The Difference Between The Bills Of Lading Issued For Goods Stuffed In Container By The Carrier And The Bills Of Lading Issued For Goods Stuffed In Container By The Shipper
One feature of the Bills of Lading for containerised shipments are the notations referring to the transport conditions or the type of container service. There are four types of transport conditions: LCL/FCL, LCL/LCL, FCL/FCL and FCL/LCL. Each type of transport conditions refer to a type of container service: "Pier to House", "Pier to Pier", "House to House" and "House to Pier".
In case of LCL/FCL transport conditions or "Pier to House" container service, the shipper delivers the goods packaged as break bulk cargo to the carrier at the container terminal of port of loading, usually at the carrier`s nearby Container Freight Station. The carrier stuffs the goods in container and loads the container on board the vessel. After the container`s arrival at the port of discharge, the carrier will put the container at the consignee`s disposal for a specified period of time. The consignee will arrange that within the specified period of time the container to be brought from the port of discharge to his premises for unpacking and after unpacking, it will return the container empty to the container terminal of port of discharge.
The Bills of Lading issued for the goods transported under LCL/FCL transport conditions have the notations "LCL/FCL" and/or "CFS/CY" to indicate that the goods were received by the carrier as break bulk cargo (LCL) at the Container Freight Station (CFS) of the port of loading, that the carrier stuffed the goods in container and that the carrier will deliver the container (FCL) to consignee at container yard (CY) of the port of discharge.
In the Bills of Lading issued for coffee cargoes stuffed in containers by the carriers, the notation "LCL" does not mean that the coffee shipment is less than container load but only that the coffee cargo was received by the carrier packaged in bags, i.e. as break bulk cargo.
For the avoidance of confusion, the carriers refer to less than container loads in their Bills of Lading as "part container loads" or use the statement "One of ... part cargoes in the Container" to draw attention that the cargo has been stuffed in container with other shipments, the number indicated in the blank space of the statement depending on how many shipments are in the container.
In case of LCL/FCL transport conditions, the carrier is responsible for the condition and suitability of the container(s), for the lining of the containers in accordance with the shipper`s instructions and for the proper stowage of bags into the containers. Should loss or damage to the goods occur due to the unfitness of container, improper lining of containers or improper stowage of bags in the container, the carrier will be held responsible.
In case of LCL/LCL transport conditions or "Pier to Pier" container service, the shipper delivers the goods packaged as break bulk cargo to carrier at the container terminal of port of loading, usually at the carrier`s nearby Container Freight Station. The carrier stuffs the goods in container and loads the container on board the vessel. After the container`s arrival at the port of discharge, the container is moved to nearby Container Freight Station for unpacking and the consignee(s) will receive the goods there. The container service "Pier to Pier" is usually required for machinery packed in flat racks and open-top containers.
The Bills of Lading issued for goods transported under LCL/LCL transport conditions have the notations "LCL/LCL" and/or "CFS/CFS" to indicate that the goods were received by carrier as break bulk cargo (LCL) at Container Freight Station (CFS) of port of loading, that the carrier stuffed the goods in container, that upon container`s arrival at the port of discharge the carrier will move the container at Container Freight Station (CFS) for unpacking and then will deliver the goods to consignee(s) as break bulk cargo (LCL).
In case of FCL/FCL transport conditions or "House to House" container service, the carrier will put at the disposal of shipper one or more containers, as the shipper requires, for a specified period of time. The shipper stuffs the goods in container and then delivers the sealed container to the carrier at the container terminal of port of loading. After the container`s arrival at the port of destination, the carrier will put the container at the consignee`s disposal for a specified period of time. The consignee will arrange that within the specified period of time the containers to be brought from the port of discharge to his premises for unpacking. After unpacking, it will return the containers empty to the container terminal of port of discharge.
The Bills of Lading issued for goods transported under FCL/FCL transport conditions have the notations "FCL/FCL" and/or "CY/CY" to indicate that the shipper delivered the goods to the carrier in a sealed container (FCL) at container yard (CY) (container terminal of port of loading) and that the carrier will deliver the sealed container (FCL) to consignee at container yard (CY) (container terminal of port of discharge).
The container service "House to House" is not restricted to shippers of full container loads. The option for the type of container service does not depend on the quantity of goods, i.e. on whether the shipper`s goods are enough to fill a container or whether it is necessary to stuff the goods in container along with goods from other shippers. The container service "House to House" can also be used when the consignee has two or three suppliers in the same country and these suppliers do not have sufficient cargo to fill a container. The notation FCL/FCL means only that the carrier received a sealed container and that at the port of discharge the carrier will deliver the sealed container to the consignee.
In case of FCL/FCL transport conditions, the shipper is responsible for selecting suitable container(s), for the proper lining of the containers (in accordance with the buyer`s instructions), for the proper stowage of bags into the containers and for loading the number of bags and quantity declared in the Bills of Lading. Should loss or damage to the goods occur due to the improper lining of containers or improper stowage of bags in the containers, the carrier cannot be held liable.
