Delivery without the original BoL is a breach of the contract of carriage
INSTANCES OF fraud where individuals, who are not entitled to them, obtain goods without presenting an original bill of lading is a problem which appears to be on the increase in South Africa.
This is particularly harmful for shipowners and their agents who are exposed to losses by employees who fail to follow the correct procedures.
There is no defence to such a claim, as it is an iron rule of maritime law that goods can only be delivered to someone able to present an original bill. Delivery without presentation is a breach of the contract of carriage.
The Courts regard this breach as being so serious that the carrier is often stripped of the protection of contractual exclusions contained in the bill.
The presentation rule is strictly enforced because the right to claim delivery of the cargo from the carrier can be transferred to unknown parties by endorsement of the bill of lading. Only by delivering the goods to someone who can present an original bill, can the carrier be sure that he is delivering to the right person.
Buyers under sale contracts are also affected by the rule as they cannot obtain delivery of the goods from the carrier or its agent, even if the fact that they have no bill of lading is not their fault.
In our next column we will be examining letters of indemnity as a solution to the presentation requirement.
