Shipping Law and Bill of Lading

This assignment delves into the intricacies of shipping law, highlighting its foundation in contract and tort law. It focuses on the crucial role of the bill of lading, exploring its functions as evidence of contract, document of title, and receipt of cargo. The assignment examines various types of bills of lading and outlines the rights and duties of consignors and consignees. It also emphasizes the importance of legal agreements and dispute resolution mechanisms in shipping transactions.

SHIPPING LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The word shipping stands for carriage goods, services as well as persons from one place
to another. Shipping law is based on contract as well as tort law. It refers to conflicts or issues
which are created while travelling or trip. It included various contract, agreements, funding for
ships etc. It define various types of rules, regulation and procedure which are needs to be follow
by entire country in order to protect laws. Shipping law is mainly applies on shipping process
because it conduct at international level. It is able to cover areas of wet and dry law. It consists
bills of lading which covered rules 1. Different matter involve in it such as financial, insurance
construction etc. The bill of lading is legal document which consists name and address of both
shipper and carrier dealing, quantity and destination of products as well. Both parties comes in
contractual relationship to complete their duties in efficient manner. There are different types of
traditional functions of this document which are being discussed in present report. Some
techniques and modes of transport are also having impact on its functions.
TASK
Shipping law is applies on carriage of goods at international level. It consist various
policies and procedure which have to follow by both the parties. It involved in process of
transaction of products as well as people by sea. This legal term is able to maintain or easily
resolve problems which arises during transactions. Those issues are easily resolve with the help
of various provision.
Bills of lading is the legal document which is evidence of transaction which is created
among two or more parties. Both the parties are bound to comply with rules and regulation
which are imposed on them. This document play an significant role in this law. Through people
can confirm their quantity of products and date of delivery as well. It is the receipt which is
issued by carrier or his agents in order to acknowledge of shipment. There are two parties
involve in this legal transaction name called consignor and consignee. Name of place of
departure of goods and services as well as destination 2. Date if arrival or departure are also
mention in legal document. Number of quantity and packages as well. Rate and amount of
freight is also consists in this document. Weight or volume weight of packages which are
consider by the person who transfer them from one place to another. It is an evidence of
1 Simon Baughen, Shipping Law (Taylor and Francis 2015).
2 Michael Bundock, Shipping Law Handbook (Taylor and Francis 2013).
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ownership which is issued in as negotiable or non negotiable form. These are two different form
of transfer of ownership. The bill of lading needs to signed by both the parties or having imposed
stamp on it. Government frame some laws and regulation which have to be issued by all in order
to protect their rights and interest. It is transferable in nature and consist various types of
information as well. Various terms which are related to bills of lading are as aligned below:
Name of parties- Bills of lading is considered document which is signed by both the
parties name called consignor and consignee 3. These are bound to follow rules which are
imposed on them. They have to comply with duties which is mentioned under legal document.
Parties are considered as among which transaction of carriage of products is take place. Name of
both seller and buyer has been mentioned under legal document along with their permanent
address and contact details as well. Through this process they easily interact with each other and
try to present goods in front of them in timely manner.
Name of destination- The legal document consists name of destination and place of
departure as well. Through which no confusion has been create among members. Both parties are
responsible to carry and deliver products accordingly. They have to fulfil duties in order to attain
their set of target and objectives as well. It is place to which goods needs to deliver or place of
buyer which is clearly mentioned under bill of lading.
Dates- Specified dates of departure and arrival is also mentioned in legal document
which is consider as prof if party becomes late in transfer goods. Consignor is the person who is
responsible to transfer goods at specified time period. So that, he have to deliver at same date
and timely manner 4. Seller is responsible to reach goods in timely manner which is mentioned
under document. Confusion is not able to create among them if clear dates are mentioned.
List of products- Various types of goods and services are transferred through this
process. Name of all goods is mentioned under bills of lading which is helpful if in case missing
or confusing is created regarding the same. List has been prepared in which name is mentioned.
Number of products- Before transfer, consigner is responsible to count number of
packages in order to ensure with number after deliver in accurate place. They have to count and
same needs to be mentioned under document. Through which the level of confusion is decreased.
