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Case StudiesSinochart May 2009 Christian Ott Assistant Vice President Skuld (Far East) Ltd CASE STUDY : BILLS OF LADING Ship vs. Shore Figures Which charter clauses are incorporated Master’s Letter of Authorisation Basic Legal Position The Master should never sign a document (or authorise its signing) if he believes it to be untrue or has good reason to doubt it’s accuracy : Derry vs. Peek (1889) 14 App.Cas 337 and Article III rule 3 of the Hague Rules Owners generally state in the charterparty that certain clauses need to be incorporated into any Bill of Lading issues, in the absence of contrary contractual Agreement the head-Timecharter is the one Owners will insist should apply and will ask the Master to put the date of that charter onto the Bill of Lading (see The San Nicholas 1976 1 Lloyds’ Rep. 8), but where there are both time and voyage charters in play and / or the identified Carrier is the Charterer then the head-voyage charter may apply (The Heidberg 1994 2 Lloyd’s Rep. 287). The issue of what the Master can demand under any Letter of Authorisation for the issuing of Bills of Lading is determined by the applicable charterparty and the applicable legal regieme Ship vs. Shore Figures Under Hague and Hague-Visby Rules, Article 3 rule 3, the Carrier must on demand of the Shipper issue a Bill of Lading showing :- The leading marks necessary for identification of the goods … the number of packages or pieces, or the quantity or weight …. the apparent order and condition of the goods. But the Master can state that any such information came from the Shipper and under Article 3 rule 3 : … no carrier, master or agent of the carrier shall be bound to state or show in the bill of lading any marks number, quantity, or weight which he has reasonable ground for suspecting not accurately to represent the goods actually received, or which he has had no reasonable means of checking Ship vs. Shore Figures Where a Master is faced with a demand to si