WHERE A CPBL IS SIGNED BY AN AGENT FOR [OR ON BEHALF OF] THE MASTER

QUESTION

Dear Mr. Old Man,

A CPBL is signed as follows:

AS AGENT FOR AND ON BEHALF OF THE MASTER

(Signature)

————————
UNION MARINE INC

We, the issuing bank, refused the documents stating the discrepancy “CPBL not indicating the name of the charterer or owner”. However, the negotiating bank rejected the discrepancy stating that the CPBL signed by Union Marine Inc for and on behalf of the master complies with UCP Article 22 as well as with ISBP para 118(b).

For your easy reference, I quote here ISBP para 118(b):

If an agent signs the charter party bill of lading on behalf of the master (captain), charterer or owner, the agent must be identified as agent of the master (captain), charterer or owner. In this event, the name of the master (captain) need not be stated, but the name of the charterer or owner must appear.

The last sentence of the above paragraph makes me understand that a CPBL must state the name of the charterer or the owner irrespective of whether or not it is signed by an agent for and on behalf of the charterer or the owner.

Please tell me whether what I understand is correct or not?

Thanks and best regards,

TM
——

ANSWER

Hi,

I’ m sorry to say that your understanding of ISBP para 118(b) is not correct. However, it’s not your fault but the fault of the ISBP Drafting Group. It is true that the last sentence of ISBP para 118(b) is not clear enough. There must have been others understanding it the same as you.

It seems that the ISBP Drafting Group is trying to overcome the ambiguity of this paragraph by rewriting it in the new ISBP 745 as follows:

QUOTE
c. When an agent signs a charter party bill of lading for [or on behalf of] the master (captain), owner or charterer, the agent is to be named and, in addition, to indicate that it is signing as agent for [or on behalf of] the master (captain), owner or charterer as the case may be.

i. When a charter party bill of lading is signed by an agent for [or on behalf of] the master (captain), the name of the master (captain) need not be stated.

ii. When a charter party bill of lading is signed by an agent for [or on behalf of] the owner or charterer, the name of the owner or charterer is to be stated.
UNQUOTE

The above rewritten paragraph is too clear to be misunderstood.

Back to your case. The negotiating bank’s rejection is valid.

Kind regards,
Mr. Old Man