Bill of Lading

Question 1

What is the carriers responsibility when a container is delivered to Customs?

Answer 1

The Carriers Responsibility ends the moment goods are delivered to Customs

Question 2

On an Original BOL, Which two parties is the contract set between?

Answer 2

Carrier and Merchant

Question 3

Clause 1

Answer 3

Definitions
Carrier: easy to ID front of BL
Merchant: any party having to do with goods, gives more people for msc to go after
Freight: traditional freight plus DDP

Question 4

Hauge Rules

Answer 4

1924
Determined responsibility of carrier and shipper
Carrier responsibility secure ctr are seaworthy
Merchant responsible to pack container
Act of god

Question 5

Clause 2

Answer 5

Contracting parties and warranty
States that contract is between carrier and merchant
Merchant liable to pay freight

Question 6

Clause 3

Answer 6

Carrier’s Tariff
T&C of applicable tariff
Attention to additional charges (DDP)
If diff btwn tariff and bl bl wins

Question 7

Clause 4

Answer 7

Himalaya incident
4.2 Himalaya clause: protection for employees, agents, & subcontractors must sue GVA
4.3 extends to carriers buying slots on MSC vessels
4.4 please please don’t sue

Question 8

Clause 5

Answer 8

Carrier’s Responsibility
5.1 port to port: load on vessel until unload
5.2 combined transport: determine where loss happened & if have contract with trucker or local law
5.3 customs: responsibility ends when deliver to customs authority

Question 9

Clause 6

Answer 9

US Trade Clause
AMERICA, forget clause 5. If in US, follow COGSA. Carrier responsibility starts when get container and ends when return (MSC responsible if something happens in terminal)

Question 10

Clause 7

Answer 10

Compensation and Liability provisions
Calculates compensation amount if carrier is liable
Hague rule: 100GBP per package
COGSA: $500 per package (what is stated in B/L)

Question 11

Clause 8

Answer 11

Scope of voyage, delay, consequential damages
Only job is to go from point a to point b. Can call unadvertised ports

Question 12

Clause 9

Answer 12

Methods & Routes of carriage

May at any time w/o notice to merchant transfer the goods, sail w/o pilots, load & unload goods at any place or port, comply w/ any orders or recom given by gov’t, can use off dock storage (congestion)

Question 13

Clause 10

Answer 13

Notice of claims, time bar, and jurisdiction
Customer has w/in 3 days of picking up cargo to notify of damage
Time bar: how long customer can bring procedure to court (port to port: 1 year, land: find where damage occurred, could be 9 months)
10.3: where you can sue us, High Court of London or US Southern District of NY
MSC can sue you in both places, POL, or where ever you have a office

Question 14

Clause 11

Answer 14

Stuffing Containers
Merchant is resp to ensure that container is not damaged & pack it
Carrier not liable for damage if packaged incorrectly
Merchant must pack & seal, carrier has right to open

Question 15

Clause 12

Answer 15

Merchant delivers container +/- 2 degrees of what they needed & carrier maintains it

Question 16

Clause 23

Answer 16

If one part found invalid in court, whole document is still valid

Question 17

Clause 22

Answer 17

if all parties have equal interest in damages (& no direct liable parties), costs will be equally divided between them

Question 18

Clause 13

Answer 18

Inspection of goods and special circumstances
Carrier has right to inspect goods w/o telling merchant

Question 19

Clause 14

Answer 19

Description of goods & merchant’s responsibility
Presumption that carrier receieved correct number of packages
Description of packages and goods
Counterfit goods that are detained, seized, or destroyed by auhtoirities, carrier is not responsible
Merchant responsibility to return emptry equipment in the same condition we gave it to them

Question 20

Clause 15

Answer 20

Dangerous or Hazardous goods

Carrier will not accept w/o prior written notice of full & true particulars & carrier’s written approval to carry them
Even hazardous don’t open contianer to check usually
Merchant must give us the true nature of the cargo
Merchant is fully liable for any damages if don’t provide correct info

Question 21

Clause 16

Answer 21

All freight is earned as soon as we receive container
All freight must be paid w/o any set-off, counter claim, deduction

Question 22

Clause 17

Answer 22

Carrier’s Lien

Carrier can take possession of container if merchant has not paid us, can hold cargo for any sum due to us
Sometimes try to resale cargo or destroy, whichever is cheaper

Question 23

Clause 18

Answer 23

Optional stowage, deck cargo, and livestock
Can be carried on deck or under deck w/o notice to merchant unless specifically stipulated that the containers will be carried under deck
Never tell merchant where store cargo

Question 24

Clause 19

Answer 24

Matters adversely affecting carriers performance

Can choose alternative route, to suspense & store, or cancel for special cases (war)

Question 25

Clause 20

Answer 25

Notification and Delivery
We do not have to send arrival notice to the merchant, we do for courtesy
Merchant shall take goods within free time, if not carrier has right to unpack goods & store
Carrier not liable for cleaning of container or disposal of goods of we have to dispose

Question 26

Clause 21

Answer 26

Both to Blame collision clause
When 2 vessels collide & loss happens, cargo owner cannot go to the carrier vessel for loss of goods. Have to go to the other vessel involved in collision.
If Vessel A 60% at fault (carrier vessel) cargo owner goes to vessel B & gets 40% of value reimbursed
With Cogsa get reimburse of full value but still go to vessel B but then vessel B goes to vessel A for reimbursement of costs