Chapter 8: Carrier’s Liability for Sea Carriage

LibraryBills of Lading
Pages249-294
8A: Definitions of Port to Port Shipment

P & O Nedlloyd Bill

8.1

Place of Receipt (Applicable only when this document is used as a Combined Transport Bill of Lading) ________________

Place of Delivery (Applicable only when this document is used as a Combined Transport Bill of Lading) ________________

Port of Loading ________________

Port of Discharge ________________ 1

1. DEFINITIONS

...

“Carriage” means the whole or any part of the operations and services undertaken by the Carrier in respect of the Goods covered by this Bill of Lading.

“Port of Loading” means any port at which the Goods are loaded on board any Vessel (which may not necessarily be the Vessel named overleaf) for Carriage under this Bill of Lading.

“Port of Discharge” means any port at which the Goods are discharged from any Vessel (which may not necessarily be the Vessel named overleaf) after Carriage under this Bill of Lading. 2

...

“Combined Transport” arises if the Place of Receipt and/or the Place of Delivery are indicated on the face hereof in the relevant spaces.

“Port to Port” arises if the Carriage is not Combined Transport. 3

Combiconbill (as revised 1995)

8.2

I. GENERAL PROVISIONS

1. Applicability

Notwithstanding the heading “Combined Transport”, the provisions set out and referred to in this Bill of Lading shall also apply, if the transport as described in this Bill of Lading is performed by one mode of transport only. 4

8.3

Modern combined transport bills give the merchant the option of choosing between two different types of contract of carriage. The first is a traditional port to port shipment, where the carrier assumes responsibilities only for the sea leg of the transport. The merchant can then make its own arrangements for the delivery of the cargo to the ship and for its collection from the quayside on delivery. This mode of shipment is most often, but not exclusively, used for uncontainerised cargo.

8.4

The second types of contract is a combined transport contract, where the carrier undertakes obligations from the place of receipt (e.g. at the shipper’s factory) until the place of delivery (e.g. at the consignee’s inland distribution depot). 5 In this operation the carrier assumes responsibility as principal to the cargo owner to arrange for all the necessary sub-contractors for the transport to be completed. This mode of shipment is most suited to containerised transport and, indeed, the advent of containers produced the need for it.

8.5

There are difficulties where a carrier under an ordinary port to port bill seeks to offer through transport services, e.g., by the transhipment of goods. 6 Conlinebill is an example of a standard port to port bill of this kind. It defines the period of responsibility of the carrier in a separate clause. 7 The modern combined transport bills 8 allow the shipper to declare which type of contractual obligation it requires the carrier to perform by choosing whether to fill in the spaces on the face of the bill indicating place of receipt and/or the place of delivery (as opposed to the ports of loading and discharge).

8.6

However, the courts will attempt to give a sensible business meaning to the notations used by the parties and the mere fact that the bill contains an insertion under the “Place of Receipt” box does not automatically mean that the combined transport liability provisions will be triggered. In The Antwerpen 9 a bill was issued which was suitable for either port to port or combined transport shipments. 10 “Felixstowe” was printed in the port of loading (ocean vessel) box and “Sydney” in the port of discharge (ocean vessel) box. If nothing else had appeared, this would clearly have been a port to port shipment. However, “Felixstowe” had also been inserted into the “Place of Acceptance” box. This is the equivalent of the place of receipt box referred to in the P & O Nedlloyd Bill. A natural reading of this notation would be that the parties intended there to be a combined transport shipment, presumably on an FCL depot/FCL pier basis, 11 where the carrier assumed responsibility at the container terminal in Felixstowe, but delivered to the ship’s side in Sydney. The distinction can be important because most hybrid bills contain separate liability provisions for port to port and combined transport operations. 12 Nevertheless, it was held that the insertion in the Place of Acceptance box had been a patent error which should effectively be ignored as being vague, uncertain or meaningless in the context of the particular bill read as a whole. There were two main reasons for this. First, the bracketed words which appeared after Place of Acceptance, namely “(Applicable only when this document is used as combined transport BL place of acceptance!delivery always to be an address)”, although apparently definitive, contained a qualification in the italicised words. The court considered that Felixstowe could not be considered as an address and so was meaningless and could be ignored. Secondly, the “specification”, which was part of the bill, stated separately “Vessel: Antwerpen, Port of Loading: Felixstowe, Port of Discharge: Sydney. Shipper’s Load stowage and count Shipped on board: 30/07/87”. These words, it was held, emphasised the fact that a port to port shipment was intended.

