Voyage Charter Party

I have written couple of articles regarding charter party contracts and charter party bills of lading so far on my website such as what is a charter party bill of lading?, is it possible to submit a charter party bill of lading instead of a marine bill of lading under a letter of credit payment? and who can sign a charter party bill of lading as per UCP 600? and time charter parties.

Today I would like to explain voyage charter party contracts.

Voyage charter party is a type of charter party contract, which is used in maritime industry when chartering bulk cargo vessels for carriage of specific cargo within a pre-determined route.

Other charter party contract types are known as bareboat charter and time charter.


Time Charter Party


Today I would like to explain time charter party contracts. 

Time charter party is a type of charter party contract, which is used in maritime industry when chartering bulk cargo vessels for a specific period of time.  


Other charter party contract types are known as bareboat charter and voyage charter.

Why banks do not like FBL and CPBL?

FBL is the short form of Freight Forwarder Bill of Lading or Forwarder's Bill of Lading and CPBL is the short form of Charter Party Bill of Lading.

Banks, especially in letter of credit transactions, do not accept presentation of a FBL instead of a marine bill of lading, unless FBL is signed by the freight forwarder "as carrier" or "as agent on behalf of the carrier"or else presentation of FBL expressly permitted in the letter of credit.

Likewise a CPBL can only be acceptable if letter of credit requests presentation of a Charter Party Bill of Lading.

Today I would like to explain why banks do not accept CPBL or FBL instead of bill of lading.

Who can sign a charter party bill of lading as per UCP 600?

Letter of credit rules give special attention to transport documents.

If you read the latest version of letter of credit rules, UCP 600, you will realize that all transport documents have been specified in very detail.

UCP 600 rules define by whom each transport document must be signed in order be acceptable under letter of credit transactions.

For example UCP 600 article 20 states that a bill of lading, however named, must appear to indicate the name of the carrier and be signed by the carrier or a named agent for or on behalf of the carrier, or the master or a named agent for or on behalf of the master.


Today I would like to explain by whom a charter party bill of lading should be signed as per UCP 600?

Is it possible to submit a charter party bill of lading instead of a marine bill of lading under a letter of credit payment?

Letter of credit rules define different types of bills of lading.

Multimodal bill of lading, marine bill of lading, non-negotiable bill of lading and charter party bill of lading are different types of bills of lading, which have been defined by UCP 600.

Please keep in mind that UCP 600 is the latest and current version of L/C rules.

Exporters and importers as well as bank personnel should understand the details of letter of credit rules very well, otherwise they make costly mistakes.

Today I would like to explain whether a charter party bill of lading can be presented instead of a marine bill of lading under letter of credit transactions.


What is a charter party bill of lading?

International sea freight transportation can be divided into two main categories:

Containerized cargo shipping and dry bulk cargo shipping.

Containerized shipping deals with relatively small scale cargo shipments.

Electronic goods, processed packed foods, textiles, mobile phones, furniture and almost every manufactured products are examples of typical goods that can be carried by container vessels.

Shippers of the containerized cargo receive ocean bills of lading as a transport document from the container vessel carriers.
Bulk shipping deals with huge cargo shipments.

Coal, sugar, timber, copper, iron ore, chemicals are the main examples of goods that can be carried by bulk vessels.

Shippers of the bulk cargo receive charter party bills of lading as a transport document from the owners or charterers of the break bulk vessels.

Today I would like to explain the core elements of a charter party bill of lading.