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A practical guide of bill of lading for Seafarers

If you ask me to name one document that is most important in shipping trade, I would name it as Bill of Lading. Banks do not issue funds, if the bill of lading is not clean. Carrier do not release the cargo if they do not receive bill of lading. And carrier cannot escape from claim of liability for cargo damage against clean bill of lading. The commercial aspect of shipping trade revolves around bill of lading. It is thus important for Masters to be aware of all the situations they can be subjected to and how they should deal with such situations.

I am covering these in 3 sections

Issuing letter of authorisations to agents for signing bill of ladings
Master signing bill of ladings, And
Dealing with illegal requests

Lets dive in.

1. Issuing Letter of Authorisation to agents for signing bill of ladings

It is usual nowadays for the agents to sign bill of lading on Master’s behalf. There are few reasons why agent’s are asked to sign bill of ladings on master’s behalf. These can be

1) Bill of lading quantity not ready before vessel’s departure. This is particularly the case where EDP (Early departure procedure) is excercised. One such example is loading of crude oil in the port of Rastanura where EDP is common and vessel has to sail minutes after completion of cargo. This is also common where terminal takes more time for calculating shore figure loaded on board.

2) Terms and conditions for the bill of lading not yet finalised. This can happen if the format of the bill of lading is not yet agreed between the ship owners and the shipper (or shipper’s charterers). While they may still be communicating on the format of the bill of ladings, owners can instruct the agent to sign bill of lading on Master’s behalf.

3) The break-up of quantities not yet finalised. Sometimes the break up quantities for a commingled cargo is not finalised. In such case charterers may request owners to have the bill of ladings signed later by agent on behalf of master.

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Comments (23)

Ram December 23, 2021

Sometime MRs are of different dates due to daily cut, in that case can we have single BL date ( last date of cargo completion)

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G RAHUL RATHI March 22, 2021

Sir, what should be checked while signing bill of lading when its time charter and when its voyage charter

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Vishnu Prasad August 30, 2020

What if figure are wrong in EDP and the agent is instited to sign...what to do..???

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Amar Anand June 24, 2020

nice blog sir....

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Carlos April 17, 2020

Hello! I would like some help on this case: Vessel on a single voyage T/C loads steels and according to the c/p liner terms B/L are excluded, but shippers presented for signature to the master, mate receipts with liner terms incorporated, the very last moment prior unberthing and having pilot on board and master in the heat of the moment signed M/receipts. What further actions will be made from office end in order to protect vessels – company interests? Are valid the Bills of Lading will be issued under the liner terms Mate receipts signed by the Master?

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Ruslan February 21, 2020

Is there any contradiction if Bill of Lading stated wording "Clean on board" and Master's remarks simultaniously. Is there any potential problem to carrier? (Vessel)

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Morgan Green February 19, 2020

Very skilled and knowledgable replies indeed!. One question; Are there any examples on LOI's being enforced at arbitration or in a Court of Law?. Or is the only threat loss of reputation for chrts ?

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Carllo Piotti January 23, 2020

Hello Captain, A chemical tanker has load ulsd and master has signed B/L cllean on board. The draft survey figure at port of loading show a difference of -20 MTS and draft survey figure in the port of discharging show a difference of -18 MTS. The B/L quantity is 20000MTS. Which are the measuring to be taken by master at loading and discharging port?

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Prabhu Muthu May 11, 2019

Really I googled everywhere I couldn't get explanation any where hats off sir

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Sukhchain Singh December 3, 2018

Sir,can master authorise Chief officer to sign the B/L in any case, the same way he authorises agent in case of EDP?? If No,then why?This question asked for master's orals in Spore.

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sumer singh February 14, 2019

mr sukhchain singh read question carefully and then answered just dont talk like child

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ely May 6, 2018

what would the master do if he was asked to carry B/L

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John Alan April 2, 2018

Would it be acceptable to re cut BL's up partial discharge reload for tanker business. Assuming the reload makes a material change in the over all cargo

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Rajeev Jassal April 3, 2018

If the partial cargo is to be discharged at some port, usually the B/L will be separated in such as way that one B/L does not have the cargo for two or more ports. So if the cargo of B/L number 6 is to be dischraged at Antwerp and rotterdam, then B/L 6A can be for Antwerp and B/L 6B can be for rotterdam. Now if after dischraging cargo as per B/L 6A, more cargo is to be loaded in B/L 6B to make it as different comodity, B/L 6B need to be cancelled and returned to the ship owners and a new B/L need to be drawn covering the cominglled (& new commodity) cargo.

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Anurag January 9, 2017

JUST TO CLARIFY IF A VESSEL IS IN TIME CHARTERS, AND HE HAS BEEN ASKED TO DISCHARGE CARGO ON PRESENTATION OF LOI,THEN HE MUST RECEIVE 2 LOI's, One from Shipper or Sub charterer indemnifying the time charterer and the other one from Time charter himself to indemnify the owners??

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Rajender February 2, 2018

For the shipOwners/Master - LOI from the time charterers would be sufficient but in order to protect them selves (time charterers), always get a LOI from their Voyage charterers. In case any claim arises, time charterers can protect themselves back to back. As in practice, ShipOwners is having contract with the time charterers and time charterers must indemnify the ShipOwners. Since voyage charterers is not a party to the contract with the Owners, normally voyage charterers will not give any LOI to the Owners of the vessel

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Rajeev Jassal April 3, 2018

Both points are very relevant and accurate.

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CESAR SALERNO November 29, 2016

On tanker ships, and about date on Bill of ladings, the following questions arise as when is to consider the correct date of the bill of Lading. When the valves in the manifold are shut? when shore and ship quantities are reconciled? when hoses are disconnected?, when the time of completion of loading is agreed and reported in the SOF?

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Rajeev Jassal April 3, 2018

It is loading completion time & date as reported in SOF.

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Rahul August 25, 2016

Very nice explanation sir. Could you clarify one more thing? If at the discharge port, if 3 persons come with the original B/L, whom shall the cargo be discharged to?

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Rajeev Jassal August 27, 2016

Master need to accept the bill of lading that has been endorsed by the consignee. FYI bill of lading need to be endorsed by the consignee as "Accomplished" on back of the bill of lading with his stamp. Master need to inform the charterer, owners and all other concerned parties regarding the 3 persons claiming the cargo and only follow their instructions to discharge the cargo.

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ankit raja August 27, 2016

sir this actually happened with us at romania but i was cadet at that time so did'nt have much knowledge then but we called p& i club after consultation with owner and they told u s to file a police complaint in dock station with agent and discharge cargo in port custody.

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Rajeev Jassal September 1, 2016

These cases are rare these days but it can sometimes happen. Following the charterers & P&I instructions is the best thing to do in these cases as you pointed out.

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About Capt Rajeev Jassal

Capt. Rajeev Jassal has sailed for over 24 years mainly on crude oil, product and chemical tankers. He holds MBA in shipping & Logistics degree from London. He has done extensive research on quantitatively measuring Safety culture onboard and safety climate ashore which he believes is the most important element for safer shipping.