Identifying the precise terms of the contract can, however, be a complicated task as bills often incorporate terms by reference to other documents.
Bills of lading can be split into two main categories: (i) charterparty (short form) bills of lading, used primarily in the tramp market (e.g. the Congenbill form); and (ii) liner (long form) bills of lading (e.g. the Conlinebill form) used in the liner trade.
A practical distinction between the two types is that the longer form bill of lading stands on its own and contains (on the reverse) a considerable number of clauses setting out the contractual relationship between the carrier, shipper and the lawful holder of the bill of lading. Charterparty bills of lading, however, are not free standing, but are used in conjunction with charterparties to ‘fill in the gaps’ of the contractual terms and obligations between parties to the contract of carriage. When it comes to the short form bills, therefore, it becomes necessary to identify and obtain the incorporated charterparty in order to find out the full terms of the contract of carriage which apply.