Sets of Bill of Lading:

This is an old practice where the bills are signed in the sets of three originals to facilitate the goods are timely delivered even when the original is lost. They are stated as the first original, second original, third original on top of the bill. A duplicate copy with a stamp – “Non-negotiable” may also be distributed.

The master will sign the original bill of lading, and when the master of agent signs the three-bill of lading, all other copies are considered void. This clause is clearly written on the bill of lading which is supplied in sets.

This is a reason why the bank, negotiating a letter of credit that covers the cargo, will always ask for the full set of B/Ls. This is to prevent other B/L holders from legally claiming the cargo before the bank does.

Bill of lading as Contract Of Carriage:

The contract between the carrier and the shipper is already created before issuing the bill of lading when the cargo is loaded on the ship. This is done to safeguard the shipper in case the cargo is damaged before loading it on board the vessel and to help the shipper in the claim process. For the carrier and the consignee, the bill of lading will act as the actual contract of carriage.

The popularly used conventions and rules which covers the contract of carriage for carrying goods by sea  :

–    Hamburg Rules

–    Rotterdam Rules

–    Hague Rules

–    US COGSA

–    Hague – Visby Rules

The convention which governs the contract of the carriage is usually stated in the first page of the bill of lading. Upon booking space for shipment by the consignee the carrier sends a booking confirmation which states  Clauses sent by the carrier, it will indicate the terms and conditions that will govern the booking and contract of carriage.

Contents of Freight Bill of Lading:

The bill of lading comprises of the following details:

·         The complete name and official address of the receiver and the shipper.

·         The Purchase orders or special reference/ invoice numbers which helps the shipper and the consignee to release the goods for pickup or accepted at delivery

·         The date of the pickup which acts as a reference to track the freight

·         The details of the item including the number of unit being shipper, weight and dimension of the product, along with the nature of the cargo being carried, i.e. dangerous goods etc.

·         If the goods are hazardous, Department of Transportation hazardous material designation is tagged, and it is cited on the bill to follow special rules and requirements when shipping

·         The details of the packaging used such as crates, palates, cartons, pills, drums etc.

·         Any special notes or instruction for the carrier

Bill of Lading Tracking:

Different companies use different forms of bill of lading which makes it difficult to track them unless a specific tracking service is provided by the carrier. There are few companies which tie-up with the shipping carriers to track the bill of lading for easy trade.

Electronic Bill of Lading:

With the modernisation of the shipping industry as a whole, the bill of lading is also modernised to the electronic bill of lading to solve the issues occurring while using a paper bill of lading under the latest iteration of International Group of P&I Clubs. The problem faced when using a paper bill of ladings are:

The paper bill uses printed bills of lading which are both costly. The bill has to be couriered which is an additional cost

–    The slow movement of the paper-based bill of lading.

–    Carriers are obligated to release the goods only on the production of an original bill of lading, which if not received in time will slow the process.

–    The paper bill can be forged, and delivery of goods against a forged bill of lading will lead to a huge loss

Advantages of Electronic Bill of Lading:

·         As there are no papers involved, it saves paper cost as well the cost involved in sending the paper to a different destination by courier

·         The electronic bill of lading can be transmitted instantaneously around the word in the presence of an internet connection, enabling a quick trade and ease of multiple transfers of ownership during the carriage of the cargo.

·         If there are any modifications required in the bill, it can be made quickly and cost-effectively as compared to the paper system of the bill of lading.

·         If the electronic bill of lading system is drawn correctly, such as introducing audit trials, PIN, electronic signature etc., it will be difficult to commit any type of fraud.