The “Clean On Board” clause incorporated into a bill of lading represents a certification by the shipping or transportation company that, at the time of loading, no irregularities or discrepancies were observed in the packaging or overall condition of the cargo. This notation is crucial as it assures the receiver and other parties involved in the transaction that the goods were in good condition when they were loaded onto the shipping vessel. It serves as a key document in international trade, helping to protect the interests of buyers by providing a form of assurance that the goods were handled properly and are likely to arrive in the condition expected. Additionally, it can be critical in the resolution of disputes related to cargo damage or loss, as it provides a baseline verification of the cargo’s condition at the point of departure.

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Logistics 101| Differences between FOB and Other Common Terms| FreightAmigo