Clause

verbStandard termMaritime

To add a written exception or note to a shipping document regarding cargo condition.

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.

Heard on the job

The master decided to clause the bill of lading because the steel coils were already rusting on the dock.

Insider tip

A claused bill of lading can cause severe problems for the shipper, as banks often refuse to accept them for letters of credit.