Through bill of lading / Multimodal Transportation

It is a general understanding that a bill of lading as a carriage contract acts as evidence of the carrier's receipt of the goods in their apparent sound quality and conditions. In reliance of this, the shipper's or consignee's ability to claim with regard to loss or damage can however vary upon the transfer of goods from one carrier or mode of transportation to another. With carriage involving more than one carrier, it is important to determine whether the bill of lading or other carriage agreement provides for through transportation. In addition it is also essential to determine whether the bill of lading or agreement provides for more than one mode of transportation ie multimodal or inter-modal transportation.

Through transportation imposes upon the carrier the obligation to deliver to destination by its own means or the use of connecting carrier. A through bill of lading issued by the initial carrier provides for this obligation with the carrier in control of the manner of shipment to destination even though connecting carrier is involved. Details entered into the bill of lading and other aspects in committing the shipment (the conduct between shipper and carrier, who pay the connecting carrier etc) may determine the nature of the bill of lading, whether it is a through bill.

Multimodal refers to the form of transportation used such as rail, motor vehicle, aircraft and vessel. With multimodal transportation, goods will be transferred from one mode to another. A multimodal through bill of lading is generally deemed to commit the carrier with obligation to transport the goods from origin to destination by more than one mode of transport, in a single freight charge with the use of a single contractual document.

Handling of claims for loss or damage would be complicated for multimodal through transportation. The participation of other intermediaries such as agents or forwarder or haulage contractor adds to the complication. Regulations and international conventions governing one mode but not the other is a unique feature of handling loss or damage arising from through multimodal carriage. Apart from the bill of lading, other documents relating to the transportation and handling of the goods will be considered to determine liability. Besides, there could be national legislation affecting the rights and liability of all parties in the claim, for example limitation of liability could be on different rate or time limitation could be shortened or longer. Knowing where and when damage or loss could have occurred is an important fact in the working out the applicable law or terms of carriage. Documents to verify the state of cargoes on transfer from one transportation mode to another would be a prudent practice if not already part of the standard practice.

Disclaimer: The above case note is not intended to replace professional advice. Carrier should seek advice from their liability insurer or legal adviser accordingly.