Loose Container on a Bill of Lading – Discrepancy or Not?

Intro:

Every so often, LC practitioners stumble upon shipping terms that spark debate. One such term is “Loose Container”—often seen on draft or final Bills of Lading. Does it simply describe the cargo, or does it trigger a discrepancy under an LC? Let’s look at a real query from PSP and unpack the answer.

QUESTION

Dear Mr. Old Man,

Could you please explain what is meant by “Loose Container”?

I encountered a case where the draft BL showed “Loose Container,” and the final BL also mentioned both “Loose Container” as well as the container number and size. We did not consider this a discrepancy, but the client insisted that it was.

Can you clarify:

1. What exactly does “Loose Container” mean?
2. If the BL shows “Loose Container” together with container number and size, should it be treated as a discrepancy?

Regards,

PSP

_______

ANSWER

Hi PSP,

I’m on my way to an event, so here’s a quick reply:

“Loose container” generally refers to LCL cargo (Less than Container Load) or cargo placed inside a container without pallets or special packing.

If the BL already states the container number and size, the addition of “loose container” is not a discrepancy—unless the LC specifically requires FCL shipment or expressly prohibits such wording.

Best regards,

Mr. Old Man