CHARTER PARTY BILL OF LADING INDICATES RANGE OF PORTS AS PORT OF DISCHARGE

Hi,

It is a discrepancy if the presented transport document is an ocean bill of lading. According to ISBP 745 E10, when L/C indicates a geographical area or range of ports of discharge, a bill of lading is to indicate the actual port of discharge, which is to be within that geographical area or range of ports.

However, it is not a discrepancy if the presented transport document is a charter party bill of lading. According to ISBP 745 G9, when L/C indicates a geographical area or range of ports of discharge, a charter party bill of lading may indicate the actual port of discharge, which is to be within that geographical area or range of ports or it may show the geographical area or range of ports of discharge as the port of discharge.

Since the L/C in question allows presentation of charter party bills of lading and the presented charter party bills of lading showing PHU MY PORT OR CAI MEP PORT OR HO CHI MINH PORT as the port of discharge are acceptable as per ISBP 745 G9.

ICC Opinion R281 explains the reason why a charter party bill of lading may the geographical area or range of ports of discharge as the port of discharge as follows:

With a charter party, the nature of the contract of carriage is not so clear-cut, since it is known that a charter party may well be concluded on the basis of the cargo being taken to a geographical area (rather than a specified port). When the buyers and sellers have not, at the time, decided upon the actual port, the ship will carry the cargo on a “for orders” basis, i.e. the master/owners will be notified in due course as to the port to which delivery should be made.

Kind regards,
Mr. Old Man