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Bill of Lading

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Law and Sea.
Bill of Lading

Bills of lading have been known from at least the thirteenth century. At that times shippers (usually the owners of the goods) as a rule accompanied their cargoes on the voyage to destination and bill of lading served only as an invoice of the goods shipped. Later, in the sixteenth and seventeenth centuries, when larger ships has begun to carry varied cargoes belonging to several shippers this practice gradually came to naught and it became the custom to incorporate the terms of the contract of carriage into bill of lading…

Bill of Lading Freight
Last updated: 06-Oct-2014

Per Stuart-Smith LJ in Senate Electrical Wholesalers Ltd v Alcatel Submarine Networks Ltd [1999] 2 Ll Rep 423 at p.442:

38. … In the present context, that problem is resolved by saying that the owner can intervene and demand that bill of lading freight be paid to himself, but only if that freight has not already been paid. The rule is designed to ensure that the shipper does not have to pay twice. Mr Meeson’s submission amounts to saying that freight has not been paid, when in truth it has, because it has been paid in a mode slightly different from that contemplated by the original sub-charter. It would be a matter for regret if legal analysis could not find a solution to that submission.

39. In my judgment, when a shipowner contracts that his freight should be payable as per a charterparty, he intends, and it is common ground with his shipper that he does so, that, at any rate until he steps in to claim his freight upon the failure of his time charterer, the whole manner or mode of the collection of the freight should be delegated to the time charterer. If the time charterer changes his bank, or bank account, and asks his sub-charterer to pay freight to a different account from that mentioned in the sub-charter, it is of no interest to the shipowner. If the time charterer is willing to accept freight not only in the form of a direct payment to the nominated account, but also, for his convenience, in the form of cash disbursements to his shipping agents, or to the master, then I see no reason why the shipowner should consider that such arrangements, even if they are different from that contemplated in the original charterparty, are outside the scope of his delegated authority to his time charterer.

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