Marine Cargo Claims Assignment Example | Topics and Well Written Essays - 2250 words

Marine Cargo Claims - Assignment Example In an attempt to keep pace with fast moving goods, sea waybills have avoided cargo congestion at destination terminals caused by delayed bill of lading arrivals from the consignor or one of the banks involved in the credit transaction2. The late arrival of waybills does not affect delivery because, contrary to a bill of lading, the nature of a sea waybill is different from that of a bill of lading in that the former is a non-negotiable document, and to receive the goods, the consignee does not need to present the original sea waybill3. The sea waybill, however, cannot replace the bill of lading in many important areas of marine. This paper examines the bill of lading as a document of title by endorsement. Although the sea waybill is important, it cannot replace the bill of lading in many important areas of marine transport where a document of title is required4. Bills of lading are still widely used in any trade that requires the sale of goods during the voyage, such as commodity tra des5. In the case of oil tanker trade, or bulk cargoes of grain, ore, and coal, for instance, the cargo is often the subject of repeated negotiations while in transit. Furthermore, only bills of lading, due to their negotiability, can serve as security for loans since banks may collect waybills without any documented approval. A bill of lading, as a foundation of overseas trade, serves three distinct purposes6. First, they are a receipt for goods. Second, they are the best evidence of the contract of carriage, and third, they are a negotiable document of title. By serving the last function, the bill of lading replaces those goods indicated on its face, enabling the endorser to transfer the property in the goods7. The last function is the one dealt in depth in this paper. By endorsing a bill of lading, the carrier states that it has received the specified goods and it promises to transport and deliver them to designated and legitimate endorsee or consignee. In international trade, bi lls of trade once passed legitimately for value out of the hands of the shipper; facilitate the documentary credit process as documents of title, where payment is made against a document upon which reliance can be placed to represent the goods shipped8. Ownership of the bill of lading is tantamount to ownership of the goods. Banks, through a system of documentary credit, finance a considerable proportion of international trade9. Under the normal CIF contract, the seller is supposed to take to take to the bank the bill of lading alongside other documents upon shipment of the goods10. When these documents are presented in the right form to the bank, the seller can now pay the contract price. Possessing of the bill of lading is equal to possessing the goods according to three different purposes11. First, the holder of the bill of lading is entitled to delivery of the goods at the port of discharge12. Second, the holder can claim the possession of the bill of lading when they are being carried only be endorsing it13. Third, the bill of lading can be used as a security for a debt14. By commercial usage, the bill of lading has become the key document in the contract of sale. Accordingly, the seller is obliged to tender to the buyer a shipped onboard bill of lading under common shipment contracts concluded on C&F and CIF terms15. Where the International Convention for the Unification of Certain Rules Relating to Bills of Lading, otherwise known as