Bill of Lading in Practice

How you describe your goods on a bill of lading is more important than you think.

Whether you are shipping

Fruits or fish,
Vaccines or sardines
Poultry or dairy,

endeavour to describe your goods as accurately as possible.

To illustrate the importance of this, we. Have put together this cheat sheet that highlights a case that was decided in 2017.

In the sheet, you will get a brief overview of the facts of the case and the arguments presented by both sides.

In the end, you will see some practical lessons to be learnt including:

1. Accurate and Detailed Documentation is Crucial:
The importance of detailed cargo documentation, particularly in the Bill of Lading, cannot be overstated.
It plays a critical role in determining liability limits and the success of claims.
Accurate descriptions of the cargo, including the enumeration of ‘packages or units,’ are essential for establishing the basis of any claim.

2. Understand the Applicable Legal Framework:
Claimants should have a thorough understanding of the international conventions and rules applicable to their shipment, such as the Hague-Visby Rules in this case.
Knowledge of these rules helps in understanding the carrier’s liabilities and limitations.

3. Definition of ‘Packages or Units’ Matters:
The case highlights the significance of how ‘packages or units’ are defined and interpreted under shipping law.
This definition directly affects the calculation of liability limits. Cargo claimants should be aware of how their cargo is classified and how that classification impacts their claims.