A bill of lading is a document that certifies the contract of carriage of goods by sea and that the carrier has received or loaded the goods and guarantees that the carrier will deliver the goods in accordance with the contract. Since the goods can only be picked up by the bill of lading, in international trade, especially under the conditions of FOB and CFR, the bill of lading is of great significance and is considered to be the representative and sign of the goods.
However, since only one set of bills of lading can be issued for one shipment of goods, and the bill of lading is a negotiable document, once the bill of lading is lost, it will have a great impact on the development of foreign trade, which may cause the seller to fail to settle foreign exchange and the buyer to pick up the goods.
What is a bill of lading?
A bill of lading (BOL or B/L) is a shipping document whereby the carrier is obliged to deliver the goods at a named place.
The bill of lading is also proof that the contract is signed before the bill of lading is handed over to the master.
For more information on bills of lading, see our article - Bills of Lading.
Lost bill of lading
Losing a bill of lading can be a big problem as ocean carriers deliver containers against it. Missing this document may prevent us from picking up your order.
Downtime or demurrage charges may apply if containers remain in port for too long.
What to do if OBL is lost..??
Here are some steps you can take if a negotiable bill of lading is lost, stolen or destroyed
1. Pictures of lost bills Advertise in local media about the "lost" or "obsolete" original bills
2. Security may be obtained by a court order advising the carrier (shipping line) to deliver the goods to the owner of the goods, subject to the security provided by the goods claiming entity, in the amount of the court..
3. The carrier shall also receive an indemnity letter to indemnify the carrier or any person injured by the delivery against liability under the unpaid original bill. The court may also order reasonable costs and attorneys' fees to be paid to the carrier.
4. Certain banks accept a letter of guarantee signed by the bank and the bank will be jointly and severally liable to return the original bill of lading (if found).
However, some precautions need to be taken, such as:
Advertising about damages is by no means a complete defense of liability for wrongful delivery.
This is only evidence that the loss occurred and that the original owner had the intention to cancel the original bill of lading issued.
The carrier should know who owns the goods and only issue copies to that entity, as in some cases an entity that does not own the goods has advertised the loss and persuaded the carrier to issue a second set of originals, while the first still remains. In the hands of its rightful owners, nothing was actually lost.
It should be treated differently according to different situations:
- Under a named bill of lading: the carrier may deliver the goods to the consignee of a named bill of lading after receiving the consignee's company guarantee and the consignor's written assurance that the goods are to be handed over to the consignee.
- Under the order bill of lading: if the port of discharge agent receives a request from the consignee that the bill of lading is lost and cannot take delivery of the goods against this bill of lading, the consignee shall be required to present the original/copy of the bill of lading issued by the original carrier, commercial invoice, commercial Documents such as contracts and packing lists to check whether the consignee is the consignee. The port of discharge agent should also require the consignee to provide a form of guarantee issued by a first-class bank that meets certain standards. At the same time, the agent of the port of discharge should ask the agent of the port of loading to contact the consignor on the bill of lading to obtain the consignor's consent. In this case A written guarantee that the shipment is released to the consignee.
- Under the bearer bill of lading: refer to the instruction bill of lading for specific practices. If the consignee returns the full set of original bills of lading, the letter of guarantee can be returned to the consignee. If the consignee cannot return the full set of original bills of lading, in principle, the letter of guarantee shall be retained indefinitely. If the consignee makes a return request, the port of discharge agent shall retain a minimum period according to the law of the host country. The domestic port proposal needs to be kept for 6 years. After the bill of lading is lost, contact the shipping company immediately to control the cargo, no matter what the circumstances. In this way, losses can be reduced, and at the same time, the rights and interests of the receiver and the consignor will not be damaged.
