As global trade continues to grow in complexity, the need for standardized documentation in the shipping industry has become increasingly critical.

Standardization became essential to mitigate the risks of disputes and legal inconsistencies that can arise across different jurisdictions.

The shipping industry, already navigating challenges such as piracy, stringent environmental regulations, and volatile market conditions, relies heavily on clear and consistent documentation to maintain smooth and secure operations.

In the specific context of charter parties, the importance of standardized contracts cannot be overstated. This is where BIMCO (Baltic and International Maritime Council) plays a pivotal role. As the world’s largest international shipping association, BIMCO sets the gold standard for contracts in the maritime industry. With a membership that covers 62% of the world’s tonnage and includes over 2,000 members from 130 countries, BIMCO’s influence is both extensive and profound, shaping the practices of companies ranging from local enterprises to global shipping leaders.

Among BIMCO’s most significant contributions is the development of CONGEBILL, a standardized bill of lading designed to accompany its charter party contracts, such as GENCON. CONGEBILL ensures that the terms of shipment and delivery are clearly defined and legally binding.

The evolution of CONGEBILL is a testament to BIMCO’s unwavering commitment to addressing the dynamic needs of the maritime industry. By providing standardized documentation that facilitates international trade, CONGEBILL has become an essential tool for shipowners, freight forwarders, and carriers.

In this article, we will delve into the importance of CONGEBILL and why industry professionals must understand and utilize this powerful document.

Also Read: The bill of lading contract in cargo claims

1. What is CONGEBILL?

CONGEBILL, short for “Congenbill of Lading,” is a standardized bill of lading specifically designed for use with the GENCON charter party, which is widely used in the shipping industry for the transportation of general cargo, whether it’s bulk or containerized, on various types of vessels.

This document serves as a receipt for the cargo, a document of title, and evidence of the contract of carriage.

BIMCO developed CONGEBILL to address several key needs in the maritime industry:

• Ensuring uniformity and standardization by creating a consistent document recognized globally.
• Keeping it legally compliant and flexible, ensures it remains up-to-date with evolving maritime laws and provides a reliable framework for all parties.

1.1. Why CONGEBILL is used with GENCON charter party?

The GENCON charter party sets out the terms and conditions for the chartering of a vessel, while CONGEBILL acts as the corresponding bill of lading, ensuring that the key terms of the charter party are seamlessly integrated into the documentation governing the carriage of goods.

So, while CONGEBILL is linked to the charter party contract, it is not itself a contract for hiring the vessel. Instead, it governs the specific terms of the cargo’s transportation, reflecting the broader agreement established in the charter party.

1.2. Why does CONGEBILL matter for Shipowners, Freight Forwarders, and Carriers?

In maritime shipping, CONGEBILL provides the framework for clear, consistent agreements that protect against legal risks. This document serves multiple purposes for shipowners, freight forwarders, and carriers:

• CONGEBILL establishes clear and consistent agreements between the parties involved in a shipment, reducing the potential for misunderstandings and disputes.
• CONGEBILL ensures all legal requirements are met and protects against potential liabilities.
• CONGEBILL simplifies the documentation process, making it easier and more efficient to manage shipments and reducing administrative burdens.

1.3. Using CONGEBILL in Ship Chartering

In the shipping industry, the chartering process involves hiring a vessel to transport goods, and the CONGEBILL bill of lading is a key document in this process. CONGEBILL ensures that the terms of cargo transportation are clear, legally binding, and consistent with international standards.

When goods are carried on a chartered vessel, it is standard practice to include a clause in the bill of lading that incorporates some or all of the terms of the charter party.

However, it’s important to remember that a bill of lading remains a separate contract from the charter party, and incorporating these terms requires careful attention.

Here are some essential tips for using CONGEBILL effectively in ship chartering:

• If the goal is to incorporate all the terms of the charter party, using a standard form bill like CONGEBILL 2007 is advisable. This ensures that the terms are recognized and enforceable under international shipping practices.
• Always make sure that the charter party referenced in the bill of lading is identified by date and relevant details. This prevents any confusion and ensures that the correct terms are incorporated, which is crucial for maintaining legal clarity.
• When incorporating charter party terms into the bill of lading, use specific and precise language. Ambiguous or general incorporation clauses can lead to disputes over which terms are applicable, so it’s important to be explicit about what is being incorporated, especially for crucial clauses like dispute resolution or governing law.
• Review the charter party and the bill of lading to ensure that their terms are consistent. If there is any inconsistency, the terms in the bill of lading will typically prevail, which can cause legal complications. It’s best to resolve any discrepancies before finalizing the documents.
• Not all charter party terms automatically transfer to the bill of lading. Generally, only terms directly related to the carriage of goods—such as shipment, delivery, and freight payment—are incorporated unless explicitly stated otherwise.
• Consider Third-Party Transferees: The bill of lading often ends up in the hands of third-party transferees who were not part of the original charter party. To protect these third parties and avoid binding them to unknown terms, ensure that the incorporated terms are fair, clear, and well communicated.

