ICC Digital Library Forum

under documents required presentation of a bill of lading marked "freight prepaid" is called for.
additional conditions indicate "charter party bill of lading marked freight payable as per charter party is acceptable.
Delivery terms are CFR free out.
presented a charter party bill of lading marked "freight payable as per charter-party abroad" also bearing a stamp stating "freight prepaid abroad"
May those contrasts between those wording be considered as discrepancy
thanks in advance your opinions
Roland

CHARTER PARTY IS THE CONTRACT OF CARRIAGE

According to maritime charter practice, the charter party, other than the charter party bill of lading, is the contract of carriage, to cover, amongst other things, the sea freight.

So the details regarding payment of sea freight is to be found in the charter party itself, and not in the charter party bill of lading. Hence it is only natural that the charter party bill of lading bears the wordings: "Sea freight as per charter party". This is a special feature of a charter party bill of lading.

MARKINGS IN CHARTER PARTY BILL OF LADING TO INDIDCATE FREIGHT PREPAID

To satisfy the DC requirement of "CFR port of loading (whether Incoterms 2000 or not)", the charter party bill of lading should state on its face "freight prepaid". This is enough for examination for compliance purpose. Whether payment is to be made abroad or not, it does not matter, provided it is not inconsistent with the terms and conditions of the charter party of which the charter party bill of lading is based. But bankers do not need to read the charter party even if it is however presented with other documents. So that is ISBP.

We consider an alternative marking in a charter party bill of lading "Freight prepaid as per (terms and conditions of) charter party" also acceptable. Such example is not exclusive.

With our comments above, you should be able to draw your own conclusion as to the compliance of the charter party bill of lading in your case.

www.tolee.com

[edited 8/12/02 5:27:33 PM]