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There's a Letter of credit comprising several subsequent shipments for a rather long period of time.
I understand this shouldn't affect outstanding shipments, but may a confirming bank cancel/suspend its confirmation for future shipments within the validity of the Letter of Credit based on an alleged default by the issuing bank?

It seems to me that there is some logic for the confirming bank to order me not to make further shipments and presentations until the defaulted shipment is resolved. On the other hand, confirmation is irrevocable.

Hi Pal,

Confirmation is irrevocable as per UCP 600 Art. 8 b, but if there is a fraud a Court may intervene and release the bank from its undertaking. Then, in this case the documents will be scrutinized and probably found discrepant, and finally a cooperation with the confirming bank is advisable.
Other comments appreciated
Ciao

What I understood from this topic is that the issuing bank is in default of payment, so hardly i could see the scenario of fraud as the same would involve production of fraudulent docs by beneficiary which is no the case.
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The advice of confirming bank given to beneficiary is not quite OK or a professional one, because this what the confirmation stands for - the confirming bank covers the risk of issuing bank default of payment. In return, they collect a confirmation comission. It seems the confirmation bank try to persuade beneficiary not to make use of the credit anymore and it appears to be a 'slient' retraction of the confirmation with the agreement of beneficiary (wrongly advised to accept so)