Under the current letter of credit rules and international standard banking practices, if a letter of credit calls for a marine bill of lading, then banks do not accept a charter party bill of lading in lieu of a marine bill of lading.
On this article I will try to answer the question “Why a charter party bill of lading is not acceptable in place of a marine bill of lading?” by clarifying the main differences between each transport documents.
Differences Between a Charter Party Bill of Lading and Marine Bill of Lading:
Charter Party Clause: Charter party bill of lading contains a clause stating that it is subject to a charter party. Marine bill of lading does not contain such a clause or similar wording.
Signatures:
- Marine bills of lading can be signed by;
- the carrier or a named agent for or on behalf of the carrier, or
- the master or a named agent for or on behalf of the master.
- Charter party bills of lading can be signed by;
- the master or a named agent for or on behalf of the master, or
- the owner or a named agent for or on behalf of the owner, or
- the charterer or a named agent for or on behalf of the charterer.
Usage:
- Charter party bills of lading will be used mainly for big bulk shipments such as 20.000 mtons of soybean transportation from a US port to a Chinese port.
- Marine bills of lading mostly used for containerized cargo that is transported by regular line container vessels.
Examples of Charter Party Clauses:
Below indications could turn a marine bill of lading into a charter party bill of lading. (Source : www.commerzbank.com)
- “Prepayable freight paid as per charter party dd. …”
- “Freight payable as per charter party dd. …”
- “Freight as agreed”
- “Bill of lading to be used with charter parties”
