chapter 9 transportation documents

8/9/2019 Chapter 9 Transportation Documents

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Chapter 9 Shipment Documents


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Learning target:

1. What are B/L and its function?

2. Key classification of B/L.

3. What are AWB and its function? 4. What is the difference between B/L and

AWB?

5. What is ulti!odal trans"ort and theain docuent in#ol#ed?


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$rans"ort docuents can be described as therecei"t e#idence issued by carriers to thee%"orters and acts as the docuents ofnecessity for car&o deli#ery' co"laints as

well as settleent or ne&otiation to ban(s.Accordin& to different odes oftrans"ortation' shi""in& docuents ainlyrefer to arine bill of ladin&' seaway bills'

airway bills' railway bills' ulti!odaltrans"ort docuents' etc. $his cha"ter willainly illustrate arine bill of ladin&' airwaybill' airway bill and ulti!odal trans"ortdocuents.


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9.1 marine bill of lading ).1.1 *efinition and functions of arine bill

of ladin& +arine bill of ladin& or ocean bill of ladin&'

abbre#iated as bill of ladin& ,B/L-' inaccordance with the re&ulations in +aritieLaw of eo"les 0e"ublic of hina' eans adocuent which e#idences a contract ofcarria&e by sea and the ta(in& o#er or

loadin& on board of the &oods by the carrier'and by which the carrier underta(es torelease the &oods a&ainst surrenderin& of thedocuent.


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n accordance with the definition of arine B/L' itsfunctions are entioned below

B/L is e#idence of the contract of carria&e betweenthe consi&nor and the shi""in& co"any. $he ri&hts

and obli&ations of the two "arties are listed on theB/L. B/L is a recei"t for the &oods issued by the shi" owner

or his a&ent e#idencin& the recei"t of the &oodsentioned in B/L.

B/L is a docuent of title to the &oods. Any lawfulholder of B/L ay ta(e the deli#ery of the &oods frothe shi""in& co"any a&ainst the B/L' or transfer thetitle to the &oods by transferrin& the B/L or secureloans a&ainst the B/L fro the ban( before the arri#alof the shi"ent.


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9.1.2 Parties in marine bill of lading

arties in arine bill of ladin& include carrier' shi""er'

consi&nee' notify "arty' transferee and the bearer.

arrier. arrier refers to such "ersons who si&n the

shi"ent contract with shi""er as shi""in&

co"any or charterer without shi""in& #essel. hi""er. hi""er is the "arty who reach the

shi"ent contract with carrier. hi""er could be

the consi&nor or the consi&nee in accordance with

the trade ters. onsi&nee. onsi&nee ay be the "ayee' bearer or

the s"ecified "erson written in naed B/L.

"orter is often the consi&nee.


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otify "arty. otify "arty is the tar&et one

who is infored by the shi""in& co"any the

arri#al of shi"ent. otify "arty could be

i"orter or its a&ent. $ransferee. $ransferee is the recei#er of B/L

after the endorseent or transfer and could

clai the shi"ent to the carrier.

Bearer. Bearer is defined as the le&al holderof B/L. $he holder could be the consi&nee or

the assi&nee.


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9.1.3 Contents of bill of lading$he contents of a B/L consists of e#ery liner co"any in

the world has its own B/L for and clauses' but the

basic contents are sti"ulated accordin& to the

nternational on#ention for the 6nification of

ertain 0ules of Law 0elatin& to Bill of Ladin&. eeB/L sa"le ,)!1- for reference.

7n the face of the B/L' the followin& "articulars are

to be noted

onsi&nor /onsi&nee/arty to be notified/ae ofthe #essel/hi"s nationality/8oya&e/ort of

shi"ent and "ort of destination/9rei&ht


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uber of the co"ies of the B/L' date'

si&nature of the shi"!owner or his a&ent or

ca"ital of the steaer.

+ain "articulars re&ardin& the &oods loadedon the steaer descri"tion' ar(s' nuber

of "ac(a&e' wei&ht or easureent.

*eclaration shall be ade that the &oods

ha#e been loaded on board in a""arent &oodorder and should be dischar&ed at the "ort of

destination or the "ort as near as the #essel

ay safely &et and be always afloat.


