8 Bill of Lading Clauses
8 Bill of Lading Clauses You Need to Know
The Bill of Lading is more than just a document—it’s the backbone of your shipping operations.
Yet, too often, the crucial clauses within it are overlooked or misunderstood.
Here’s why that’s a problem:
Each clause in your Bill of Lading can have a significant impact on your liability, the safety of your cargo, and the success of any claims.
Understanding these clauses is essential to protecting your interests.
Let’s break down 8 key clauses you need to be familiar with:
1. Paramount Clause
Ensures compliance with international maritime laws, like the Hague or Hague-Visby Rules.
Why it matters:
This clause determines which laws apply to your shipment, ensuring you’re protected under the right legal framework.
2. New Jason Clause
Allows carriers to recover general average contributions even in cases of their own negligence.
Why it matters:
Even if the carrier is at fault, you may still share the financial burden if sacrifices were made to save the voyage.
3. Both to Blame Collision Clause
Applies when both vessels are at fault in a collision, under U.S. law.
Why it matters:
If both ships are at fault in a collision, this clause can impact your liability and compensation obligations.
4. General Average Clause
Ensures all parties share the losses equally during an emergency.
Why it matters:
If cargo must be sacrificed to save the ship, the financial impact is distributed among all stakeholders, not just you.
5. ‘Or so near thereto as she may safely get’ Clause
Allows the ship to dock as close as safely possible to the destination.
Why it matters:
Protects the ship’s master from the risk of docking in unsafe locations, ensuring safety is prioritized.
6. Weight, Measure, Quality, Quantity, Condition, Contents, and Value Unknown Clause
Indicates the carrier doesn’t verify these details.
Why it matters:
Limits the carrier’s liability for inaccuracies in cargo descriptions, providing clarity in case of disputes.
7. On Deck at Shippers’ Risk Clause
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8. Containers Clause
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Why Should You Care?
These clauses aren’t just legal mumbo jumbo—they’re the rules that protect your shipments.
But here’s the challenge:
keeping track of all this information can be overwhelming.
“Information is too scattered.”
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The cargo industry is vast, and finding relevant, up-to-date information can feel like searching for a needle in a haystack.
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Scattered information leads to scattered results.
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