- A freight prepaid bill of lading issued in circumstances where freight has not been prepaid can have a detrimental
impact on Owner’s right to claim bill of lading freight from the consignee.
- The intended commercial function of a freight prepaid bill of lading is to assure the consignee that, as between the
consignee and the carrier, no liability for freight can be asserted.
- The consignee may be able to defeat an otherwise valid claim for freight by an Owner (or possessory lien over cargo in
respect of such freight) by claiming an estoppel as a result of the freight prepaid wording in the bill of lading.