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9.1.3.2 Clauses on the back of B/L lauses on the bac( of B/L can be classified into

co"ulsory and non!co"ulsory. o"ulsory clause

restrains "arties in B/L fro breach aritie laws'

international con#ention and harbors "ractices

related. on!co"ulsory clause is re&ulated by thecarrier to define those which are not concluded

ade:uately in co"ulsory clause. lause on the bac(

of B/L constitutes the e#idence of liabilities and

obli&ations and dis"utes settleent for "arties

in#ol#ed in B/L. $he contents of bac( clause are#arious for e#ery si&nal carrier but noral contains

the followin& ites


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*efinition for erchant;

araount clause for dis"ute settleent;


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9.1.4 e! classification of B/L).1.4.1 shi""ed on board and recei#ed bill of ladin& riteria #ary and classification of B/L could be

#arious. Accordin& to whether the &oods ha#e beenloaded on board the #essel' the B/L is di#ided intoshi""ed on board B/L and recei#ed for shi"ent B/L.

A shi""ed on board B/L is e#idence that the &oodsha#e been loaded on board a certain steaer.Accordin& to &eneral trade "ractices' only theshi""ed on board bill of ladin& is acce"ted by ban(sfor "ayent under a letter of credit.

A recei#ed for shi"ent B/L is e#idence &i#en by theshi" owner that the &oods ha#e been recei#ed forshi"ent but ha#e not yet been actually loaded on a"articular shi". t is therefore uncertain whether the&oods would be shi""ed or loaded on board a #esselwithin a short "eriod of tie.


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).1.4.2 clean B/L and unclean B/L. Accordin& to whether there are notes on the bill of

loadin&' it falls into two (inds clean B/L and uncleanB/L.

A clean B/L shows that the &oods ha#e been shi""edon board a #essel in a""arent &ood order orcondition. A clean B/L is issued to the shi""er whenthe &oods do not ha#e any e%terior defects at the"ort of shi"ent. Actually on e#ery B/L' there arewords >shi""ed in a""arent &ood order andcondition. $he carrier will not odify this stateentif the &oods are in &ood order' therefore a(in& thebill of ladin& clean. $he carrier underta(es fullliability for the &oods and will carry and deli#er thein the sae &ood order as he recei#ed the. $hecarrier will be liable if the &oods are found daa&ed.


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6nclean bills of ladin& are &enerally ar(ed>insufficiently "ac(ed' >carton old and stained'>!!!"ac(ed in daa&ed condition etc. But not allbills of ladin& which are noted are unclean bills ofladin&. $he followin& (inds are not re&arded asunclean bills of ladin&.

$he notes do not indicate clearly that the &oods or"ac(in& are unsatisfactory' e.&.' >old "ac(in& or>old carton etc.

$he "ur"ose of the note is to e"hasi@e that thecarrier shall not be res"onsible for the ris(s resultin&fro the :uality of the &oods or "ac(in&.

$he ban( will not acce"t the unclean B/L until thebuyer a&rees accordin&ly.


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).1.4.3 naed' order and blan( bill of ladin& Accordin& to whether the B/L is transferable' it is

di#ided into 3 (inds strai&ht B/L' order B/L' andblan( B/L

A naed B/L is ade out so that only the naedconsi&nee at the destination is entitled to ta(edeli#ery of the &oods under the bill. $he consi&nee isdesi&nated the shi""er. $he carrier has to hand o#erthe car&o to the naed consi&nee' not to any third"arty in "ossession of the bill. $his (ind bill of ladin&is not transferable. $he shi""er cannot "ass the billto a third "arty by endorseent. o the bill is of #eryrestricted a""lication. When the &oods are shi""edon a non!coercial basis' such as sa"les ore%hibits' or when the &oods are e%treely #aluable' astrai&ht bill of ladin& is &enerally issued.


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An order bill of ladin& indicates that the bill is adeout to the order of any "erson naed in such a bill.$his (ind of bill ay be transferred afterendorseent. When the bill is ade out >to order ofshi""er it is necessary for the shi""er to endorse thebill either in blan( or in full' to the consi&nee towho he wishes the deli#ery of the &oods is to beade. f the shi""er does not endorse such a bill' hereser#es the ri&ht to dis"ose of the &oods to hiself.

