The Archive · 1872

Bills of Lading

Reronr of the Committee of Merchants trading with the East appointed to consider and amend the conditions of Bills of Lading by Steamships passing through the Suez Cant The Committee entered upon its duties in pursuance of the following resolution passed at a meeting of Merchants and others interested in the Trade with the East, which was held at the London Tavern on the 11th July, 1871

That a Committes of Merchants be appointed to consider all the special stipulations. that have been introduced into Bills of Lading for Steam Vesela, and to confer thereon with the repre:

sentatives ofthe Steam Shipowners and Under:

writers, with the view of drawing up a g neral form of Bill of L ding which shall be equitable {in its conditions to all parties: and to arrange Mich method of suing Wiedelght 88 may remedy exiting irregular As convincing proof of the necessity of their enquiries and of the pressing nature of the guile to be remedied in readjusting the freight contract, the Committee need only refer to a sheet published by Lloyd's Salvage Assoolation, andi very generally ciclated among merchants, in which the exemptions of the ship from liability in various contingencies classified in a tabular form, There was little difficulty in determining which of these most urgently called for abolition and the Committee then lost no soking the ce-operation of Steam Shipowners in arriving at a common understanding upon the subject. A meeting of the latter body was called in London, and a Committee, of which Mr. C. M. Norwood, M.P., was Chairman, was appointed to concert terms with the merchants.

The Two Committees addressed themselves in the first instance to examination of the Bill of Lading Outwards, and after prolonged discussion and a series of compromises on both sides, the "Eastern Trade Bill of Lading Outwards" was agreed upon, and published in three forms, slightly varied to suit different voyages No, 1.—For an ordinary voyage to the East direct, or trading at intermediate No, 2—For a voyage to India, trading at Colombo, Madras, or other open roadsteads on the Malabar or Coromandel Coasts.

No, 3,—For a voyage involving trans-shipment, the steamer not proceeding to the port for which she accepts cargo, such as Rangoon, Batavia, or Japan.

This agreement was promptly announced to merchants ina circular issued by the Chairman of the Committee, dated 20th January, 1872, appended to which were copies of the three revised forms of Bills of Lading. The new form came into immediate use; and it affords the Committee much gratification to testify that it has been very generally accepted, not only in London, but in Liverpool and Glasgow also, and has proved a useful and successful document. One exception to its universal use is the Liverpool line of steamers to the Straits and China, known as Holt's line. The Committee in their circular of 20th Jam recommended that as far as Bastern Trade Bill of Lading be used by any tacticable shippers should require that the

steam vessel in which they engaged to ship goods vid the Suez Canal. Had this recommendation been more generally acted upon, possess any evidence. Moreover the bulk of the warehousing entries would certainly be there is no doubt that the Managers of Holt's passed within twenty-four hours and the Tine would have ere now adopted the new steamer's discharge be thus very rarely inter-form; but if shippers of goods put it in their rupted, while if she landed the whole of her power by continued support of their steamers cargo on the dock quay, as is most usually fo decline compliance with the agreement accepted by all other private steam ship done, no interruption at all could take place, On the more difficult question as to the owners in the trade, the efforts of the Commode of paying freight, some explanations are mittee to benefit merchants by the introduc-necessary. When the terms of the Bills of tion of an improved system are so far frus-Lading now used run "Freight payable in trated. The Committee believe that the re-London," Freight payable on delivery," or sults of the Agreement have been beneficial even Freight payable as customary," the alike to shipowner and merchant, and that shipowners contend that, according to the the advantages of uniformity of system have established by themselves since the in-not been too dearly purchased by the comtroduction of steam vessels into the trade with promises acceded to. If shippers entertain the same view, it rests with themselves alone goods on board, or in the dock warehouse of the Bast, they are empowered to detain the to necessitate compliance by declining to ship their own selection, until the freight is paid in any line of steamers where the Eastern advance of delivery, or, whatis practically the Trade Bill of Lading is not recognised. same thing, simultaneously with delivery. Tt With the two great companies controlling, will not be forgotten that this is precisely the the Overland Route, the Peninsular anc grievance of which merchants have for years Oriental Steam Navigation Company, and the past complained, and to remedy which was Messageries Maritimes of France, no negotia-one of their principal objects in organizing a tions Have yet been entered into. 'There are Committee of their number. The Shipowners' many stipulations in their respective Bills of Committee continue to maintain the above Lading which seem to the Committee to be ition; and their chief arguments for s0 very prejudicial to the interests of merjoing may be thus expressed chants; but it must be conceded on the I. That payment in advance of delivery is other hand that their mail contracts, and the now the established usage of the trade. senger lines, impose special obligations upon circumstance of their being essentially pas-IL. That it is necessary for their protection against the insolvent or fraudulent consignee then, and render stringent conditions more of cargo. necessary than in the case of other steamers.

