ASM COMPLIED NOTES

CONTENTS

MATE RECEIPTS

CLAUSES
 MATE RECEIPTS

1. Is a Receipt given by the usually the chief officer for goods actually
received on board.
2. The mate receipt should be properly drawn up containing details of
Identification, marks, quality, conditions, based on Tally sheets etc.
3. It is normally made in Triplicate.One copy on ship, one to shipper,
one to agent / charterers.
4. The mate Receipt is not recognized in a legal document of title,
merely as a Receipt.
5. The receipt must truthfully describe the order and condition of good
received and must be reflected similarly in B/L. Remark to be
contrary must be made.
6. The copy of mate Receipt cannot be used by the Receiver to collect
cargo.
7. It is accepted as a basic evidence of receipt of cargo.
8. It cannot be used to pay freight or to collect goods at delivery.
9. Can be used in court of Law only when B/L unavailable.

SOF/TIME SHEET

Is a document drawn up in under to access the amount of

demurrage dispatch. It therefore indicates a true certified copy of all
operational activity in port.The following are the main contents :

1. Date/Time of Arrival / PST.

2. Date/time berthed.
3. Date/time NOR tendered/Accepted.
4. Date/time command loading.
5. Daily delays on account ship, shore, weather.
6. NR of cargo hatches working daily.
7. Daily outturn of cargo.
8. Daily hours of work.
9. Date/Time completed.
10. Date/Time sailing documents on board.
11. Date/Time sailed.

The above document is to be signed by Master and is based on the daily

reports. In view it has financial implications, it must be scrutinized
thoroughly/ corrected before signed.
L.O.I

A letter of indemnity is often given in following circumstances.

(a) Master asked to sign cargo figures.

(b) Master asked to release cargo without B/l.
(c) Carrier to load cargo in rain etc for which LOI issued by
shippers/characters.

It should be clear in the mind that the purpose of a LOI is to achieve the
final objective of carrying out a act which is contrary to good legal practice.

Thus accepting a LOI is equivalent to being a party to fraud and the carrier
will not be excused from any liability due to consequences of such LOI. It
follows that when a individual knowingly fully well that he is committing
wrong and commits that act must held fully liable . Under no circumstances
must a lot be entertained.

CIRCUMSTANCES FOR ACCEPTING LOI :

1. When stated /agreed in c/p

2. Owner instructions
3. When bank guarantee given and PI in formed.

B/Ls.

1. Functions (a) Receipt for goods received in vessells custody.

(b) Evidence of contract .
© Document of title.
2. Shippers responsibility to provide B/Ls (Take approval of owner).
3. If vessel provides use the approved format.
4. Normally two or more negotiable with one or more. Non-negotiable,
incl.
Capt.copy. All copies will be stamped . “Copy non-negotiable”.
Master’s copy stamped accordingly.
5. Master may sign or agent . if permitted by C/P.
6. B/L to be used on MR.
7. (a) A B/L in the hands of a shopper who is also the character is a
more receipt and goods are carried on C/P terms.
(b) Between L shipper who is not the characterer goods are carried
on B/L terms.
 8. Number of originals issued will be mentioned on the B/L.
9. B/L is a contract between carrier and cargo interest .
10. Holder of original B/L is true owner of cargo .
11. It is used for freight payment , and by banks as evidence of qty
shipped to pay seller.