A blan( bill of ladin& is also called o"en B/L or bearerB/L. t refers to the bill in which the nae of adefinite consi&nee is not entioned. $here usuallya""ear in the bo% of consi&nee words li(e >to bearerand the holder of the B/L can ta(e deli#ery of the&oods a&ainst the surrender of B/L.


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).1.4.4 lon& for and short for of bill of ladin&

Accordin& to the contents of the B/L' it can be

di#ided into 2 fors.

A Lon& 9or B/L refers to the bill of ladin& on the

bac( of which all the detailed ters and conditionsabout the ri&hts and obli&ations of the carrier and the

consi&nor are listed as an inte&ral "art of the bill. A

lon& for B/L is a""licable for all countries.

A short for B/L is a docuent which oits the tersand conditions on the bac( of the B/L. 7nly Aerica

acce"ts short for B/L.


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).1.4.5 frei&ht "re"aid and frei&ht to be

collected bill of ladin&

Accordin& to the tie for "ayent of frei&ht'

it can be di#ided into 2 ty"es. A frei&ht "re"aid B/L eans that all the

frei&ht is "aid by the consi&nor when the B/L

is issued by the carrier.

A frei&ht to be collected B/L refers to theB/L on which >frei&ht "ayable at

destination is indicated.


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).1.4. +aster and house bill of ladin&

Accordin& to the issuance "arty of B/L' it can

be di#ided into 2 cate&ories.

A +aster B/L eans the B/L is issued by theactual carrier directly to the consi&nor.

A ouse B/L is issued by 87 on!

#essel 7"eratin& oon arrier to the

consi&nor under the authori@ation of theshi""in& co"any.


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).1.4.C 7ther $y"es of B/L Ante!dated' 7n

*ec( and ad#anced bill of ladin&

).1.4.C.1 Ante!dated B/L

When the actual loadin& date is sli&htly laterthan the date of shi"ent sti"ulated in the

L/' the carrier soeties' at the re:uest of

the shi""er' will issue the bill of ladin& to the

shi""er an ante!dated B/L so as to eet there:uireent of the L/. $he shi""in& carrier

does not issue ante!dated bill of ladin&.


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).1.4.C.2 7n *ec( B/L

7n *ec( B/L is issued when the &oods are

stowed on dec(. $he carrier shall not be

res"onsible for the daa&e to and losses ofthe dec( &oods. n accordance with 6DD'

the on dec( B/L is not be acce"ted by the

ban( "ro#ided that s"ecified in L/.


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).1.4.C.3 ad#anced bill of ladin&

Ad#anced bill of ladin& is issued at the date

which is "rior to the shi""ed on board date.

iilar to anti!dated bill of ladin&' thead#anced bill of ladin& is re:uired by the

shi""er for eetin& re:uireent s"ecified in

L/. $he shi""in& carrier does not issue

ante!dated bill of ladin&.


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9.1." B/L #aritime La$s and %ules

nternational laws and rules critical to B/L areEeneral 0ules of Law 0elatin& to Bills of Ladin&,$he a&ue 0ules- ' rotocol to Aend thenternational on#ention for the 6nification ofertain 0ules of Law 0elatin& to Bills of Ladin& ,$he8isby 0ules- and 6nited ations on#ention on thearria&e of Eoods by ea' 1)CF ,$he abur&0ules-.

n hina' +aritie Law in 1))3 was the first lawwith re&ard to aritie trans"ort and carriers. $hislaw follows the belief of $he 8isby 0ules andintroduces soe rational "arts in $he abur&0ules.


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9.1.& Co'ies and dis'osal in case of loss

=#ery B/L has its ori&inal and ne&otiable fors in

tri"licate and non!ne&otiable co"ies. After one of the

ori&inal B/L has acco"lished the forality of ta(in&

deli#ery' the others stand null and #oid. $he non!

ne&otiable co"ies are only for (ind reference. ro#ided that the B/L is lost' when claiin& car&o to

the carrier' the consi&nee cannot deli#er the &oods

until the shi""er a&rees the consi&nee with a ban(s

letter of &uarantee at hand to certify. $he carrier

re:uires "ublicly loss of B/L without any dissent for acertain "eriod of and then releases the car&o to the

consi&nee.


