HSWB

House Sea Waybill - Introduction
In Maersk Logistics, we can issue HSWB when we act in the role as NVOCC. We do so as agents for the principal carrier DSL Star Express Inc. Therefore, our HSWB is called a DSL Star Express SWB (DSE SWB).
We do not issue a “Maersk Logistics HSWB” unless there are specific reasons to do so and appropriate management and legal sign-off is in place.
House Sea Waybill - Issuing Party
The HSWB is issued by a NVOCC (non-vessel operating common carrier), also called a NVO.
In some countries, any freight forwarder can act as NVOCC and issue HSWB for their ocean shipments. In other countries (e.g. the USA), only companies registered specifically as NVOCC are licensed to issue HSWB.
House Sea Waybill – Functions
Basically, a House Sea Waybill has following functions:
1. A receipt for the cargo
2. Evidence of a contract of carriage
The House Sea Waybill is NOT a document of title.
1. Receipt for cargo
A HSW
B is a document issued to a shipper in exchange for his cargo. It is a confirmation by the NVOC
C that they have taken the customer’s goods into their custody and take on the responsibility to care for the goods.
The shipper will nominate the consignee and the NVOCC will only release the cargo to the named consignee at destination.
2. Evidence of contract of carriage
Just as the HBL, the HSWB is evidence of a contract of carriage, but the actual contract of carriage is always the underlying agreement between the NVOCC and the customer to carry his goods. The HSWB is merely evidence of this.
You should note that the HSWB is NOT evidence of a contract of carriage with the ocean carrier. The HSWB is a matter between the NVOCC and the customer.
The contract of carriage with the ocean carrier is a matter between the NVOCC and the ocean carrier and is evidenced by the carrier B/L or SWB.
This means that the seller or the buyer will not be able to file a claim directly against the ocean carrier for loss or damage to his goods, because they are not party to the contract of carriage. The buyer or seller will file claim against the NVOCC who in turn will file claim against the ocean carrier.
Nor should the ocean carrier provide shipment details and information to the seller or the buyer directly. The ocean carrier should regard the NVOCC as his customer. The NVOCC must keep his customer (the seller/buyer) informed.
Also see: Evidence of contract of carriage in the Glossary.
3. The HSWB is not a document of title
The HSWB is not a Document of Title. It cannot be consigned “to order” and it cannot be endorsed and transferred to another consignee.
The NVOCC will only release the goods to the party named as consignee on the HSWB.
The consignee does not have to present an original HSWB at destination to obtain release of the goods. He just needs to be able to identify himself as a representative of the consignee in the HSWB.
The shipper can amend his release instructions up until such time as the cargo has been physically released to the consignee.
House Sea Waybills - Originals and Copies
Because the HSWB is not a document of title and is not required to effect release of the goods at destination, HSWBs are not issued in “originals” and “copies”.
Whether the HSWB form says “copy” or “non-negotiable” or does not have a notation at all, does not matter. It is always a copy document which is not transferable.
The shipper or consignee may ask to obtain printed copies of the HSWB and the NVOCC will issue a reasonable number of copies. Copies of the HSWB may be used for purposes such as proof of shipment, customs, payment, bank or Letter of Credit requirement and so on.
House Sea Waybill - NVOCC’s responsibility
The three main areas of responsibility of the NVOCC under a HSWB are more or less the same as for the House B/L:
1. Responsibility for correct description of the goods
2. Responsibility to release the goods to the properly entitled party at the proper location
3. Responsibility to care for the cargo while it is in the carrier’s custody
1. Responsibility for correct description of the goods
Any third party buyer may purchase goods by relying on the description of the goods in the HSWB (quantity, condition, etc.).
The description of the goods on the HSWB is usually supplied by the shipper or his agent. (The NVOCC will not know what is inside a container or carton packed by the shipper). It is however essential that if the NVOCC knows that the description of the goods supplied by the shipper is not correct (for example that cartons are damaged), the NVOCC clearly notes the discrepancy on the HSWB or refuses to accept the cargo and issue the HSWB.
As you know, the NVOCC will arrange for a carrier B/L or SWB. The NVOCC should ensure that the description of the goods is the same on the HSWB and the carrier B/L.
If the ocean carrier at time of receipt of the goods, notes a discrepancy on the carrier B/L or SWB about shortcomings or damages, the NVOCC must ensure that the same discrepancy clause is noted on the HSWB. Otherwise, the NVOCC can become liable and have to pay compensation to the consignee, but cannot re-claim the money from the ocean carrier.
