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CLEAN BILLS OF LADING
ADVICE BILLS OF LADING
It is well established that the Master is not compelled to sign "clean" bills of lading if the apparent order and condition of the cargo is such that appropriate remarks in the
bill of lading in this respect would be warranted.
The Secretariat has recently been confronted with disputes concerning signing of "clean" bills of lading even though the cargo loaded was defective. The charter parties
contained provisions according to which "clean" bills of lading were to be issued/signed, and it would appear that charterers thought that they could circumvent the
general position briefly outlined above, by including such provisions in the charter party. In other words, since the charter party contained clear words to the effect that
"clean" bills of lading were to be issued, charterers held the view that the Master had no choice but to sign such bills of lading regardless of the actual apparent order and
condition of the cargo. This is not, however, correct. The starting point is that, if charterers wish to have "clean" bills of lading issued, they must see to it that the cargo is in
such condition that the Master will not have to put remarks as to the apparent order and condition of the cargo in the bills of lading, i.e. charterers must arrange for
delivery of cargo which is not defective. Consequently, it may be said that a provision in the charter party which prescribes that "clean" bills of lading are to be issued is a
provision which prima facie compels charterers to deliver "clean" cargo, and it does not preclude the Master from making appropriate remarks in the bills of lading should
circumstances so warrant.
There may be charterers who, when confronted with owners prepared to stand their ground may attempt to propose a letter of indemnity in lieu of signing "clean" bills of
lading contrary to the factual condition of the cargo. BIMCO invariably warns against accepting such an indemnity. It is tantamount to fraud and the indemnity will be
unenforceable and, hence, not worth the paper it is written on. It should be kept in mind that a possible delay in sailing leaving aside the fact that such delay should be
absorbed by the charterers - is to be preferred to the staggering claims which owners may have to face if they agree to issue "clean" bills of lading against such an
unenforceable letter of indemnity. Whenever such situations arise owners are well advised to consult their P&I club.
Feedback or a question about this information?
Contact Henning Nielsen
(+45) 4436 6853
[email protected] CONTACT ONLINE
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LADING CLAUSES
By Henning Nielsen
in Copenhagen, DK
02 June 2016
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