Bill of Lading

Bill of Lading is a receipt from the captain of the vessel to the shipper (usually termed the consignor), undertaking to deliver the goods—on payment of freight—to some person whose name is therein expressed, or indorsed thereon by the consignor; and the delivery of this instrument—independently of the actual delivery of the goods—will suffice to transfer to the party so named (usually termed the consignee), or to any other person whose name he may think fit to indorse thereon, the property in such goods; and by the Bills of Lading Act, 1855, it is provided that every consignee and every indorsee shall have transferred to him all rights of suit, and be subject to the same liabilities in respect of the goods as if the contract had been made with himself. The bill of lading is thus a negotiable instrument, subject to rights of stoppage in transitu, liability for freight, &c. It is also provided that every bill of lading shall be conclusive evidence of the shipment made. Bills of lading are thus the proper evidence of the contracts of a 'general ship'—i.e. where the ship is not chartered wholly to one person, or where the charterer takes sub-freights. They are made out in three copies; one of which is retained by the shipper, another sent to the consignee, another left with the master. A 'mate's receipt' is generally given until the more formal bill of lading is made out. The bill mentions the name of the master, the destination of the ship, the goods, the consignee, and the rate of freight (see also the article SALE). In the United States, a bill of lading is an instrument of twofold character: it is an acknowledgment of receipt by the master of the vessel, and it is a contract to carry safely and deliver. Its prima facie legal effect is to vest the ownership of the goods consigned in the consignee.