T21u—Ocean and Intermodal Bills of Lading

Subscriber price: $276.00, Non-subscriber price: $350.00
Estimated total study time: 20 hours 13 minutes

This course addresses ocean and intermodal bills of lading (involving ocean transportation) in depth, beginning with attributes common to any contract of carriage, additional issues and procedures peculiar to ocean contracts of carriage and types of bills of lading, forms of consignment, and concluding with a field-by-field examination of the information placed into an ocean/intermodal bill of lading.

This course is intended for ocean freight forwarders and shippers who prepare their own bill of lading "instructions" or otherwise need an in-depth understanding of the operation of bills of lading.

This course includes information on U.S. government regulations affecting the preparation of ocean and intermodal bills of lading.

Introduction to Contracts of Carriage

To understand the unique characteristics of an ocean/intermodal bill of lading is "contract of carriage" we must first understand common characteristics or any contract of carriage via any mode of transportation.

(Estimated study time: 1 hour 20 minutes)

Introduction
Contracts of Carriage—Types by Mode
- Introduction
  - Government Bill of Lading (GBL) (Issued by the U.S. Government)
- Air Waybills (for Air Cargo)
  - General
  - House and Master Air Waybills
- Ocean Bill of Lading (for Sea Freight and Connecting Through Intermodal Transportation)
  - General
  - Intermodal/Multimodal Bill of Ladings (other than Port-to-Port)
  - House and Master Bills of Lading (issued by NVOCCs)
  - Charter Party (Contract Carriage Negotiated between a Shipper and Charter Vessel or Aircraft Operator)
- Truck, Rail and Inland Waterway Contracts of Carriage
  - General—Considerable Variation by Region
  - Uniform Bill of Lading (U.S.)
  - Waybill (Issued by Motor Carriers in North America)
  - Hand Tag (Used for Local Cartage and Drayage in North America)

Functions of a Transportation Document (U.S.)

In order to understand the particular functions of an ocean/intermodal bill of lading, it is necessary to understand the functionality of transportation documents in general.

(Estimated study time: 1 hour 12 minutes)

Introduction
Transport Documents as Contracts
Primary Functions of the Transport Document
- Receipt for the Goods
- Standardized Contract
- Title Document (When Consigned "To Order")
Additional Functions of the Transport Document
- Precise Carrier Consignment (Delivery) Instruction
- A Manifest Source Document
- A Customs Source/Evidentiary Document
  - General
  - Evidence of Illicit Shipment/Smuggling
  - Assessment of Duty on Freight Charges
- Evidence of Shipment
- On-Board Date; Date of Export
- Evidence of Cargo Damage or Loss

Preparation of Ocean/Intermodal "B/L Instructions"

An ocean/intermodal bill of lading is issued by the carrier. Prior to issuance, however, the shipper or his freight forwarder must provide the carrier with detailed instructions as to how to prepare the B/L, and exactly what information must be shown in the various fields.

(Estimated study time: 1 hour 41 minutes)

Introduction
Ocean/Intermodal B/L Preparation (B/L Instructions)
- A Contract of Carriage
- Responsibility
- B/L Instructions Must be Complete, Accurate, and Properly Formatted
- Ocean Carrier Prerogatives: Concurrence and Additional Information
Laws and Regulations Affecting Ocean/Intermodal B/Ls
- General—COGSA Governs Conditions of Ocean Common Carriage via U.S. Ports
- International Conventions/Regulations
- Effect of Carmack Amendment on U.S. Truck/Rail Carriage under Through Intermodal Bills of Lading Issued by Ocean Carriers
- U.S. Export Requirements
  - U.S. Export Declaration (EEI) Requirement
- U.S. FMC Regulation of Ocean Common Carriers
  - General
  - Regulated VOCC Services Governed by Tariffs, Service Contracts
  - Regulated NVOCC Services Governed by Tariffs, NSAs or NRAs
  - FMC Licensure of U.S.-based NVOCCs; Authorization of Foreign-based NVOCCs
  - Preparation of Ocean/Intermodal Bills of Lading For Shipment via U.S. Ports
- U.S. DOT Regulation of Dangerous Goods Shipments
- U.S. Customs and Security Requirements for Ocean Carriers
- Other U.S. Regulations and Agencies Affecting Ocean Shipping

B/L Terms, Format and Usage

This lesson addresses the well established format and pattern of use that ocean/intermodal bills of lading follow, including issuance in "sets" of multiple "originals."

