Rights and Obligations of Ship Owner under the Bill Of Lading Essay

Rights and Obligations of Ship Owner under the Bill Of Lading - Essay Example This research will begin with the statement that the central role played by the bill of lading in international trade cannot be underestimated. The history of this document dates back to the 14th century where it was merely a receipt showing that the shipowner had received a certain quantity of goods shipped. Later the bill of lading developed in status from the mere receipt it used to be to the level of becoming a document of title. This is in terms of the carriage were progressively incorporated into the bill of lading. In effect, the bill of lading implied possession. For instance, a buyer of goods in port A could not transfer the goods to a third party until the physical goods in the high seas arrived. With the developments in international and the elevation of the bill of lading to a document of the title then a buyer of goods could transfer or resell them to a third party without the physical possession of the goods. This was made possible by the bill of lading which puts an im plied obligation the shipowner to deliver the goods to the holder of the original bill of lading in the agreed port. The duty to ensure delivery of the goods shipped to the holder of the original bill of lading is central to trade and as a result of this duty, being in possession of the original bill of lading impliedly had the same effect as being in possession of the goods in transit. From the above short overview, there are several duties imposed on the shipowner by the bill of lading. Key among these being the duty to deliver the cargo to the holder of the original bill of lading, failure to do so makes the carrier liable both in contract and tort. The following essay explores the duties and rights of the shipowner under the bill of lading in details.