Legal Definitions - unclean bill of lading

An unclean bill of lading (sometimes referred to as a "claused" or "foul" bill of lading) is a document issued by a carrier, such as a shipping company or freight forwarder, acknowledging that they have received goods for transport. However, unlike a "clean" bill of lading, an unclean bill of lading contains specific notes or clauses indicating that the goods or their packaging were damaged, defective, incomplete, or otherwise not in good order when the carrier took possession. These notes serve as a formal record that the carrier is not responsible for these pre-existing issues, shifting potential liability back to the shipper or seller.

Here are a few examples to illustrate this concept:

• Example 1: Damaged Packaging

  A clothing manufacturer prepares a shipment of several pallets of apparel for international export. When the shipping company's representative arrives to load the goods onto the vessel, they notice that one of the cardboard boxes on a pallet is visibly crushed and torn, exposing some of the garments inside. The shipping company would issue an unclean bill of lading, specifically noting "one carton received with visible crushing and tearing." This clause protects the shipping company from any claims that they damaged the box or its contents during transit, as the damage was present before the shipment began.

• Example 2: Missing Items

  An industrial supplier arranges for a trucking company to transport 100 units of specialized machinery parts. During the inspection and count at the loading dock, the truck driver discovers that only 98 units are present, despite the shipping manifest indicating 100. The driver would insist on an unclean bill of lading, noting "shortage of 2 machinery parts." This ensures the trucking company is not held liable for the two missing units, as they were never received into the carrier's custody. The industrial supplier would then need to resolve the discrepancy with their warehouse or the buyer.

• Example 3: Visibly Defective Goods

  A car dealership is shipping a luxury vehicle to a buyer in another city via a specialized car transport service. When the transport company's inspector examines the car before loading it onto the trailer, they observe a noticeable scratch on the front bumper and a small crack in the windshield. The transport company would issue an unclean bill of lading, stating "vehicle received with scratch on front bumper and crack in windshield." This clause clarifies that these defects existed prior to the car being loaded for transport, preventing the buyer from later claiming the transport company caused this damage during shipment.