Bill of lading is given in exchange of mates receipt. It performs fallowing functions-
- It is a
receipt forthe cargo signed by the master of agenton behalf of the ship owner.
- It is a document of title to the cargo. It is a negotiable document and the person having this document is the owner of the cargo
- It can be sold just by signing and transferring the BILL OF LADING in the name of the new buyer.
- It is evidence of a contract between shipowner and shipper.
- The information in the bill of lading includes –
- name and address of shipper.
- destination port.
- loading port.
- description of cargo (weight, volume)
- name of the
- date of loading.
Backside of the document has terms and conditions of carriage.
- The bill of lading contains an accurate description of the condition of cargo.
- Bill of lading contains terms like – ”said to contain” , ”said to weight ”.
- Shippers try to get a bill without any clauses, this is a fraudulent practice as shippers letter has no legal standing and the shipowner will not be able to escape his liability for cargo claims.