WHY TRANSSHIPMENT IS ALLOWED FOR GOODS SHIPPED IN A CONTAINER, TRAILER, OR LASH BARGE

QUESTION

Hello Sir,

I hope you are doing well.

Sir, I have a query that I hope you can help me with.

Sub-article 20 (c) (ii) of UCP 600 allows transshipment if goods are shipped in a container, trailer, or LASH barge. Why is transshipment permitted in these cases?

Regards,

Ahtisham Ali

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ANSWER

Hello,

In my understanding, it is a common practice in sea transport that container ships, due to their large size, often cannot call at smaller ports and are typically limited to designated container hubs. Therefore, goods shipped in a container, trailer, or LASH barge from smaller ports may need to be transshipped to a larger container vessel at a central hub for further transport to the final destination.

Conversely, containers may also be offloaded from a large container vessel and transshipped onto a smaller vessel to reach a destination port not serviced by the larger ship.

This transshipment process is an inherent and widely accepted part of modern sea transport logistics.

For this reason, UCP 600 sub-article 20 (c) (ii) clearly provides that a bill of lading indicating that transshipment will or may occur is acceptable—even if the credit prohibits transshipment—provided the goods are shipped in a container, trailer, or LASH barge, as stated in the bill of lading.

Best regards,

Mr. Old Man