Understanding "Said to Contain" (STC) in Freight Shipping

What is "Said to Contain" (STC)?

"Said to Contain" (STC) is a crucial term frequently encountered in the world of international freight forwarding, particularly on Bills of Lading (BoL). At Ocean Cargo, we understand that clarity around such terms is vital for our clients. Essentially, STC is a disclaimer used by carriers and vessel masters to indicate that they have not independently verified the contents, quantity, or nature of goods declared by the shipper within a sealed container or package.

When a Bill of Lading states "Said to Contain," it signifies that the carrier is relying solely on the information provided by the shipper regarding the cargo. They have not opened the container or package to inspect its contents. This practice is standard for Full Container Load (FCL) shipments where the container is loaded and sealed by the shipper at their premises and remains sealed until it reaches the consignee.

This term protects the carrier from liability for discrepancies between the shipper's declaration and the actual contents, as long as the container itself appears to be in good order and condition upon receipt. It underscores the principle that the shipper is ultimately responsible for the accuracy of their cargo declaration.

Why is STC Used in Bills of Lading?

The inclusion of "Said to Contain" on a Bill of Lading serves several critical purposes for carriers and the broader logistics chain:

• Liability Limitation: This is the primary reason. Carriers handle thousands of containers daily. It is impractical and often impossible for them to physically inspect the contents of every sealed container. STC limits their liability for any discrepancies in quantity, quality, or type of goods that might be discovered after the container is opened at its destination.
• Operational Efficiency: Without STC, carriers would need to open and inspect every container, leading to significant delays, increased costs, and potential damage to cargo during inspection. STC allows for the swift movement of goods through the supply chain.
• Shipper Responsibility: It places the onus squarely on the shipper to provide accurate and truthful declarations of their cargo. This encourages compliance with regulations and proper documentation.
• Customs Compliance: While STC protects the carrier, it does not absolve the shipper of their responsibility to comply with customs regulations. Accurate declarations are essential for smooth customs clearance, and any misdeclaration can lead to severe penalties for the shipper.
• Standard Industry Practice: STC is a widely accepted and understood term across the global shipping industry, forming a standard part of the contractual agreement between shipper and carrier.

Ocean Cargo's customs compliance services are designed to help our clients navigate these complexities, ensuring their declarations are accurate and meet all regulatory requirements, thereby minimising risks associated with STC.

Implications of STC for Shippers and Consignees

While "Said to Contain" primarily protects the carrier, it has significant implications for both shippers and consignees:

For Shippers:

1. Accuracy is Paramount: Shippers must ensure that the description, quantity, and weight of the cargo declared on the Bill of Lading are absolutely accurate. Any misdeclaration can lead to serious issues.
2. Legal Responsibility: The shipper bears the legal responsibility for the accuracy of the cargo description. If discrepancies are found, the shipper may face fines, delays, and potential legal action.
3. Insurance Considerations: While cargo insurance covers loss or damage, it's crucial that the declared value and description match the actual contents. Inaccurate declarations could complicate or invalidate insurance claims.
4. Proper Packing and Sealing: Shippers are responsible for the proper loading, stowage, and sealing of the container. The integrity of the seal is critical; a broken or tampered seal can negate the STC protection for the carrier and raise red flags.

For Consignees:

1. Inspection Upon Receipt: Consignees should carefully inspect the container and its seal upon arrival. Any signs of tampering or damage should be noted immediately on the delivery receipt.
2. Discrepancy Claims: If, upon opening the container, there are discrepancies between the declared contents and the actual goods, the consignee's claim will typically be against the shipper, not the carrier, due to the STC clause.
3. Documentation Review: Consignees should thoroughly review all shipping documents, including the Bill of Lading, to understand the terms under which the cargo was shipped.

Ocean Cargo advises all clients to maintain meticulous records and clear communication throughout the shipping process to mitigate any potential issues arising from STC.

STC vs. "Shipper's Load and Count" (SLC)

It's common to see "Said to Contain" (STC) used interchangeably or in conjunction with "Shipper's Load and Count" (SLC). While both terms serve to limit carrier liability, there's a subtle but important distinction:

• Said to Contain (STC): This term broadly indicates that the carrier has not verified the *nature or quantity* of the contents within a sealed package or container. It's a general disclaimer about the cargo's description.
• Shipper's Load and Count (SLC): This term specifically refers to the *loading and counting* of the cargo by the shipper. It explicitly states that the carrier was not present during the loading process and therefore cannot verify the number of packages or the quantity of goods loaded into the container.

In practice, both terms achieve a similar outcome: they shift the responsibility for the accuracy of the cargo's description and quantity from the carrier back to the shipper. Many Bills of Lading will use both phrases, such as "Said to Contain, Shipper's Load and Count," to provide comprehensive protection for the carrier.

Whether you're shipping excavators and diggers to the UAE or delicate wind turbine components to Australia, understanding these nuances is key to successful international trade.

When Does STC Not Apply?

While "Said to Contain" is a powerful protective clause for carriers, there are circumstances where its protection may be challenged or not apply:

• Visible Damage or Tampering: If the container itself shows signs of damage, a broken seal, or tampering upon receipt by the carrier, the STC clause may be less effective. In such cases, the carrier should note the condition on the Bill of Lading (a "claused" or "dirty" BoL).
• Carrier's Own Loading: If the carrier is responsible for loading the cargo into the container (e.g., for Less than Container Load - LCL shipments where cargo is consolidated at a carrier's depot), they are expected to verify the count and condition of the goods they load. In such instances, STC or SLC would not typically apply to the count of packages loaded by the carrier.
• Fraudulent Declaration: While STC protects against innocent discrepancies, it does not protect a carrier who knowingly transports illegal or Dangerous Goods that were fraudulently declared, especially if there was a reasonable opportunity for the carrier to detect the fraud.
• Specific Agreements: In some cases, a shipper and carrier might have a specific agreement where the carrier undertakes to verify contents, though this is rare for FCL shipments.

Ocean Cargo always prioritises transparency and due diligence. Our team works closely with clients to ensure all documentation is accurate, whether for sea freight services or air freight, minimising risks for all parties involved.

Best Practices for Shippers and Consignees

To navigate the implications of "Said to Contain" effectively, Ocean Cargo recommends the following best practices:

For Shippers:

• Accurate Documentation: Provide precise and detailed descriptions of your cargo on all shipping documents, including the Bill of Lading, commercial invoice, and packing list.
• Thorough Loading Procedures: Implement robust loading procedures. Document the loading process with photos or videos, especially for high-value or sensitive cargo.
• Secure Sealing: Use high-security seals on containers and record the seal number on the Bill of Lading. Ensure the seal is intact until the container reaches its destination.
• Cargo Insurance: Always secure comprehensive cargo insurance. This provides a safety net against loss or damage, regardless of the STC clause.
• Communicate Clearly: Maintain open communication with your freight forwarder, like Ocean Cargo, about the nature of your goods and any specific handling requirements.

For Consignees:

• Inspect Upon Arrival: Before signing for delivery, carefully inspect the container's exterior and the integrity of the seal. Note any damage or broken seals on the delivery receipt.
• Document Discrepancies: If, upon opening, you find discrepancies in quantity or condition, document them immediately with photos and a detailed report. Notify the shipper and your freight forwarder without delay.
• Understand Your BoL: Familiarise yourself with the terms and conditions of the Bill of Lading, especially clauses like STC.

By adhering to these practices, businesses can significantly reduce potential disputes and ensure a smoother shipping experience. Ocean Cargo's expertise in sea freight to Canada and customs brokerage for the USA ensures that our clients receive expert guidance every step of the way.