TYPES OF B/L
1. Clean B/l : A B/L is said to be “clean” when it bears no
superimposed clause expressly declaring a defective condition of
the goods or packaging.
2. Foul B/L : A B/l which is not clean in the above sense is described
as “foul”, “dirty” , “unclean” or “claused”.
3. Received for shipment B/l: This is a B/ issued to a shipper when he
deleiver goods into the custody of the shipowner or the latters agents
before the carrying ship has arrived or is ready to receive the goods.
4. Shipping B/L : A B/L issued after the goods have actually been
loaded into the ship is described as a “Shipped bill” . If a Received
for shipment B/L has previously been given , however , it must be
surrendered in exchange for, or converted into , a shipped B/L.
5. Direct B/L : This is a B/L covering the carriage of goods in one ship
direct from one port to another.
6. Open B/L: A B/L giving no indication whatsoever of whom the goods
are consigned to . A holder presenting an open open bill would be
entitled to take delivery of the goods but would have no right to hold
them against the rightful owner.
7. Straight B/L : This is issed solely in favour of named cosignee, no
holder of such bill other than the named consignee himself would be
entitled to take delivery of the goods.
8. Bearer B/L : A B/L making goods deliverable “to bearer” does not
required endorsement . The property passes by mere delivery.
9. Order B/L : the vast majority of b’S/L are of this type and re
negotiable documents . One part of the set must be surrendered ,
duly indorsed , in exchange for the goods or a delivery order.
Indorsement may be effected in either two ways (1)by “ blank
indorsement” where his name on the back of the bill ; (2) by “Special
indorsement “ which is an indorsement to some named person or
persons.
10. Outward B/L : As far as this country is concerned an “outward” B/L
is one issued in respect iof goods being exported from the country to
a destination abroad.
11.Homeward B/l : A “homeward” bill is one issued abroad to cover a
shipment of goods being imported into the United Kingdom.
12. Non Negotiable : A copy of B/L used only for reference (capt
copy).

DETAILS ON FRONT OF B/L:

1. SHIPPERS NAME/ ADDRESS

2. CONSIGNEE NAME /ADDRESS
3. NOTIFICATION ADDRESS
4. VESSEL NAME
5. PORT OF LOADING
6. PORT OF DISCHARGE
7. SHIPPERS DESCRIPTION OF GOODS.
8. FREIGHT PAYABLE
9. B/L NUMBER
10. NUMBER OF ORIGINALS B/L’s.

USUAL CLAUSES
1. CLAUSE PARAMOUNT
2. EXCEPTED PERILS
3. DEVIATION CLAUSE
4. JASON NEW JASON CLAUSE
5. BOTH TO BLAME COLLISON CLAUSE
6. LIENS CLAUSE
7. BILL OF LOADING ACT T OAPPLY
8. LAW AND DEBITRATION

PRECAUTIONS WHEN SIGNING B/Ls.

1. DETAILS TO BE SAME AS N .RECEIPTS
2. CHECK B/L IS IN PROPER APPROVED FORMAT
3. B/L SHOWED BE CORRECTLY DATED
4. IF DHEMMURAGE PAYABLE TO BE ENTERED ON B/L
5. WHETHER FREIGHT PAYABLE ADVANCE / OUTRETURN
6. CHECK PORT OF DESTINATION CORRECTLY STATE
7. IF UNDER T/C THEY MAY REQUIRE ADDNC CLAUSE
8. WHEN SHIPPER & CHARACTER ARE SAME THE C/PIS OVER
RIDING IN LAW
9. WHEN SHIPPER & CHARACTER ARE DIFF , B/L RULES APPLY

BILLS OF LOADING ACT 1855

1. EVERY CONSIGNEE NAMED IN B/L SHALL HAVE VESTED IN HIM
ALL RIGHTS OF SUIT AND SUBJECT TO SAME LIABILITIES AS IF
CONTRACT IN B/L WAS MADE WITH HIMSELF.
2. NOTHING SHALL PREJUDICE OR AFFECT ANY RIGHT OF
“STOPPAGE IN RETURN OR ANY CLAIM FOR FREIGHT AGAINST
THE ORIGINAL SHIPPER OR OWNER.
3. EVERY B/L SHALL BE CONCLUSIVE PROOF OF SUCH
SHIPMENT AGAINST MASTER OR OTHER PERSON SIGNING
THE SAME.

WAYBILLS :

WAYBILLS ARE NON NEGOTIABLE DOCUMENTS MANY LINER

COMOANIES ISSUE WAYBILLS INSTEAD OF B/Ls . IT IS
SUITABLE FOR USE WHEN THERE IS A POSSIBILITY OF
DOCUMENTS ARRIVING AFTER THE GOODS AT DESTINATION, OR
WHEN THERE IS NO PAYMENT REQUIRED.
IT IS NOT A DOCUMENT OF TITLE AS GOODS CAN BE DELIVERED
ONLY ON IDENTITY WITHOUT PROPER DOCUMENTS.
IT IS ALSO USED IN CONTRACT OF AFFREIGHTMENTS.