2. Responsibility to care for the cargo while in the carrier’s custody
When issuing the HSWB, the NVOCC takes on the responsibilities, obligations and liabilities as a carrier. Even when sub-contracting the carriage to a carrier, the NVOCC is responsible for the goods towards his own customer (the shipper / consignee).
If the goods are damaged or lost during transit, the shipper or consignee can file claim against the NVOCC.
3. Responsibility to ensure that the party to whom goods are released is in fact a representative of the consignee
Although a HSWB document is not needed to effect release of the goods, the carrier is nonetheless obliged to assure himself of the identify of the party to whom cargo is released.
If he is in doubt, he should contact the shipper.
House Sea Waybill – Amendment
A shipper can amend his release instructions (consignee name) until such time as the cargo has been physically released to the consignee.
Amendments should be made in writing and are always subject to acceptance by the carrier.
There is no need for the carrier to have the HSWBs returned in order to make an amendment (as they are not issued as originals but only copies). But to ensure that no unnecessary disputes arise because of the amendment, the NVOCC may confirm the amendment with both the shipper and the consignee.
The NVOCC must ensure that no changes to the description of the goods are made that can affect his position towards the consignee. This means that the NVOCC must ensure that the HSWB still corresponds with the carrier B/L or SWB, and if not, that the carrier B/L or SWB is amended accordingly. The HSWB should not be amended if the carrier will not agree to amend the carrier B/L. House Bill of Lading - Cargo Description
The procedures for cargo description on HSWBs are identical to those of the HBL.
Cargo description
The transport provider cannot physically verify the contents of the cartons and packages received from the shipper. For legal reasons, the description of the goods must therefore always include the wording “Said To Contain” or “S.T.C.” to signify that the transport provider is relying on the description of the goods supplied by the shipper. Example: S.T.C. 1020 cartons of CD players.
If the NVOCC knows that the description of the goods supplied by the shipper is not correct (for example that cartons are damaged), the carrier should note the discrepancy on the HSWB or refuse to accept the cargo and issue the HSWB.
No. of packages
If cargo is lost during transit, it is the number of units as stated in the “no. of pkgs” field that will be used for calculation of potential compensation to the owner. For this reason, this field should always reflect the smallest number of shipping units. Example 1 (FCL container): “1 x 20’std” instead of “500 cartons”. Example 2 (LCL shipment): “5 pallets” instead of “50 cartons”.
After issuing the HSWB to our customer, we must ensure that our own carrier B/L or SWB adequately covers our liability. For insurance reasons, we need to receive a carrier bill evidencing the same number of packages as shown on the corresponding House bills.
Example: You have issued 5 HSWBs, each for 100 cartons. You have loaded the goods into a 40’container. The carrier bill must show 500 cartons in the goods description: 1x40’std S.T.C. 500 cartons of general merchandise.
Clauses
Maersk Logistics should insert the clause “Shipper’s load, stow and count” if the customer is loading the container at his premises.
“Shipped onboard” must only be used when the document is issued after vessel sailing. If the customer wants the document issued before vessel sailing, the clause “Received for shipment” is used instead. A “Shipped on board” HSWB cannot be issued until Maersk Logistics has received confirmation from the ocean carrier that the goods have been loaded onboard the vessel.
Maersk Logistics will not insert the clause “Clean onboard” on the Bill. Even for LCL-shipments where we are physically handling the cartons, we cannot check the quality and condition of the merchandise inside the cartons.
24-hour manifest rule (U.S. customs)
You may have heard about the 24-hour manifest rule established by U.S. Customs and its requirements regarding description of goods - for example that “S.T.C.” is not allowed and that the cargo description must be very specific (i.e. “general merchandise” and other general cargo descriptions are not allowed).
For the purpose of transport documentation, you should be aware that the U.S. Customs rules relate to the vessel manifest, not the printed Bill of Lading or Waybill document. The vessel manifest is used for customs purposes. The printed Bill or Waybill is used for legal and commercial purposes.
House Sea Waybill - Document Date
The date of the HSWB must be the date on which it is actually issued, irrespective of the date the cargo was received or loaded, however not earlier than the date the cargo was received or loaded respectively.
For a “Shipped on Board” HSWB, the date cannot be earlier than the date the cargo was actually loaded on board the first vessel or conveyance mentioned in the document. A “Shipped on board”HSWB cannot be issued until Maersk Logistics has received confirmation from the ocean carrier that the goods have been loaded onboard the vessel.
For a “Received for Shipment” HSWB, the date cannot be earlier than the date the cargo was actually received at the place of receipt or load port mentioned in the document.
Sometimes, a shipper will request a carrier to issue the HSWB with earlier or later dates in order to comply with time restrictions in the shipper’s Letter of Credit. The carrier is not obliged to do so and should not do so. It would be considered an attempt to defraud the buyer.
