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Over the recent months, our board members Mr. Anand Didwania & Mr. Khaled Sabry have been engaged in serious discussion on the misuse of
Bill of Lading. We feel that because of the extent of this Global problem some level of education on the proper use and control of Bills of Lading
should be exchanged with all members.
Our CPN advisor and FIATA Global Trainer Mr. Thomas Sim, who you all know, has documented this very well. Not only should you read this;
but you should print it and distribute to all operation staff and for those who can; attend the CPN training course.
Here we go…
“Release of Cargo Without Presentation of Bill of Lading
Forwarders frequently face requests from customer/consignees for release of cargo without presentation of an original bill of lading. This is an in-
credibly risky practice that can expose the forwarder to tremendous liability. Due to the numerous misconceptions about bills of lading and delivery
obligations as well as business and operational pressures from their clients, forwarders often accede to these requests.
What is the difference between a Bill of lading and a Waybill ?
A Bill of Lading is a ‘document of title’, which transfers ownership to the named consignee. It may be “negotiable” when marked ‘To Order’ of a
Bank or Consignee, or “straight” when it is made out to a specific consignee.
In either case, it is wrongful to deliver cargo without presentation of the Original Bills of Lading. The Consignee should not have receive the
original Bill of Lading until they have paid the Shipper, or otherwise satisfied the requirements of the purchase agreement.
Does the ‘straight bill’ need to be surrendered for the delivery ?
We/CPN recommend that – ‘YES”, it is not enough that the Consignee prove they are the consignee, they must prove that they have acquire the
title to the cargo by presenting the document. Unlike in the USA, in many jurisdictions, a ‘straight bill’ must be presented to obtain delivery.
What liability could I face for release without collecting the Bill of Lading ?
Knowingly release goods without the presentation of the Bill of Lading by the Consignee constitute a fraud. Therefore, the forwarder could be held
responsible for all damages that flow from the fraud. This includes the freight and all other related charges, the costs of the cargo wrongly con-
verted, and potentially consequential damages.
Knowingly releasing goods without presentation of the Bill of Lading can also void the standard damage limitations set out in your Standard Trad-
ing Conditions (STCs), and could constitute an exception from your Errors & Omissions (E&O) coverage.
Please take notice that CPN shall also not cover such fraudulent acts in the CPN trusts funds agreement.
What should I do when my customer requests release without surrendering original Bills of Lading ?
REFUSE – it is illegal !
Obtain the Shippers’ confirmation of the error resulting in the loss of the Bill of Lading;
Obtain a bank guarantee for at least the CIF value of the goods;
Obtain the consignee’s guarantee and indemnity for all claims and charges;
Ensure the decision is made by a senior manager with authority to accept such a liability.
How can I avoid such requests ?
Consistently REFUSE them – they are illegal and expose YOU to enormous RISKS !
Confirm with customers well in advance of delivery that they are obligated to present their original bill of lading;
Confirm with customs brokers that the goods will not be released without the presentation of the original bill of lading;
Do NOT issue pick-up instructions or confirmation numbers until the presentation of the original bill of lading.
And MOST important – to attend regularly the Training Workshops organized by the CPN Training Institute during the CPN Annual Conference
Events to enhance and update your essential industry knowledge and skills…!
Thomas SIM
CPN advisor and FIATA Global Trainer SINGAPORE
Misuse of Bills of Lading
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MODI CHANGING THE LANDSCAPE IN INDIAN E-COMMERCE:
Neighborhood stores and mom and pop shops, with large retail operations accounting for only about 10 percent of retail sales. The government’s
decision on the e-commerce rules comes months ahead of a general election scheduled for May. Small traders have been part of a support base for
Modi’s ruling Bharatiya Janata Party. If the Modi government returns to power, it’s unlikely there will be rollback of the rules; if it doesn’t, a new
government could change the rules but isn’t expected to focus on the issue anytime soon. “Things are pretty fluid since elections are around the
corner, "says Greyhound Research’s Vir Gogia.” Everyone is watching, including Walmart and Amazon, as the election outcome will decide
where this is headed—2019 will be defining year for Indian e-commerce.”
The big beneficiary from the crackdown could be Reliance, which is India’s largest private company and owns its biggest brick and mortar retail
chain. Recently it spelled out ambitious plans to enter e-commerce by getting millions of small sellers on an online platform it’s created alongside
its Jio wireless service. “Reliance is likely to become the largest Omni channel retailer in the next 24 months,” Singhal says, “It has nearly 300
million Jio telecom subscribers who can access a bundle of financial, education, entertainment, and retail services on their phone’s Jio app.”
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S E N D U S Y O U R F E E D B A C K
We are always open to your comments and suggestions. Let us know what topics you would like to see discussed in our Bulletin and your impressions about this new era of communication we are initiating. By
getting better communicated, the impact of our interactions will increase and be potentiated. Keep in mind the increases challenges that globalization imposes to us and, in consequence, apply this valuable
formula: “Act locally; but think Globally” [Not a CPN member? If you are interested to receive this Bulletin, please send an email to subscribe to [email protected]]
WELL RESPECTED ... WELL CONNECTED... WELL SERVICED
Ken Singh, BA, CITT, MCIT
President
6365 Northwest Dr, Mississauga,
Ontario L4V 1J8, Canada
Phone: 905-671-0261
Fax: 905-671-8061
Europrim Shipping completes multi modal shipment:
Europrim Shipping recently completed the river/road multi-modal
shipment of an automotive press weighing 285 tons, dismantled into
3 pieces of 75, 100 and 110 tons. The pieces were received from the
shipper in the Slovakian port of Bratislava and loaded on a barge
chartered by our special projects team for a 7 days further Danube
river voyage to the Romanian Constanta port.
After receiving the cargo in Constanta, our operational team suc-
cessfully managed the transshipment of the pieces onto special road
trailers and organized the further door delivery to the consignee at
Pitesti destination city, 350 km inland from the port.
The three press components were safely and just in time delivered
to the final consignee according to the agreed schedule.
With this success, Europrim Shipping has proven once again its skills and expertise in the Romanian project cargo industry
field, regardless size or weight.
For any project cargo related inquiry via the East-European Constanta port, please contact us at
