Bill of Lading Discrepancies

Bill of lading is a transport document, which is used port-to-port container sea shipments. Discrepancy can be defined as an error, that is determined by the banks in letter of credit transactions. On this post, you can find most common bill of lading discrepancy examples.

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On this post, you can find most common bill of lading discrepancy examples.

Discrepancy can be defined as an error or defect, according to the issuing bank, in the presented documents compared with the documentary credit, the UCP 600 rules or other documents that have been presented under the same letter of credit.

Bill of lading is a transport document. UCP 600 defines 4 types of bills of lading:

  • Multimodal Transport Document: Multimodal transport document is covering shipments by at least two different modes of transport. This document should be treated as a multimodal bill of lading, only when one transportation leg is carried out by sea.
  • Ocean Bill of Lading: Issued by container liners for port-to-port sea shipments.
  • Charter Party Bill of Lading: Shippers may, when large or bulk cargoes are concerned, lease the carrying vessel for a stated time or specific voyage under a charter party contract with the owner. Goods carried are then covered under a form of bill of lading issued by the charterer and indicate as being shipped, subject to the term and conditions of the charter party.
  • Non-Negotiable Sea Waybill: Works just like the ocean bill of lading, other than that this transport document is not a title of property.

The discrepancies on this post are related to ocean bill of lading.

Bill of Lading Discrepancies

Tips to Prepare Discrepancy Free Bills of Lading:

  • According to latest UCP 600 letter of credit rules a marine bill of lading should not bear any indication that it is subject to a charter party.
  • A bill of lading should indicate the number of originals that have been issued. All original marine bills of lading issued by the carrier must be presented to the issuing bank by the beneficiary.
  • Transshipment is defined as the unloading and reloading of goods from one vessel to another during the carriage of goods from the port of loading to the port of discharge. A bill of lading indicating that transshipment will or may take place is acceptable, even if the credit prohibits transshipment, if the goods have been shipped in a container, trailer or lash barge as evidenced by the bill of lading.
  • Bill of lading should be regarded as a negotiable transport document unless it is consigned to a named consignee.
  • More than one notify parties could be stated in a bill of lading without any problem.
  • ‘To Order’ or ‘To the order of shipper’ means that bill of lading should be endorsed by the shipper as per letter of credit instructions.
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