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  SWQ_82
5
.5.2008
FCL/FCL and part cargo
  Question: Name: Sheilar

We (as a presenting bank) come across a B/L complying the requirements of UCP600 Art.20 and terms of the LC as well, except the following particulars shown on its face:

  • one of three cargoes in container no.xxx
  • service type: FCL/FCL

Is this a discrepancy based on ISBP 681 Para.114?

Thank you

 

 
  Answer (from Kim Christensen)

Dear Sheilar,

One should see the whole document before make any statement on such issue – as there may in fact be many “variables”.

However based alone on the information given:

The “code” FCL/FCL indicates the movement of the goods – i.e. how it is delivered by the shipper to the carrier – and how it is subsequently delivered to the consignee.

The code in front of the dash shows how the goods are delivered to the carrier by the shipper - and the code after the dash shows how the goods are delivered to the consignee by the carrier.

There are two different codes used in the industry:

FCL: Full Container Load

LCL: Less that Container Load

This provides 4 different combinations of movements:

LCL/LCL:

Shipper delivers the goods to the carrier as General Cargo (as separate packages).

Carrier releases the goods to the consignee as General Cargo (as separate packages).

With this combination, it is the carrier/shipping line that loads and unloads the container - often together with goods from other shippers to other consignees (Consolidated cargo).

 

LCL/FCL:

Shipper delivers the goods to the carrier as General Cargo (as separate packages), Carrier releases the goods to the consignee in one full container.

This combination may for example be used where the consignee has several suppliers in the same country. Each supplier delivers their part to the carrier, who stuffs the container and ships it on to the consignee. The consignee then collects the whole container – and strips it himself.

 

FCL/FCL:

Shipper delivers the goods to the carrier in one full container (usually the carrier's container). Carrier releases the goods to the consignee in one full container.

The container is loaded by the shipper and stripped by the consignee.

 

FCL/LCL:

Shipper delivers the goods in one full container. Carrier releases the goods to the consignee as General Cargo (as separate packages).

This combination may for example be used where the consignee is unable to handle full containers - or where the shipper has several customers in one country.

 

For the combination in this question (FCL/FCL) it means that the container is moved as one box from the shipper to the consignee – without the shipping line at any point opens the container (it is sealed by the shipper). Therefore the shipping line will only release the full container – after having received the bill(s) of lading issued.

Consequently – if it ALSO appears from the bill of lading that the goods covered by the bill of lading is only one of three parts in the container – then the two other sets of bills of lading is required before the shipping line will release the full container to the consignee.

The bill of lading would therefore be discrepant as per ISBP (2007) paragraph 114.

Note that usually the bill of lading will be more clear than the above - e.g. saying:

Container XXXC123456-7 is covered by B/L No. 001 and 002, and can only be released to a single merchant upon presentation of all BS/L of that merchant

Best regards

Kim Christensen