(a) What is a bill of lading? (b) State six contents of a bill of lading. (c) Distinguish between a clean bill of lading a-a foul bill of lading
Question 1 Report
(a) What is a bill of lading?
(b) State six contents of a bill of lading.
(c) Distinguish between a clean bill of lading a-a foul bill of lading
Answer Details
(a) What is a bill of lading?
A bill of lading is a document issued by a shipping company (or its agent) to the exporter acknowledging that the goods described in it have been received on board a named ship for carriage to a stated destination. It serves three purposes: it is a receipt for the goods shipped, evidence of the contract of carriage, and a document of title to the goods, so that whoever holds it can claim the goods at the port of destination.
(b) Six contents of a bill of lading
- Name of the shipping company and the name of the ship.
- Name of the shipper (exporter) and the consignee.
- Description of the goods, including quantity, weight and marks.
- Port of loading and port of destination.
- Amount of freight charges and whether paid or payable.
- Date of shipment and signature of the ship's master or agent.
(c) Clean bill of lading versus foul bill of lading
| Clean bill of lading | Foul (dirty/claused) bill of lading |
|---|---|
| Bears no adverse remark; the goods were received in good order and condition. | Bears a remark stating that the goods or packing were defective or damaged when received. |
| Readily accepted by banks for payment under a letter of credit. | Not readily accepted by banks; the exporter may fail to collect payment. |
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