1. Exporting and Logistics
Saturday, 7 October 2017
By Pal Bob Kantas

2. Who am I?
Born in Amsterdam, on June 15th Graduated in Information Management in 1983 at University “VUE Amsterdam”

3. The role of the freight forwarder and the required export documents

4. Learning target What is the role of the freight forwarder
What is the Bill of Lading and its function?
Key classification of the Bill of Lading
What is the difference between the Master Bill of Lading and the House Bill of Lading?

8. Bill of Lading
There are two types of bill of lading. These are house bill of lading, or HBL and master bill of lading, or MBL.
House Bill of Lading
A House Bill of Lading is a transportation contract which takes place between a customer and a forwarder. This legal document is issued by a freight or cargo forwarder to each exporter, for goods to be shipped or transported in a group. Hence, a HBL is also referred to as a groupage document or certificate.
Master Bill of Lading
The second type of bill of lading the master bill of lading, or MBL. Just like a house bill of lading, MBL is a transportation contract between a customer and a forwarder. However, unlike the HBL, the master bill of lading is issued by the shipping company or carriers. The document summarises the different quantities of cargo that is to be hauled for transport by the vessels or other modes of transport. The master bill of lading is also known as the ocean bill of lading.

9. What is the Bill of Lading and its function?
The Bill of lading was invented in the 13th century.
Its functions were gradually created by the practical needs of substantial and tangible evidence of contract for all primary parties (i.e. shipper, carrier and consignee) alongside technical development over time.
The Bill of Lading of is a document that establishes the terms of contract between a shipper and a transportation company and is one of the most important documents in the shipping industry
Its most import functions are:
a proof of receipt of shipment by the carrier
a transferable document of title to the goods thereby enabling the holder to demand the cargo
A negotiable document used as evidence for a contract of carriage (affreightment)

10. Contents of bill of lading
The contents of a B/L consists of every liner company in the world has its own B/L form and clauses, but the basic contents are stipulated according to the International Convention for the Unification of certain Rules of Law Relating to Bill of Lading.
On the face of the B/L, the following particulars are to be noted:
Shipper
Consignee or order
Notify party
Vessel and Voyage
Port of loading (shipment) and port of destination (freight)
Place of delivery
Place of receipt
Freight payable
Container and seal numbers
Description of the goods, weight and measurement

11. Clauses on the back of Bill of Lading
Clauses on the back of B/L can be classified into compulsory and non-compulsory. Compulsory clause restrains parties in B/L from breach maritime laws, international convention and harbors practices related.
Non-compulsory clause is regulated by the carrier to define those which are not concluded adequately in compulsory clause. Clause on the back of B/L constitutes the evidence of liabilities and obligations and disputes settlement for parties involved in B/L.

12. Clauses on the back of Bill of Lading
The contents of back clause are various for every signal carrier but normal contains the following items:
Definition for merchant;
Paramount clause for dispute settlement;
Jurisdiction Clause
Carrier’s responsibility and period of responsibility clauses;
Exception and claim clauses;
Packing and mark clause; Freight clause; Lien clause
Transshipment clause; Discharging and delivery clause
Animals, plants and on deck cargo clause
Dangerous cargo clause

13. Difference between House Bill of Lading
And
Master Bill of Lading
Unless required otherwise by the L/C, the HBL can also be used as a negotiable document and can be considered the title of goods and receipt of cargo same as an MBL. In the interest of the NVOCC operator and their insurance coverage/exposure, it is recommended that all the details except the shipper, consignee and notify details on the HBL remain the same on the MBL.

14. Difference between House Bill of Lading
And
Master Bill of Lading
House Bill of Lading (HBL) is issued by the Freight Forwarder to the actual customer
Master Bill of Lading (MBL) is issued by the Shipping Line (Carrier) to the Freight Forwarder - also known as Ocean Bill of Lading
House Bill of Lading will be an EXACT replica of the Master Bill of Lading issued by the actual Shipping line in respect of cargo details.. The only difference will be that the shipper, consignee and notify party details will be different in the HBL and MBL.

15. In the Master Bill of Lading
the Shipper will usually be their agent or the Freight Forwarder.
the Consignee will usually be the destination agent or counterpart or office of the Freight Forwarder
the Notify could be the same as Consignee or any other party
The rest of the details like vessel/voyage information, cargo description, number of containers, seal numbers, weight, measurements etc etc will all remain the same.

16. Sample Master Bill of Lading

17. In the House Bill of Lading
the Shipper will usually be the actual shipper/exporter of the cargo (or as dictated by the L/C)
the Consignee will usually be the actual receiver/importer of the cargo (or as dictated by the L/C)
the Notify could be the same as Consignee or any other party as dictated by the L/C)

18. Sample House Bill of Lading