Also read: Introduction to Charter Party Agreements: The Contracts That Move Cargo

2. The evolution of CONGEBILL

The original CONGEBILL form was introduced in 1950 to simplify and harmonize the process of issuing bills of lading—a crucial document in maritime transportation that serves as a receipt for cargo, evidence of the contract of carriage, and a document of title. Over the years, the form has undergone several revisions to reflect changes in shipping practices, legal requirements, and technological advancements.

2.1. Major Revisions and Updates

• 1950 Inception: The first edition of CONGEBILL was launched to standardize the bill of lading, addressing the industry’s need for a uniform document that could be widely accepted across different jurisdictions and legal frameworks.
• 1978 Edition: The first major revision occurred in 1978, updating the document to address emerging issues in the maritime industry, such as changes in cargo handling practices and the growing complexity of international trade routes.
• 1994 Edition: The 1994 update introduced more detailed provisions, reflecting the increasing importance of containerization, a trend that was revolutionizing the shipping industry by allowing goods to be transported more efficiently and securely.
• 2007 Edition: This edition included significant updates that addressed the growing complexity of international trade and legal considerations. It introduced clearer definitions and improved clauses regarding the carriage of goods. The 2007 version remains one of the most widely used standard forms today, favored for its balance of legal certainty and practical applicability.
• 2022 Edition: The latest revision in 2022 reflects modern updates, especially in the areas of legal compliance (with international conventions), risk management (via clauses like the General Average and Both-to-Blame Collision Clauses), and digitalization (as seen in the electronic handling provisions).

2.2. The Future of CONGEBILL

The CONGEBILL continues to evolve to meet the changing needs of the industry. While the 2007 version remains dominant, BIMCO and other industry bodies are constantly reviewing and updating standard forms to incorporate new legal developments, technological advancements, and industry practices.

The latest versions of CONGEBILL include provisions for electronic bills of lading, aligning with the industry’s move towards digitalization.

3. Key Components of CONGEBILL

3.1. Key fields

The CONGENBILL 2022 includes the following key fields, designed to capture essential information about the shipment and the terms of carriage:

Here is the information presented in a two-column table:

Field	Description
Shipper’s Details	The name and address of the shipper who is sending the goods.
Consignee’s Details	The name and address of the consignee who is intended to receive the goods.
Notify Party	Details of the party to be notified upon the arrival of the goods at the destination.
Vessel Name	The name of the vessel carrying the cargo.
Port of Loading	The port where the cargo is loaded onto the vessel.
Port of Discharge	The port where the cargo is to be unloaded.
Description of Goods	A detailed description of the goods being shipped, including the quantity, weight, and any identifying marks or numbers.
Gross Weight	The total weight of the cargo, including a note on whether any part of it is “on deck at shipper’s risk,” which absolves the carrier from responsibility for loss or damage in such cases.
Freight Payable as per Charter Party	Information on the payment of freight, linked directly to the specific charter party under which the goods are being shipped, including the date of the charter party.
Date Shipped on Board	The date when the cargo was loaded onto the vessel.
Place and Date of Issue	The place and date where the bill of lading is issued.
Number of Original Bills of Lading	The number of original bills of lading issued, with the stipulation that once one is accomplished, the others become void.
Clauses Incorporated	A field to incorporate the terms and conditions of the relevant charter party, often referring to specific clauses that apply to the carriage of goods.
Signature of Carrier or Master	The signature of the carrier or the master of the vessel, crucial for the validity of the bill of lading. It also includes options for the role (Master, Agent, Owner, Charterer) with instructions to delete as appropriate.
Special Instructions or Remarks	Any additional instructions or remarks that need to be considered during the transportation of the goods.
Electronic Bill of Lading Options	The 2022 version includes provisions for issuing and handling electronic bills of lading (eBLs), reflecting the industry’s shift towards digitalization.

3.2 Clauses

CONGENBILL 2022 includes a series of well-crafted clauses designed to ensure clarity, fairness, and legal protection for all parties involved in a maritime shipping transaction. Below are some of the most critical clauses found in the CONGENBILL 2022, along with their significance and practical applications:

General Paramount Clause

This clause ensures the application of the Hague-Visby Rules or the Hague Rules, depending on the country of shipment or destination, including the application of the SDR Protocol 1979. This is crucial for maintaining compliance with international conventions regarding the carriage of goods.