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9.1.( )ssentials of B/L re*ie$

,1- B/L ust be clear and shi""ed on board B/L. ,2- B/L ust not show >on dec( shi"ent. ,3- $he head and the endorseent should be in co"leted

correct. 4 Loadin& date' "ort of loadin&' "ort of dischar&e and

"ort of destination should be ty"ed in accordance with L/re&ulations. f "ort of dischar&e is o#erla""in&' thecountrys nae should be added thereafter. And if the "ortof dischar&e is o"tial' all "ort naes should be listed as>7$7 L7*7/07$$=0*A+/A+B60EG in this ite.$he o"tional "orts should not be ore than three in

nuber and be on the sae line. ro#ided that theshi"ent is transshi""ed durin& the cruise' the "ort ofdischar&e should be transshi"ent "ort and the final "ortof destination should be shown in ite >9AL*=$A$7.


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,5- hi"ent car&o should be the sae with

car&o descri"tion of in#oice.

,- +ar(in& should be in confority with

that of in#oice. ,C- G9rei&ht "aid' frei&ht "re"aid'

frei&ht to be collectedG ust a""ear on B/L

in accordance with "rice ter s"ecified in

the credit. ,F- $he full set of B/L is a ust in case of

ordered B/L.


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9.2 air$a! bill and rail$a! bill ).2.1 *efinition and function of an Air Waybill

Air waybill ,AWB- is a recei"t fro the airline

ac(nowled&in& the recei"t of the consi&nent fro

the shi""er and a contract of carria&e between the

airline and the shi""er. An air waybill is e:ui#alent toan ocean B/L' but it is not a docuent of title or

ne&otiable instruent as a bill of ladin&' as the

consi&nee ta(es the deli#ery of the car&o a&ainst of

arri#al notice &i#en by the carrier. ence collection

cannot be used for the "ayent of the &oods to betrans"orted by air. AWB function can be read as

followed


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AWB is a recei"t for the &oods issued byairlines a&ent e#idencin& the recei"t of the&oods entioned in AWB.

AWB is e#idence of the contract of carria&ebetween the consi&nor and the airlineco"any.

AWB is the bill reference char&ed by theairline co"any.

AWB can be re&arded as insurance "olicy. AWB is a ust for custos declaration. AWB is the reference 7ri&inal 2 for air

carrier business o"eration.


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9.2.2 +!'es of ,ir -a!bill

Accordin& to the issuer' AWB can be di#ided

into the two (inds

Master Air Waybill (MAWB)eans its issuer is

air carrier and the shi""in& contract betweenthe air carrier and air frei&ht forwardin&

authori@ed a&ent.

ouse Air Waybill ,AWB- is issued by the

authori@ed forwardin& a&ent and constituentsthe contract between the forwarder and the

consi&nor.


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).2.3 ontents of an AWB and its (ey "oints ).2.3.1 ontents of an AWB 6nli(e B/L' the contents of an AWB is tiny in difference in

fors' since ost airlines ta(e the A$A ,nternational Air$rans"ort Association - AWB (nown as neutral AWB to

re&ulate the contents of an AWB' which concludes thefollowin& ites 9irst de"arture air"ort A$A code; ae address and account o. if necessary of the

shi""er and consi&nee; ssuin& carriers a&ent nae' city' A$A code and account

o. if necessary; *is"atchin& dates and cruises includin& transshi"ent

inforation; ar&o descri"tion of; frei&ht and rates; 7thers for ustos' insurance and handlin&.


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).2.3.2 Key "oints for attention in an AWB ssuer of an AWB. ro#ided otherwise sti"ulated in

L/' the ban( reHects an AWB issued by trans"orta&encies.

ubers of an AWB. An AWB has its tri"licateori&inals' in which ori&inal 1 is for issuin& carrier'ori&inal 2 is transferred to the consi&neeacco"anyin& the fli&ht and ori&inal 3 deli#ers to theshi""er for Bill urchased ,B -.

