International Standard Banking Practice

Charter Party Bill of Lading

Paragraph G1 to G27

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Application of UCP 600 article 22

G1) When there is a requirement in a credit for the presentation of a charter party bill of lading, or when a credit allows presentation of a charter party bill of lading and a charter party bill of lading is presented, UCP 600 article 22 is to be applied in the examination of that document.

G2) a. A transport document, however named, containing any indication that it is subject to, or any reference to, a charter party is deemed to be a charter party bill of lading.

b. A transport document, however named, indicating expressions such as "freight payable as per charter party dated (with or without mentioning a date)", or "freight payable as per charter party", will be an indication that it is subject to a charter party.

G3) A transport document, however named, containing a code name or form name usually associated with a charter party bill of lading, for example, "Congenbill" or "Tanker Bill of Lading" without any further indication or reference to a charter party, is not by itself an indication of, or reference to, a charter party.

Signing of a charter party bill of lading

G4) a. A charter party bill of lading is to be signed in the form described in UCP 600 sub-article 22 (a) (i).

b. When the master (captain), owner or charterer signs a charter party bill of lading, the signature of the master (captain), owner or charterer is to be identified as "master" ("captain"), "owner" or "charterer".

c. When an agent signs a charter party bill of lading for [or on behalf of] the master (captain), owner or charterer, the agent is to be named and, in addition, to indicate that it is signing as agent for [or on behalf of] the master (captain), owner or charterer as the case may be.

i. When a charter party bill of lading is signed by an agent for [or on behalf of] the master (captain), the name of the master (captain) need not be stated.

ii. When a charter party bill of lading is signed by an agent for [or on behalf of] the owner or charterer, the name of the owner or charterer is to be stated.

On board notation, date of shipment, pre-carriage, place of receipt and port of loading

G5) a. When a pre-printed "Shipped on board" charter party bill of lading is presented, its issuance date will be deemed to be the date of shipment unless it bears a separate dated on board notation. In the latter event, such date will be deemed to be the date of shipment whether that date is before or after the issuance date of the charter party bill of lading. The on board date may also be indicated in a designated field or box.

b. Notwithstanding that a credit may require a charter party bill of lading to evidence a port-to-port shipment:

i. when a charter party bill of lading indicates a place of receipt that is the same as the port of loading, for example, place of receipt Rotterdam CY and the port of loading Rotterdam, and there is no indication of a means of pre-carriage (either in the pre-carriage field or the place of receipt field); or

ii. when a charter party bill of lading indicates a place of receipt different from the port of loading, for example, place of receipt Amsterdam and port of loading Rotterdam, and there is no indication of a means of pre-carriage (either in the pre-carriage field or the place of receipt field), then:

(a) when a charter party bill of lading is pre-printed "shipped on board", the date of issue will be deemed to be the date of shipment, and no further on board notation is required.

(b) when a charter party bill of lading is pre-printed "received for shipment", a dated on board notation is required, and the date appearing in the notation will be deemed to be the date of shipment. The on board date may also be indicated in a designated field or box.

c. Notwithstanding that a credit may require a charter party bill of lading to evidence a port-to-port shipment, when a charter party bill of lading:

i. indicates a place of receipt different from the port of loading, for example, place of receipt Amsterdam and port of loading Rotterdam, and there is an indication of a means of pre-carriage (either in the pre-carriage field or the place of receipt field), regardless of whether it is pre-printed "shipped on board" or "received for shipment", it is to bear a dated on board notation which also indicates the name of the vessel and the port of loading stated in the credit. Such notation may also appear in a designated field or box. The date appearing in the on board notation or designated field or box will be deemed to be the date of shipment.

ii. indicates a means of pre-carriage (either in the pre-carriage field or the place of receipt field), no matter if no place of receipt is stated, or whether it is pre-printed "shipped on board" or "received for shipment", it is to bear a dated on board notation which also indicates the name of the vessel and the port of loading stated in the credit. Such notation may also appear in a designated field or box. The date appearing in the on board notation or designated field or box will be deemed to be the date of shipment.

d. When a charter party bill of lading shows wording such as "When the place of receipt box has been completed, any notation on this charter party bill of lading of "on board", "loaded on board" or words of similar effect shall be deemed to be on board the means of transportation performing the carriage from the place of receipt to the port of loading" or words of similar effect, and if, in addition, the place of receipt box is completed, a charter party bill of lading is to bear a dated on board notation. The dated on board notation is also to indicate the name of the vessel and the port of loading stated in the credit. Such notation may also appear in a designated field or box. The date appearing in the on board notation or designated field or box will be deemed to be the date of shipment.