Mentioned mark on each and every package of good.
3 Hilaire Belloc, On (Books for Libraries Press 1967).
4 Martin Davies and Anthony Dickey QC, Shipping Law (Thomson Reuters
(Professional) Australia Pty Limited 2016).
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Weight- Before deliver, person needs to analyse weight of packages on the basis of
volume as well 5. Through which they can charge amount accordingly. This is the important part
of every shipping which is helpful for them.
Freight rate- All necessary information needs to mentioned in bills of lading.
Government charged some amount on transfer of goods and services called as freight. This
amount needs to be paid by consignor at the time of transfer packages. This is the part of
shipping process which is important to follow.
Rules and charges- Some important information related to rules and charges needs to
present in document which is helpful for them to conduct effective transaction. They have to
fulfil criteria which are imposed on them. These has been defined by government of UK in
various provision which have to be follow by them.
The ownership is transferred in further two form such as negotiable and non negotiable
which are as defined below:
Negotiable form- It is mostly used in credit transaction. In this prices of products is being
paid through borrowing money. A bill of lading is required to hold in case claim damages, delay
and loss. Through this dispute among parties is easily being solved. The legal document define
rules, liabilities and capabilities of shipper as well as of carrier. They are responsible to follow
rules which are imposed on them. The person who suffer damages because of another then is is
able to file claim against them and receive damages which are caused to him. But ownership of
parties is easily define through this process.
Non negotiable form- It has been used in case transaction. There is on spot transaction is
being conducted which is helpful for them.
There are different types of bill of lading which are as aligned below:
Claused- This bill has been issued when products are missed or damages by one of
parties. It is important for the purpose of when goods are missed.
Received- It is a simple type of bill which is issued when products are successfully
deliver at the perfect destination. When party received their products which are able to meet their
expectation needs to issue this legal document.
Shipped on board- This is issued if cargo has been reached with better condition and
loaded at targeted place.
5 Michael Bundock, Shipping Law Handbook (Taylor and Francis 2013).
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Slate- It is issued, in case products and services delivered before the bills of lading. It
play an effective role in this process.
Direct- It is pass when correct cargo is being delivered at the perfect destination.
Products are deliver in goods condition.
Through- It is able to allow carrier to pas product with the help of various modes which
is depends on its terminals. It is important type of bill of lading which is mostly used.
Traditional function of bills of lading is as follows:
Evidence of contract of product- According to the section 5(1) of carriage of cargo by
sea act. While this process the legal contract has been framed among carrier and shipper which is
legally bound both the parties to follow duties. It is formed by them before shipping is
conducted. It is considered as prima facie evidence which is used in future time. It is the written
evidence of contract of delivery of products which is sent by sea. It is needs to be formed in
common language which is easily understand by all parties 6. Through which both the parties are
comes in contractual relationship with each other. On one is able to ignore any of their duties
which are mentioned under legal contract. They have to modified according to requirement with
their mutual consent. It is receipt of shipping products from one place to another. Some
important points which are relevant to this topic are as aligned below-
 Parties- Legal contract has been formed by both the parties name called seller
and buyer. One person is able to form contract so that he comes in contract
relationship with another person.
 Signed- Both parties have to mark their stamp on them on written contract.
Through which they ensures necessary points which are mentioned under legal
document.
 Time period- They are bound to attain their target in timely manner.
 Mutual consent- All conditions are mentioned with their mutual consent through
which no confusion or conflicts has been create among them regarding the same.
 Receive better title- Contract is the legal term which is considered as evidence of
transfer of goods and services across national border. Through this process real
owner receive better title to hold and enjoy goods.
6 'Exfin Shipping (India) Ltd V Tolani Shipping Co Ltd' (2006) 2006 Arbitration Law
Reports and Review.
