Which one is more important: Partial shipment or transshipment?
Transhipment means unloading from one means of conveyance and reloading to another means of conveyance during the carriage as enrouted in the letter of credit. Partial shipment means making less amount of shipment than what is stated in the letter of credit when only one set of transport documents presented; or making less amount of shipment than what is stated in the letter of credit or using multiple means of conveyance when more than one set of transport documents presented.




 
































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  • Why transhipment is not allowed by banks? Transhipment is getting more important for the importers and banks when they are dealing with sanctions, embargoes and trade restrictions. Importers and banks may want to prevent the cargo entering any unwanted country, seaport, airport etc by prohibiting transhipment.
  • Why partial shipment is not allowed by banks? Partial shipment will be prohibited by banks mainly on commercial basis. Most of the times importers request from the issuing banks to not to allow partial shipments.










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What are the important points of transhipment?
  • Transhipment is not regulated under cash in advance payment, open account or documentary collections rules.
  • Letter of credit rules have special articles covering transhipments.
  • Air transportation mostly requires couple of transhipments before the cargo arrives to the airport of destination. Prohibiting transhipment in air transportation may result undesired consequences.
  • Multimodal transportation must require at least one transhipment. Prohibiting transhipment in multimodal transportation should be avoided.


What are the important points of partial shipments?
  • Partial shipment is not regulated under cash in advance payment, open account or documentary collections rules.
  • Letter of credit rules have special articles covering partial shipments.
  • Disallowing partial shipments may huge impact on exporter's shipment flexibility, as a result it must be used very carefully.
  • If letter of credit amount can not be shipped in a single truck and requires more than one truck usage, partial shipment should not be prohibited when road transportation will be used.
partial shipments