Friday, May 28, 2010

Bill of Lading, shore figure or ship's figure?

One of the most confusing aspect of BL figure is using shore figure

After some 25yr with traders, i always thought shore figure as BL figure is engrave in stone in bulk oil industries

the last 5 yrs i spent some times with the chartering people & start to see a new perspective in bl figure

All official contracts, poram, fosfa, have inevitability bind bl figure to shore figure - this practice is based on technical rather than the legal concept. Any way buyer-seller accepted it and it become industrial practice and never been really challenge in arbitration or court. The court has great reluctance to challenge the established trading rules unless in involved principle of law.

The what if the challenge involved ship's owner or charterer? Can you sue ship's owner for outturn shortage when there is a ship-shore difference at time of loading?


In the good old days, the scenario is as followed

BL based on shore : 1000mt
Ship's figure at l/port : 900
ship's figure at d/port : 900
Outturn : 900

Owner has no liability on this case as ship's figure is used as a guide only. BL based on shore as given to Owner - Quantity and Quality unknown to owner and hence there is no liability. Unless one can prove there is a hidden compartment in the vessel that stowed the 100mt, the ship's has no ability

Now this is what u called the good old days - the gentlemen

Now the legal challenge - when u sell cnf and at disport, the buyer or its insurance company at some fierce continent - arrest the vessel and hold them responsible - why?
go back to what is the meaning of BL?

it is an official receipt of oil - if vessel received 900 but issued 1000, it means vessl has received 1000mt, period and hence responsible for the shortage.

If one is confused -go back to non-bulk cargo. When you load 1000 cartons to the ship, there is always one or two telly clerk to count the number when being loaded into the ship's hold. The Master will issued bl based on its own telly on quantity loaded into the ship's hold. Master has the rights to reject the carton if it is not in the sound condition, e.g, torn, or it clause the bl ie no more clean bl

After several several round to the disport insurance and/or buyer, PNI club has advise ship's owner to issue bl based on ship's figure if the ship-shore difference is too great. If charterer insisted on shore, the owner require the letter of indemnity

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