clause

To clause a bill of lading or other shipping document means to write a notation on it that records a defect, discrepancy, or condition affecting the cargo at the moment of loading. The master or mate does this by hand, typically in the margins or a dedicated space, noting what was observed: torn bags, wet containers, missing seals, short counts, or visible damage. Without such notation, the bill of lading becomes a "clean" bill, which implies the cargo was received in perfect order and on time. A claused bill flags the opposite and protects the carrier from later claims that goods arrived damaged when they left the dock sound.

Clausing is a defensive practice in maritime trade. Shippers and consignees haggle over clauses constantly. A shipper may refuse to accept a claused bill because banks will not finance a letter of credit against it, making the cargo unmarketable. A carrier must clause a bill if the cargo is genuinely defective on receipt, or risk liability for damage the carrier did not cause. The clause itself is not an admission of fault; it is a witness statement, recorded at the point of transfer.

Common clauses and variants

Clauses vary in severity and wording. "Apparent good order and condition except for slight external damage to three cartons" is typical; "contents not verified" is common when the carrier does not open containers; "shipper's load and count" means the shipper packed and tallied the contents, not the carrier. Some clauses note delays: "received X days after tender date." Oil and bulk cargo often carry clauses for temperature, moisture, or salinity readings taken at loading. The specific language matters because it becomes evidence in disputes over cargo condition and delivery terms.

Modern practice has shifted somewhat with containerization. Sealed containers are harder to inspect without breaking seals, so clauses now more often note external damage to the container itself, missing or broken locks, and documents missing from the manifest. Electronic bills of lading have not eliminated manual clausing, though they have made image attachment and standardized notation templates more common in some trades.

The term "clause" in this verb form comes directly from the noun: a clause is a written reservation or condition added to a document. In marine law, it is distinct from a "caveat," which is a formal legal warning, and from an "exception," which is a pre-printed exclusion in the bill's standard terms. Clausing is the act of adding a clause; a claused bill is the result.