8.7

It is difficult to gain an impression of the significance of the “specification” without seeing the original bill, but the italicised words do not appear on most combined transport bills and, it is submitted, it is their presence which was vital to the holding in the case. Holders of bills of lading need to be able to rely on the description on the face of the bill and it should not be possible to bring extraneous evidence to explain it, certainly when it is in the hands of a consignee, as here. It may be that there are conflicting indications on the face of the bill, as with the specification mentioned above, and the box for freight might also indicate that it was being charged on a port to port basis. But, it is submitted, such conflicts should normally be resolved by giving priority to the boxes which are specifically designed to give a clear indication to the reader as to whether a combined transport bill is being issued and the decision should be regarded as being exceptional.

8B: Period of Responsibility

Conlinebill

8.8

4. Period of Responsibility.

The Carrier or his Agent shall not be liable for loss of or damage to the goods during the period before loading and after discharge from the vessel, howsoever such loss or damage arises. 13

...

ADDITIONAL CLAUSES

(To be added if required in the contemplated trade.)

B. U.S. Trade. Period of Responsibility.

In case the Contract evidenced by this Bill of Lading is subject to the U.S. Carriage of Goods by Sea Act, then the provisions stated in said Act shall govern before loading and after discharge and throughout the entire time the goods are in the Carrier’s custody. 14

Visconbill

8.9

4. Period of Responsibility

The carrier shall be liable for loss of or damage to the goods occurring between the time when he receives the goods into his charge and the time when the goods are placed at the disposal of the Merchant or in any storage not owned and/or controlled by the Carrier, whichever is the earlier. 15

Congenbill 1978

8.10

(1)... The carrier shall in no case be responsible for loss of or damage to cargo arisen prior to loading and after discharging. 16

Congenbill 1994

8.11

2(c) The Carrier shall in no case be responsible for loss of or damage to the cargo, howsoever arising prior to loading into and after discharge from the Vessel or while the cargo is in the charge of another Carrier, nor in respect of deck cargo or live animals. 17

Hapag-Lloyd Europe-North America Services Bill 1991

8.12

5. CARRIER’S RESPONSIBILITY

Port-to-Port Shipment

...

The Carrier shall be under no liability whatsoever for loss of or damage to the Goods, howsoever occurring, if such loss or damage arises prior to loading onto or subsequent to discharge from the vessel. Notwithstanding the above, in case and to the extent that any applicable compulsory law provides to the contrary, the Carrier shall have the benefit of every right, defence, limitation and liberty in the Hague Rules as applied by this clause during such additional compulsory period of responsibility, notwithstanding that the loss or damage did not occur at sea. The US COGSA shall govern while the Goods are in the custody of the Carrier or his Sub-contractor at the sea terminal in the United States of America before loading onto the Vessel or after discharge therefrom, as the case may be, and the Can Water COGA shall govern in analogous cases at sea terminals in Canada. 18

7(5) Scope of Application

(a) The terms and conditions of this Bill of Lading shall at all times govern all responsibilities of the Carrier in connection with or arising out of the supply of a Container to the Merchant, not only during the Carriage, but also during the periods prior to and/or subsequent to the Carriage. 19

8.13

Hapag-Lloyd Bill of Lading 1996

5. CARRIER’S RESPONSIBILITY

(1) Port-to-Port Shipment

... The Carrier shall be under no liability whatsoever for loss of or damage to the Goods, howsoever occurring, if such loss or damage arises prior to loading onto or subsequent to discharge from the Vessel. Notwithstanding the above, in the event that any applicable compulsory law provides to the contrary, the Carrier shall have the benefit of every right, defence, limitation and liberty in the Hague Rules as applied by this clause during such additional compulsory period of responsibility, notwithstanding that the loss or damage did not occur at sea. In the event that this bill of lading covers shipments to or from the United States then the Carriage of Goods by Sea Act...

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