$he consi&nee indicated in an AWB. 7nly theconsi&nee ty"ed in an AWB has the ri&ht for car&odeli#ery' which should in strict confority withre&ulations in L/. $he ri&ht can dully be transferredto the ban( in case of blan( indication of consi&nee inL/.


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$he ban( will chec( the airway bill inaccordance with the coercial in#oice orthe "ac(in& list related in the followin&essential as"ects

1- $he consi&nor' which should be in strictconfority with the drawer of thecoercial in#oice;


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2- $he consi&nee' which should be the sae with

the buyer in the coercial in#oice in ters of

nae and address in case no descri"tion of the

consi&nee in the airway bill;

3- +ar(s' descri"tion of &oods' :uantity' &ross

wei&ht and easureent should a&ree with

those in the coercial in#oice and other

docuents;

4- $he air frei&ht and the its "ayent , "re"aidor to be collected-

5- $he si&nature of the carrier or the carriers

a&ent and the si&natures co"liance.


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A 0ailway Bill , 0WB- or car&o recei"t will beissued when the car&o are trans"orted byrail' which acts as a contract betweenrailway carrier at the "lace of car&o recei"tand the related consi&nee and the e#idenceof liabilities and obli&ations of "artiesin#ol#ed.


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).2.5 9unctions of a 0ailway Bill

A 0ailway Bill is in du"licate and only

functions for trans"ort contract and car&o

recei"t.


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).2. =ssentials of a 0ailway Bill

$he ban( will chec( the railway bill in

accordance with the coercial in#oice

related in the followin& essential as"ects the consi&nor' which should be the drawer of

the coercial in#oice;


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the consi&nee' which should be the a""licant

of the L/' the consi&nee desi&nated by the

L/ or the buyer in the contract' "ro#ided

that the consi&nee dose not been s"ecified in

the L/ and other docuents in#ol#ed;

+ar(s' descri"tion of &oods' nubers of

ites' "ac(in& and the total ites should

a&ree with those in the coercial in#oice; $he confired wei&ht and the total wei&ht

should be the sae with &ross wei&ht in the

coercial in#oice.


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9.3 #ultimodal trans'ort

documents

nternational +ultiodal $rans"ort deri#es

fro the booin& de#elo"ent of

international containeri@ation since 1)5D.

).3.1 +ulti!odal $rans"ort andcharacteristics

nternational +ulti!odal $rans"ort is the

trans"ortation of unit loads in such a way

that they can be transferred between two orore odes successi#ely with the iniu

of reandin& by nternational +ulti!odal

$rans"ort 7"erator +$7 .


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documents

$he characteristics associated with

nternational +ulti!odal $rans"ort can be

found as the followin&s

$wo or ore odes of trans"ort ust beado"ted' in which aritie shi""in& is a

necessity.

+$7 is liability for the whole #oya&e u"on

issuin& the international +ultiodal$rans"ort *ocuent.


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documents

).3.2 haracteristics of and contents in

+ulti!odal $rans"ort *ocuent

$he ulti!odal trans"ort docuent ,+.$.*.-

is a docuent which e#idences the cobinedtrans"ort contract and indicates that the

ulti!odal trans"ort o"erator shall ta(e

o#er the &oods and shall be res"onsible for

deli#erin& the docuent accordin& to theclause in the contract.


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documents

haracteristics attributes to the +.$.*. are

1- $wo or ore successi#e odes of trans"ort

are underta(en;

2- $he liability of +.$.7. ran&es fro the recei"t

to deli#ery of the said car&o;

3- $he ban( can acce"t the +.$.*. in ters of

#essel nae' "ort of loadin& and "ort of

dischar&e with >intended and siilar

e%"ressions;

4- 9A $ and can a(e +.$.*. feasible.


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documents

A +.$.*. should contain the "articulars below

ar&o descri"tion.

+.$.7. business nae and address; recei"t and

deli#ery tie and locations; ae of consi&nor and consi&nee and frei&ht

settleent;

$rans"ort odes and cruise;

+.$.*. issuin& date and "lace; e&otiability clai.

7thers necessary.