e. The named port of loading, as required by the credit, should appear in the port of loading field on a charter party bill of lading. However, it may also be stated in the field headed "Place of receipt" or words of similar effect, provided there is a dated on board notation evidencing that the goods were shipped on board a named vessel at the port stated under "Place of receipt" or words of similar effect.

f. A charter party bill of lading is to indicate the port of loading stated in the credit. When a credit indicates the port of loading by also stating the country in which the port is located, the name of the country need not be stated.

g. When a credit indicates a geographical area or range of ports of loading (for example, "Any European Port" or "Hamburg, Rotterdam, Antwerp Port"), a charter party bill of lading is to indicate the actual port or ports of loading, which are to be within that geographical area or range of ports. A charter party bill of lading need not indicate the geographical area.

h. When a charter party bill of lading indicates more than one port of loading, it is to evidence an on board notation with the relevant on board date for each port of loading, regardless of whether it is pre-printed "received for shipment" or "shipped on board". For example, when a charter party bill of lading indicates that shipment has been effected from Brisbane and Adelaide, a dated on board notation is required for both Brisbane and Adelaide.

G6) Terms such as "Shipped in apparent good order", "Laden on board", "Clean on board" or other phrases that incorporate "shipped" or "on board" have the same effect as the words "Shipped on board".

Port of discharge

G7) a. The named port of discharge, as required by the credit, should appear in the port of discharge field within a charter party bill of lading.

b. However, the named port of discharge may be stated in the field headed "Place of final destination" or words of similar effect provided there is a notation evidencing that the port of discharge is that stated under "Place of final destination" or words of similar effect. For example, when a credit requires shipment to be effected to Felixstowe, but Felixstowe is shown as the place of final destination instead of the port of discharge, this may be evidenced by a notation stating "Port of discharge Felixstowe".

G8) A charter party bill of lading is to indicate the port of discharge stated in the credit. When a credit indicates the port of discharge by also stating the country in which the port is located, the name of the country need not be stated.

G9) When a credit indicates a geographical area or range of ports of discharge (for example, "Any European Port" or "Hamburg, Rotterdam, Antwerp Port"), a charter party bill of lading may indicate the actual port of discharge, which is to be within that geographical area or range of ports, or it may show the geographical area or range of ports as the port of discharge.

Original charter party bill of lading

G10) a. A charter party bill of lading is to indicate the number of originals that have been issued.

b. Charter party bills of lading marked "First Original", "Second Original", "Third Original", or "Original", "Duplicate", "Triplicate" or similar expressions are all originals.

Consignee, order party, shipper and endorsement, and notify party

G11) When a credit requires a charter party bill of lading to evidence that goods are consigned to a named entity, for example, "consigned to (named entity)" (i.e., a "straight" charter party bill of lading or consignment) rather than "to order" or "to order of (named entity)", it is not to contain the expressions "to order" or "to order of" preceding the named entity or the expression "or order" following the named entity, whether typed or pre-printed.

G12) a. When a charter party bill of lading is issued "to order" or "to order of the shipper", it is to be endorsed by the shipper. An endorsement may be made by a named entity other than the shipper, provided the endorsement is made for [or on behalf of] the shipper.

b. When a credit requires a charter party bill of lading to evidence that goods are consigned "to order of (named entity)", it is not to indicate that the goods are straight consigned to that named entity.

G13) a. When a credit stipulates the details of one or more notify parties, a charter party bill of lading may also indicate the details of one or more additional notify parties.

b. i. When a credit does not stipulate the details of a notify party, a charter party bill of lading may indicate the details of any notify party and in any manner (except as stated in paragraph G13) (b) (ii)).

ii. When a credit does not stipulate the details of a notify party, but the details of the applicant appear as notify party on a charter party bill of lading, and these details include the applicant's address and contact details, they are not to conflict with those stated in the credit.

G14) When a credit requires a charter party bill of lading to evidence goods consigned to or to the order of "issuing bank" or "applicant" or notify applicant" or "issuing bank", a charter party bill of lading is to indicate the name of the issuing bank or applicant, as applicable, but need not indicate their respective addresses or contact details that may be stated in the credit.

G15) When the address and contact details of the applicant appear as part of the consignee or notify party details, they are not to conflict with those stated in the credit.

