What Is an Escalation Clause?

The definition clause refers to the clauses in the bill of lading or the regulations concerning the bill of lading that clearly define the meaning and scope of the terms related to the bill of lading.

Define terms

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Definition clause refers to the bill of lading or related

The Hague Rules define the meaning and scope of terms related to bills of lading, such as carrier, contract of carriage, cargo, ship and cargo transportation, but it does not refer to consignor "This bill of lading term. If the shipper is only considered as a party to the contract, when the goods are lost or damaged, the problem may arise that the consignee or a third party is not a party to the contract and has no right to claim compensation from the carrier. In order to resolve this contradiction, Article 1 of the British Bill of Lading Act 1855 stipulates that when the bill of lading is transferred to the endorser or consignee through endorsement, the endorser or consignee shall replace the shipper acting as endorser. Legal status and become a party to the contract.

According to this, each shipping company has listed the "consignor" in the bill of lading that is not specified in the Hague Rules as a definition clause to supplement the provisions of the Hague Rules on the parties to the contract. For example, according to Article 1 of the COSCO Bill of Lading Clause: Merchant includes Shipper, Receiver, Consignor, Consignee, Holder of B / L) and Owner of the Goods. ^[1]

The bills of lading of various shipping companies generally have defined terms that define the meaning and scope of the "merchant" as a party to the contract of carriage. The "consignor" is defined as "including the shipper and the consignee". , Consignor, consignee, bill of lading holder and owner of the goods. " ^[1]

Although the definitions of the Hague Rules only define the meaning and scope of terms related to bills of lading such as "carrier", "contract of carriage", "cargo", "ship" and "cargo transportation", they do not involve "consignor" The term of this bill of lading. However, for a bill of lading as a proof of a general cargo transportation contract, the scope of the parties to the contract should be said to be an important issue. The Hague Rules only regulate the meaning and scope of the carrier of one party to the contract, but do not involve the other party.

According to the common understanding, there is no objection that the parties to the bill of lading should be the carrier and the shipper. However, from the practical considerations of international trade, whether it is a FOB or CIF or CFR trade contract, according to customary rules, when the goods are loaded at the port of loading and cross the ship's side, the risks and responsibilities are transferred to the buyer as the buyer. Consignor or a third party. In the event of loss of or damage to the goods, it is no longer the shipper, but the consignee or a third party, who claims compensation from the carrier. In this case, if the shipper is only regarded as a party to the contract according to the common understanding, the consignee or the third party will not be the party to the contract and will not be entitled to claim against the carrier.

In order to resolve this contradiction, Article 1 of the British Bill of Lading Act 1855 stipulates that when the bill of lading is transferred to the endorser or consignee after endorsement, the endorsed party or consignee shall replace the legal status of the shipper as the endorser. And become a party to the contract. Accordingly, each shipping company listed the "consignor" in the bill of lading that was not specified in the Hague Rules as a definition clause to supplement the deficiencies of the Hague Rules on the parties to the contract.