Hello, it’s Iino.
This time, I’d like to talk about common troubles with B/L.
B/L is a short term of a Bill of landing, and this is a contract of transportation.
This will prove that you are the owner of the cargo, when importing and collecting cargo.
In this video, I’d like to talk about the common problems of B/L, and how to solve them.
Here we go.
What kind of B/L troubles are there?
The main troubles are.;
1. These are mistakes on B/L.
2. The master B/L hasn’t been surrendered.
In my experience, these are the main troubles.
Why does the B/L have incorrect contents information?
It’s because the contents of a B/L is manually typed.
B/L is created using SI, (shipping instruction) which is received from the Shipper.
Freight forwarders make the draft B/L by following this SI, and if they make a typo error, the B/L will be issued with the typo error.
There are errors not only on Forwarder’s House B/L, and also on Shipping line’s Master B/L.
It is important to ensure that the B/L contains no errors, when the draft is created. If you contact the freight forwarder, they can correct it quickly.
B/L error on House B/L can be fixed easily, but if you are using direct B/L of shipping lines, it will take more time to revise. B/L revise has some cost.
Basically, it has to be paid by the person who made the mistake, and it normally costs about $50.
Sometimes, B/L hasn’t been surrendered, and you are unable to collect the cargo.
Surrender B/L should be collected when the original B/L is issued, and passed onto the exporting side of the shipping line and freight forwarder.
If the cargo is surrendered, you can collect the cargo without having the original B/L.
However, even if they have issued a surrender B/L, sometimes you may not be able to collect the cargo.
Basically, arrangement of surrender B/L is completed, when the original B/L is issued by the exporter to the shipping line.
It is often found that B/L collection, (surrender) is forgotten somehow.
This issue is caused by the operation mistake of freight forwarder or shipping line.
In this case, if you are an importer, you need to contact the exporting side of the freight forwarder to confirm, if the B/L is surrendered without any problem.
And sometimes, B/L may be lost. This means the owner of the cargo cannot be proved. Therefore, importer is unable to receive the cargo.
If they lose the B/L, the importer needs to issue L/G,and explain the situation to the freight forwarder to be able to receive the cargo.
I cannot say this solution always work out all the time, because each freight forwarder will have different opinions on this.
You may be asked to provide a guarantee from the bank,and later, you need to obtain the original B/L and swap with the L/G.
Or, as a last resort, you need to take legal action.
Why making an error on B/L has to be avoided?
If there is an error on the B/L, it may take time to correct the error,and the importer may be unable to go through customs.
When this happens, demurrage will be charged from the yard which is not the small amount. It will also delay the cargo delivery.
So, how can we avoid B/L troubles?
•Check the draft to ensure there is no error on the B/L.
•Once B/L is issued, send a copy to the importer to enable them to double check.
And also, to prevent the B/L lost which is big problem, Original B/L is better to be sent separately with a courier service such as DHL.
And we strongly recommend to use Surrendered B/L in stead of Original B/L.
Now let me summarize Today’s points.
The main causes of B/L troubles are,
・There is an error on the B/L.
・Master B/L hasn’t been surrendered.
It rarely happens, but it may be lost. It is important to complete the B/L correctly.
Ensure that the draft B/L is checked well.
There are penalties and it is also time consuming to revise the B/L.
When you notice an error after the B/L has been issued, it won’t become a major problem until the vessel arrives at port.
If the master B/L hasn’t been surrendered, you need to cooperate with the freight forwarder at exporting side.
Even if a surrender stamp is on the master B/L, sometime the shipping line’s system hasn’t been updated.If you notice this, you need to act quickly.
And most importantly, If you lose B/L, it cannot be re-issued.
To minimize the B/L lost risk, Original B/L has to be sent separately. This way, even if you lose one copy, you still have an additional copy and you will be able to receive the cargo.
You can reduce the chance of having B/L troubles by checking them.
I hope it was useful information for you. That’s all for today. Thank you!