Charter Party Bill of Lading

Charter Party Bill of Lading

Charter Party Bill of Lading

 

The Charter Party Bill of Lading is a bill of lading that is issued subject to the terms and conditions of a charter party. A Charter Party Bill of Lading is synonymous with commodity or bulk shipment cargoes. Charter party shipment is subject to the signing of a charter party contract between the owner of the vessel and the charterer (usually the applicant or the beneficiary, depending on the Incoterm that is used in the documentary credit).

In effect, the party chartering the vessel hires such a vessel in order to take its goods from port A to port B within a certain period of time. A charter party bill of lading (CPBL) to be acceptable under a documentary credit, the documentary credit must indicate that such a document is required or permitted.

The vehicles/goods are loaded and discharged according to the terms of the charter party bill of lading contract and, for this reason, some banks do not consider a charter party bill of lading as having the same level of security in the vehicle/goods as a conventional bill of lading, even if the document indicates that the goods are consigned or endorsed to its order. A bank is not concerned with, nor does it examine, a charter party bill of lading contract even if called for under a documentary credit.

 

what's the difference between Bill of Lading and Charter Party Bill of Lading

 

The 1st difference between the Bill of Lading and the Charter Party Bill of Lading is in who has issued the document. The Bills of lading are issued by the Carrier, who are usually owners of the vessels themselves. Charter Party Bill of Lading, on the other hand, are issued by charterers who have chartered the vessel under a Charter Party for either a specific voyage or for a certain period.

The other difference is in the negotiable nature of the instrument. Marine Bill of Lading is negotiable documents of title for the vehicle/goods shipped under them, used to retain control and transfer title. Charter Party Bill of Lading, do not serve this function fully, and there are circumstances when the holder or endorsee of a Charter Party Bill of Lading might still not have full title to the vehicle/goods. In the event of a dispute between the charterer and the owner, the latter retains the right to lay claim on the vessel and the vehicle/cargo upon it.

 

 

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