Non-Negotiable Sea Waybill

-
A non-negotiable sea waybill is a transport document covering port-to-port shipments. It is not a title document, is not negotiable and cannot be endorsed.

A complete non-negotiable sea waybill contains the following elements:
  1. Name of the carrier with a signature identified as that of carrier, or ship's master, or agent or on behalf of either the carrier or the ship's master
  2. An indication or notation that the goods have been loaded on board or shipped on a named vessel. also, the date of issuance or date of loading
  3. An indication of the port of loading and the port of discharge as specified in the original sales contract or documentary credit
  4. A sole original or if issued in multiple originals, the full set of originals
  5. The terms and conditions of carriage or a reference to the terms and conditions of carriage in another source or document
  6. In a documentary letter of credit, no indication that the document is subject to a charter party and/or an indication that the named vessel is propelled by sail only
  7. Meets any other stipulation of the sales contract or documentary credit
Cautions and Notes for Documentary Letters of Credit

If the document includes the notation "intended vessel", it must also contain an "on board" notation of a named vessel along with the date of loading, even if the named vessel is the same as the intended vessel.

If the document indicates a place where the goods were received by the carrier different from the port of loading, the document must also contain an "on board" notation indicating the port of loading as named in the documentary letter of credit and the named vessel along with the date.

If the documentary credit calls for a port-to-port shipment but does not call specifically for a marine bill of lading, the banks will accept a transport document, however named, that contains the above information. Banks will normally accept the following the following documents under this title: ocean bill of lading, combined transport bill of lading, short form bill of lading or received for shipment bill of lading, provided that it carries the notation "on board" in it.

Because they are not title documents, sea waybills eliminate many  of the inconveniences of a bill of lading and offer advantages in situations where the rigid security of a bill of lading is not required. Waybills reduce the opportunity for fraud, although they do not by any means eliminate it and they remove the problems of goods arriving ahead of documents (because they travel with the goods).

Sea waybills are appropriate for shipments between associated companies, for shipments to an agent for sale at destination on an open account basis and for shipments between companies that have established mutual trust.

Popular posts from this blog

Definition, nature and purpose of a Documentary Credit

-
Article 2 of the Uniform Custom and Practice for Documentary Credit defines a documentary credit as: "For the purpose of these articles, the expression documentary credits and standby letters of credit (hereinafter referred to as credits ) means any arrangements, however named or described, whereby a bank (the issuing bank) acting on request and on the instructions of a customer (the applicant) or on its own behalf: is to make a payment to or to the order of a third party (the beneficiary) or is to accept and pay bills of exchange (drafts) drawn by the beneficiary, or, authorizes another the bank to effect such payment or to accept and pay such bills of exchange (drafts) or, authorizes another bank to negotiate, against stipulated documents, provided that the terms and conditions of the credit are adhered with". In a layman language, a documentary credit may be describe as a legal undertaking in writing. It is issued by the customer's bank (also known as the issuing ba
Read more

Bills of Lading

-
Image
A bill of lading is a document issued by a carrier to a shipper, signed by the captain, agent or owner of a vessel, furnishing written evidence regarding receipt of the cargo, the conditions on which transportation is made (contract of carriage) and the engagement to deliver goods as the prescribed port of destination to the lawful holder of the bill of lading. A bill of lading is, therefore both a receipt for the merchandise and a contract to deliver it as freight. There are a number of different types of bill of lading a number of issues that relate to them as a group of documents. Straight Bill of Lading (Non-Negotiable) A straight bill of lading indicates that the shipper will deliver the goods to the consignee. The document itself does not give title to the goods (making it non-negotiable). The consignee need only to identify himself to claim the goods. A straight bill of lading is often used when payment for the goods has already been made in advance or in cases where
Read more

Various Basic Shipping Charges on Landside and Waterside

-
Landside Stevedoring - cargo handling charges for loading / discharging cargo on / from conventional breakbulk vessels. LCL Service Charge - charge for stuffing and unstuffing LCL (Less than Container Load) cargo into or from a container at the freight station. Equipment Transfer Charge (ETC) - charge for lifting an empty or loaded container onto / from the trailer. Also called Lift-on / Lift-off (LOLO) charge. This charge is applicable on FCL (Full Container Load) containers only. Terminal Handling Charge (THC) - charge for handling (receiving and delivering) FCL containers at the container yard (CY). Waterside Bunker Adjustment Factor (BAF) - surcharge for offsetting changes in fuel prices. Congestion Surcharge - surcharge levied on cargo that are discharge at a port where ships are experiencing delays in turnaround time. Currency Adjustment Factor (CAF) - surcharge for offsetting fluctuations in currency exchange rates of various currencies against the US Dollar. In Asia and Japan t
Read more