To clause a document is to amend a bill of lading with a specific notation stating that the cargo or its packaging was damaged, missing, or defective when loaded. Doing this transforms a clean bill of lading into a foul or claused one. Carriers do this to protect themselves from liability claims for damage that occurred before they took possession of the goods.
The master decided to clause the bill of lading because the steel coils were already rusting on the dock.
A claused bill of lading can cause severe problems for the shipper, as banks often refuse to accept them for letters of credit.
Related terms
Bill of lading
A legal document issued by a carrier detailing the type, quantity, and destination of cargo being carried.
General cargo
Goods shipped as individual units rather than in bulk or standard shipping containers.
Demurrage
A penalty fee charged when a ship is delayed in port beyond its allotted time.