Who Should Endorse a Charter Party Bill of Lading?

 Introduction

When a charter party bill of lading (CPBL) is issued “to order”, the question of who should endorse it can become less straightforward when the shipper is described as acting “on behalf of” another party. ISBP 821, paragraph G12, provides specific guidance on this issue, and ICC Banking Commission Opinion TA944rev further clarifies the acceptability of an endorsement by the beneficiary in such circumstances.

Question

Dear Mr. Old Man,

I have a question that needs your expert opinion.

The L/C requires presentation of a charter party bill of lading (CPBL) made out “to order” and blank endorsed.

The presented CPBL shows:

Shipper: ABC on behalf of XYZ
(ABC is the Beneficiary and XYZ is the Applicant)

Consignee: To Order

Which party, ABC or XYZ, is eligible to endorse the CPBL?

Thank you.

NHK

______

 Answer

Dear NHK,

Thank you for your question.

According to ISBP 821, paragraph G12, when a charter party bill of lading is issued “to order” or “to order of the shipper,” it is to be endorsed by the shipper. An endorsement may be made by a named entity other than the shipper, provided the endorsement is made for or on behalf of the shipper.

In this case, the CPBL states:

Shipper: ABC on behalf of XYZ

Accordingly, the CPBL may be endorsed in any of the following manners:

ABC + signature/stamp

ABC on behalf of XYZ + signature/stamp

XYZ + signature/stamp

Therefore, both ABC and XYZ are eligible to endorse the CPBL.

This conclusion is also consistent with ICC Banking Commission Opinion TA944rev, which confirms that, in the circumstances considered by the Opinion, the blank endorsement could be made by either the named third party acting for the beneficiary or by the beneficiary itself.

Note: The above treatment applies specifically where a charter party bill of lading is used, in accordance with ISBP 821, paragraph G12.

Best regards,

Mr. Old Man