WHETHER A CONGENBILL IS A CHARTER PARTY BILL OF LADING

 Intro

In LC practice, confusion between liner bills of lading and charter party bills of lading is still very common.

Things become even messier when an LC specifically names a Congenbill form but does not explicitly say: “Charter Party Bill of Lading acceptable.”

Does that omission automatically mean that only an ocean (liner) bill of lading is allowed?

The following real-life question is a good illustration of how LC clauses must be read together, not in isolation.

QUESTION

Dear Sir,

Good day to you.

I have a case with the LC stipulating the following:

F46A:

FULL SET OF 3/3 ORIGINAL BILLS OF LADING PLUS 1 NON-NEGOTIABLE COPY, MARKED FREIGHT PREPAID, ISSUED ON CONGENBILL 1978 OR 1994 FORM ONLY, ISSUED TO THE ORDER OF: …

F47A:

CHARTER PARTY BILL OF LADING TO INDICATE:

“THIS B/L IS TO CONSTITUTE CONCLUSIVE EVIDENCE OF THE NUMBER OF COILS SHIPPED ON BOARD”

My advising bank informs us that if the LC does not mention “CHARTER PARTY BILL OF LADING ACCEPTABLE”, then we must present an ocean (liner) bill of lading.

In this case, since the LC requires Congenbill 1978 or 1994, the advising bank says we need to ask the issuing bank to confirm whether a charter party bill of lading is acceptable.

May I ask:

1. Is Congenbill 1978 or 1994 a kind of charter party bill of lading?
2. Is the advising bank correct in saying that an ocean bill of lading must be presented if the LC does not explicitly state “Charter Party Bill of Lading acceptable”?

Thank you.

Best regards,

T.

________

ANSWER

Hi,

1. Yes. Congenbill is a type of charter party bill of lading.

Congenbill (1978, 1994 and later versions such as 2022) is a standard bill of lading form designed for use with charter party shipments, issued and approved by BIMCO.

By its very nature, a bill of lading issued on a Congenbill form is a charter party bill of lading, even if the underlying charter party itself is not presented.

2. The advising bank’s interpretation is not correct in this case.

The LC must be read as a whole. Here:

• Field 46A expressly requires bills of lading to be issued on Congenbill 1978 or 1994 form only; and
• Field 47A explicitly refers to a charter party bill of lading and imposes an additional statement to be shown on the B/L.

Taken together, these clauses clearly demonstrate the issuing bank’s intention to require charter party bills of lading, not liner (ocean) bills of lading.

Therefore, there is no need for the LC to additionally state the clause “Charter Party Bill of Lading acceptable”, because the requirement is already clear from:

• the mandatory use of the Congenbill form, and
• the wording in Field 47A.

Asking the issuing bank for further confirmation in this situation is unnecessary and may even cause avoidable delays.

Best regards,

Mr. Old Man