Bill of Lading vs Charter Party and Sea Waybill

Bill of Lading vs Charterparty

• A charterparty is a contract of carriage, whereas a bill of lading is a document of title, receipt of goods and condition, and evidence of a contract of carriage.

Bill of Lading vs Sea Waybill

• A sea waybill is not a document of title and not negotiable, but acts as a receipt and evidence of a contract of carriage.
• A sea waybill does not require presentation to the master to obtain possession of the goods.
• A sea waybill can be reproduced.
• A sea waybill is subject to the Hague-Visby Rules.
• A bill of lading 'to order' is negotiable and requires presentation to obtain possession of the goods.
• A straight bill of lading is not negotiable, but required to obtain possession.

Three Functions of a Bill of Lading

• Acts as a receipt for the goods shipped.
• Acts as evidence of the contract of carriage between shipper and carrier (not the contract itself).
• Acts as a document entitling the holder to possession of the goods (constructive possession).

Bill of Lading as a Receipt

• Issued by the carrier (ship owner, time charterer, demise charterer, or sub-charterer).
• Records the condition of the goods.
• Clean Bill of Lading: shipped on board, received for shipment, quantity, quality, condition, and "apparent good order and condition".
• Claused Bill of Lading: may be issued when there is a disagreement between shipper and carrier as to the condition of goods.
• "Shippers load stow and count" (SLSC) means the carrier is not liable for the condition of the goods.

Bill of Lading as Evidence and Document of Title

• A clean bill of lading is prima facie proof as to condition against the shipper.
• A clean bill of lading is conclusive proof when transferred to a third party in good faith (consignee or indorsee).
• The carrier may be estopped from denying the condition represented in a clean bill of lading.