Example: If goods are shipped from a country where the Hague-Visby Rules are in force, those rules will automatically apply to the bill of lading, ensuring consistent legal standards for liability.

General Average Clause

General Average is to be adjusted according to the York-Antwerp Rules 2016, and this will be settled in London unless otherwise agreed in the charter party. This clause is essential for defining how costs related to extraordinary sacrifices (like jettisoning cargo to save a ship) are shared among stakeholders.

Example: If the vessel encounters a severe storm and cargo is jettisoned to save the ship, the General Average Clause stipulates that all parties, including cargo owners, share in the costs incurred.

New Jason Clause

This clause requires cargo owners to contribute to General Average, even if the event that necessitated the General Average was not the fault of the carrier. This clause is particularly important in scenarios where the carrier is exonerated from responsibility due to circumstances beyond their control.

Example: In case of a collision or a fire onboard, cargo owners must contribute to the General Average costs, even if the carrier was not negligent.

Both-to-Blame Collision Clause

This clause stipulates that if the vessel collides with another vessel due to the negligence of both vessels, the cargo owner must indemnify the carrier against any liability claims from the other vessel.

Example: If a collision occurs and both vessels are found partially at fault, the cargo owner would be required to cover the carrier’s liability to the other vessel’s owner.

International Group of P&I Clubs/BIMCO Himalaya Clause for Bills of Lading and Other Contracts 2014

This clause extends the carrier’s legal protections to their servants, agents, and subcontractors, limiting their liability. It’s crucial for protecting the broader network of parties involved in the shipping process.

Example: If a third-party stevedore damages the cargo while loading, the Himalaya Clause protects the stevedore from direct legal action by the shipper, as the liability is covered under the same protections granted to the carrier.

Law and Arbitration Clause

The clause ensures that any disputes arising from the bill of lading are resolved according to the law and arbitration provisions specified in the referenced charter party. This provides a consistent legal framework for dispute resolution.

Example: If a dispute over cargo damage arises, the Law and Arbitration Clause directs that the matter be settled according to the arbitration rules specified in the charter party, typically in a specified jurisdiction like London.

Conclusion

CONGEBILL has established itself as a cornerstone of the maritime industry, offering a standardized, reliable, and legally sound framework for shipowners, forwarders, and carriers. Developed and continuously refined by BIMCO, CONGEBILL ensures that the complex and often risky business of maritime shipping is underpinned by clear terms, consistency across contracts, and adherence to international standards.

By using CONGEBILL in conjunction with BIMCO’s charter party contracts, stakeholders in the shipping industry can significantly reduce the risks associated with cargo transportation. The document’s carefully crafted clauses provide robust legal protection, while its alignment with BIMCO’s broader contractual standards ensures uniformity and predictability in shipping operations.

As the industry continues to evolve, especially with the growing emphasis on digitalization, CONGEBILL remains at the forefront, adapting to meet the challenges of the modern maritime environment. Its role in the future of ship chartering is assured, with BIMCO’s ongoing commitment to maintaining its relevance and utility.

If you need assistance with understanding or implementing CONGEBILL, or if you’re facing challenges with your current maritime contracts, don’t hesitate to reach out to Marlin Blue.

FAQS

Q1. What happens when CONGEBILL is not properly aligned with the corresponding BIMCO contract?

A1: When CONGEBILL is not properly aligned with the corresponding BIMCO contract, it can lead to significant legal and operational issues.

Misalignment may result in discrepancies between the terms of the bill of lading and the charter party, which can cause confusion, disputes, and potential breaches of contract.

These issues can escalate into costly legal battles, delays in cargo delivery, and strained relationships between shipowners, charterers, and other stakeholders.

Q2. What services does Marlin Blue offer related to BIMCO contracts and CONGEBILL?

A2: Our team of experts can assist with drafting and reviewing charter parties, ensuring that CONGEBILL and BIMCO contracts are correctly integrated to prevent disputes.

At Marlin Blue, we help clients ensure that their CONGEBILL documents are correctly aligned with BIMCO contracts, providing legal advice, and resolving any disputes that arise from misalignment.
We also provide tailored legal advice on specific issues, including negotiation, arbitration, litigation, and claims management.

Q3. How does CONGEBILL affect shipowners, and how can Marlin Blue help in this regard?

A3: CONGEBILL plays a crucial role in ship chartering, particularly when used alongside BIMCO contracts such as GENCON. For shipowners, the integration of CONGEBILL with these contracts can streamline operations, ensure consistency, and reduce legal risks. Marlin Blue can assist shipowners by providing expert legal guidance on how to effectively use CONGEBILL in conjunction with BIMCO contracts.

Our services include contract review, dispute resolution, and advice on best practices for maintaining operational efficiency and legal compliance.