Slot Carrier vs. Actual Carrier on a Bill of Lading – Is It a Discrepancy Under UCP 600?

Introduction

With the increasing use of slot charter arrangements in container shipping, bills of lading often contain references to both a slot carrier and an actual (operating) carrier, together with different bill of lading numbers. This can create uncertainty for document examiners.

In this Q&A, Mr. Old Man explains what a slot carrier is and whether a difference between the slot carrier details and the actual carrier details constitutes a discrepancy under UCP 600.

Question

Dear Mr. Old Man,

I came across a bill of lading that evidenced a Slot Carrier and a Slot B/L Number.

What is the meaning of a Slot Carrier?

If the Slot Carrier and Slot B/L Number differ from the actual Carrier and the Bill of Lading Number shown on the bill of lading, should a discrepancy be raised?

Best regards,

Priya

_______

Answer

Dear Priya,

Thank you for your question.

What is a Slot Carrier?

A slot carrier is a carrier that has purchased or chartered container slots (space) on a vessel operated by another carrier. In other words, the slot carrier markets and sells the transport service but does not operate the vessel itself. The vessel is operated by the actual (operating) carrier, while the slot carrier has the right to use a specified amount of cargo space under a slot charter agreement.

If the Slot Carrier and Slot B/L Number differ from the actual Carrier and the Bill of Lading Number, should a discrepancy be raised?

It is common for a bill of lading issued under a slot charter arrangement to show both the slot carrier and the actual carrier, together with separate bill of lading numbers associated with each.

If the letter of credit simply requires the presentation of a bill of lading and does not specify a particular carrier or bill of lading number, no discrepancy should be raised merely because the slot carrier and slot B/L number shown in the body of the bill of lading differ from the carrier who signed the bill of lading and the bill of lading number.

Such differences are normal in slot charter arrangements and, by themselves, do not constitute a discrepancy under UCP 600. A discrepancy would arise only if the bill of lading failed to comply with the applicable requirements of UCP 600 or with a specific requirement of the letter of credit.

I hope the above clarifies your question.

Best regards,

Mr. Old Man