Stanley Forman Reed

“ At bar is the single question of contract interpretation whether a carrier's 'Goods or Vessel lost or not lost' provision survives the terms of the government standard form bill of lading. Has the government bill provided against liability for freight charges on public goods lost at sea? ”

“ It is principle of American maritime law that ocean carrier freight charges are not earned unless and until the goods are delivered to destination. [1] But contractual provisions establishing the shipper's liability for freight regardless of actual delivery have been uniformly held valid, [2] and have become common stipulations in carriers' bills of lading. Shipments of government property are made subject to the conditions of the carrier's usual contract of carriage unless the government standard form bill of lading specifically provides otherwise. ”

“ Prepayment of charges shall in no case be demanded by carrier, nor shall collection be made from consignee. On presentation to the office indicated on the face hereof of this bill of lading, properly accomplished, attached to freight voucher prepared on the authroized Government form, payment will be made * * *.'
The simple provision against 'prepayment' does not, we think, force the conclusion that freight will be paid only on delivered goods. This clause seems to us not to forbid accrual of the freight charge obligation in advance of delivery, but only to prohibit payment in advance. ”