16 In other words, the uniform bill of lading terms are consistent with common law rules (i.e., while the consignor is primarily liable for payment of freight charges, a consignee who accepts delivery is also liable for freight charges).

Is bill of lading legally binding?

The importance of a bill of lading lies in the fact that it’s a legally binding document that provides the carrier and shipper with all of the necessary details to accurately process a shipment.

What are the possible cause of damage to cargo ships?

During an ocean voyage, ships very often encounter turbulent waters. The most common reasons for cargo damage are water damage, impacts that the container took, and damages due to improper lashing and stuffing.

Who paid the freight?

buyer
FOB Destination, Freight Collect: The receiver of goods (the buyer) pays the freight charges upon delivery of the goods. The buyer does not take ownership or liability for the goods until the cargo gets to the buyer’s premises.

What does Section 7 mean on a bill of lading?

Section 7 directs the carrier not to make delivery without first collecting its freight charges. Now, in the normal course of events, the carrier could fall back on the shipper, who as a primary party to the B/L is held legally responsible for freight charges irrespective of payment terms.

What is used to prevent damage to the cargo?

Shipment damage prevention starts with adequate packaging practices. Maintain the maximum weight stipulated in the packaging. Fill the empty spaces inside the packaging with filling materials, such as foam or bubble plastic. Use strong spill-resistant adhesive tape and make use of proper sealing techniques.

Who is liable for shipping damage after delivery?

Who is liable for shipping damage? From the simplest standpoint, the carrier has responsibility and liability when they take control of cargo from the seller. The buyer takes responsibility when it signs off on the shipment after delivery by essentially stating the cargo was in good condition when they received it.

Who is responsible for damage to a shipping container?

For most damage, the carrier is responsible, unless the carrier claims that the packaging was inadequate. The transportation and Logistics Council has a fairly comprehensive document on filing claims for shipping damage: .

Can a seller accept liability for a freight on board contract?

To what degree a carrier accepts liability has a lot of qualifiers: If the contract is FOB (Freight on Board) then the seller loads the goods at its own risk and can be held responsible for negligence in loading.

How to notate damages and shortages on the bill of lading?

Correctly notating damages to the bill of lading (BOL) and proof of delivery (POD) is a good start, but there’s more you can and should do to prevent further complications. So what’s the protocol when your shipment arrives with visible damage, concealed damage, or a shortage?