Month: November 2019

Blank Back Bill of Lading Not Acceptable

Ozgur Eker (CDCS) Bill of Lading, Bill of Lading Discrepancies, How to Work With a Letter of Credit, Letter of Credit Basics, Letter of Credit Discrepancies, Letter of Credit Documents ,
Blank Back Bill of Lading Not Acceptable

A Blank Back Bill of Lading, also known as Short Form Bill of Lading, is a type of transport document that does not include the terms and conditions of the shipment (contract of carriage) on the back side.

Short form bills of lading are not in high demand.

Especially under the letters of credit payments, issuing banks generally demand long form bills of lading, by simply prohibiting presentation of short form bills of lading.

Some examples are:

  • Short form, blank backed bill of lading not acceptable.
  • Short form, blank backed and freight forwarder bill of lading not acceptable
  • Short form, blank backed, claused stale bill of lading / air way bill not acceptable.
  • Short form, blank backed, charter party and through bills of lading is not acceptable.

What to Do If Letter of Credit Prohibits Presentation of Blank Back Bills of Lading

As an exporter you must examine Field 46A: Documents Required and Field 47A: Additional Conditions.

If you determine that the letter of credit prohibits presentation of blank back/short form bills of lading, you must make sure that the bill of lading you will present contains the terms and conditions of the shipment (contract of carriage) on the back side of the bill of lading.

It is advisable to discuss this issue with your freight forwarder before shipment takes place.

Short Form/Blank Back Bill of Lading

Ozgur Eker (CDCS) Bill of Lading, Letter of Credit Documents , , , ,
Short Form/Blank Back Bill of Lading

A bill of lading is a generic name of a transport document, which is used in sea shipments.

As a transport document a bill of lading is expected to fulfill three basic functions:

  • it evidences that the goods have been received by the carrier;
  • it evidences the terms of the contract of carriage
  • it is expected to allow transfer of ownership of the goods

There are several types of bills of lading in circulation such as multimodal bill of lading, forwarder bill of lading, charter party bill of lading, negotiable bill of lading and non-negotiable bill of lading etc.

Each type of bill of lading has unique characteristics. Different types of bills of lading may not be able cover all functions.

As an example, non-negotiable bill of lading does not allow transfer of ownership of the goods.

Bill of Lading and the Contract of Carriage

If you look at the reverse side of a bill of lading, you will probably see a contract written in small font size. This contract known as the contract of carriage.

It is ordinary that a bill of lading contains the contract of carriage on the reverse side. Especially in container shipments.

Every container liner has a standard bill of lading contains the contract of carriage on the reverse side.

But some bills of lading are issued with empty reverse sides.

These kind of bills of lading are called Blank Back Bills of Lading or Short Form Bills of Lading.

Examples:

Long Form Bill of Lading Example:

Hapag-Lloyd Bill of Lading: Hapag-Lloyd is one of the biggest container carriers in the world. Hapag-Lloyd uses a standard bill of lading contains a contract of carriage printed on the backside of its bill of lading. It is also possible to see an excerpt of carriage terms on the right bottom of the front page.

Short Form Bill of Lading Example:

BIMCO Blank Back Form of Non Negotiable Liner Waybill: BIMCO is the world’s largest international shipping association, with around 1,900 members globally. BIMCO produces ready to use shipping contracts.

BIMCO Blank Back Form of Non Negotiable Liner Waybill is a perfect example for a short form bill of lading.

What are the Risks Associated with Short Form/Blank Back Bills of Lading

The parties on a bill of lading such as consignee, notify party and shipper can not reach to  carrier’s contract of carriage with ease under Short Form/Blank Back Bills of Lading.

Hiding the contract of carriage by carrier can attract some sort of unpleasant questions to the minds of the parties on a bill of lading.

The main risk may associate with a blank back bill of lading would be a third party interference on delivery of goods to the consignee, by claiming that his interests have not been fulfilled by the carrier.

Of course there must be a secret contract had to be signed between the third party and the carrier, on which the parties of the bill of lading have no information about.

What are the Differences Between a Container Number and a Seal Number?

Ozgur Eker (CDCS) Containers, Logistics , , ,
What are the Differences Between a Container Number and a Seal Number?

A container number, also known as container identification number, is a reference number assigned to a freight container for legal and commercial purposes.

Container seal number is an identification number of a container seal. Each container seal has an individual identification number.

Both container numbers and seal numbers are important international transportation security and safety measures and monitored closely by customs offices during the import and import stages.

