A vessel loads 5000 tons of manganese ore. The railroad cars that brought the ore to the vessel were previously loaded with iron ore so the ore is contaminated. The agent requests the Master to sign a Clean Bill of Lading and in return the shipper will give him a Letter of Indemnity. What is the best procedure to follow?
Official USCG Answer & Rule Citation
Correct Answer: Option A — Refuse to sign a Clean Bill of Lading.
Signing a Clean Bill of Lading for known damaged or contaminated cargo in exchange for a Letter of Indemnity constitutes fraudulent misrepresentation to cargo buyers and financial institutions. Masters must refuse to sign clean documents for compromised cargo.
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