Bills of lading in the modern shipping environment: Problems and solutions

Analysis

For a long time, the bill of lading (“BOL”) has been the crucial document in international trade and the sale of goods by sea. Payment for a commodity under a BOL occurs at the time of entering into the contract of sale, rather than at the time of delivery.

The bill of lading is not only a contract of carriage but is a document of title and receipt.

This BOL has faced some considerable problems surrounding the parties' rights and liabilities. Various conventions and domestic laws have attempted to tackle these issues, however few have been successful, due to the rapid growth of the modern shipping environment.

Significantly, practical problems have arisen over the past few years attributable to the standard BOL requirement, to present the BOL at the discharging port in order to attain delivery of the cargo.