Bill of Lading


FOM-6.2	Fleet Operations Manual FOM Bill of Lading	Doc No.: FOM 6.2 Revision: 01 Date: 15 Oct 2024 Issued by: DPA Approved by: MD

1 APPLICATION

This document applies to Masters and Senior Deck Officers onboard fully managed vessels.

2 PURPOSE

The purpose of this document is to specify procedure for checking and signing bills of lading.

3. RESPONSIBILITIES

Master:

Thoroughly verify the bill of lading and communicate with charterer

Note:
The Marine Superintendent will assist Master if there is no bill of lading or difference in quantity.

4. GENERAL

4.1 Purpose

A Charter Party is the contract between the owner of a vessel and the charterer for the use of a vessel.

Bill of lading is a legal document which serves three purposes:

A receipt for the cargo, by the vessel
A document of title through which ownership of the cargo may pass from one party to another
A contract governing the carriage and delivery of the cargo

4.2 Signing

Following to be checked on the bill of lading before signing:

Description of cargo
Date of bill of Lading
Terms and conditions
Ports of loading/discharging (often unknown)
Payments of freight
Quantity

Master signs the Bill of Lading on behalf of owners and not on behalf of charterers or shippers.

Note:
Third parties (charterers or shippers) have limited powers to interfere with the Master signing it.

Caution:
Master has no authority to sign for goods which he knows have not been shipped, nor has he authority to vary the terms of the Charter Party governing the vessel's employment, and no third party can require him to do so.

4.3 Description of cargo

Description of the cargo in Bill of Lading and in fixture details should be same.

In cases when there is discrepancies with cargo detail, quantities, documentation the master shall seek clarification from the vessel's Commercial Operator and Owner w/copy to the Marine Department before signing any documents.

4.4 Date of bill of lading

Incorrectly dated bill of lading is a fraudulent bill of lading.

Note:
The correct date is the date on which loading was completed. - hoses were disconnected. It can be dated one day earlier provided the vessel was physically loading that day.

4.5 Terms and conditions

Master to incorporate the terms of the Charter Party in the Bill of Lading:

“This shipment is carried under and pursuant to the terms of the Charter Party dated ..... at..... between..... and..... as charterer and that all terms whatsoever of the said Charter are to apply to and govern the right of the parties concerned in this shipment”

4.6 Ports of loading/discharge

Loading port(s) to be stated correctly.

Destination can be a named port or range of ports, and has to be same as Charter Party terms.

In cases when there are any discrepancies, changes in the port information, deviation on the vessel route the master shall request for official documented information and shall seek clarification from the vessel Commercial Operation and Owner w/copy to the Marine Department.

Payment of freight

Freight is usually payable at the destination.

Caution:
Statements such as "Freight Paid" or "Freight Prepaid" is not allowed in the Bill of Lading unless specific instruction or approval has been given by COMPANY or Owners, even if vessel is on time charter or sub-let on Time Charter to a third party.

Ensure that the Bill of Lading contains the clause “Freight payable as per governing Charter Party.”
When agents does not have Bill of Lading Forms and until issued, the vessel shall maintain a supply of blank "Intertankbill 78" or "Congenbill" Bill of Lading forms after consultation with charterer and P&I Club.

4.7 Quantity

Caution:
Master should sign only for actually loaded quantity.

Following guidelines to have a uniform system for accepting differences between ship and shore figures:

Note:
Some product carriers have "Vessel experience factor", showing the vessel to be either over, or under calibrated, and the Master shall include this in his ship's figure calculation.

When shore and ship's figures are identical for up to a difference of +/- 0.1%, the Master can sign the Bill of Lading as clean and no Letter of Protest need be issued.
In all other cases below, Section 5.1 must be followed.

Note:
In some ports, particularly in Rumania and the USSR, the bill of lading weight can be calculated on the basis of specific gravity "in vacuum" as against the normal "in air". If this is the case, it must be clearly stated in the bill of lading

5. STANDARD PROCEDURES FOR SIGNING BILL OF LADING

5.1 Procedure for checking quality

Ship figure (equals) bill of lading figure
- Sign the Bill of Lading.
Ship figure up to 0.1% (more or less than) bill of lading figure
- Sign the Bill of Lading.
Ship figure 0.1% - 0.25% (more or less than) bill of lading figure
- Issue letter of protest for difference between ship and bills of lading figures to shippers.
- Sign the Bill of Lading.
Ship figures 0.25% - 0.5% (more or less than) bill of lading figure
- Re-gauge and recalculate ship figures.
- Advise agents, charterers, owners and company of the difference.
- Contact the P&I club and advise of the difference and request instruction.
- Issue letter of protest for the difference between ship and bills of lading figures to shippers.
- Sign the bill of lading after receiving instruction from either owners and, or P&I club.
Ship Figure more than 0.5% (less than) Bill of Lading Figure
- Refuse to sign bill of lading.
- Request bill of lading be corrected by shipper by correcting all originals or issuing a complete new set of bills of lading.
- Advise Agents, Charterers, Owners and company of the difference.
- Re-gauge and recalculate ship figures with independent surveyor.
- Advise Owners, Commercial Operator and company.
- Follow the advice of Owners and, or P&I club.
- Follow C/P stipulated clause concerning B/L difference percentage threshold and to obtain documented instructions.

5.2 Procedure for signing bill of lading

Note:
All ship figures must have vessel experience factor (if any) applied.

Have shippers and independent surveyors attend any ship re-gauging if possible.
For extremely small parcels or small parcels in large tanks, issue a protest making reference to the difference and sign the Bill of Lading.
If shippers or charterers become unreasonable (or refuse to re-issue or correct bill of lading) when quantity is different, the Master must include following clause in the bill of lading with ships figures:
“Vessel’s measurements are stated below, and this Bill of Lading is issued without prejudice to the Owner's rights to rely on said measurements as evidence of the weight or quantity shipped. Vessel's measurements on completion of loading are noted as”
If vessel is issuing bill of lading (discharging to another vessel / lightering, etc.), the Master must receive clear instruction from the charterers for the format of the bill of lading and these instructions be reported to office and the Vessel’s Owners.

Note:
In all cases of doubt, arising from bill of lading presented then refer to the P&I club for instruction.

6. BLANK BILLS OF LADING

Master must refuse signing blank bills of lading.

Note:
If this practice is encountered, it must be immediately reported to Operation dept, Owners and

The Master is only authorised to sign a blank bill of lading after receiving written instructions from the vessels Owners and advising Operation dept.

Caution:
Masters must not sign any blank Bills of Lading on the instruction from any other party (Charterer, Agents, Shippers, Surveyors, etc.).

7. BILLS OF LADING OR DISCHARGE OF CARGO

Bills of Lading are the “Owner’s” documents and the cargo must only be delivered against, or in return for, the surrender of an original Bill of Lading, when the Bill of Lading is said to be “accomplished”.
As a matter of good practice, the Master must always seek confirmation from the Agent that the delivery of cargo will be made against an original Bill of Lading.
If this is not the case, the Master must immediately contact the Owners for instructions.
Master must not commence discharging before an Owner has accepted an LOI and has confirmed it in writing under any circumstance.