Why does a statement that goods were shipped in apparent good order matter to an endorsee?

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A statement in a bill of lading that goods were shipped in "apparent good order and condition" is significant to an endorsee because it serves as a representation of the cargo's state at the time of receipt by the carrier.1

When an endorsee relies on this statement, the carrier is legally precluded from contradicting it regarding any defects that were reasonably ascertainable at the time of delivery. This protection is essential for endorsees—such as banks or purchasers—who rely on the document as an accurate description of the goods when financing or acquiring them. By preventing the carrier from later claiming the goods were damaged upon receipt, the law ensures that the bill of lading remains a reliable document of title, thereby facilitating secure international trade and commerce.12