NVOCC register created and minimum standards set for the issuance of NVOCC Bills of Lading
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..
Mandarin and Blockchain come together for Lunar New Year 2019
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..
Who is a notify party in a shipment and what is their role..??
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..
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..
Role and responsibility of multiple notify parties
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..??
Relationship between Consignee and Notify Party
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..
Do banks verify if cargo is actually loaded on a ship..??
Do banks verify if cargo is actually loaded on a ship..??
Shippers who deal with documentary credit know that the term Shipped on Board carries quite a bit of weight and there is often a lot of discussions, disputes, rejections etc from the side of the bank if there is any discrepancy in the shipped on board clause or date or stamp or signature..
So one would naturally assume that the banks verify if the cargo covered in the bill of lading is actually loaded on board the ship or not..
Part Bill of Lading to the rescue..
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..
UPDATE to – Question regarding cargo under Letter of Credit
In my last post, I posed a question on behalf of a reader about the possibility of two cargoes being shipped under one bill of lading where one cargo is covered under Letter of Credit and other cargo is not..
Should the carrier issue two bills of lading..?? Or is mentioning in the same B/L the goods under L/C and goods that aren’t is enough..??
This post is an update where I have discussed the answer to the above question..
Question regarding cargo under Letter of Credit
What happens if the exporter would like to send in the same container goods covered by L/C in addition to some other goods.
Should the carrier issue two bills of lading..?? Or is mentioning in the same B/L the goods under L/C and goods that aren’t is enough..??