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dear all,

hope you are all fine and having a good time with EID this week. Eid Mubarak to all!! a question for the vacation.

im having road transport document which are showing a stamp "negotiable". and issued to the order of issuing bank as required in the LC. whats your opinion? does this document becomes negotiable with such stamp?

Hi Pal,

I have here a Forwarder Certuficate of transport (FIATA FCT) that shows in the proper box "Consigned to the order of", notwithstanding the art 19 of ISBP 681, if authorized or requested in a L/C, this document must be considered compliyng. More than UCP or ISBP you have to evaluate buyer and issuing bank.

Ciao

i really dont think that stamps declaring a paper negotiable really makes it negotiable. rather it depends on the convention you are dealing with. i dont know any convention or law that declares the road transport document as a negotiable instrument. consider airway bill which is frequently issued to the order xxxx which is a major indicator of negotiability. but does that make it negotiable? thus even if the roadway bill says its negotiable, its not negotiable at all.

just to add that there is no reason for a road way bill to become negotiable. a bill of lading is negotiable because the documents arrives before the cargo usually and thus there might be chance to do business with documents. in road transport the case is opposite. i guess one is not thinking to sell the documents while the cargo is at his or her door :lol:

roadway bill is not a document of title so it can not be negotiable with a stamo of "negotiable"

hassan

dear sir,

i have lots of time where the lc calls for a truck receipt. i think its same as roadway bill. about airway bill, in most cases they are asked to be issued to the order of. why dont the law maker make it negotiable?

jmitra wrote:just to add that there is no reason for a road way bill to become negotiable. a bill of lading is negotiable because the documents arrives before the cargo usually and thus there might be chance to do business with documents. in road transport the case is opposite. i guess one is not thinking to sell the documents while the cargo is at his or her door :lol:

I'm afraid documentation arrival before the cargoes doe not deem the document negotiable. And as an example cargo under a non-negotiable sea waybill may arrive in the same situation as described by you for a bill of lading.
The main reason is that the bill of lading is the only document which fulfill 3 functions:
- contract of carriage
- receipt of goods
- title of property
.
regards
Cristian

dear cristain,

good point out. but i didnt mean that actually. i was just trying to say the reason behind making roadway bill non negotiable. about seaway bill, i believe you will agree that seaway bill are generally used for very short distances. thus the consignee can release the cargo without the BL. i think a better word to replace negotiability is document of title. hope i am clear to you now.