Dear Experts,
Below quote is picked from the public source.
Quote
Letters of Indemnity for Missing Documents (LoIs)
In today’s trading environment, cargoes of oil can change hands many times, although voyages can often be measured in a few days. Nevertheless documents need to be prepared and physically checked following each ownership transfer.
Unquote
If the above is the general understanding of the LOI that beneficiary does not have the original bill of lading at present reason could be anything say…. not yet won the deal from the actual supplier… etc.
Allowing the LC with condition that in the LOI (replacing bill of lading), beneficiary of the LC must confirm that beneficiary has right over the title of goods, confirming genuinity of the documents and presentation of bill of lading upon receipt… Is issuing bank knowingly allowing payment with such a statement in the LOC, knowing that fact that beneficiary does not have original bill of lading otherwise you would have presented it.
Is it always mandatory to work on charter party bill of lading keeping in mind of often change in the port of discharge?
Thanks &Regards
Dinesh Kumar
LOI
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dinesh2476
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picant
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LOI
Hi Pal,
wording of a LOI is always dictated by the LOI Beneficiary, the letter is presented in lieu of an original bill of lading. Bill of lading will be presented later or invalidated under a law process lasting 1 or 2 years by a specifc court. Concerning the CPBL, I think is not mandatory but being the tanker hired by a shipper that intends to sell the product, probably, in High Sea sale, he has no knowledge if the cargo will be sold in full or partially , sometime through brokers. So it is very difficult to have one original CPBL at discharge port.
Other comments appreciated.
Ciao
wording of a LOI is always dictated by the LOI Beneficiary, the letter is presented in lieu of an original bill of lading. Bill of lading will be presented later or invalidated under a law process lasting 1 or 2 years by a specifc court. Concerning the CPBL, I think is not mandatory but being the tanker hired by a shipper that intends to sell the product, probably, in High Sea sale, he has no knowledge if the cargo will be sold in full or partially , sometime through brokers. So it is very difficult to have one original CPBL at discharge port.
Other comments appreciated.
Ciao
-
dinesh2476
- Posts: 727
- Joined: Sat Oct 15, 2011 12:27 pm
- First Name: Dinesh Kumar
- Last Name: ...
- Organization: Chrome
- Filter: Two Plus Two =: 4
- Location: PU
LOI
Hi Picant,
Exactly i was thinking the same while posting the earlier comments regarding possible of original bill of lading at the port of discharge , However, below is the standard comments we see in the LOI that is being issued across all regions.
Quote,
LOI must evidence that original bill of lading be presented later sometime. otherwise consequences arising from failure of which needs to be beared by the beneficiary
Unquote
How is it being managed in real time scenario if the goods are being sold in partially ?
Exactly i was thinking the same while posting the earlier comments regarding possible of original bill of lading at the port of discharge , However, below is the standard comments we see in the LOI that is being issued across all regions.
Quote,
LOI must evidence that original bill of lading be presented later sometime. otherwise consequences arising from failure of which needs to be beared by the beneficiary
Unquote
How is it being managed in real time scenario if the goods are being sold in partially ?