An importer of automotive parts receives its containers in Fort-de-France under a sea waybill. Some of the goods are damaged. The shipowner replies that only the shipper, in Shanghai, is a party to the contract. Can the importer bring a claim itself?
A document that does not represent the goods
The bill of lading is a document of title: it represents the goods and is transferred by endorsement. The sea waybill is not. It names a consignee, who takes delivery of the goods simply by proving its identity. It suits flows between companies of the same group, prepaid sales and liner services where speed matters more than security of payment.
The consignee’s right to sue
Since no document of title has been transferred, the consignee must establish its right to sue. The CMI Uniform Rules for Sea Waybills of 1990 resolve the difficulty where they are incorporated into the document: the shipper contracts not only on its own behalf but also as agent for the consignee, who thus benefits from the contract and may sue (Rule 3). The standard terms of the major shipping lines often incorporate them. Failing that, the consignee’s standing to sue depends on the law applicable to the contract of carriage, and must be proved.
The liability regime, however, remains the same: presumption of liability on the carrier, notice of loss or damage, liability cap, one-year time limit.
The right of control
In principle, the shipper may change the name of the consignee until delivery: this is the right of control (Rule 6 of the CMI Rules), unless it has transferred that right to the consignee by a notation on the document. A buyer that has paid in advance should therefore insist on that transfer: otherwise, the seller can still divert the goods.
Sea waybill, express release, bill of lading: which to choose?
An “express release” consists in issuing a bill of lading and then surrendering the originals at the port of loading, with delivery taking place without presentation. The practice comes close to the sea waybill, with its own uncertainties. The bill of lading remains necessary where the goods are to be sold in transit or are to serve as security for a bank.
What the firm checks first
- The document issued and the rules it incorporates.
- The naming of the consignee and the right of control.
- The law applicable to the contract of carriage.
- Notice of loss or damage and the one-year time limit.
- The terms of sale between shipper and consignee.
For the firm’s services, see Bills of lading and Carrier liability at sea.
Further reading
- Electronic bills of lading in France: the law of 13 June 2024
- Delivering cargo without the original bill of lading: the letter of indemnity and its risks
- FOB, CFR, CIF: who can sue the carrier after cargo damage?
This analysis is part of the firm’s work in maritime law.
Frequently asked questions
Can the consignee under a sea waybill sue the carrier?
Yes, where the CMI Uniform Rules for Sea Waybills of 1990 are incorporated (Rule 3); otherwise, it depends on the law applicable to the contract.
Can the seller change the consignee in transit?
Yes, if it retains the right of control (Rule 6), unless that right has been transferred to the consignee.
Will a bank accept a sea waybill?
UCP 600 provides for it (Article 21), but it does not give the bank control over the goods.