Bills on Board: What Every Shipping Professional Must Know About 1/3 B/L in Ship’s Bag!

 📦🛳️ Bills on Board: What Every Shipping Professional Must Know About 1/3 B/L in Ship’s Bag!

❓ Ask Yourself Before You Load:

• Can discharging legally start if a Bill of Lading (B/L) is onboard?
• Is carrying 1/3 B/L on the vessel safe for Owners?
• Have you protected your company from legal claims tied to B/L handling?

 

⚖️ Clause Breakdown: Carrying 1/3 Original Bill of Lading Onboard – Risks, Rules & Responsibilities

In shipping operations, timing is everything — and sometimes the fastest way to ensure smooth cargo delivery is to carry one original B/L onboard.

This clause confirms that:

"In principle, Owners have no objection to carrying 1/3 Original Bill of Lading in the ship’s bag to ensure originals are available upon arrival at the discharge port..."

✅ What This Means:

• Purpose: Ensures at least one original B/L is available at the discharge port for timely cargo release.
• Condition: Discharging is strictly conditional on the proper endorsement of the B/L by entitled parties.
• Requirement from Charterers:
• Charterers must provide legible scanned copies of all original B/Ls before vessel arrival.
• Charterers must indemnify Owners from any consequences arising from this arrangement.
• A representative of the receiving party must be appointed and declared at least 5 days before arrival. Passport & business card must be sent to Owners, and presented to the Master upon arrival.

 

⚠️ Common Pitfalls to Avoid:

• Improper Endorsement: Without it, Owners may face cargo claims or disputes.
• Delayed Information: If the discharge port rep's details are not provided in time, it can delay cargo release.
• Poor Documentation: Illegible B/L scans or missing documents could make Owners liable despite indemnity.

 

💬 Example Scenario:

MV XYZ carried one original B/L onboard for Port Klang. The representative failed to show ID on time. Discharge was delayed 2 days. Charterers had to bear extra port costs, while Owners rightly withheld cargo.

 

📘 Relevant Guidance:

• BIMCO Commentary: Encourages clarity on B/L handling in CP terms to avoid ambiguity.
• Legal Precedents: Several cases (e.g., The "Rafaela S") emphasize the legal weight of B/L endorsements and presentation.

 

📝 Actionable Steps for Ship Operators, Managers, and Charterers:

✅ For Owners:

• Always document Charterers' request in writing.
• Get explicit indemnity for carrying original B/L onboard.
• Instruct the Master to release cargo only upon verification of proper documents.

✅ For Charterers:

• Provide high-quality scanned copies of all original B/Ls well before arrival.
• Appoint a trusted receiving party representative, and share passport & business card with Owners.
• Ensure the clause is reflected in B/L wordings as agreed:

"ONE ORIGINAL BILL OF LADING BEING CARRIED ON BOARD AGAINST WHICH BILL (AFTER ENDORSEMENT BY ENTITLED PARTIES) THE CARGO MAY PROPERLY BE RELEASED AGAINST INSTRUCTIONS RECEIVED FROM CHARTERERS"

 

🧭 Conclusion: Protect Your Voyage, Protect Your Reputation

In shipping, minor oversights in documentation can lead to major operational delays or legal claims. Understanding and correctly applying clauses like this one can save your company from costly complications.

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📆 BONUS: Weekly Prep Checklist for CP & B/L Alignment

Day	Task
Mon	Review CP clauses on B/L carriage & cargo release
Tue	Align with charterers on documentation format
Wed	Share scanned B/Ls with Owners if carrying 1/3 onboard
Thu	Appoint & inform receiving party rep to Owners
Fri	Send passport + business card of rep to vessel
Sat	Reconfirm all with vessel before arrival
Sun	Document all steps and keep email trail ready

 

📜 Disclaimer:

This blog is for educational and informational purposes only and does not constitute legal advice. Outcomes may vary based on circumstances and contractual specifics.