14 Days Freetime Detention/Demurrage Combined At Destination

[MAXCOMAX]

Dear All,

I am facing a wording issue regarding documents about to be sent to the issuing bank.

The Letter of Credit on it's article 46A states the following :

BILL OF LADING MUST MENTION 14 DAYS FREETIME DEMURRAGE AT DESTINATION OR BY ISSUE A SEPARATE SHIPPING CERTIFICATE, CERTIFYING THE SAME.

However, the shipping company refuse for whatever stupid reason to use the same exact wording 14 DAYS FREETIME DEMURRAGE AT DESTINATION and instead only accept to state on the BL the following only :

14 DAYS FREETIME DETENTION/DEMURRAGE COMBINED AT DESTINATION OF SURABAYA

I'm afraid the use of a different wording will bring a discrepancy.

Kindly advise as I'm really freaking out... thanks in advance !

Kindest regards,

Max

[MAXCOMAX]

Guys, anyone can help ?

It's just a wording / spelling issue, no ?

Thanks in advance for your comments, I'm now facing a late presentation...

Kindest regards,

Max

[picant]

Hi Pal,

IMHO, the cited wording have the same meaning,so the document is acceptable.
The problem is in the way in which the l/c is available, as it is possible that the issuing bank will consider it a discrepancy and stop the remittance of funds, so you have to fight against this position.
However ISBP 745 point E26 c, considers demurrage/detention two different aspects of delay in unloading the goods,
depending on the use of a container, if LCL or FCL.
I repeat I will consider it compliant.
Other comments appreciated
Ciao

[MAXCOMAX]

Hi Picant,

Thanks for your reply.

Shall I ask my client to amend to LC as per the BL exact wording ?

The LC is a UPAS from ANZ Indonesia and I'm wondering how to "fight' in case the issuing bank say it's a discrepancy although 14 DAYS DEMURRAGE is what they will get on top of the detention which is a bonus to me compare to what they were asking, isn't it ?

Thanks in advance for your further comments.

Max

[abrar]

Although this may have been within the scope of the issuing bank's/applicant's requirement, since the company has inserted the word "Detention" the variation which the shipping co wishes to cover for is not the same as the LC requirement.

The free Demurrage period relates to the period provided to take delivery of the cargo before the demurrage charges will be levied . Therefore, if the LC talks about 14 day freetime for demurrage, the consignee has 14 days from vessel discharge of the container to take delivery of the container.

The free Detention period relates to the additional period provided to empty the container and return the empty container to the shipping line's nominated depot.

So, as per the present LC terms since it talks only about the free demurrage period, the shipping company wishes to make clear and impose a requirement on the consignee to take delivery and return the empty container all within a combined period of 14 days from date of container discharge.

This additional potential cost may not have been considered by the consignee when issuing the LC and it will be up to the beneficiary to negotiate this with the applicant and arrange for a suitable amendment. My view is that without the amendment (or ad-hoc waiver) the banks will be obliged to raise the addition of the word "Detention" as a discrepancy. However, the variation from the original wording by the use of other additional words (e.g. "Surabaya" etc) would not be considered a discrepancy

[WanDan]

Hi,

I totally agree with abrar and would like to emphasise that what is said below is not correct:

The LC is a UPAS from ANZ Indonesia and I'm wondering how to "fight' in case the issuing bank say it's a discrepancy although 14 DAYS DEMURRAGE is what they will get on top of the detention which is a bonus to me compare to what they were asking, isn't it ?

It is not a bonus it is 14 days for demurrage and detention altogether.

Cheers,
Dan