Jeremy, HOW TO EAT AN ELEPHANT? ONE SMALL PIECE AT A TIME TO AVOID CHOKING Simon J has not specified clearly whether the insurance documents in Query 1 and Query 2 are one and the same or different document. If the insurance document in Query 1 WERE a policy, it should not need a counter-signature. ...

Hello Simon J, For your two queries on cargo insurance, we have the following comments made before we leave Toronto today for DC, BL & Frauds workshops in Hong Kong for about two or three weeks. QUERY1 From your description, it appears that you have mixed up two kinds of insurance documents, the...

In our risk management workshops, we often remind the traders to make sure that in case of discount or pre-payment, where the drawing is only part of the total value of the goods, which are however shipped in full, the insurance cover must be at least 110% of the gross value, which may exceed the in...

Dimitri, A BANK’S RISKS AS AN ENDORSEE IN A NEGOTIABLE TRANSPORT DOCUMENT Payment of freight is not the most horrible part. There are other more horrible things for a bank that becomes an endorsee of an endorsable transport document, such as a marine BL. Those more horrible things are too technical ...

QUOTATIONS FROM THE AUTHORITY To clear the mist, we are pleased to quote from Lloyd’s of London “Contracts for the Carriage of Goods” from our private library as follows (where our transport handouts and opinions are based upon): “Where a bill is made out to a named consignee, but not to order, the ...

Under the law, a person has the right to dispose of his assets, and assign his interests or rights to another person, provided it is lawful. UCP 500 Article 49 respects such rights and allows a beneficiary to assign his/er right to receive payment under the DC to another person through assignment of...

After members exchanging opinions on UCP 500 for a year or so, perhaps it is now time for us to look at certain remote issues related to the UCP 500 operations, such as the assignment of proceeds as stipulated in UCP 500 Article 49. We would like members from four corners of the world to share their...

HOW TO MAKE A BL A SBL? In transport practice, BsL are designed, printed and provided for the general purpose of them being used in the negotiable form. That is why we always point out in our transport workshops that to prepare a SBL, the shipper has to make sure that in the "CONSIGNEE' box, th...

Pavel & Laurence, LAURENCE’S ‘REAL LIFE’ STORY PROVES THE OPPOSITE –THE MALPRACTICE We agree to Pavel’s comments on the “real life” case from Laurence. To add to that, on the contrary, this “real life” case points out that even in the transport industry, sometimes, due to lack of proper training...

POLITICAL BACKGROUND HAS TO BE CONSIDERED Political background of a bank may affect the interpretation of "What is China?" or "What is a Chinese port?" People's Republic of China refers to "China" as including Taiwan and deems it as a province rather than a country. But...