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Receipt of products- Bill of lading is the important receipt of transfer of goods. It is a
proof for both parties that shipper deliver cargo and carrier receives same goods which is
ordered. They must ensures about quality, quantity and number of packages. They have to
identify all information which is mentioned under bills needs to be clear and accurate or
according to their agreement 7. It is written document which is have to be sign by both parties or
having imposed stamp on it. In this define price and volume weight of products and services
which are needs to delivered by consignor. Through this process parties are easily identify their
goods. In this clearly mention quality and quantity of cargo. Some advantages of this functions
of bill of lading which are as aligned below-
 Proof- It is considered as proof of transaction which is create among two or
more parties. Agent having proof of receipt of product. Agent is the parson who
act on behalf of principals and comply with rules or regulation which are
imposed on them.
 Handed over cargo- On the basis of receipt, shipper handed over product in
order to maintain trust among parties. It shows real ownership of party to whom
they deliver.
Certain items which are mentioned under receipts which are as follows-
 Name of both buyer and seller along with their surnames and permanent address.
 Their contact details through which they contact with each other.
 Time period and condition which is confirm with mutual consent.
 Destination or arrival place of cargo on which both parties are agree.
 Prices on which transaction among them has been fixed.
 Terms and condition based on legal contract.
 Rules, regulation and policies which they have to follow.
Case- Parsons v New Zealand shipping company, it this case it has stated that
identification of product is becomes more complicated, misconduct is able to affect its existence
Document of title- It is clearly define when packages are delivered to real owner. It
consists rights, responsibilities and liabilities of someone. It define clear ownership of the person
which is mentioned under legal agreement. Further, bill is the sale, mortgage as well as transfer
of wholly or it can be partially through intention of parties in which define absolute rights and
7 Shipping Law (ICS 2014).
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duties of person. Bill of lading is able to define possession of the individual which is clearly
having impact on them.
Bill of lading is beneficial for both the parties but it has some disadvantages as well which is
defined.
Advantages
Transferable- The bill of lading is easily transferable from one person to another. It is
present as commercial paper which is easy to form and present as well by all the parties. It is
defined as security of products of individual.
Legal document- It is considered as legal document which is a evidence for them. It
consists all necessary and relevant information or data which is beneficial for them. Through this
real owner is entitled is hold actual holding. With the help of bill of lading carrier and shipper
both are able to protect their interest and rights.
Evidence- It is considered as evidence which is important for both the parties. It is prima
facie evidence which can be easily present in front of government authorities. Government of
UK define various types of rules and policies and needs to be fulfil by them.
Disadvantages
Delayed arrival- Bill of lading is able to delayed arrival of products and services. It
consume large time and money which leads to delay in arrival.
Inaccurate data- Sometime it provide inaccurate information or data which is not
beneficial for parties to manage their performance.
High cost- Preparation of bill of lading consume large amount of investment and have to
be paid by parties in order to attain their target and objectives as well (Shipping Law, 2017). It is
legal duty of them to pay high fees to government of UK and try to fulfil their basic
responsibilities and duties.
Confusion- Lots of confusion is created among all the parties which is not beneficial for
them. While prepare legal contract parties have to be discussed with each other and try to avoid
confusion as well. Through this performance of both parties not able to improve.
Various types of modern transport and techniques are having impact on traditional
functions of bill of lading. These having close relationship with this legal document. There are
various types of rules, regulations, policies and procedure which is mentioned by government of
UK and present them in effective manner.
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Impact of transport and modern techniques are as defined below-
Formation of contract- Most of the legal contract are formed through modern techniques
such as video conferencing, audio chats and much more. Through these modes, terms and
condition of legal agreement are not able to easily identified which create confusion among
them.
Transport- Individuals select various modes of deliver goods and services from one place
to another. They have to choose further techniques which is useful for them. Opted various
methods and modes to transfer products through sea. It is best ever techniques in order to achieve
their set of target and goals as well.
Legal techniques- Some legal techniques are able to resolve conflicts or problems which
arise during the course of transportation of packages. Party who may suffer from damages and
misconduct can easily claim against another party and get reasonable benefit as well.
Government frame various rules and policies which are beneficial for both parties. They have to
comply with laws which is maintain under provision or legal contract as well.
Shipping- It is the process of carriage goods from one place to another which is a
systematic process. For this purpose they have to opt modern techniques which is helpful for
them.
