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.
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.