(Estimated study time: 1 hour 23 minutes)

Introduction
Understanding the Format of Traditional Paper Ocean/Intermodal Bills of Lading
- General
- The "Face" vs. "Back" of an Ocean B/L
- Standard Ocean Carrier Terms
- Carrier Prerogatives
- Long Form B/L vs. Short Form vs. Blank Back
- From Standardized Paper Format to Paperless Commerce
Bills of Lading—Types & Usage
- How Many Types of Bills of Lading Are There?
- Paper B/Ls Issued in a "Set"
  - A Safeguard
  - Number in a Set
  - Identification of Original B/Ls and Number in Set
  - OB/L Distribution
  - Document Exchanged for Cargo Delivery
  - OB/L "Accomplishment"
- Express B/Ls

Forms of Consignment for a Negotiable B/L; Endorsement

Several alternate "forms of consignment" may be used when issuing an ocean/intermodal bill of lading, with important differences as to cargo control and delivery.

(Estimated study time: 59 minutes)

Introduction
"To Order" vs "Straight" Consignment (Negotiable vs. Non-Negotiable Bill of Lading)
"To Bearer" Consignment
"To Order" Consignment
"To Order of Shipper" Consignment
"To Order of (Named Party)" Consignment
Transfer of Right to Delivery; Types of Endorsement
- General
- Blank Endorsement
- Endorsement "To Order Of (Another Named Party)"
- Specified Delivery ("Straight" Endorsement)

Endorsement Procedures and Carrier Delivery Concerns with Negotiable B/Ls

With a "to order" B/L, who must or may "endorse" and original B/L in order to obtain delivery or the cargo at destination? What concerns does an ocean carrier or its agent have in accepting a B/L endorsement? This lesson addresses these and additional operational issues.

(Estimated study time: 45 minutes)

Introduction
Acceptable Endorsement Forms and Procedure
- Signature/Authority
- Placement of Endorsement
- Endorsement of to "Order of Shipper" B/Ls
- Endorsement by the Named "To Order of" Party
- B/L Endorsement for Delivery; Customs Broker Endorsement as Agent
General

"Straight" Bills of Lading; Dealing with Lost "Originals"

This lesson addresses "straight" (non-negotiable) bills of lading, which somewhat simplify destination procedures while reducing the ability of the shipper to control the delivery of the cargo. We also consider the consequences of the consignee not having an original bill of lading available at destination when needed for cargo delivery.

(Estimated study time: 1 hour 41 minutes)

Introduction
"Straight" (Non-Negotiable) Consignment
- Characteristics of a Straight Bill of Lading
- Benefits of "Straight" Consignment
- Risks and Limitations of "Straight" Consignment
- Appropriate Uses for "Straight" Consignment
- Carrier Requirement for Consignee "Endorsement" of Straight B/Ls
B/Ls for Use with Documentary Draft Collection
Problems Caused by Lost Original B/Ls
- General—Cargo Delivery Delays and Additional Expense
- Letters of Indemnity for Missing B/Ls
  - Indemnities for Negotiable B/Ls
  - Indemnities for Straight B/Ls
- Forwarder's Role in Release of Cargo with Missing OB/L
International Conventions/Regulations

Express Bills of Ladings and Electronic "Consignment Notes"

This lesson addresses non-traditional "bills of lading" that involve no "originals" ("express" B/Ls, also known as "consignment notes"), and no paper document at all (electronic consignments). We then summarize all the different forms of consignment and types of ocean/intermodal bills of lading.