ILL. That it is unreasonable to expect them At the same time, when the vessels pass to follow goods to the wharf or warehouse rally dove by the French, and occasionally by through the Suez Canal, as is now very gene-appointed by the consignee, either for the the English Company, the Committee see no or ascertaining the correctness of delivery. Purpose of electing the freight upon them ced reason why a slight modification ofthe 1V.. That goods in transit to the wharf or at astern Trade Bill of Lading should not meet the wharf may be plundered or damaged by all the exigencies of the case; and it rests the servants or agents of the consignee, for with shippers to take measures for bringing which, in the absence of distinct proof, the about an alteration in this respect. ship Would be held liable, Copies of the three forms of the Eastern That a large proportion of the freight Trade Bill of Lading Outwards, attested by the Chairman of the two Committees, have arued is expend in advance on coals, ental been deposited in the custody of the Committee of Lloyd's, to servo for purposes of reference as the standard text of the Bill of ig agreed upon. 5 The Committee regret that in the case of freight for thirty days would render it impossible for steamship owners to carry on the Bill of Lading Invards they are unable to report an equally satisfactory result of their thei business, owing to the large inereswe of capital which it would call for. labours. It was agreed between the two these arguments the Merchants reply—Committees that the Bill of Lading Outwards I. That the present usage as to payment is should be substantially followed, with such verbal alterations as were required by the of quite recent introduction, deriving any validity it has from the terms of Bills of Lad: change of voyage; but that special clauses ing drawn up by Shipowners themselves, and applicable to the Port of London should be that so far from being established by com-introduced respecting the delivery of cargo mon consent, it has been constantly objected and payment of freight. The system of dis-to by consignees of goods. charging ships at Liverpool and elsewhere is IL That the shipowner has a perfect pro-very different, and might require differently tection for his freight in what is known as the worded clauses, which the trade of the various dock or wharf stop, with which there is no ports interested would have to adjust. intention of interfering, and by which the was soon found that on these clauses the the to any one until he receives a re: warehouse-keeper engages not to part with two Committees were essentially at variance.

As respects the delivery of cargo, the differ-Tease from the shipowner. To meet the rare ence of opinion was not 80 wide as to preclude case of insolvent or fraudulent wharfingers, the hope of an arrangement, the merchants the Committee were quite willing to concede merely desiring to be protected against a sur-that the shipowner might object to the goods rise, by which their goods would be ware-being delivered into the custody of any such joned by the Agents for the ship, before runtif his freight was paid. they knew or had the means of knowing of her arrival. The following was the clause ILL. That to constitute proper delivery the proposed by the Committee consignee must have the opportunity of ascer-Ose ear, wrecking day afer ce Reaper ye the faining that hie goods are according te Bill of Lading, while the existing system does not Elo be allowed for applications for delivery? alford this opportunity, either on board ship Sie Soe eric on the dock quay. The shipowner, there-"to be at liberty to laid and warehouse the fore, cannot be absolved from followin goods to their final destination, as until they ligntny'at che nek os xpenee Of the owners are there examined, weighed, and measured, it of the goods. is quite out of his power to render a freight 'The clause finally proposed by the Ship-account. owners' Committee was as follows TV. That this objection merely calls for an Tweeter the ship ropora othe Casters onse asd ents four hours (Sundays and holidays excepted improved and less hurried method of taking the delivery account, as between the Dock docked, are to be allowed for applications for delivery; and if thereafter the goods are not Company, who are the agents of the siip, and removed by: the Consigues, immediately "they the Wharfingers, who are the agents, of the fame to hand in discharging the ship, the Merchants, and' that the Merchants' Com-Mister or Agent isto be ut liber's to land and mittee would gladly cooperate in the es warehouse the same or, if necenary, to dis-Charge into hired lighters, at the ake and tablishment of such an improved system.

expense of the owners of the goods Cases of plunder could then be traced without As it is not customary or practicable in difficulty to the parties guilty of them. London to give Consignees notice of the ship's VI. That it is no part, of the mer-arrival except by publication of her report chant's functions to provide capital for carry-the Bill of Entry the morning after itis made, ing on the shipowner's business; and that in the clause adopted by your Committee seems London there can be no difficulty whatever in decidedly the more reasonable of the two, es-procuring money on so excellent a security 98 pecially as the hour of the ship's isa the assignment of a steamer's freight, payable Point on which the Consignee of goods cannot in thirty days.

Text read from the printed page and cleaned; old type leaves the occasional error.

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