Duties and charges- Both the parties are liable to pay taxes which are imposed on them
as per provision of law. The person who is responsible to deliver products have to pay excise
duty, custom etc. which is framed by government of UK. It is compulsory payment paid to legal
authorities in timely and equal to provision of law. Follow certain articles relevant to this
process. Freight charges are imposed on them which is mentioned on them.
Communication- It is process to receive and transfer information or data from one party
to another. Both parties are able to opt various types of communication techniques which is
helpful for them to share information with each other. Through this interaction process,
consignee placed an order to transfer packages and received consignor received the same. This
techniques is having impact on transport of cargo. Lack of communication is able to create
confusion among them which is not beneficial for them.
Packaging- Transferor have to pack goods in effective way which is easily attract another
party. Packaging needs to be clean and make a small parcels of them which is easy load and
transfer.
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Insurance- Transferee needs to insured their goods and services then transfer. Because in
case they are missed then they recover insurance claim at least.
Delivery- Person who is responsible to deliver products needs to be transfer at reasonable
time period.
Rights and duties of seller-
 They have to deliver products in efficient and timely manner.
 Seller have to perform function according to rules and regulation as mentioned under
provision of law.
 Try to meet expectation of buyer and satisfied they with their services.
 Try to comply with policies of law.
 Needs to maintain roles and responsible along with relationship with another in order to
expand their business in across the national border.
 Opted various plans and strategies in order to conduct transaction in effective way and try
to implement in as per the requirement.
 Seller are able to use modern or advance technologies for transfer goods with in specifies
time period.
 Provide update or notification to buyer of goods.
 Rights to file claim against them if consignee refused to accept cargo at the time of
delivery.
 Perform function according to rules which are mentioned under legal agreement.
Rights and duties of buyer-
 If seller not deliver goods in appropriate manner then they having right file claim against
them.
 Also they have to receive products and provide payment to them.
 Sign legal agreement which are formed with their mutual consent.
 Properly communication with seller so that no confusion is create among them.
 Clearly mentioned accurate destination in bill of lading.
 They have to fulfil their duties which are imposed on them and they are responsible to
deliver proper information to seller regarding transfer products.
 Provide notification time to time to their seller in order to maintain their performance or
relationship as well.
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 Have to use significant communication techniques for sharing of information or data as
per the requirement.
 Try to resolve dispute if it arise among them while transaction.
CONCLUSION
On the basis of above report, it has been concluded that Shipping is the process of
carriage of goods from one place to another. Shipping law is based on tort and contract law. It is
imposed on parties who comes in contractual relationship for conduct transaction name called
seller and buyer. Bill of lading is legal document, it consists relevant information which is
required for conduct transaction. There are various functions related to this legal document such
as evidence of contract, document of title and receipt of cargo. There are various rights and
duties of both consignor or consignee which are mentioned in provision of law. Bill of lading are
of different types like direct, slate, through and much more. Both parties needs to ensure their
roles and responsibilities and try to fulfil them as well. They have to prepare lawful agreement
and must be signed by them in order to consider legal transaction. When dispute arise among
parties while shipping then shipping is able to resolve them in effective manner.
REFERENCES
Books and Journals
'Exfin Shipping (India) Ltd V Tolani Shipping Co Ltd' (2006) 2006 Arbitration Law Reports and
Review.
Hilaire Belloc, On (Books for Libraries Press 1967).
Martin Davies and Anthony Dickey QC, Shipping Law (Thomson Reuters (Professional)
Australia Pty Limited 2016).
Michael Bundock, Shipping Law Handbook (Taylor and Francis 2013).
1

Michael Bundock, Shipping Law Handbook (Taylor and Francis 2013).
Simon Baughen, Shipping Law (Taylor and Francis 2015).
Online
Shipping Law, 2017. [Online]. Available through:<http://legal-
dictionary.thefreedictionary.com/Shipping+Law>. [Accessed on 4th July 2017].
Shipping Law, 2016. [Online]. Available through:<http://www.law.ac.uk/futurelawyers/practice-
areas/shipping/>. [Accessed on 4th July 2017].
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