(Estimated study time: 1 hour 7 minutes)

Introduction
Express Bills of Lading
The Electronic ("Paperless") B/L
- Enabling Technology, Standards and Service Providers
- Neutral Ocean Carrier Portals
- Ocean Carrier "EDI" Today
- Electronic B/Ls via the Bolero System
- Electronic Bill of Lading (EBL)
  - Merely Paperless EBL
  - Full function EBL including Negotiability using Block Chain
Summary: Form of Consignment—Convenience vs. Control
Form of Consignment Should Be a Shipper Decision

Preparing B/L Instructions to an Ocean/Intermodal Carrier

This lesson begins detailed coverage of the information required on an ocean/intermodal bill of lading. Data entry of B/L information into an automated documentation/electronic communication system follows an equivalent pattern.

(Estimated study time: 1 hour 14 minutes)

Introduction
General—A Shipper/Forwarder's Responsibility
- For U.S.-Export Shipments, B/L Instructions Needed 2+ Days Prior to Departure from Loading Port
  - Import License or Import Permit Information
  - "Clean On-Board" Statement
  - B/L Continuation Sheets
  - Gross Weight, Measurement, Declared Value
  - Export License or Authorization; Other Government Required Information
  - U.S. Export Declaration/Compliance Information on B/L
    - The B/L is a U.S. "Export Control Document"
    - U.S. Export Requirements that Impact B/L Preparation
    - EAR/Customs Violations; Denial Orders
    - Conformity of Documents under a U.S. Export License
  - On-Board Date—Expiring U.S. Export License
  - Aligned Form Block #21 – U.S. Export Information
    - Mixtures of Licensed, Non-Licensed and/or NDR Cargo
    - Destination Control Statement
Manual "Aligned" Form B/L Master as the "Guide"
How to Communicate B/L Instructions
Transaction Parties Typically Shown on an Ocean/Intermodal Bill of Lading

Place of Cargo Acceptance; Rate Basis

This lesson addresses the "cargo receipt" function of an ocean or intermodal bill of lading, and how the time and place of receipt by an ocean carrier affects the transportation rate applicable to the shipment.

(Estimated study time: 21 minutes)

General
Introduction

Letter of Credit Requirements on a Bill of Lading; Form of Consignment

This lesson covers what the shipper and his forwarder must do when payment for goods shipped via ocean/intermodal bill of lading will be via a letter of credit. We also review "form of consignment."

(Estimated study time: 23 minutes)

Introduction
General
Form of Consignment

Important Dates in the Issuance of an Ocean/Intermodal B/L

This lesson addresses the several dates involved in ocean shipping, and why each may be important for particular purposes.

(Estimated study time: 1 hour 9 minutes)

Introduction
Bill of Lading Date(s)
- General
- Shipping Date
- Date of Cargo Acceptance
  - Cargo Acceptance Date – Transfer of Risk
  - Cargo Acceptance Date – Tariff Applicability
  - Intermodal B/Ls
  - Cargo Assembly of Multiple Cargo Receipts under a Single Bill of Lading
- On-Board Date
  - U.S. Export License Validity
- Issue Date; Letter of Credit Concerns
- Export Date
- Requested B/L Dating

Freight Prepaid or Collect; Additional B/L Instruction Issues

This lesson addresses freight charges, who will pay for what, whether these charges are stated on the ocean bill of lading or separate freight invoice. We also cover when it is necessary to show cargo value on the bill of lading, how to communicate this information to the ocean carrier, and when to audit ocean freight charges on a bill of lading after it is issued.

(Estimated study time: 1 hour 8 minutes)

Introduction
Freight Prepaid/Freight Collect
- General—Planning
- Carrier's Tariff or Service Contract
- Charges Split, Prepaid and Collect
B/L Instructions Format & Communication
- Format
- Method of Communication
- Information Not Prompted for on the Aligned Form
  - General
  - Value for Customs Purposes
  - Forwarder Advances, PBAs
Rated vs. Non-rated B/Ls
B/L Inspection/Audit

Parties Involved with Shipment (Aligned Form Master, Blocks 1 through 9)

This lesson begins field-by-field coverage of B/L information as shown on the aligned form master, the most widely used format for a paper ocean/intermodal bill of lading. Automated shipment processing and communication systems (EDI) contain data fields for this same information, typically organized in a similar sequence.

