

• 4. In the case of intended fraud referred to in paragraph

3 of this article, the carrier is liable, without the benefit of
the limitation of liability provided for in this Convention,
for the loss incurred by a third party, including a
consignee, because he has acted in reliance on the
description of the goods in the bill of lading.
 Article 18. Documents other than
bills of lading
• Where a carrier issues a document other than a
bill of lading to evidence the receipt of the
goods to be carried, such a document is prima
facie evidence of the conclusion of the contract
of carriage by sea and the taking over by the
carrier of the goods as therein described.
• Such documents are:
1. Mates receipt
2. Waybill
3. Letter of indemnity
 WAYBILL

Is also used as documents for receipt of cargo -

• Produced in triplicate
• Remark of condition of cargo
• Work like the B/L
Must include description of :
• The goods
• Voyage
• Freight information
 INDEMINITY

• Case of discrepancy and special circumstance in

relation to bona-fide and substantial ground for
dispute
• Letter of indemnity or back letter in return to
clean bill of laden should be issue
• Based on understanding
 SIGNING BILL OF LADEN
MASTERS MUST CONSIDER:
• QUANTITY OF CARGO
• DATE
• DESCRBTION OF CARGO
• DESCRPTION OF VOYAGE
• TERMS AND CONDITIONS
• PAYMENTS OF FREIGHT
 B/L CHARTER PARTY
• VOYAGE CHARTER
• TIME CHARTER
• DEMISE OR BARE BOAT CHATER
 VOYAGE CHARTER
• Where required transportation capacity is provided including:

Obligation of ship-owner:

• Seaworthy ship
• Reasonable Unjustifiable deviation
• Carry goods dispatch
• to their destination

Obligation of the chatterer:

• Procure cargo
• Ensure that Cargo is not dangerous
• Bring cargo alongside the vessel
• Load a full and complete cargo
• Load in the time stipulated
• Name a safe port if not given in the charter party
• Pay the freight
 TIME CHARTER
• Where manned and equipped ship is provided including:

Obligation of ship-owner:

• provide seaworthy ship

• Ensure that vessel conform with size, sped, and fuel consumption stated in
the chatters party
• Ensure reasonable steps to maintain efficient condition

Obligation of the chatterer:

• Utilize vessel within safe port only “ where she can safely lie always afloat”
• Comply with agreed trading limits
• Not ship dangerous cargo unless specifies
• Pay the charter hire
• Deliver the ship in the same condition as it was delievered – fear wear and
tear is excepted.
 DEMISE OR BARE BOAT CHARTER
• Where only equipped ship is provided including:

Obligation of ship-owner:

• Deliver seaworthy ship

• Ensure that vessel fit her description-conformity with size, sped,
and fuel consumption stated in the chatters party

Obligation of the chatterer:

• Recruit and pay crew

• Insure the vessel
• Pay agreed freight
• Observe restriction in the trading areas
• Redeliver the ship in the same condition as it was delivered – fear
wear and tear is excepted.