Bill of Lading

Can somebody explain more simple the article 20c under UCP600, because is a little confusing to me the paragraph ii.

 Thanks in advance!

Merita

art 20 c ii

Hi friend, art 20 c ii states:

A bill of lading indicating that transhipment will or may take place is acceptable, even if the credit prohibits transhipment, if the goods have been shipped in a container, trailer or LASH barges as evidenced by the bill of lading.

Commentary 601 clarifies:

Sub-article (c ii) recognizes the shipping industry practice that transhipment often occurs when goods are shipped in containers, trailers or LASH barges by statiung that this is allowed even if prohib ited by the documentary credit.

The only way that an applicant can completely prohibit transshipment would be to state that transhipment is prohibited and that sub-article 20 (c ii) is not applicable or is excluded.

 

My opinion, if a carrier engage itself to transport goods, by signing a bill of lading, it is indifferent if the goods in container, will be transhipped  or not. Only  goods in bulk have problems when transhipped. Moreover , I dare say, that transhipment can be allowed when covered by the insurance document, provided by seller in CIF terms or the like, or effected by buyer in FOB terms or similar.

However the fact that the goods are packed in a container or in a trailer or in a barge, all the transport legs included in one bill of lading, means that are under carrier liability.

At disposal

Ciao

transhipment

The fact that article in question permits transhipment when goods are transported in container it  is perfectly normal as not the goods are effectively transhipped but only the means of carriage which in this case is the container. Therefore is not a movement of the goods which can suffer damages can be partly lost or the like.