THE WAY BILL HAS:

1. NAMES/ADDRESSES OF SHIPPER/CONSIGNEE/CARRIER
2. DETAILS OF GOODS , INCL QTY/WT/MARKS/
3. DECLARED VALUE ETC.

IT IS EVIDENCE OF CONTACT AND RECEIPT FOR GOODS

THROUGH B/L. A B/L USEDFOR MULTI TRANSPORT WHICH
PROVIDES EVIDENCE OF A CONTRACT OF CARRIAGE FROM ONE
PLACE TO ANOTHER IN SEPARATE STAGES OF WHICH AT LEAST
ONE STAGE IS SEA TRANSIT AND BY WHICH THE ISSUING SEA
CARRIER ACCEPTS RESPONSIBILITY FOR THE SEA CARRIAGE
AND ACTS AS AGENT FOR THE SHIPPER IN ARRANGING
CARRIAGE FROM ONE PLACE OF ACCEPTANCE TO THE FINAL
PLACE OF DELIVERY. IT SHOULD BE NOTED THAT MORE THAN
ONE CARRIER IS USED , HENCE THE TEERM MULTI TRANSPORT ,
AND THAT THE ISSUER ONLY ACCEPTS RESPONSIBILITY FOR HIS
OWN SEGMENTOF THE CARRIAGE. HE THEN CASTS HIMSELFIN
THE ROLE OF AGENT AS BETWEEN THE SHIPPER AND OTHER
CARRIERS IF THE LOSS OR DAMAGE WAS CAUSED WHILE IN
THEIR HANDS. IT IS USUAL FOR THE ISSUER OF THE B/L TO
AGREE IF IT CAN’T BE PROVED WHERE THE GOODSWERE WHEN
 THE LOSS OR DAMAGE OCCURRED, IT SHALL BE DEEMED TO
HAVE OCCURRED AT SEA ANT THE CARRIER SHALL BE LIABEL .
SEA CARRIERS FREQUENTLY UNDERTAKE THE RESPONSIBILITY
OF ARRANGING THROUGH TRANSIT , FOR INSTANCE A SHIPMENT
CONSIGNED FROM LONDON TO BANGKOK MAY BE CARRIED
FROM LONDON TO SINGAPORE AND THERE TRANSHIPPED FOR
CONVEYANCE BY LOCAL VESSEL TO BANGKOK . FREIGHT FOR
THE ENTIRE JOURNEY WOULD BE PREPAID TO THE PRINCIPAL
SEA……….

COMBINED TRANSPORT B/L:

A negotiable document which evidence a combined
transport contract , the taking in charge of the goods described by the
combined transport operator (CTO)at a place of delivery against surrender
of the document . In this case the issuer accepts responsibility for the
entire movement and acts as principal with respect to the shipper and
other carriers. More than one type of carriage is generally involved when
the stage of transport where loss or damage occurred is known , the CTO’s
liability to the shipper or consignee decided by international convention or
domestic law applicable .(i.e Road , rail air , etc) used for door to
movement.

S. NO B/L M.RCPTS
1. EVIDENCE OF NO EVIDENCE
CONTRACT
2. PROOF OF THE NOT PROOF OF
TITILE TITLE
3. LEGAL DOCUMENT NOT LEGAL
INTNL TRADE DOCUMENT
4. ENDORSEABLE NOT ENDORSEABLE
5. BSS OF FRT NOT BSS OF FRT
6. SIGNED BY SIGNED BY D/O,
MASTER/AGENT C/O,MASTER
7. BSS OF FRT NOT BSS OF FRT
8. USED BY BANKS FOR CANNOT BE USED AS
CASH RELEASE TO BSS OF BANK CASH
SELLER RELEASE

SIGNING BILLS OF LADING (Recommendations of PI clubs)

 1. Master does not know the weight or quantity loaded then the words
“weight and quantity unknown” should be written alongside the
figure.
2. If ship figures vary with shore figures then the slip figures should be
written alongside the shore figure.
3. If Master only knows the “apparent condition” be should mark the bill
of lading accordingly.
4. If goods are damaged and noticeable then Master should endorse
the condition onB/L.
5. The words weight , measure , quantity, conditions, contents,
contents, and value unknown should be if possible added to bill of
lading.
6. The word “said to be” when used alone affords no protection, but
when used in conjuction with say “said by shiper to be” or “said by
the shipper to contain” points out that no verification has been made
by the carrier.

