Mr. Old Man answers a student’s question on transferable L/C practice  Transferable credits often create tricky situations – especially when documents are presented by a second beneficiary under a transferred LC. Recently, a student wrote to Mr. Old Man about a practical scenario involving discrepancies in the  second beneficiary’s presentation  and the role of the transferring bank. Below is the …

In practice, many Bills of Lading start out negotiable — issued “to order” — but later become straight when a bank or shipper endorses them to a named consignee. This often raises an important question:  Can the named consignee endorse the bill onward to a new buyer, or must they authorize that new buyer directly?  Let’s look at a real-life …

A practical Q&A with Mr. Old Man Intro In trade finance, insurance documents often come with wording that looks simple but can cause uncertainty at the time of document examination. Priya recently wrote to ask about two common issues: the meaning of an insurance “attaching after” cut-off date, and whether the signer’s capacity must be explicitly identified. Let’s take a …

A Practical Q&A with Mr. Old Man In trade finance, additional charges shown on a bill of lading often cause unnecessary anxiety—especially under CIF/CIP terms where the line between commercial responsibility and LC compliance can get blurry. In today’s question, Julia raises a common concern: does the notation “Destination Haulage Charge Collect” create a discrepancy? Let’s break it down. Question …

INTRO Every now and then, a single word in UCP 600 sparks an entire chain of questions. This time, it’s the word “commencing” in Article 31(b)—a term that often confuses practitioners when multiple bills of lading, pre-carriage, transshipment, and partial shipments are involved. Below is my detailed response to a reader’s excellent set of questions on how Article 31(b) interacts …

Alfred recently raised two excellent questions on port flexibility in LCs and the meaning of multiple on-board dates under ISBP. Here is a quick breakdown for practitioners: “Any port in Vietnam” — one port or multiple? When an LC states “shipment from any port in Vietnam”, the BL must show one specific port of loading (e.g., Hai Phong Port). It …

Every now and then, Mr. Old Man receives a question that quietly whispers: “Somebody drafted this LC on a Friday afternoon…” Today’s case is one of those — when the LC includes all four routing fields (44A, 44E, 44F, 44B) but still requires an Air Waybill. Let’s untangle the knot. QUESTION Dear Sir, Under airfreight with EXW – Seller’s Factory …

Intro Under a port-to-port LC (fields 44E and 44F), the bank expects a marine bill of lading that evidences shipment on board the ocean-going vessel performing the voyage from the stated port of loading to the stated port of discharge. In practice, many BLs also show a pre-carriage or feeder vessel, and this sometimes leads to an on-board notation being …

INTRO Every now and then, Mr. Old Man receives a question that perfectly illustrates how easily a clean, compliant LC presentation can get tangled when buyers panic—usually when prices fall. And very often, someone in the chain suddenly “investigates” and claims the vessel sailed late… even though the Bill of Lading says otherwise.  So here’s a real case from India …

INTRO Understanding sub-article 30(c) of UCP 600 can be tricky, especially when an LC specifies a fixed quantity and unit price. Many practitioners wonder how the credit amount can be reduced without causing a discrepancy. In this Q&A, Mr. Old Man clarifies the purpose of the 5% tolerance rule and illustrates it with a practical CIF example. QUESTION Dear Mr. …