On this post, I will identify the main differences between a container number and a container seal number.

Differences Between Container Number and Seal Number:

Easy to Locate / Hard to Locate:

Container number is printed on three spots of each freight container: one on the doors end, one on the side wall and one on the top of the container.

It is very easy to locate a container number.

On the other hand, a seal number is affixed to each container seal, which is a small item.

It is not easy to locate a seal number comparing to a container number.

Tracking a shipment:

It is possible to track a shipment by a container number. On the other hand you can not track a shipment by a seal number.

International Coding Standard:

Freight containers are numbered by an international organization called BIC (The Bureau International des Containers) according to an internationally recognized ISO 6346 standard.

Container seals are numbered by each seal producer or container liners according to their internal corporate rules.

What is a Container Seal Number? Explanations with Examples

Ozgur Eker (CDCS) Containers, Logistics , , ,
What is a Container Seal Number? Explanations with Examples

Customs and Border Protection departments of countries have one basic goal.

Allowing the clean cargo pass through the customs, while detecting and preventing the entrance of illegal cargo such as narcotics, guns, some types of chemicals etc.

To achieve this objective, each party in international logistics have to follow certain security rules. Sealing freight containers with proper seals is one of these security measures.

It is compulsory for every shipping container to have at least one seal before a shipping line allows the container to be shipped.(1)

Seal number is an identification number of a container seal. Each container seal has an individual identification number.

Container Seal Documentation Process

Under Full Container Loads(FCL), it is shippers responsibility to inform the seal number along with other relevant information stated in the shipping instructions to the carrier, after securely stuffing and sealing the container.

Under Less Container Loads (LCL), it is the freight forwarder who stuffs and seals the container, not the shipper. As a result under LCL shipments, the freight forwarder must inform the seal number to the carrier.

In either way, the seal number must be properly documented.

Example:

G2382564 is a seal number that belongs to CMA CMG container liner group (APL) that is used to seal a 40HC container with container number APHU7124611.

References:
  1. How to seal a shipping container and how many seals should a container have..

What is a Container Number? Explanations with Examples

Ozgur Eker (CDCS) Containers, Logistics ,
What is a Container Number? Explanations with Examples

A container number, also known as container identification number, is a reference number assigned to a freight container for legal and commercial purposes.

Container number, which is one of the container markings, is printed on three spots of each freight container: one on the doors end, one on the side wall and one on the top of the container.

Containers are the main Cargo Transport Units (CTU) in international transportation.

They are mainly used to carry almost all types of manufacturing goods.

Some container types are also suitable for commodity transportation such as bulk containers and tank containers.

Because hundreds of thousands of containers are in circulation each day between the borders of the nations, it is very important to label each of them by an internationally accepted organization with an internationally recognized identification system.

Container numbers are assigned by The Bureau International des Containers, which was founded in 1933 as a neutral, non-profit, international organization whose mission is to promote the safe, secure and sustainable expansion of containerization and intermodal transportation.

BIC (The Bureau International des Containers) uses the ISO 6346 standard when assigning reference numbers to the shipping containers.

Understanding the Container Identification Number Structure:

Container Identification Number: BIC Code (Owner prefix) + Equipment Identifier + Serial Number + Check Digit

 

The identification system provides uniform international identification of containers, in documentation and in communication associated with the movement of containers from door to door. It consists of:

  • The Owner Prefix (BIC code): Three capital letters of the Latin alphabet to indicate the owner or principal operator of the container,
  • The Equipment Category Identifier: One capital letter as follows:
        • U for all freight containers,
        • J for detachable freight container-related equipment,
        • Z for trailers and chassis,
  • The Serial Number: Six Arabic numerals, left at owner‘s or operator‘s option,
  • The Check Digit: One Arabic numeral providing a means of validating the recording and transmission accuracies of the owner code and serial number. (1)

Examples:

Example 1:) MSKU 907032-3 is a container identification number referencing a Maersk Line container.

MSKU is a BIC code which belongs to Maersk Line. Serial number of the container is 907032 and the check digit is 3.

Example 2:) MRKU 953040-6 is a container identification number referencing a Maersk Line container.

MRKU is a BIC code which belongs to Maersk Line. Serial number of the container is 953040 and the check digit is 6.

Example 3:) MEDU 870768-8 is a container identification number referencing a MSC container – Mediterranean Shipping Company.

MEDU is a BIC code which belongs to MSC. Serial number of the container is 870768 and the check digit is 8.

References:

  1. Container Identification Number, Bureau International des Containers et du Transport Intermodal