GISTnet T21u—Ocean and Intermodal Bills of Lading

T21u—Ocean and Intermodal Bills of Lading

Non-subscriber price: $350.00, Subscriber price: $270.00
Estimated total study time: 19 hours 35 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 8 minutes)

Introduction
Contracts of Carriage—Types by Mode
- General
- Airwaybill (Issued by Air Carriers)
- House and Master Airwaybills
- Ocean Bill of Lading (Issued by Ocean Carriers & NVOCCs)
- Intermodal/Multimodal Bill of Lading (Issued by Ocean Carriers & NVOCCs)
- House and Master Bills of Lading (issued by NVOCCs)
- Uniform Bill of Lading (issued by Rail and Motor Carriers)
- Waybill (Issued by Motor Carriers)
- Hand Tag (Issued by Motor Carriers, especially for Cartage and Drayage)
- Charter Party (Negotiated between a Shipper and Charter Vessel or Aircraft Operator)
- Government Bill of Lading (GBL) (Issued by the U.S. Government)

Functions of a Transportation Document

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 9 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
- A Shipment/Transaction Information Source 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 13 minutes)

Introduction
Ocean/Intermodal B/L Preparation (B/L Instructions)
- A Contract of Carriage
- Responsibility
- Clarity and Format
- Ocean Carrier Prerogatives: Concurrence and Additional Information
Laws and Regulations Affecting Ocean/Intermodal B/Ls
- International Conventions/Regulations
- U.S. Laws and Regulations
  - Federal Maritime Regulation of Ocean Common Carriers
  - COGSA
  - Dangerous Goods - DOT
  - Customs and Security Regulations
  - Export-Related Regulations
  - Other U.S. Regulations Affecting Ocean Shipping
- COGSA

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 19 minutes)

Introduction
Ocean Bill of Lading Terms and Conditions
- General
- Carrier Terms and Conditions Statement
  - General—Carrier Liability Limitations
  - The "Face" vs. "Back" of an Ocean B/L
  - Carrier Prerogatives
- Long Form B/L vs. Short Form vs. Blank Back
Original Bills of Lading—Format & Usage
- Format
- 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; Electronic Procedures

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: 1 hour 16 minutes)

Introduction
Negotiable vs. "Straight" Consignment
"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 (Named Party)
- Specified Delivery (Restrictive) 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: 50 minutes)

Introduction
Acceptable Endorsement Forms and Procedure
- Signature/Authority
- Placement of Endorsement
- Endorsement of "Order of Shipper" B/Ls by Shipper or Forwarder on Behalf of Shipper
- Endorsement by Other Named "To Order of" Party
- Customs Broker Endorsement on Behalf of Consignee
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 9 minutes)

Introduction
"Straight" (Non-Negotiable) Bills of Lading
- Characteristics
- Benefits of "Straight" Consignment
- Risks and Limitations of "Straight" Consignment
- When "Straight" Consignment is Typically Used
- Carrier Requirement for Consignee "Endorsement" of Straight B/Ls
B/Ls for Use with Documentary Draft Collection
Lost Original B/Ls & Letters of Indemnity
- General—Cargo Delivery Delays
- Negotiable B/Ls & Letters of Indemnity
- Straight B/Ls
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: 47 minutes)

Introduction
Express Bills of Lading
The Electronic ("Paperless") B/L
- General
- Electronic Bills of Lading using EDI
- Ocean Carrier Sponsored Portals
- Electronic B/Ls via the Bolero System
- Summary—Ocean Carrier "EDI" Today
SUMMARY: Form of Consignment—Convenience vs. Control
When in Doubt—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 7 minutes)

Introduction
General—A Forwarder's Responsibility
Manual "Aligned" Form B/L Master as the "Guide"
Paper vs. Electronic Communication
General
- U.S. Export Regulations
- FMC Regulations; "Name Sharing" under Service Contracts, TVRs
- Summary: Forwarder Responsibility for Parties Shown on a B/L

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: 47 minutes)

Introduction
General

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: 47 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 8 minutes)

Introduction
Bill of Lading and Related Date(s)
- General
- Shipping Date
- Date of Cargo Acceptance
  - Transfer of Risk
  - Tariff Applicability
  - Intermodal B/Ls
  - Export License Validity
  - Assembly B/Ls
- On-Board Date
- Issue Date
- 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 11 minutes)

Introduction
Freight Prepaid/Freight Collect
- General—Planning
- Carrier's Tariff or Service Contract
- Charges Split, Prepaid and Collect
B/L Instruction Format & Communication
- Format
- Method of Communication
- Information Not Prompted for on the Aligned Form
  - Value for Customs Purposes on a U.S. Export B/L
- 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 16 minutes)

Introduction
Information Blocks Applicable to Entire Shipment
- Block #1—Name of Carrier
- Block #2—Shipper/Exporter
- Block #3—Consignee
- Block #4—Notify Party
  - Use of a Notify Party Recommended
  - Multiple Notify Parties
  - Notify Party Not a "Party in Interest"
- Block #5/5a—Booking Number (or Document No., B/L No.)
- Block #6—Export References
- Block #7 – U.S. Forwarding Requirements
- Block #7—Forwarding Agent & Forwarding References
- Block #8—Point and Country of Origin
- Block #9—Also Notify Party; Other Instructions
- U.S. Requirements for Names of Shipper, Consignee, Notify Party(s)

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 Rate Basis
- Through vs. Combined Transportation; Inland Carriage Liability
- Shipments Subject to U.S. Export License or Other Authorization

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 8 minutes)

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

Introduction
General—Format Issues/Limitations
Package Descriptions; Container Count
COMMODITY Description(s)—Satisfying Multiple Requirements
Dangerous Goods Information
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 6 minutes)

Introduction
Special Handling Instructions
Export License/Authorization; Other Government Required Information
- Mixtures of Licensed, Non-Licensed and/or NDR Cargo
- Destination Control Statement
U.S. Export Authorization Citation; Destination Control Statement
- Export Authority Citation Generally Not Required on B/L
- Exports for which an Electronic Export Information (EEI) is Filed
- Goods Exempted Electronic Export Information (EEI) Based on Destination and Value
- B/L Citations for Goods Subject to a License Exception
Import License/Permit Information
"Clean On-Board" Statement
B/L Continuation Sheets