(Estimated study time: 1 hour 15 minutes)

Introduction
Information Fields Applicable to Entire Shipment
- General—All Information Organized by field/Block
- Field/Block #2—Shipper/Exporter
  - FMC Regulations Relating to "Shipper" on B/L; "Name Sharing" under Service Contracts, TVRs
- Field/Block #3—Consignee
- Field/Block #4—Notify Party
  - Use of a Notify Party Recommended
  - Intermediate Consignee as Notify Party
  - Multiple Notify Parties
  - Notify Party Not a "Party in Interest" to the Contract of Carriage
- Field/Block #5/5a—Booking Number (or Document No., B/L No.)
- Field/Block #6—Export References
- Field/Block #7—Forwarding Agent & Forwarding References
  - Block #7 – U.S. Forwarding Requirements
- Field/Block #8—Point and Country of Origin
- Field/Block #9—Also Notify Party; Other Instructions

Transportation Points/Carriers (Aligned Form Master Blocks, 10-17)

In this lesson we continue on with detailed, block-by-block, coverage of the information which must or may be entered into B/L instructions using the aligned form master.

(Estimated study time: 23 minutes)

Introduction
General
- Points of Service and Type of Movement/Service Codes
- Through vs. Combined Transportation; Inland Carriage Liability

Cargo Marks, Packages, Weight & Freight Charges (Aligned Form Master, Blocks 18-19, 21-25)

This lesson continues field-by-field B/L detail.
Note: Because of the range of possible information required under "Cargo Description," Block #20, this is addressed separately in the next lesson.

(Estimated study time: 1 hour 10 minutes)

Introduction
Cargo Marks and Numbers, Number of Packages
- Field/Block #18—Marks and Numbers (Container/Seal Numbers)
  - Marks
  - Numbers
  - Container & Seal Numbers
- Field/Block #19 – Number of Packages
Gross Weight, Measurement, Declared Value
Field/Block #21 – Gross Weight
Field/Block #22 – Measurement
Field/Block #23 – Shipper's Declared Value
Freight Charges
- Field/Block #24 – Freight & Charges Payable At and By Whom
- Field/Block #25 – Optional Area/Freight Charges

Cargo Description; As-needed Dangerous Goods and L/C/ Information (Aligned Form Master Block #20)

This lesson addressed the three items of information always required in Block #20, plus Dangerous Goods information when required.

(Estimated study time: 1 hour 21 minutes)

Introduction
General—Format Issues/Limitations
Package Descriptions and Count
COMMODITY Description(s)—Satisfying Multiple Requirements
Dangerous Goods Information
- Dangerous Goods (U.S. DOT)
U.S. DOT Regulation of Dangerous Goods Shipments

Cargo Description & Issues (Aligned Form Master Block #20)

We continue this coverage of block #20 with the various issues which influence the cargo description.

(Estimated study time: 36 minutes)

Introduction
Letter of Credit Cargo Description
Tariff Rate Basis other than W/M
Citation of Tariff Rate Item, Service Contract/Arrangement or Charter Party
Concealment of Exact Commodity Information

Additional Information Sometimes Needed in Cargo Description Block (Aligned Form Master Block #20)

What the government of the origin and destination countries may require in Block #20, plus the meaning of the very important "clean-on-board" statement placed on a B/L when issued by the ocean carrier.

(Estimated study time: 1 hour 2 minutes)

Introduction
Special Handling Instructions
Export License/Authorization; Other Government Required Information
- U.S. Export Declaration Information
  - Shipper or Forwarder Must Provide Ocean Carrier with Required Export Manifest Information
  - Destination Control Statement (DCS)
Import License or Import Permit Information
"Clean On-Board" Statement
B/L Continuation Sheets