Yes, we believe the change you refer to is symptomatic
of more to come. The reason is that, just as some roasters
argue that roasting and distribution is their core business, not
the transporting, storing and financing of green coffee stocks, so
shipping companies consider that their core business is to carry
sealed containers safely and efficiently from A to B, and (within
reason of course) not to be concerned with the contents.
Shipping lines do not really wish to carry
GP/bulk[1]shipments on LCL basis and it is
the intention to eventually eliminate the LCL[2]bill of lading entirely, also for
coffee in bags… For example, it is our understanding
that most coffee from Brazil to Europe is already carried entirely
on FCL basis. FCL also implies that the shipping line is not
responsible for any consequences arising from the faulty fitting or
malfunctioning of the inner lining of a bulk container
[3].
For exporters the contractual situation is clear. If on
arrival of an FCL shipment any damage is found then, irrespective
of who stuffed the container, the exporter will be held
responsible. Unless of course it can be proved
conclusively that the damage was due to an external event that
occurred whilst the goods were under the control of the shipping
company, in which case the exporter is not liable. For more on FCL
versus LCL please see 05.01.08.
On a different but related note, not everyone is always prepared
to accept or finance an FCL bill of lading that simply states a
container 'is said to contain x amount of green coffee'. Some
exporters may therefore have to resort to having independent
weighers and supervisors certify weight and contents. It should be
understood however that the provision of a weight or quality
certificate does not absolve a seller from his contractual
obligations: the buyer remains entitled to lodge a claim if on
discharge weight or quality is not correct … Increased
use of FCL bills of lading may well lead to more frequent
pre-shipment inspections - readers may find it useful therefore to
also read section 10.10 which deals with supervision or collateral
management.
Posted 14 November 2005
[1] General Purpose container fitted with liner containing
coffee beans in bulk.
[2] The term LCL is something of a misnomer since containers
are nearly always full and freight is charged by container,
not by weight. The term is used so often because it permits marine
insurers and/or receivers to lodge claims directly on
shipping lines…
[3] Shipper's mounting and rigging, stow, load and count…
This is important in terms of HSE (Human health, Safety and
Environment) matters. To note that the wording of contract of
carriage (Bill of lading) clauses will vary between
individual lines.