In case of FCL/LCL transport conditions or "House to Pier" container service, the carrier will put at the disposal of shipper one or more containers, as the shipper requires, for a specified period of time. The shipper stuffs the goods in container and then delivers the sealed container to the carrier at the container terminal of port of loading. After the container`s arrival at the port of discharge, the container is moved to nearby Container Freight Station for unpacking and the consignee(s) will receive the goods there.
The Bills of Lading issued for goods transported under FCL/LCL transport conditions have the notations "FCL/LCL" and/or "CY/CFS" to indicate that the shipper delivered the goods to the carrier in a sealed container (FCL) at container yard (CY) (container terminal of port of loading), that upon container`s arrival at the port of discharge the carrier will move the container at Container Freight Station (CFS) for unpacking and then will deliver the goods to consignee(s) as break bulk cargo (LCL).
The difference between the Bills of Lading issued for goods stuffed in container by the carrier and the Bills of Lading issued for goods stuffed in container by the shipper is that in the former the carrier acknowledges the receipt of the stated number of packages that he or his agent stuffed in container, while in the latter the carrier acknowledges the receipt of a sealed container without any responsibility for the stated number of packages1 or for the contents of container. This is the reason why in the Bills of Lading issued for goods stuffed in container by the shipper, the carriers insert the qualifying statements "Shipper`s Load, Stow and Count" and "Said to Contain"2.
The statements "Shipper`s Load, Stow and Count" and "Shipper`s Load, Stow, Weight and Count" are inserted in the Bills of Lading issued for goods stuffed into container by the shipper to draw attention to the fact that loading, stowage, weighing and counting of packages was made by the shipper so that the carrier shall not be liable for the contents of container, for the weight of goods, for the stated number of packages, or in case there occurs any loss or damage to the goods due to improper lining of containers or improper stowage of bags in the containers.
The statement "Said to Contain" is inserted in the Bills of Lading issued for goods stuffed in container by shipper to draw attention that the carrier had no opportunity to check the contents of container and quantity of goods.
The intended effect of qualifying statements is to disclaim the carrier`s responsibility as to the shipper`s description of goods so that in case of shortage claim or claim for damage to the goods the claimant must prove what was shipped. In a shortage claim the carrier would be responsible for quantity and weight shortages only if there is independent evidence, in addition of Bill of Lading, of the number of packages and shipped weight. The intent is that while the buyer would still have to lodge the claim on the carrier within the time limit stipulated in the applicable shipping law, the primary responsibility for the shortage remains to the seller. A relevant example evidencing such intention is the Article 18 paragraph (f) of the European Contract for Coffee which has the following provisions:
"Buyers shall always accept a bill of lading claused "said to contain … bags" or "shipper`s load and count" or similar disclaimer, but sellers shall be responsible for any difference in the number of bags invoiced and the number of bags which arrive."
by Vlad Cioarec, International Trade Consultant
This article has been published in Commoditylaw`s Coffee & Cocoa Trade Review Edition No. 1.
Endnotes:
1. Bills of Lading`s terms and conditions of container shipping lines include explanatory clauses to clarify this matter. An example of such explanatory clause is the Clause 11 (Shipper-packed Containers) of Maersk Line Bill of Lading`s terms and conditions which has the following provisions: "If a Container has not been packed by the Carrier: 11.1 This bill of lading shall be a receipt only for such a Container; ... 11.3 The Merchant is responsible for the packing and sealing of all shipper-packed Containers and, if a shipper-packed Container is delivered by the Carrier with any original seal intact, the Carrier shall not be liable for any shortage of Goods ascertained at delivery."
2. In United States, the legal basis for insertion of the qualifying statements "shipper`s weight, load and count" and "said to contain" in the Bills of Lading are the following provisions of Uniform Commercial Code Article 7 Part 3 § 7-301: "(1) A consignee of a non-negotiable bill who has given value in good faith or a holder to whom a negotiable bill has been duly negotiated relying in either case upon the description therein of the goods [...] may recover from the issuer damages caused by [...] the non-receipt or misdescription of the goods, except to the extent that the document indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, as where the description is in terms of marks or labels or kind, quantity, or condition or the receipt or description is qualified by "contents or condition of contents of packages unknown", "said to contain", "shipper`s weight, load and count" or the like, if such indication be true. (2) When goods are loaded by an issuer who is a common carrier, the issuer must count the packages of goods if package freight and ascertain the kind and quantity if bulk freight. In such cases "shipper`s weight, load and count" or other words indicating that the description was made by the shipper are ineffective except as to freight concealed by packages. […] (4) The issuer may by inserting in the bill the words "shipper`s weight, load and count" or other words of like purport indicate that the goods were loaded by the shipper; and if such statement be true the issuer shall not be liable for damages caused by the improper loading."