Transport risk insurance provider the TT Club said it has secured an important clarification on the Advance Manifest System (AMS) regulations, enabling cargo carriers to maintain the “said to contain” defence against claims.
Normally an ocean carrier is responsible for any shortages in cargo, based on the quantity originally stated in the bill of lading, discovered at destination. A consignee is entitled to rely on the statements in the bill of lading and the carrier cannot deny their truth.
However, with container shipping carriers cannot check every single part of every single load, so they have to take the shipper's word for it that the cargo is as stated. By using the phrase “said to contain” they are putting the consignee on notice that no warranty is given that the statement is absolutely correct.
In the event of a dispute, the shipper has to demonstrate that he did, in fact, load the complete cargo as described.
The introduction of the AMS regulations in the US was designed to improve maritime security. The regulations had banned the use of “said to contain” from appearing on a bill of lading.
Claims director Andrew Trasler, said: “It seemed to the Club that the apparent prohibition of the STC clausing under the new US regulations would leave members exposed to claims for shortages that were not their fault.
“We have therefore made enquiries of the US customs authorities and have now received the assurance that the prohibition on the use of ‘said to contain’ applies only to the manifests.
