Risk of Charter party bill of lading

[memo]

Hi every one
could you please clarify the risks of the charter party b/l for both:
1) Applicant in case of not asked for this b/l in L/C terms( just asked Marin B/L) but the benef. shipped by charter party b/l.
2) Issuing bank in case of granting a credit facility to applicant under this transaction.
awaiting yr favorite reply.
memo

[vijay]

Dear Memo,

Further to your situation, if the LC called for marine bill of lading/ocean bill of lading, charterparty bill of lading is not acceptable unless and otherwise stated in the credit. It will incur discrepency. Since BL is the title of goods, you should take care while choosing the bill of lading.

Others comments are highly appreciated.

Regards/Vijay

[picant]

Hi Pals,

Under CP Bill of lading, the charterer has a control on the goods and on the vessel. So allowing the possibility to present such transport document the issuing bank is aware that goods could be discharged without presentation of one(at least) original Bill of lading. So the problem is in who manages the vessel, following the Incoterms etc.

Other comments appreciated

Ciao

[shahriar]

i agree with the above answers. if the LC calls for a marine bill of lading, charter party would be a discrepancy. so no read risk for the issuing bank in this case. however if you do accept the charter party, need to understand that the charterer is in full control of the vessel. that means if the beneficiary is the charterer, it may decide to discharge the goods in some other place. interesting this could be true for a marine bill of lading as well. as per UCP600, the beneficiary may issue its own bill of lading and it would be compliant as long as it meets the UCP600 article 20. for this reason, you may see LCs where it particularly mentions the name of the carrier.