Text 2 Shipping documentation

The main documents used in shipping are described below.

A freight account is an invoice sent by the shipping company to the exporter stating their charges.

A standard shipping note is a document completed by the exporter. It is sent to the forwarding agent, an inland clearance depot (ICD), or the docks. It is used as a delivery note or receipt and gives information about the goods. When the goods are delivered to the docks, the driver hands over copies to the shipping company. One copy goes with the goods to the consignee; two are for customs; one remains at the dock office of the carrier; and one is used by the shipping company to prepare the bill of lading.

A bill of lading, often abbreviated to B/L, is the most important document in shipping and describes the consignment, its destination, and who it is for. It can be a document of title, i.e. it gives ownership of the goods to the person named on it. If the words tо order are written in the consignee box, it means that it is a negotiable document and can be traded. In this case it will be endorsed (i.e. the exporter will sign it on the back). If it is not endorsed, there are no restrictions on ownership. In a letter of credit transaction the advising/confirming bank will usually ask for the bill of lading to be made out to them when they pay the exporter, and then transfer it to the customer when the customer pays them.

Bills of lading can be made out singly or in signed sets of two, three, or more original (negotiable) copies, with further unsigned copies kept for records. As soon as one of the originals is used as a document of title, the other original copies become void.

This document confirms the shipment of the goods by a consignor. Usually a bill of lading is used when several shippers share one marine vessel. Every consignor receives a separate bill of lading issued by the captain of the vessel on behalf of the shipowner or a charterer. A bill of lading can serve as: a receipt for the acceptance of the cargo, a list of transportation agreement conditions, a document of title to the goods. A bill of lading can also be issued by a shipowner to a charterer who uses the vessel to transport his own goods. In that case the transportation agreement conditions are included into a contract of affreightment, and a bill of lading can serve as a receipt and a document confirming the full title of the goods. The title of the goods in transit can be transferred to a third person provided the bill of lading is issued to a bearer. A received bill of lading is a bill stamped 'cargo accepted for shipment', which means that cargo had not been loaded, it has been just accepted for loading.

A shipped bill of lading is signed when the goods have been loaded onto the ship. Sometimes the words shipped on board are used to mean the same thing.

Bills of lading are marked clean to indicate that the consignment was taken on board in good condition, or сlaused to indicate that on inspection there was something wrong with it, e.g. the goods were damaged, or there were some missing. The statement claused protects
the shipping company from claims that they were responsible for any damage or loss.

In CIF and CFR transactions the words freight prepaid are used to signify that the costs of shipment have been paid.

Bills of lading can be made port to port, i.e. from the exporting port to the importing port. When containers are used and are trans-shipped from one mode of transport to another, e.g. truck to ship and then to train, a multimodal bill of lading is used. This is also known as a through or combined transport bill.

The Bolero Project is developing full computer-to-computer shipping and bank documents, making paperless documentation available. In this case a bill of lading is referred to as a Bolero bill of lading.

A letter of indemnity is used if the bill of lading is lost or missing. The importer gives details of the consignment on company headed paper, and confirms that they will be responsible for the debts to the carrier against their assets.

In addition to the bill of lading, a packing list may be required. Like a bill of lading, this gives details of the consignment. Banks use them in letter of credit transactions and the customs in some countries insist on them.

7.4    Fill in the blanks using prepositions where necessary.

1. A document confirming the shipment__the goods.

2. The shipment ___ the goods      ___ a consignor.

3. A separate bill____lading issued___ the captain ____the vessel.

4. Issue a bill ___lading__behalf ___ the shipowner ___a charterer.

5. A document       __title__the goods.

6. Cargo accepted __shipment.

7. According___the terms___delivery ___export contracts.

8. The seller pays ____transportation to the port ___ destination.

9.  Arrange marine insurance __the goods___ the time__transportation.

10. The buyer can claim___compensation__ the goods damaged __lost     ___transit.

11. The interest charged___ the seller's bank____documents transfer.

12. Transportation __ goods ___the point ___ loading.

13. Shipment ___ board ___ a ship.

14. The seller is to take ___ his own account the goods ___ the quay.

15. The seller pays ___ transportation and insurance ___ the goods ___ they arrived ___ the ship.

7.5 What do you think are the benefits / risks of shipping goods by road, ship, or air? You are about to read a text about container shipping from “The Independent”. Scan the text below quickly and find out the significance of these numbers:

8th                     8-10        40

100,000,000,000  3          7,000

1960s                    10          2,500