How to Handle the Loss of an Original Bill of Lading?

 

Learn the steps to take when an original bill of lading is lost during maritime transport. Discover how to differentiate between a lost forwarder’s bill and a carrier’s bill, the necessary documents for reissuance, and practical advice based on real experiences.

Today, we’ll discuss how to handle the loss of an original bill of lading during maritime shipping.

In late 2019, I experienced the loss of an original bill of lading for a shipment to India. As the cargo was about to arrive at the port, the bill of lading went missing during postal transit. So, what should you do if this happens?

Steps to Handle a Lost Bill of Lading

  1. Determine the Type of Bill of Lading:

    • Forwarder’s Bill of Lading: If the lost bill is a forwarder’s bill, you can usually resolve this by negotiating with the freight forwarder to issue a new bill. This process is relatively straightforward.
    • Carrier’s Bill of Lading: If the lost bill is a carrier’s bill, the situation is more complicated and challenging.

  2. Reissuing a Carrier’s Bill of Lading: To get a new bill of lading from the shipping company, you need to provide:

    • A Letter of Indemnity in both Chinese and English.
    • A deposit or an original bank guarantee. The deposit is typically twice the cargo value, and it must be held for at least 18 months from the date of receipt. If you submit the original bill of lading during this period, you can apply for a refund of the deposit. Alternatively, a bank may issue an original bank guarantee, allowing the shipping company to waive the deposit.

Real Experience and Practical Tips

During my ordeal, since the bill of lading was lost by DHL, I approached DHL for a solution. They could only provide a letter explaining the loss, and they were open to legal proceedings, though this would be time-consuming. Ultimately, I decided to pay the deposit to the shipping company as it was the quickest solution.

Conclusion

Here are a few practical tips based on my experience:

  • Retain a Copy: When sending original bills of lading to a client, keep a copy for yourself. The consignee does not need to collect the entire set of original bills to obtain the goods at the destination port.
  • Handle with Care: The bill of lading represents the title to the goods, so it must be carefully managed. If the cargo has a high value, the deposit can be substantial and difficult to afford, leading to significant losses if not properly handled.

By following these steps and tips, you can effectively manage the loss of an original bill of lading and minimize potential disruptions and costs.