Lesson 5 & 6: Bills of Lading

Question 1

Three functions of B/L

Answer 1

1. Receipt for goods
2. Evidence of contract of carriage
3. Document of title

Question 2

The carrier should issue the B/L including:

Answer 2

1. leading marks
2. quantity or weight
3. conditions of the goods

Question 3

The B/L is..

Answer 3

Evidence of the state of the cargo when received by the carrier

Question 4

Types of transport documents

Answer 4

• Non-negotiable: Bearer Bill

- Negotiable: Straight Bill

Question 5

6 steps to a cargo claim:

Answer 5

1. Title to sue
2. The identity of the carrier
3. Hague-Visby Rules apply?
4. Can claimant prove the loss?
5. Is it a breach by the carrier for a duty owed?
6. Can the carrier exclude or limit his liability?

Question 6

Title to sue

Answer 6

• Privity of Contract: doctrine that only the parties involved in the contract are allowed to sue or be sued. (except of duty of care)
• COGSA: lawful holders of transferable B/L, parties for the time being name consignees in straight bills, parties whom the carrier undertakes to deliver the goods under a ship’s delivery order

Question 7

Identity of Carrier

Answer 7

• If the claimant is the charter, the carrier will be whom chartered the vessel.
• If the claimant is not the charter, the carrier will be the party signing the B/L.

Question 8

Hague-Visby Rules apply?

Answer 8

• The B/L is issued in a HVR state?
• The carriage starts in a HVR state?
• The B/L provides that is governed by legislation of a State giving effects to HVR
• Clause paramount: the B/L is governed by HVR

EXCPETIONS

• Live animal
• Cargo carried on deck

Question 9

Proving Loss

Answer 9

• Act III Rule 6: notice of loss or damage should be giving in writing to the carrier at the discharge port before or when the cargo interest takes the goods or within 3 days
• ## Prima Facie Presumption: When the carrier takes the photograph, signs and issues the b/l, providing the quantity, state condition of the goods and leading marks, a prima facie presumption raises against the carrier.The carrier can rebut through evidence.

Question 10

Proving Carrier’s Breach

Answer 10

Identifying claimant’s contract of carriage:

• Contract itself
• B/L
• Charterparty

Claimant most prove that the breach is

• Duty of Care
• Seaworthiness

Question 11

The carrier could extinguished the claim either by:

Answer 11

• Time bars

- Pleading one of the exceptions to liability allowed by the HVR

Question 12

Time Bar

Answer 12

• Cargo claims under HVR must be brought within a year of the delivery of the goods.

Question 13

HVR Art IV Rule 2

Answer 13

Neither the carrier nor the ship are responsible for loss resulting from:

• Acts of War
• Perils of the sea
• Act of neglect
• Quarantine restrictions
• Act of public enemy
• Fire unless caused by the actual fault or privity of contract of the carrier
• Insufficiency of packing

Question 14

Exceptions can be overruled if the claimant can prove

Answer 14

• Unseaworthiness
• Unjustified deviation
• Carriage of cargo on deck without he consent of the shipper

Question 15

HVR Art IV Rule 5

Answer 15

• If value of goods not stated the carrier does not become liable

Question 16

When does COGSA 1992 apply?

Answer 16

• Have to be carriage contract
• Contract must be carriage of goods
• Must be by sea
• International

Question 17

The B/L is therefore evidence of the state of the cargo when received by the carrier:

Answer 17

• Prima facie evidence towards shipper

* Conclusive evidence towards third party