UCP600 Article 20: Bill of Lading Explanation With Example

UCP600 Article 20 Explained with Examples

Clause (a): Requirements for a Bill of Lading

i. Carrier’s Name and Signature

• Clause: A bill of lading, however named, must appear to:
  • indicate the name of the carrier and be signed by:
    • the carrier or a named agent for or on behalf of the carrier, or
    • the master or a named agent for or on behalf of the master.
  • Any signature by the carrier, master or agent must be identified as that of the carrier, master or agent.
  • Any signature by an agent must indicate whether the agent has signed for or on behalf of the carrier or for or on behalf of the master.
• Explanation: The bill of lading must clearly show the name of the carrier. It must also have a signature that identifies whether it is from the carrier, the master, or an agent acting on their behalf. The agent’s signature must specify if it is on behalf of the carrier or the master.
• Example:
  • Correct:
  • A bill of lading signed as follows: “John Doe, Agent for ABC Shipping Co.” Wherein somewhere else from the documents ABC Shipping Co. can be identified as carrier.
  • A bill of lading signed as follows: “ABC Shipping Co., As Carrier”
  • A bill of lading signed as follows: “John Doe, As Master” Wherein somewhere else from the documents ABC Shipping Co. can be identified as carrier.
  • Incorrect: A bill of lading signed simply as “John Doe” without specifying the capacity in which the signature is made.

ii. Shipped on Board Notation

• Clause: Indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit by:
  • pre-printed wording, or
  • an on board notation indicating the date on which the goods have been shipped on board.
  • The date of issuance of the bill of lading will be deemed to be the date of shipment unless the bill of lading contains an on board notation indicating the date of shipment, in which case the date stated in the on board notation will be deemed to be the date of shipment.
  • If the bill of lading contains the indication “intended vessel” or similar qualification in relation to the name of the vessel, an on board notation indicating the date of shipment and the name of the actual vessel is required.
• Explanation: The bill of lading must state the shipped on board date. If not stated, the issuance date is considered the shipment date. If the vessel is mentioned as “intended,” the bill of lading must specify the actual vessel name and shipment date.
• Example:
  • Correct:
  • Bill of lading evidences by pre-printed wordings or stamp as “Shipped on board SS Maritime on 20th July 2024.”
  • Bill of lading states “Intended for SS Maritime” it also evidences by pre-printed wordings or stamp as “Shipped on board SS Maritime on 20th July 2024.”
  • Incorrect: “Intended for SS Maritime” without the actual vessel and shipment date.

iii. Port of Loading and Discharge

• Clause: Indicate shipment from the port of loading to the port of discharge stated in the credit. If the bill of lading does not indicate the port of loading stated in the credit as the port of loading, or if it contains the indication “intended” or similar qualification in relation to the port of loading, an on board notation indicating the port of loading as stated in the credit, the date of shipment and the name of the vessel is required. This provision applies even when loading on board or shipment on a named vessel is indicated by pre-printed wording on the bill of lading.
• Explanation: The bill of lading must clearly show the correct ports of loading and discharge. If the port of loading is qualified with “intended,” it must have an on-board notation with the actual port, shipment date, and vessel name.
• Example:
  • Correct:
  • A bill of lading shows “Port of Loading: Shanghai” and “Port of Discharge: Los Angeles.”
  • If the bill of lading states “Intended Port of Loading: Shanghai,” it must also include an on board notation, such as “Loaded at Shanghai on MV Horizon on 15th July 2024.”
  • Incorrect: “Intended Port of Loading: Hamburg” without further on-board notation details.

iv. Original Bill of Lading

• Clause: Be the sole original bill of lading or, if issued in more than one original, be the full set as indicated on the bill of lading.
• Explanation: The bill of lading must be the original document. If multiple originals are issued, all must be presented as per the indication on the bill.
• Example:
  • Correct:
  • A bill of lading indicates “Original – 1 of 1.” Then 1 original needs to be presented.
  • If it states “Original – 1 of 3,” then all three originals must be presented.
  • Incorrect: Presentation of only 1 out of 3 originals when it states “Original – 1 of 3,”.

v. Terms and Conditions of Carriage

• Clause: Contain terms and conditions of carriage or make reference to another source containing the terms and conditions of carriage (short form or blank back bill of lading). Contents of terms and conditions of carriage will not be examined.
• Explanation: The bill of lading must include or reference the terms and conditions of carriage. However, these terms will not be scrutinized by the examiner.
• Example:
  • Correct:
  • A bill of lading includes the detailed Terms and Conditions as per carrier’s standard form in the back side of B/L.
  • A bill of lading references “Terms and Conditions available at www.abcshipping.com.”(this is called short form or blank back B/L)
  • Incorrect: Not mentioning any reference to terms and conditions of carriage.

vi. Charter Party Bill of Lading

• Clause: Contain no indication that it is subject to a charter party.
• Explanation: The bill of lading must not indicate that it is governed by a charter party agreement.
• Example:
  • Correct: Standard bill of lading with no indication of a charter party.
  • Incorrect: If it indicates like “Subject to Charter Party Agreement dated 1st July 2024.”

Clause (b): Definition of Transshipment

• Clause: For the purpose of this article, transhipment means unloading from one vessel and reloading to another vessel during the carriage from the port of loading to the port of discharge stated in the credit.
• Explanation: Transshipment involves transferring goods from one vessel to another during transit from the loading port to the discharge port.
• Example:
  • Transshipment: Goods are unloaded from Vessel A and reloaded onto Vessel B en route to the final destination.

Clause (c): Transshipment Conditions

i. Single Bill of Lading for Entire Carriage

• Clause: A bill of lading may indicate that the goods will or may be transhipped provided that the entire carriage is covered by one and the same bill of lading.
• Explanation: Transshipment is allowed if the entire journey is covered by one bill of lading.
• Example:
  • Correct: A bill of lading states “Goods may be transhipped at Singapore”. If the entire journey completed through single transport document then it is acceptable .
  • Incorrect: Separate bills of lading for different segments of the journey and bill of lading states “Goods may be transhipped at Singapore”

ii. Transshipment Despite Prohibition

• Clause: A bill of lading indicating that transhipment will or may take place is acceptable, even if the credit prohibits transhipment, if the goods have been shipped in a container, trailer or LASH barge as evidenced by the bill of lading.
• Explanation: Transshipment is acceptable even if prohibited by the credit, provided the goods are shipped in containers, trailers, or LASH barges.
• Example:
  • Correct: A bill of lading shows “Goods in container, may be transhipped,” and in the bill of lading somewhere else it is evidenced that goods shipped in a container. The letter of credit prohibits transhipment. This is acceptable.
  • Incorrect: Non-containerized goods with transshipment indicated against credit terms.

Clause (d): Carrier’s Right to Transship

• Clause: Clauses in a bill of lading stating that the carrier reserves the right to tranship will be disregarded.
• Explanation: Any clauses in the bill of lading that give the carrier the right to transship will not be considered.
• Example: A clause that states “Carrier reserves the right to transship.” This clause will not affect the acceptance of bill of lading.