Legal Definitions - claused bill of lading

A claused bill of lading is a shipping document issued by a carrier (such as a shipping company) to a shipper (the sender of goods) that contains specific notations or remarks about the condition, quantity, or packaging of the goods at the time they were received for transport. These notations indicate that the goods were not in perfect condition, or that there were discrepancies, when they were loaded onto the vessel or vehicle.

Essentially, a bill of lading serves as a receipt for the goods, a contract for their carriage, and a document of title. When it is "claused," it means the carrier has observed some issue – like damage, insufficient packaging, or a shortage in quantity – and has made a written record of it directly on the bill. This protects the carrier from future claims for damage or loss that existed before they took responsibility for the goods. For the recipient, a claused bill of lading serves as a warning that the cargo may not be in the expected condition upon arrival.

Here are some examples to illustrate this concept:

• Example 1: Pre-existing Damage to Goods
  A company is shipping a consignment of delicate ceramic sculptures overseas. When the sculptures are brought to the port for loading, the carrier's inspection team notices a visible crack on one of the larger pieces and a chip on another. The carrier's representative then issues a bill of lading with a specific clause stating: "One ceramic sculpture observed with a hairline crack on the base; one small ceramic sculpture chipped on the upper edge prior to loading."

  Explanation: This is a claused bill of lading because it explicitly documents pre-existing damage to the cargo. By noting these issues, the carrier protects itself from liability for these specific damages, and the recipient is informed that the items were already compromised before shipment.

• Example 2: Inadequate Packaging
  A manufacturer is sending several pallets of electronic components. During the loading process, the carrier's staff observe that the shrink-wrap on two of the pallets is torn, and some of the individual boxes appear to be crushed or improperly sealed. The bill of lading is subsequently issued with a clause: "Pallets #5 and #7 show torn shrink-wrap and several boxes with visible crushing and compromised seals."

  Explanation: The clause here highlights a problem with the packaging of the goods before they were taken into the carrier's full care. This indicates potential vulnerability of the contents and limits the carrier's responsibility for any damage that might arise due to the inadequate packaging.

• Example 3: Discrepancy in Quantity
  A textile importer is expecting 1,000 rolls of fabric. The shipper declares 1,000 rolls on the shipping manifest. However, when the carrier's team counts the rolls during loading onto the vessel, they only find 990 rolls. The carrier then issues a bill of lading with a clause: "Shipper's count: 1,000 rolls; Carrier's count: 990 rolls. Shortage of 10 rolls noted at time of loading."

  Explanation: This bill of lading is claused because it records a discrepancy between the quantity of goods declared by the shipper and the actual quantity received by the carrier. This protects the carrier from claims for the missing 10 rolls and provides clear documentation of the shortage to all parties involved.