In The Gosforth purchasers of parts of a bulk cargo who had paid against merchant’s delivery orders under sales governed by English law were deferred to the parties who had sold the cargo to the immediate vendor but had not been paid. This of itself was not surprising in view of the nature of the documents against which they had paid; but attention was drawn to the fact that they might have been so deferred had they held ship’s delivery orders or even bills of lading, because under English law, by virtue of the Sale of Goods Act 1979, s. 16, property cannot pass in part of a bulk (at least unless undivided shares in it have been deliberately created).

The problem was therefore originally seen as one relating to property in part of a bulk cargo, a problem made more significant by the immense increase in the size of bulk carriers over the last 30 years. The difficulties extend, of course, outside carriage by sea to situations involving goods held in bulk (and perhaps constantly the subject of withdrawals and additions) in warehouses, against which warrants and orders are issued. But, since the Bills of Lading Act 1855 transferred the contract of carriage by reference to the passing of property, the bulk goods rule caused difficulty also in respect of the transfer of rights of action on the bill of lading. It was