1. Bills of lading and Bank loans
Srinath Keshavan

2. References Gard Guidance on Bills of Lading
(Standard Chartered Bank v Oakprime)
(Brookes & Co.) - Consequences of Master clausing bills of lading
(Ardennes case regarding prevalence of contract of carriage over bill of lading)
Gencon charterparty terms

3. An international trade transaction
Contract
Intent Counterparties Goods
Price INCOTERMS Title
Liabilities/Duties Governing law Jurisdiction for dispute resolution
Movement of goods
Packing units Time of delivery
Mode of transport
Banking arrangements
Payment conditions (time & mode of payment) Currency
Documentation
Invoice Determination of Quality, Quantity
Origin Transport Insurance

4. An international trade transaction
Shipment
LC Beneficiary
(Seller)
LC Applicant
(Buyer)
Contract
LC advised
LC application
Payment
LC issued
Advising
Bank
LC Issuing
Bank
Shipment documents

5. Functions of a bill of lading
Receipt for the goods loaded
Evidence of the contract of carriage
Document of title

6. Bill of lading as a receipt for goods loaded
The function of receipt applies to all bills of lading whether negotiable or not
The bill of lading will normally be evidence of when goods were received and their status on receipt in terms of marks (to identify the goods), apparent order and condition (Mate’s Receipt, too), quantity and/or weight
Consequences of inaccuracy in respect of state of goods at time of loading
Exposure to claims
Loss of the right to limit liability
Loss of P&I cover
Loss of the right of indemnity from the charterer
Criminal prosecution of the carrier and/or Master
Antedating of bill of lading
Standard Chartered Bank (SCB) v Oakprime International Ltd,
SCB v MD of Oakprime,
SCB v Pakistan National Shipping Corp + owner’s shipping agent

7. Discharge of cargo Master clausing bill of lading
David Agmashenebeli case
Discharge of coal in India

8. Bill of lading as evidence of a contract of carriage
The bill of lading also acts as evidence of the contract of carriage between the carrier and the shipper. This is a function of bills of lading whether negotiable or not
The carrier may be the owner, charterer or freight forwarder and is the party who enters into a contract of carriage of goods with the shipper
Deviation from contract of carriage
Ardennes case

9. Bill of lading as a document of title
Title in the context of bills of lading means right to possession of the goods from the carrier. It does not mean right to ownership – the sales contract usually determines this
If the right to possession of the goods from the carrier is determined by the possession of a document such as a bill of lading, then that document is a document of title
A received for shipment bill of lading does not evidence shipment of goods by the carrier. It has a limited function as a document of title, and in any event will only so function if it has been issued by or for (with the necessary authority) the carrier

10. Bill of lading as a document of title

11. Bill of lading as a document of title
Closely connected with the function of document of title is negotiability. If the bill of lading is negotiable it can be transferred from an entity with title to an entity without title, for example from a consignee named in a bill of lading to a consignee not named in the bill of lading
Negotiable bills of lading allow goods to be traded several times during the voyage
A straight bill of lading is not issued in a negotiable form. It requires the carrier to deliver goods only to the consignee designated on the bill of lading
Soybean meal to China

12. Thank you! Questions, please?
Srinath Keshavan