Best Trade Solution

Base on UCP600 article 31, if there is more than 1 set of BL submitted for presentation, so long all the BL set shows same means of conveyance, same journey and same destination, it is not partial shipment even there is more than one port of loading or shipment date.

I understand the same mean of conveyance part, but don't quite understand same journey and same destination.

As i interpreted article 31, same journey can't be defined as having the exact same load port (since article 31 already mentioned there can be more than one load port and not be considered partial shipment). Same journey also can't be defined by having the same shipment date (since article 31 also mentioned that there can different shipment date and not be considered partial shipment).

(1)So what is exactly "SAME JOURNEY"?

My next question is regarding the definition of "SAME DESTINATION". A documentary credit name load port as "NEW YORK PORT" and name discharge port as "ONE OR MORE SAFE PORT(S) IN CHINA". 2 set of BL has been received under one single presentation by the nominated bank. The first set of BL stated load port as "NEW YORK PORT" and discharge port as "BEIJING PORT". The second set of BL stated load port as "NEW YORK PORT" and discharge port as "SHANGHAI PORT". The vessel name on both set of BL is exactly the same.

(2) Does this constitute a partial shipment?

My last question is with regards to UCP600 article 19 which elaborated on multimodal transport document. I understand multimodal transport document to means the involvement of at least 2 different modes of transportation from the place of taking in-charge/dispatch/shipment to the place of discharge/destination. I also understand that if in a single presentation more than one set of multimodal transport documents is received, so long as all the multimodal transport document presented reflect the same means of conveyance, same journey and same destination, then it would be constituted as partial shipment.

Multimodal transport document set A: Cargo transported by truck (serial number: 1234) to load port and then loaded onto a vessel (Vessel name: MT FAIRLADY) which then deliver the cargo to destination Busan Port as per DLC.

Multimodal transport document set B: Cargo transported by truck (serial number: 4567) to load port and then loaded onto vessel (vessel name: MT FAIRLADY) which then deliver the cargo to destination Busan Port as per DLC.

(3) Does the above constitute partial shipment?

Hi Pal,

the possibility depends on the wording of l/c, you may have port of loading any port in that Country or specific Port of loading, so same of sentences in art 31 b may be valid or not.
IMHO, if the cargo is taken in charge by different trucks is partial shipment, as you must consider the dispatch, if then the cargoes are loaded in the same vessel, at the same port on the same date, the l/c must be worded from a port to port transaction or requiring an on board notation at the same port.
Remember that a transport document should be checked following the goods routing, p.e. Swift MT700 fields 44.
However on receipt of such documents you will decide.
Other comments appreciated
Ciao

Hi Picant:

Thanks for the insight.

Today i received a DLC. My company is the beneficiary of the DLC and partial shipment is allowed. DLC value: USD50M.

Under field 45A:

:45A:DESCRIPTION OF GOODS AND/OR SERVICES
PRODUCT:
1) 300,000 BBLS +/-5 PCT OF LABUAN CRUDE OIL
2) 250,000 BBLS +/-5 PCT OF RUBY CRUDE OIL
3) 200,000 BBLS +/-5 PCT OF MINAS CRUDE OIL

The quantity loaded of LABUAN CRUDE OIL is 284,925 BBLS. Is this considered a discrepancy?

Hi Pal,

it is partial shipment of item 1, it is possible to the balance in the stipulated period .
see opinion TA816 Singapore 2015.

Ciao

Hi Picant:


Thanks again for your advice. I have a question. As we all know, UCP600 article 30A/B/C provided for tolerance on the quantity (+/-55) and DLC value (-5%). Can i infer that such tolerances only apply if the documentary credit does not mention any tolerance?

Meaning if documentary credit mention 10,000MT +/-10% then article 30B is no longer applicable. Article 30B is only applicable if quantity in documentary credit shows just a base quantity of 10,000MT?

Partial Shipment:

I have been asking around and reading up on the net regarding partial shipment.

It seems that all is obsessed with other details such as name of load port, on-boar notation etc of a BL but none ever mentioned anything about the voyage number which reflects the number of journey made by a vessel.

By defition, a voyage is a round-trip sea journey from point A to point B and then back to point A.

One of the defintion of partial shipment under UCP600 is that it must be the SAME journey. By SAME journey, the voyage number mentioned on the BLs (if more than 1 set of BL) must be the same. Even if both sets of BL shows the same vessel name, but different voyage number it then be classified as partial shipment based on the concept of 2 different journey.

The aim of prohibiting partial shipment in a documentary credit is really to make very sure all the invoice quantity is shipped out in 1 single lot to a single named port of discharhed stipulated in the documentary credit.

I can have a single vessel but have it make multiple trips one or more load ports and a discharge port, thereby having (1) different port of loading (2) different loading date (2) same conveyance (3) same discharge port and yet not be classified as partial shipment.

On the other hand, i can have a single vessel shipping out from a named port of loading and then load on more cargo over at a number of different ports over a few days (a separate BL issued whenever a new load of cargo is shipped on board) and eventually arriving at a named port of discharge. This constitute same conveyance since only 1 single vessel is used, same journey as the ship make only 1 trip (multiple set BL reflect one single voyage number) from load port to discharge port and same destination since only 1 port of discharge. This is achieved in spite of having different port of loadings and different loading date which is allowed by UCP600 definition of partial shipment.

I find that ICC had failed to elaborate on this point of "SAME JOURNEY". In the shipping industry, voyage number is a significant detail.