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 and complicated to explain here. We have to leave them to a transport workshop. Otherwise the more we explain, due to brevity and not building a solid knowledge platform on transport practices (that needs one full day) before we deal with these technical issues, then the more we try to explain, the more queries we would receive. And the more confusions we would create.
A BANK’S RISKS AS AN ENDORSEE IN A NON-NEGOTIABLE TRANSPORT DOCUMENT
However, for a non-endorsable transport document, such as the AWB, SWB or SBL, the bank as an “endorsee” may not have such risks, as the bank may defend that such “endorsement “ is nevertheless invalid, as the endorser has no capacity to act in the first place. But if the bank exercises its right, such as using the transport document to claim the goods to mitigate its losses, such as the parties all disappear, then the bank may become responsible for those horrible things, although the endorsement is otherwise invalid.
THINK TWICE BEFORE A BANK CLAIMS FOR THE GOODS
So when a bank tries to claim for the goods, be very careful to seek legal advice first and not to assume anything.
The more you know, the more you don’t know!
DISCLAIMERS: Our opinions are made for discussion only and parties should consult lawyers and experts for their advices before they rely or act upon our opinions. We do not assume any responsibilities or liabilities whatsoever.
www.tolee.com
Straight Bill of Lading
-
larryBacon
- Posts: 689
- Joined: Fri Apr 05, 2019 5:26 pm
Straight Bill of Lading
POSSESSION IS 9/10 OF THE LAW
In T.O's example of an AWB consignment where "all of the parties disappear", the bank may not get an opportunity to exercise a lien on the goods. In this case, there may be a queue of people (Freight Forwarders, Customs & Excise, carriers, clearance agents, warehouse owner etc) attempting a similar claim and the one in the strongest position is likely to be the one in possession of the goods.
Laurence
In T.O's example of an AWB consignment where "all of the parties disappear", the bank may not get an opportunity to exercise a lien on the goods. In this case, there may be a queue of people (Freight Forwarders, Customs & Excise, carriers, clearance agents, warehouse owner etc) attempting a similar claim and the one in the strongest position is likely to be the one in possession of the goods.
Laurence