Partial shipment and determining the presentation period when multiple sets of charter party bills of lading are presented

G16) Shipment on more than one vessel is a partial shipment, even if each vessel leaves on the same day for the same destination.

G17) a. When a credit prohibits partial shipment, and more than one set of original charter party bills of lading are presented covering shipment from one or more ports of loading (as specifically allowed, or within a geographical area or range of ports stated in the credit), each set is to indicate that it covers the shipment of goods on the same vessel and same journey and that the goods are destined for the same port of discharge, geographical area or range of ports.

b. When a credit prohibits partial shipment, and more than one set of original charter party bills of lading are presented in accordance with paragraph G17) (a) and incorporate different dates of shipment, or one set of original charter party bills of lading is presented indicating different dates of shipment, the latest of these dates is to be used for the calculation of any presentation period and must fall on or before the latest shipment date stated in the credit.

c. When partial shipment is allowed, and more than one set of original charter party bills of lading are presented as part of a single presentation made under one covering schedule or letter and incorporate different dates of shipment, on different vessels or the same vessel for a different journey, the earliest of these dates is to be used for the calculation of any presentation period, and each of these dates must fall on or before the latest shipment date stated in the credit.

Clean charter party bill of lading

G18) A charter party bill of lading is not to include a clause or clauses that expressly declare a defective condition of the goods or their packaging.

For example:

a. A clause on a charter party bill of lading such as "packaging is not sufficient for the sea journey" or words of similar effect is an example of a clause expressly declaring a defective condition of the packaging.

b. A clause on a charter party bill of lading such as "packaging may not be sufficient for the sea journey" or words of similar effect does not expressly declare a defective condition of the packaging.

G19) a. It is not necessary for the word "clean" to appear on a charter party bill of lading even when the credit requires a charter party bill of lading to be marked "clean on board" or "clean".

b. Deletion of the word "clean" on a charter party bill of lading does not expressly declare a defective condition of the goods or their packaging.

Goods description

G20) A goods description indicated on a charter party bill of lading may be in general terms not in conflict with the goods description in the credit.

G21) A charter party bill of lading may indicate that the goods are part of a larger consignment loaded onto the named vessel by reference to "without segregation", "commingled" or words of similar effect.

Corrections and alterations ("corrections")

G22) Any correction of data on a charter party bill of lading is to be authenticated. Such authentication is to appear to have been made by the master (captain), owner, charterer or any one of their named agents, who may be different from the agent that may have issued or signed a charter party bill of lading, provided they are identified as an agent of the master (captain), owner or charterer.

G23) Non-negotiable copies of a charter party bill of lading need not include authentication of any corrections that may have been made on the original.

Freight and additional costs

G24) A statement appearing on a charter party bill of lading indicating the payment of freight need not be identical to that stated in the credit but is not to conflict with data in that document, any other stipulated document or the credit. For example, when a credit requires a charter party bill of lading to be marked "freight payable at destination", it may be marked "freight collect".

G25) a. When a credit states that costs additional to freight are not acceptable, a charter party bill of lading is not to indicate that costs additional to the freight have been or will be incurred.

b. An indication of costs additional to freight may be made by express reference to additional costs or by the use of trade terms which refer to costs associated with the loading or unloading of goods, such as, but not limited to, Free In (FI), Free Out (FO), Free In and Out (FIO) and Free In and Out Stowed (FIOS).

c. Reference in a charter party bill of lading to costs which may be levied, for example, as a result of a delay in unloading the goods or after the goods have been unloaded (demurrage costs) is not an indication of costs additional to freight.

Release of goods with more than one charter party bill of lading to be surrendered

G26) A charter party bill of lading is not to expressly state that goods covered by that charter party bill of lading will only be released upon its surrender together with one or more other charter party bills of lading, unless all of the referenced charter party bills of lading form part of the same presentation under the same credit.

For example, "[Cargo XXXX] is covered by B/L No. YYY and ZZZ, and can only be released to a single merchant upon presentation of all charter party bills of lading of that merchant" is considered to be an express statement that one or more other charter party bills of lading, related to the referenced cargo, must be surrendered prior to the goods being released.

Charter party contracts

G27) Unless UCP 600 sub-article 22 (b) is specifically excluded and the credit specifically indicates the data that are to be examined and to what extent, banks do not examine any content of a charter party contract, even when such contract is required as a stipulated document under the credit.