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Meaning Of The Term "As Arranged" In Bill Of Lading
Posted: Thu Oct 09, 2008 10:31 pm
by shahriar
dear members,
three questions in a row. hope you are not getting bored with me.
i just wanted to know i frequently see the term "as arranged" under the head freight. could some one tell me what does that actually mean? and is it possible to issue two FCL/FCL bill of lading against one container?
regd
shahriar
Re: meaning of the term "as arranged" in bill of lading
Posted: Fri Oct 10, 2008 3:38 pm
by cristiand969
Dear Shahriar,
'As arranged' is a term used in maritime transport rather than in documentary credits whereby the carrier, agent, etc makes statement of b/l that freight between shipper and them has been negotiated and agreed together. It is not uncommon the freight not be unveiled by carrier in a competitive market.
Regarding your second questions, I can say from my experience that while theoretically is not possible to have 2 B/L for 1 FCL container (i.e 2 titles of properties or 2 receipts) in practice I've seen that in the following scenario:
A freight forwarder issued a negotiable B/L for FCL container in the capacity of agent of a named carrier. When goods arrived in transhipment port the carrier issued a new negotiable B/L and gave it to the consignee and surprisingly released goods against presentation of this second B/L.
This story was told to one of my customers who said: I am not longer in a hurry to get original B/L arrived in Bank as the carrier XXX alread issued other one and gave it to me.
What the conclusion can be drawn? I think is outside of LC but frankly speaking it was something new for me, difficult to understand and very surprising. Hence, I though Practice makes perfect but the more you know the more you dont know
Re: meaning of the term "as arranged" in bill of lading
Posted: Fri Oct 10, 2008 3:50 pm
by leechiankoh
First, I would like correct here that the agreed ocean freight rate not necessary between shipper and carrier, it also can be between destination consignee and carrier if FOB shipment.
"As Arranged" means that shipper or consignee who negotiate and agreed the freight rate with carrier do not want to publish the rate. They choose to state "freight as per agreement" or "freight as arranged" in face of Bill of Lading.
That's not possible to issue 2 sets of B/L against one FCL/FCL container. If FCL/FCL container consist of goods from 2 shippers where they ship to same consignee, then carrier will issue "part of" Bill of Lading to the shipper respectively.
Regards,
Leechian
Re: meaning of the term "as arranged" in bill of lading
Posted: Mon Oct 13, 2008 3:39 pm
by cristiand969
Dear leechiankoh,
We would like you to let us know on what grounds your last statement are based on. Pls do quote a publication, a law, a contract of carriage that may support your statement. This will contribute to avoiding any confusion that seems to have been created between the two very contradictory statements (yours and mine).
regards
Cristian
Re: meaning of the term "as arranged" in bill of lading
Posted: Tue Oct 14, 2008 7:28 am
by iLC
first of all, what do you try to mean by two FCL/FCL Bill of lading? Do you mean that same consignment has two BL or two BL showing same container no but for different goods for different consignee. The first case is just impossible to imagine. The second case also does not match with the practice. A FCL container is released in container form. So if there are two BLs, who is gonna get the BL. I even thought of for other options like releasing goods at cargo freight station. But in that case BL may also show CFS/CFS and that will create a conflict with FCL/FCL.
Re: meaning of the term "as arranged" in bill of lading
Posted: Tue Oct 14, 2008 1:13 pm
by cristiand969
Dear iLC,
I think you posted different scenarios. FCL could not be linked to CFS. While the former (FULL CONTAINER LOADED) is showing theoretically goods stuffed for one consignee the latter (CONTAINER FREE STATION) defines a port facility for loading and unloading containerized cargo to and from ships. Also called container terminal.
So there is no conflict between FLC and CFS as they cannot be associated although both speek about containerized transportation.