House Sea Waybill - Freight payment
The charges payable at origin (usually by the shipper) are called “prepaid”. The charges payable at destination (usually by the consignee) are called “collect”.
In order to secure payment, the NVOCC will usually not release the HSWB document to the shipper at origin before he has paid all prepaid charges. (But in effect, the goods can be released at destination without this document so the only way to ensure payment is to withhold shipment until payment has been received).
At destination, the NVOCC will usually not release the goods at destination until all freight charges are paid.
It is a commercial decision by the NVOCC whether they wish to grant the shipper and/or consignee credit. If credit has been granted, the NVOCC will release the goods and expect the freight and other costs to be paid within the agreed time.
The shipper is responsible for advising the NVOCC which charges are prepaid and collect. If the NVOCC is in doubt whether the consignee will pay for the collect charges, he may check with the consignee before accepting the shipment.
In some areas of the world, from where there is a great risk and/or cost for the carrier to ship cargo, the carrier may require that all charges are prepaid.
House Sea Waybill – Filing
An original is not collected at destination before releasing the goods. There are no requirements to keep copies of HSWBs on file.
House Sea Waybill - Why use this document?
1. Why use a NVOCC?
You may wonder if it is not a complicated situation, having a NVOCC involved as a middle man instead of just dealing directly with the ocean carrier.
In particular small and middle-sized companies often do not have enough shipments (cargo volume) to negotiate good rates and conditions with the carrier directly. They therefore use a NVOCC who has a large number of customers and therefore can negotiate good freight rates with the ocean carrier. Although the NVOCC may add a margin to the freight rate, the customer still obtains a better deal. It becomes a win-win situation.
The customer will often also purchase additional services from the NVOCC (e.g. documentation and customs clearance).
2. Why use a House Sea Waybill ?
A Sea Waybill is used in cases where no sale of goods is expected during transit (no change of consignee) and where the shipper and consignee trust that payment will take place and legal ownership of the goods can change without the use of an original B/L document.
This trust may be built based on a long-term relationship between the seller and buyer, the fact that a Letter of Credit covers the shipment and ensures payment (provided the shipper fulfils the obligations set out in the L/C) or because it is an inter-company type carriage.
The advantage of the SWB is that it allows less administration and fast release of the goods at destination because an exchange of original documents between the shipper and the consignee and between the consignee and the NVOCC does not have to take place.
House Sea Waybill - Difference between HBL and HSWB
1. In which areas are the HBL and the HSWB the same?
- They are both issued by the NVOCC to his customer
- They both function as Receipt for the cargo and Evidence of contract of carriage
- They both contain details about the shipment such as shipper, consignee, vessel, place of delivery, cargo description and date
- They must not be issued with a date different than the true issuance date / onboard date
- They can both not be issued until the carrier has issued the B/L or SWB and thereby confirmed that the shipment is onboard (unless the shipper asks for a “received for shipment” bill)
- They obligate the NVOCC to ensure correct description of the goods
- They obligate the NVOCC to care for the cargo while in his custody
- They obligate the NVOCC to ensure that he releases the goods to the correctly entitled party at destination
2. In which areas are the HBL and the HSWB different?
- The HBL is a document of title. The HSWB is NOT.
- A HSWB cannot be consigned “to order”, it must always state a consignee.
- The HBL is printed in sets of originals and copies (often 3 originals).
A SW
B is only printed as copies.
- The NVOCC does not require an original SWB in order to release the goods at destination
House Sea Waybill - Difference between SWB and HSWB
1. In which areas are the carrier SWB and the House SWB the same?
- They have the same two functions: A receipt for cargo and Evidence of contract of carriage
- Neither the HSWB nor the SWB can be consigned “to order” or “to order of [name/company]” and cannot be endorsed and transferred to a third party. The goods are to be released at destination to the consignee named by the shipper.
They are not documents of title.
- They must not be issued with an onboard date different than the true onboard date
- They are only issued in copies
- They usually have the same format and fields
- They obligate the issuing party to ensure correct description of the goods
- They obligate the issuing party to care for the cargo while in his custody
- They obligate the issuing party to ensure that the goods are released to the correctly entitled party at destination
2. In which areas are the carrier SWB and the House SWB different?
- The HSWB is issued by the NVOCC who does not operate vessels.
The SWB is issued by an ocean carrier.
- The HSWB evidences a contract between the NVOCC and his customer. The carrier SWB
evidences a contract between the carrier and his customer.
- Maersk Logistics can issue HSWB. We cannot issue carrier SWB.。