ASM Freight Sdn Bhd

In order to remain resilient during this uncertainty and continue operating efficiently, Logistics and Shipping supply chains need as much agility and optionality as possible.

That means being able to switch shipping modes quickly and efficiently and having access to a wide Global Agency Network with as many Carriers or Airlines as possible.

The benefits of effective logistics services for small businesses. Do contact us as we make it possible simply becoz👇
1.Improved customer experience — delivering orders accurately, quickly and on time increases brand trust and encourages repeat sales and sales through recommendations
2.Enables growth — solid management of inventory, transport and delivery practices helps businesses scale up to fulfill a higher quantity of orders
3.Prevents loss — reduced risk of damage to products through optimal transport conditions and tracking
4.Technology streamlined process — for complete supply chain visibility, real-time tracking, risk assessment, reporting and improved customer communications and tip-top service.

Don't be hesitate to call us for competitive Seafreight, Airfreight, Forwarding, Gen & Marine Insurance and Warehousing package with regards to your import & export inquiries.

"Clean" bills of lading :-

A "Clean" bill of lading is a document that declares there was no damage to or loss of goods during shipment. The clean bill of lading is issued by the product carrier after thoroughly inspecting all packages for any damage, missing quantities, or deviations in quality.

Bills of lading and other transport documents thus play an important role in international trade. .

The basis of the documentary credit transaction is that the bank pays the agreed amount to the beneficiary after it has examined the documents presented and found them to be in accordance with the terms and conditions of the documentary credit. -This examination forms the security which the transaction gives the buyer. As already emphasized the bank examines the documents only.

The bank has no liability for the actual quality, quantity and condition of the goods, but only for ensuring that the documents are in accordance with the instructions given to the bank. Thus, most legal problems arising under a documentary credit transaction emanate from the documents tendered and
examined.

From the buyer's point of view, it is important for the transport document to give him some information about the type of goods and their quality and quantity, since he may only have the bill of lading and the seller's invoice to rely on when asked to pay. It is also important that the buyer gets an indication of when the goods have been shipped on board or, at least, when they have been received for shipment. On the basis of the terms and conditions of the purchase agreement it may also be necessary that the bill of lading shows whether the freight has been paid in advance. Such evidence is important in, e.g., c.i.f. transactions where the seller is required to pay the freight.

It is also of great importance for the seller/shipper to have a clean bill of lading issued by the carrier, since otherwise the buyer will refuse to pay for the documents or, under a documentary credit, the paying banks will refuse to pay against such a document when tendered, since such qualification is an indication that the goods do not conform with the requirements of the sales agreement.

As mentioned, the ocean carrier has a duty to enter such particulars into the bill of lading, and under the Hague-Visby Rules the carrier is not entitled to produce evidence which conflicts with particulars entered into the bill of lading against a person who has acquired the bill of lading in good faith. The carrier's liability for wrong statements in the bill of lading is then basically governed in
the same way as his liability for damage to goods, but other provisions may under certain circumstances complete the picture, and may make the carrier's liability more far reaching.

From the seller's point of view it is then important that a clean bill of lading is issued, i.e. a bill of lading not containing any remarks with respect to the condition of the goods. Due to the terms and conditions of the purchase agreement, the buyer is generally under no duty to pay for an unclean bill of lading, at least in cases where a remark gives reason to presume that the goods are not in customary or agreed condition.

Under payment by documentary credit the UCP ( Article 32 in the 500 revision) also prescribe that the bill of lading must be clean. The seller's interest in clean bills of lading has thus, in some instances, caused pressure on the carrier to issue clean bills of lading, although remarks should be entered. In exchange for the clean bill of lading the seller/shipper then issues a "letter of indemnity" in favour of the carrier, whereby he assumes liability for all consequences of the owner issuing a clean hill of lading. Such a back-letter may have a limited value and it should again be underlined that the P. & I. insurance does not give the owner any protection in case of damages due to incorrect statements in a bill of lading.

DOCUMENTATION IN MODERN TRANSPORTATION :-

Some distinctions may be made between various types of bills of lading. One distinction is made between shipped bills of lading and received for shipment bills of lading. Traditionally, the shipped bill of lading has been the most common one, a document issued by the master or, in practice, more often by the carrier's agent when the goods have been loaded on board the vessel.The received for shipment bill of lading is issued when the goods have been received by the carrier for shipment later. The received for shipment bill of lading has come to play a much more important role where unity transports, particularly container transports and RO/RO traffic, dominate the trade.

At a growing rate, carriage of general cargo is now performed in cooperation between different carriers, who each perform one part immediately following upon the preceding part. Either the same means of transportation (through transport) or different means (combined transport) may then be used to perform the total transport. (Cf. also the concept of intermodal transport.) Then combined transport documents (CT documents) or combined transport bills of lading may be issued as well as certain freight forwarder documents (e.g., FCT).

This type of transportation can give rise to problems. Since there is a coordination of transport where several different modes of transportation are involved, the document covering the whole transport may be issued either by a non-vessel-owning operator or freight forwarder conducting business as a carrier or as agent only for a carrier or by one of the carriers, for example the shipowner. Several new types of documents and documentary routines have
been introduced involving, to a certain extent, new functions.Too frequently bills of lading are delayed in the mail with the result that
they do not arrive until after the relevant goods have been delivered. This is a problem which can occur particularly when short-sea transits are involved, for example the North Sea. In documentary credit sales, documents can often be delayed in the course of bank handling. From the ocean carrier's point of view
this creates problems, since his duty to deliver the goods is based on the duty of the receiver to surrender the bills of lading. This is a legal implication due to the nature and function of the bill of lading. If the carrier delivers the cargo without the bill of lading being surrendered the carrier may be liable for any resulting loss or damage. In such circumstances, as previously mentioned, the carrier is not covered by his P. & I. club. What commonly happens in such a situation is that the consignee may put up a bank guarantee to cover any loss or expenses incurred by the carrier as a result of his delivering the cargo without the bills of lading being surrendered. Such guarantee is not unlawful, but the growing use of such guarantees illustrates the deterioration of the bill
of lading system.

For carriage over short distances there is usually less need for financing by documentary credit. In some trades it has become usual practice to issue destination bills of lading". In these cases, the bill of lading is either issued at the destination in order to avoid loss of time, or else, one bill of lading is carried on board to be signed by the consignee as a receipt when the goods are delivered. Legally this is a questionable custom.

As already mentioned a distinction must be made between negotiable-or rather quasi-negotiable-and non-negotiable bills of lading. Most bills of lading used in ocean carriage are of the former type. The commercial principle underlying the use of a bill of lading is that it will be exchanged simultaneously for the goods it represents. The carrier is bound to deliver the goods only to the holder of at least one original bill of lading, and by the same token only, such holder is entitled to claim delivery of the goods in exchange for surrendering the bill of lading. If two people, each with an original bill of lading, claim delivery at the destination then neither of them is entitled to have the goods. The goods must be stored until a court has decided which is the true owner of the goods. Only a holder of all the original bills of lading may dispose of the goods at a place which is not the destination. Thus the carrier can only agree to re-route the goods, for example where all the original bills of lading are produced to him. Similarly, the carrier may only issue a new set of bills of lading in exchange for all the old originals. It must be said, however, that it is now not uncommon in practice for cargoes (especially oil) to be
delivered without bills of lading being surrendered, and for new bills of lading to be issued without the old originals being produced. It is also important to keep in mind that, particularly in oil trade, the goods are often sold several times during the trip, and very often the destination may be changed several times. It is obvious that a conflict between the legal rules and the practical
requirements will often occur.