NVOCC register created and minimum standards set for the issuance of NVOCC Bills of Lading

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The International Maritime Bureau (IMB) estimates from its work in verifying Bills of Lading that over 95% of all improperly issued Bills of Lading are issued by – yeah you guessed it – Non-Vessel Owning Common Carriers (NVOCCs)..

The IMB identifed that there is a prevalence of issuance of incorrect NVOCC bills of lading by the NVOCC which is then presented to banks and other stakeholders in the trading and finance chain, with the aim of defrauding the trade finance system, possibly for the purposes of multiple financing, money laundering, etc..

The IMB has developed a business solution to mitigate the effects of this problem..

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Mandarin and Blockchain come together for Lunar New Year 2019

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Previously we had reviewed how blockchain based smart bills of lading work in general and what smart bills of lading can do..

We also reported on news of shipping lines progressing to the next phase Blockchain initiatives..

Smart bills powered by blockchain seem to have arrived with more and more lines carrying out tests and succeeding in the same..

Pacific International Lines (“PIL”), the company founded by one of the Leaders and Visionaries in Shipping – Mr.Chang Yun Chung, became the latest shipping line to successfully use an electronic Bill of Lading (e-BL) built on the IBM Blockchain Platform for the shipment and tracking of Mandarins (a type of Orange) from China to Singapore to coincide with the Lunar New Year celebrations..

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India’s first blockchain enabled Letter of Credit transaction completed

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Blockchain – that newfangled concept seems to be catching on quickly and moving along quite nicely in the shipping and freight industry..

A Blockchain is a ledger that uses cryptography, the internet and naturally computers to create, share, transfer, track and secure assets and transactions (represented/organised as blocks) belonging to everyone to fulfil a certain function..

Unless the previous transaction is not completed in the chain and shared forward with a timestamp, the next transaction cannot happen..

In the first transaction of its kind in India, HSBC India and ING Bank Brussels have enabled, successfully executed and completed a full blockchain driven trade finance transaction between India’s Reliance Industries and USA’s Tricon Energy..

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Who is a notify party in a shipment and what is their role..??

Who is notify party

A Notify Party is one of the many parties involved in a shipment reflected in a Bill of Lading, forming an import part of the documentary process..

This article discusses the role of a Notify Party in a shipment and their importance..

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To Tare or not to Tare – Should the VGM match the Bill of Lading Weight..??

A burning question that is circulating currently in the container industry is whether the Tare Weight of a container should be included in the weight shown in the Bill of Lading or not and whether the SOLAS VGM should match the Bill of Lading weight..

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Role and responsibility of multiple notify parties

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If multiple notify parties are used on the bill of lading for a shipment, do they have a different role and responsibility..?? Are they similar or different..?? And what is the reason for multiple notify parties..??

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Relationship between Consignee and Notify Party

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Is there a relationship between consignee and notify party in a bill of lading..?? Simple enough question.. But the answer may not be as simple..

Read on to understand the various types of relationships between consignee and notify, whether contractual or not..

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Part Bill of Lading to the rescue..

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When answering my last post Question regarding cargo under Letter of Credit, I mentioned that part bills could be a solution for two shipments in a same container where part of the cargo is covered by L/C and the other part is not..

However, there are several criteria/requirement in order for the carrier to be able to issue Part Bills of Lading and for the customer to accept Part Bills of Lading for this particular scenario..

We will examine these criteria/requirements in this post..

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Received for Shipment – questions

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In this article, I talk about 3 questions received from a reader relating to Received for Shipment notation on a bill of lading..

1) Will a bank accept a bill of lading with a Received for Shipment notation or does a bill of lading have to be reissued with a Shipped on Board notation..
2) Is it normal that a received for shipment B/L shows the vessel name and voyage?
3) Is there any problem if the vessel name on which cargo is loaded is not the one appearing on the Received for shipment B/L?

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Importance of proper Freight notation in bill of lading

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There are several notations/clauses that are used in a bill of lading and one such important notation relates to “Freight”..

Freight maybe defined as the price that is charged by a transport operator to transport cargo from Point A to Point B as per a mutually agreed contract..

This article examines why this notation is important..

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Can there be multiple notify party in a bill of lading..??

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A Notify Party is merely someone that needs to be notified about the arrival of the cargo covered in the bill of lading.. The details of the notify party are provided by the entity that provides the shipping instruction to the shipping line.. They may or may not have any contractual relationship with the shipping line or the shipper..

But can there be multiple notify party in a bill of lading..??

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What is a short form/blank back bill of lading..??

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True to the nature of its business, the business of shipping and freight is a vast ocean covering many issues and areas which sometimes seems unfathomable..

A Bill of Lading is the most important document in this business and there are always several questions surrounding a bill of lading.. This article deals with one such type of bill of lading – Short form bill of lading..

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Will the Port of Loading change if my container is transhipped..??

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One of the processes in shipping is Transhipment.. This article clarifies a readers doubt whether the Port of Loading mentioned in the bill of lading will change if the container is transhipped..??

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Do I need all original bills of lading for an insurance claim..??

Can I lodge an insurance claim with an original bill of lading or do I need all original bills of lading..??

The trigger for this topic is a question that a reader Sandreen asked as below..

One of our shipments caught fire on transit. To get the Insurance claim I have to submit the full set of original B/Ls, but I have lost 2 original B/Ls.

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Story of a CIF contract and a Letter of Indemnity

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This is the Story of a CIF contract and a Letter of Indemnity..

Seller is delivering CIF to Chinese port. The contract has an LOI provision if the original bill of lading should be lost..

The buyer’s bank refuses to make payment without original BOL and will not accept LOI..

What happens next..??

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