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?

What does cy/cy mean on a bill of lading?

Bill of lading, which is a transport document evidences receipt of cargo, contract of carriage and represents title of goods, is mostly used in international port-to-port sea shipments.

A bill of lading should normally state the port of loading and port of discharge.

Port of loading is the place where the goods are shipped on board a vessel. Port of discharge is the place where the vessel is off-loaded and the goods are distributed to their respective consignees.

Some bills of lading contain "cy/cy" term in addition to port of loading and port of discharge.

Today I would like to explain the meaning of "cy/cy" term as seen on the bills of lading.

What is a container number?

If you are not dealing with a fraudulent transaction, you should be able to identify corresponding container number/numbers on the bill of lading as an importer.

But what is a container number? What are the benefits of using a container number in international sea transportation? How to check a container number in order to make sure that the container number is valid and correct? 

On this article I will try to answer these questions. Let us start with the definition of the container number.

What is Standard Carrier Alpha Code (SCAC)?

As an exporter or importer you should have seen SCAC codes on the bills of lading. 

On this article I will try to explain the meaning of SCAC codes. 

After reading this page you should understand the key aspects of SCAC codes in international transportation.

What is SCAC?

SCAC is the abbreviation that stands for Standard Carrier Alpha Code. 

Standard Carrier Alpha Code is a specific code used to identify transportation companies such as freight container carriers and forwarders.

Each transportation company has its own Standard Carrier Alpha Code.

What does “Said to Contain” (STC) mean on a bill of lading?

Said to contain means that the shipper that has loaded the goods into the container has done his best to make sure that the goods which are loaded into the container are matching the description of goods stated on the bill of lading in a containerized shipment. 

Because of the fact that carriers could not know exactly what would have been loaded into the containers, they add this expression on the face of the bills of lading that they have issued in order to protect themselves.

A carrier or a forwarder has no knowledge of the contents of the container unless the container is stuffed by the carrier, forwarder or their agents. 

The shipper that has loaded the goods into the container should take necessary steps to ascertain the contents of the container.

"Said to Contain" or “STC” generally added to the description of the goods on the bill of lading. 

This term means that the content of a sealed container received by the carrier as is without any additions. 

What are the differences between carriers and freight forwarders?

Definition of Carrier in International Conventions:

Global sea cargo transportation is governed by international conventions.

The first convention signed in international scale related to international sea transportation is known as "Hague Rules".

The full name of this convention is "International Convention for the Unification of Certain Rules of Law relating to Bills of Lading and Protocol of Signature".

Hague Rules drafted in Brussels on 25 August 1924 and defines the carrier as follows:

"Carrier" includes the owner or the charterer who enters into a contract of carriage with a shipper.