SIGNING BILLS

14-Jul-2015
  1. One of the most important of a bill of lading is that it provides information as to the description of the goods, the condition of the goods, the quantity of the goods, the loading port and date of shipment, the discharge port, the name of the ship, whether freight has been paid and the terms of carriage. As these functions are essential to trade it is important that information given in a bill of lading is accurate. Failure to ensure accuracy can give rise to liability of the ship owner.

  2.  The essential rule that in no circumstances, other than those described hereunder, should the master sign a documents which he knows to be untrue, or which he believes may be untrue, or where he had not given careful thought to the facts contained in the documents.

     “if the refusal of the master to sign a document is met with physical threats or coercion against the ship or her master or crew, then the master should sign the document. When the vessel has sailed and upon reaching a position of safety, the master(or the ship-owner, if it is now in contact with the master) may give notice of protest to all parties and authorities concerned to the effect that the document has been signed under duress  and the ship-owner and the master consider themselves not bound by the master’s signature, (Of course thought must be given as to whether the ship or master, or any sister ship is likely to return to this dangerous regime)”

  3.  The following matters are important. If the master cannot contact or obtain guidance from the ship owners, the following general principles should be applied.

 (a)  The master must ensure that the information in the bill of lading agrees with that on the mate’s receipt (s).

(b)  
The master must check the facts about the cargo. It would be  usual for the master or the ship’s agent to prepare the bill of lading. The bill of lading is usually prepared by the shipper or the shipper’s agent. It is accordingly essential for the master to check the information about the cargo in the bill of lading. The master will not know all of the facts about the cargo that appear on the bill of lading which he is being asked to sign.

 (c)    The master must check the facts about the voyage. If the place or date of loading is incorrect, or if the discharge port is outside the charter party range, the master should refuse to sign.

(d) Refusal to sign. It is recognized that refusal is not always safe or practical. Where  the master is advised to refuse to sign, he should refer to paragraph 2 for guidance.

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