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 Non-Negotiable Sea Waybill.
- In the first scenario we will face a situation where Non-Negotiable Sea Waybill does not contain any date of shipped on board notation.
- In the second scenario we will be having a Non-Negotiable Sea Waybill which contains a dated shipped on board notation.
Option 1 => No shipped on board notation exists on the Non-Negotiable Sea Waybill:
- The date of issuance of the Non-Negotiable Sea Waybill will be deemed to be the date of shipment.
Option 2=> Non-Negotiable Sea Waybill indicates, by stamp or notation, a date of shipped on board:
- 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 Non-Negotiable Sea Waybill.
As there is a dated on board notation exists on the Non-Negotiable Sea Waybill, date of shipment will be deemed to be this shipped on board notation date which is 30.December.2012.