Date of shipment is one of the key definitions in a letter of credit transaction. It is used to determine
- whether shipment made on time or not (in other words a late shipment has been effected or not)
- whether documents presented within the presentation period or not (in other words a late presentation has been effected or not)
- maturity date of the time draft
- maturity date of a deferred payment letter of credit.
Date of shipment can be determined in two ways on a Charter Party Bill of Lading.
- In the first scenario we will face a situation where Charter Party Bill of Lading does not contain any date of shipped on board notation.
- In the second scenario we will be having a Charter Party Bill of Lading which contains a dated shipped on board notation.
Option 1 => There is no shipped on board notation exists on the Charter Party Bill of Lading:
- The date of issuance of the Charter Party Bill of Lading will be deemed to be the date of shipment.
Option 2=> Charter Party Bill of Lading indicates, by stamp or notation, a date of shipped on board: Notation date will be deemed to be the date of shipment as specified below:
- Date of shipped on board notation/stamp => this date will be deemed to be the date of shipment
Example: On the below figure you can see a shipped on board notation which is located on the bottom of a Charter Party Bill of Lading.
As there is a dated on board notation exist on the Charter Party Bill of Lading, date of shipment will be deemed to be this shipped on board notation date which is 30.December.2012.
