Lloyd's Shipping & Trade Law
Master’s ‘power’ to clause bills of lading – has the ‘power’ diluted?
The issue of the master’s authority to clause bills of lading with remarks to describe the cargo has been of considerable
dispute between shippers and carriers. On the one hand, the shipper wants a bill of lading conforming with its sale contract
which can trigger payment thereunder and, on the other, the carrier wants to make remarks on the bill which would guard it
against potential cargo claims at the discharge port. Money turns on this in as much as, if the carrier is allowed to clause
bills, the shipper’s right to payment under its sale contract is weakened. The question therefore is when should the master
clause the bill of lading? This question shall be discussed in three stages, commencing with the position following
The Atlas
[1996] 1 Lloyd’s Rep 642 and
The Mata K
[1998] 2 Lloyd’s Rep 614, followed by the decision in
The David A
[2003] 1 Lloyd’s Rep 92 and finally the decision in
The Sea Success
[2005] 2 Lloyd’s Rep 692 (see Shipping & Trade Law
(Volume 5: September (pp 5–6))).