Sự cố chữ nghĩa: “Cựu người học” Sáng nay một người bạn gửi cho Mr. Old Man tấm ảnh backdrop kỷ niệm 40 năm của Trường Đại học Ngoại ngữ – ĐH Đà Nẵng, với dòng chữ nổi bật: “Ngày hội cựu người học”. Cụm từ “cựu người học” nghe thiệt lạ tai. Ngại dính tin pha-ke trên mang, Mr. Old Man nhờ ChatGPT kiểm tra lại … Read More
Where the Applicant Goes Bankrupt Bankruptcy of an LC applicant is one of those nightmare scenarios that beneficiaries and banks alike worry about. Does the issuing bank still have to pay if the applicant collapses before documents arrive? And if so, how can the bank protect itself? Let’s look at a real question I received and my response. __________ QUESTION Dear Mr. Old Man, First … Read More
Switch Bills of Lading: Issue Date vs. On-Board Date under UCP 600 In documentary credit practice, questions often arise about the relationship between the bill of lading issue date and the on-board date—especially in cases involving switch bills of lading and high-seas sales. Can the two dates differ significantly, and if so, what do UCP 600 and ISBP 821 say about it? QUESTION Dear Mr. Old Man, May I seek your opinion … Read More
Revolving Letters of Credit: Key Considerations and Hidden Risks Revolving letters of credit (RLCs) sound attractive for handling multiple shipments under one instrument. In theory, they save time and paperwork; in practice, they raise complex issues for both banks and traders. Before opening an RLC, it’s worth understanding how they work, the key points to watch out for, and why they are rarely used today. _______ QUESTION What are … Read More
NGHỈ HƯU CŨNG CÓ CÁI ĐỂ KHOE (English version below) Mr. Old Man “về vườn” đã hơn 4 năm, giờ thành tỷ phú thời gian nên ngày nào cũng lai rai một bài trên www.mroldman.net – MR. OLD MAN – For Those Who Eat, Sleep and Breathe Letters of Credit & Cycling. Đạp xe đường dài thì không còn nữa, nhưng bù lại, các bài viết và Q&A … Read More
Why Would a Buyer Prefer an LC While a Seller Prefers an SBLC? When it comes to trade finance, one of the recurring debates is whether to use a commercial Letter of Credit (LC) or a Standby Letter of Credit (SBLC). At first glance they may look similar, but in practice buyers and sellers have very different preferences. Buyers lean toward LCs, while sellers often push for SBLCs. The reasons lie in how … Read More
FOB, CFR, CIF vs. Container Shipments: Why Theory and Practice Don’t Always Match Intro One of the recurring debates in Incoterms is whether FOB, CFR and CIF should ever be used for containerized shipments. The theory says “no,” but in practice, traders and banks keep using them every day without issue. Let’s look at why the theory clashes with practice, and what happens with FCL and LCL cargoes. _________ Question One of the … Read More
Why Is an Air Waybill Non-Negotiable While a Bill of Lading Can Be Negotiable? In trade finance, one of the most common questions is why an Air Waybill (AWB) is always non-negotiable, while a Bill of Lading (BL) can be either negotiable or non-negotiable. The answer lies in the legal nature of the documents and the rights they confer. QUESTION Thanks for your valuable trade related write up. I’m from Pakistan I need your … Read More
Should an Issuing Bank Require a Master Bill of Lading? In practice, many banks and traders get confused between the Master Bill of Lading (MBL) and the House Bill of Lading (HBL). The question is: should an issuing bank insist on receiving an MBL under a Letter of Credit? QUESTION Thanks for your valuable trade related write up. I’m from Pakistan I need your answer to the following question: Why … Read More
Expired Letters of Credit When Banks Shut Down Due to Force Majeure: To Pay or to Refuse? An Analysis of Article 36 UCP 600 from a Real-Life Disaster Mr. Old Man _____ In international trade, the letter of credit (L/C) is often regarded as the “backbone” of transactions because of its ability to safeguard the interests of both the seller and the issuing bank. However, in practice, things do not always run smoothly. When the issuing bank … Read More