A piece of paper in Middle Ages between 5^th and 15^th centuries evolved into the B/L, with the Himalaya clause that originates from the case of Adler v/s Dickson. A passenger on the “Himalaya” was injured and sued the ship’s master and boatswain, despite a liability exemption clause in the passenger ticket.

This clause makes it a standard feature of the industry to protect 3^rd parties, such as stevedores, agents and subcontractors, from being sued by the shipper or consignee for loss or damage to cargo, effectively limiting their liability to the extent provided for in the B/L.

The purpose is to prevent cargo owners from circumventing the liability limitations agreed upon with the carrier by suing the carrier’s agents or contractors directly in tort.