The Supreme People's Court of the People's Republic of China ("PRC Supreme Court") has issued a judgment (2016 Supreme Court Civil Application No. 530) in which it held that a bill of lading issued for and on behalf of the master, but which did not otherwise identify the carrier, should be treated as having been issued on behalf of the time charterers (instead of the owners) of the vessel.
To date, there has not been any PRC decision in which the reasoning in the abovesaid judgment has been applied. While the uncertainty persists, it may be prudent for cargo interests to take steps to ensure that bills of lading in respect of cargoes for import into or expert from China should expressly identify who is the carrier. In the alternative, the bills of lading may include an express governing law and arbitration clause in favour of a jurisdiction where a bill of lading issued by the ship master would typically be viewed as an owners' bill.
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