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.

What is the difference between a bill of lading which is signed as carrier and as agent of the carrier?

A bill of lading could be signed by one of the entities stated below:
  • the carrier or 
  • an agent of the carrier or 
  • the master or 
  • an agent of the master or 
  • a freight forwarder.
The party that has signed the bill of lading must indicate its signing capacity.

For example, if the carrier has signed the bill of lading, then it must be indicated on the bill of lading (B/L) that it has been signed by the carrier.


Likewise if the master has signed the bill of lading, then it must be indicated on the bill of lading that it has been signed by the master.