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 …

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 …

(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 …

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 …

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 …

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 …

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 …

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 …

One of the recurring issues in LC operations is how to handle insurance documents that contain both the phrase “irrespective of percentage” and a deductible clause. Traders often assume the “irrespective of percentage” wording will override the deductible, but under UCP 600 and ISBP 821, the story is different. Let’s look at a real case. __________ QUESTION Dear Mr. Old …

Chiều nay, trong một vòng đạp xe lang thang cùng anh bạn hàng xóm Jecours et Jepense, Mr. Old Man tình cờ ghé lại đường bích họa Hồ Nguyên Trừng. Và thật sự bất ngờ: con đường từng được báo chí ca ngợi là một trong những điểm nhấn bích họa đẹp nhất Đà Nẵng nay đã xuống cấp, nhếch …