Sunday, October 21, 2018

Reading comprehension/Business English



The form of a Bill of Lading explained


Image result for illustration of how to get a bill of lading




1. shipper - consignor - sender

2. consignee:  The consignee is the addressee of the bill of lading and the goods. If the bill of lading is addressed to the consignee only the consignee can get the goods from the shipping company. The bill of lading is then called “non-negotiable bill of lading”.  The shipping company can also – at the consignor’s request - issue a bill of lading that can be handed on by the consignee. It is a negotiable bill of lading. This enables the consignor to sell the goods while they are still at sea. He hands on the bill of exchange that represents the ownership of the goods.
The bill of lading is made negotiable by adding the words “or order” to the name of the addressee. 
(cf. text: “the Endorsement”)

3. notify address: The address of a person or company that has to be informed about the arrival of the ship. It may be different from the consignee's address because the consignee may have sold the goods already while they are still at sea; so he does not have anything to do with the goods at the time when they arrive; the importer may not want the name of his customer to appear on the Bill of Lading because then the exporter would get to know it and could get into contact with the importer’s customer directly.

4. place of receipt: Here it is the receipt of the goods by the first carrier.

5. port of loading:  port of shipment

6. place of delivery: It is the place to which the goods have to be brought.

7. port of discharge:  port of destination: The remark “Sydney/Brisbane means that an option clause has been added to the freight contract. By the time the bill of lading is issued either exporter or importers have not decided at which port the goods shall be unloaded. The reason could be that the importer wants to sell the goods but has not found a customer.
That is why he does not know whether Sydney or Brisbane is more convenient for his customer.
The lawful possessor of the bill of lading has to inform the shipping company 48 hours before the ship reaches the first of the ports that are mentioned in the bill of lading.
It may also be that the shipping company wants the option clause because the ship does not always call all the ports on its way. It may depend on the freight. And at the time the bill of lading is issued it may not be clear at which port the ship calls. The option clause would then be: “Sydney/Brisbane at ship’s option”.  

8. s.t.c. – said to contain: The shipping company does not check the goods itself but relies on the information given by the exporter; by writing this expression the shipping company avoids being made liable for items that may not be declared or for wrong declarations.

9. 20' container - there is also a 40' container  20' is read "20 foot" and is about 6 metres

10. shipped on board: The fact that the goods have been loaded is important. The date of loading the goods is important, too. It may be part of the sales contract an. Then it shows that the exporter has fulfilled this part of the contract. The remark “shipped on board” makes the bill of lading an "on board bill of lading".
If the bill of lading is issued before the goods are loaded on board the ship we call the bill of lading a "received for shipment bill of lading". This may be the case if the goods arrive in the port of shipment before the ship that has to take them on board.
If the goods are loaded on board there may be a temporary receipt signed by the mate of the ship. This mate's receipt is then taken to the office of the shipping company where the proper bill of lading is issued. Sometimes several mate's receipts are combined into one bill of lading if the goods are delivered to the port of shipment at different times.

11. irrevocable letter of credit - it is the terms of payment

12. FCL means full container load – LCL means less container load
FCL/FCL means that the full container is sent from the consignor to the consignee.
LCL/LCL would mean that the goods are sent to a container freight station where they are packed into a container - often together with goods from other consignors and are sent to container freight stations in the country of destination where they are unloaded again.
Goods that are sent FCL/LCL are packed at the exporter’s premises and the container is loaded onto the ship; it is then unloaded at the container freight station at the port of destination because the goods are sent to different consignees. Goods sent LCL/FCL are goods from different consignors to one consignee, in a container packed in the container freight station and unpacked on the consignee’s premises. 
LCL landcharge means the costs that occur for transporting the goods to the container freight station where they are packed into a container or from the container freight station where the container is unpacked to the consignee’s premises. 2

13.THC is the terminal handling charge: the costs that arise from handling the goods in the 
harbour like moving them from one place to another.

14. freight to pay - freight collect: The freight is not prepaid by the consignor but has to be paid by
the consignee.  

15. received by the carrier in apparent good order and condition: This remark is important for 
the liability. It means that only the visible part of the shipment (i.e. the packaging) has to be intact. This remark makes the bill of lading a clean bill of lading. If the packaging is damaged and a note made on the bill of lading the bill of lading is a foul bill of lading.
If the packaging is damaged and the exporter still needs a clean bill of lading the exporter's bank may issue a letter of indemnity to say that it will take over liability for any damage caused by the damaged packaging.

16. one of which being accomplished the others to stand void: This remark means that if one 
original bill of lading is presented to the shipping company and the shipping company has handed the goods to the person presenting it the other two originals are not valid any more. 


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EXERCISE 

Find expressions that fit the following definitions

1.     long journey or trip, esp. by sea (noun) ...............................................................................…
2.     town or city with a place where ships stay to be loaded or unloaded (noun) ...........................
3.     sort (noun) ........................................................................................................................…..
4.     what you put round goods for transport to protect them from damage (noun) ........................
5.     to see how long something is (verb) ..................................................................................…..
6.     if not (conjunction) ..................................................................................................................
7.     to give sb. the right to do something (verb)............................................................................
8.     as can be seen from the outside (adjective) .........................................................................
9.     what you pay for the transport (noun) ................................................................................….

Fill in the correct words

1.     If you want to hand the bill of lading on to another person or firm it has got to bear the remark  ".....................................................……........" in the address.  This remark makes the bill of lading a …………………………………………… document.
2.     If the package of the goods is damaged the carrier (shipping company) issues a…………... ………………………………bill of lading.
3.    If no damage can be seen a …………………………………………..…. bill of lading is issued.
4.    The abbreviation “………………………………” means that the shipping company has not checked the contents of the packages but has relied on the information given to them by the exporter.
5.    If the freight is paid by the exporter the remark “………………………………………………….” tells you.
If the freight has to be paid by the importer the remark “………………………………………… “ tells you.
6.    If the goods are packed into a container at a container freight station and the container is then sent directly to the importer the remark “………………………………………….” tells you.
7.   The port at which the goods are loaded on the ship is called “port of ………………………… ” or  “port of …………………………………………”, the port at which the goods are unloaded is called “port of ……………………………………” or “port of …………………………………”
8.   If three originals of the bill of lading are issued and three are sent to the importer we find the remark “…………………………” on the bill of lading. If one of these originals is handed into the shipping company and the shipping company has handed over the goods in exchange the other two originals are not valid any longer. This is expressed by the words “……………………………………..…………………………………………” on the bill of lading.


9.    In order to inform the shipping company about whom to contact when the goods have arrived in the port of ………………………………………….. a …………………………………. address is added.
10.  If the importer does not want his name to appear on the bill of lading he asks the exporter to have the bill of lading addressed to …………………………………………………………………

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