Problems Experienced with Bill of Lading:

Q1: No original Bill of Lading available at discharge port ?

Ans: The unavailability of bill of lading at the discharge port is not the
Master Problem, it is the problem of the buyer and seller of cargo.
However master should never release cargo without signing the original
B/L and comparing with his own copy . A LOI is not sufficient evidence to
release cargo.

Q2: More then 1 person demanding delivery , each person holding a

original B/L.?
Ans: This may be due to more than one set of original B/L in circulation ,
some of which are unauthorized . Under normal circumstances the carrier
is within his rights to release cargo to the first party this approaches him
with the original B/L .however if more than one party approaches
simultaneously then the master should seek assistance through the PI
club and may discharge cargo into the custody of the port or private
warehouse where it will remain under legal control of the Master.

SOMETIMES B/Ls ARE REQUIRED TO BE SIGNED CLEAN SLIP STAFF

SHOULD ENSURE THAT DAMAGED CARGO IS NOT LOADED
FURTHER B/L MAY BE SIGNED PER C/P AS PER SHORE QUANTITY
ANY MAJOR DIFFERENCES WILL RESULT IN A CLAIM SHIP MUST
CONSULT PI AND LODGE PROTEST.

PROCEDURE FOR CARGO RELEASE:

1. NOTIFY THE RECEIVE TO HAVE ORIGINAL B/L PRODUCED
BEFORE DISCHARGED COMMENCES.
2. COMPARE WITH SHIPS COPY FOR VERIFICATION
3. DO NOT DISCH TILL VERIFICATION DONE
4. IF LOI PRODUCED DO NOT DISCHARGE

SCALE LOAD : MEANS B/L PER SHORE SCALE. IF DISPUTE , NOTE ,

PROTEST , INFORM, PI, INDEPENDENT , SURVEYOR.

WHAT FIGS TO ENTER B/L : IN ABSENCE OF SPECIFIC INST ALWAYS

SHIP

B/L TO BE SIGNED CLEAN : SHIPS OFFICERS TO BE VIGILANT AND

TO ORDER REMOVE AC OF DAMAGED CARGO

FIO : FREE IN/OUT LOAD/DISCHARGE EXPENSES NOT ON USE,

LINER TERMS LOADING/DISCH EXPENSES ON A/C VSL.

Q). VSL SIGNED B/Ls. ENI ROUTE RECEIVED ORDERS FOR

ACTERNATIVE PORT ACTION ?
ANS ON B/L IS MENTIONED PORT OF DISCH NOW THERE IS A
CHARGE OF ORDERS HAS PERMISSION BEEN LATER BY
CHARACTERS FROM SHIPPERS/CONSIGNEE .
SHIP WILL BE OPEN TO CLAIM IF THEY PROCEED WITHOUT
CLEARANCES FROM SHIPPERS/ SONSIGNEES .CONTACT OWNERS
& PI CLABS FOR ADVICE.

TIME CHARACTER

DELIEVERY AND REDELIVERY : It shall be expressly stated as to where

the vessel is to be delivered . This shall normally be stated as a location for
example “Dropping last outward sea pilot” or “Gibralter”.
The Master shall give the ETD from the present port and the ETA at the
arrival location with subsequent notice as introduced with fixture note. In
case the vessel can’t arrive at the point of location within the range of
dates then he should indicate so to owners and charters and on thir getting
receipt of such notice shall reply with in 48hrs stating whether they accept
or reject the vessel . Thus unlike a voyage charter , it is not imperative to
proceed up to the required location.

ON HIRE AND OFF HIRE SURVEY : Utmost attention must be given by

the senior management as regards the pn/off hire survey.