Discharging without BL
This is a very common request from charterer in commercial and often entertained with proper protocol.
Why charterer makes such request:
Because the original B/L might not be reached before start of the discharge .
Steps to take for such cases:
- One thing you need to be clear that the release of goods without B/L against is commonly practice because it is legally valid as owner not changing any representation of goods. But it does not mean you can always do anything by taking an LOI. For example issueing clean BL against LOI when the cargo is defected or issueing predated BL which are fraudulant activity therefore consignee may sue the carrier for damage despite LOI because that may not be legally enforceable.
- Take properly worded LOI from the charterer in consultantion with owners P&I. Although such situations are not covered by insurance but having expertise it is good practice to have the wordings vetted by P&I.
- The LOI should ideally be fully guaranteed by a reputable bank. The indemnity is held by port agent on shipowner’s behalf and eventually exchanged for the original BL
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The LOI must not contain any value or time limitation clause because delivering cargo to a wrong receiver is a fundamental breach of a contract not limited to the BL instead tort liabilities may arise for the carrier. If later a receiver with original BL appears that might be case for wrongful delivery where carrier or owner might be liable, hence the wording is very important.
Important points for answer
Points to be included in the answer are difference with fraudalent activities (ie issuing Clean BL, predated BL), understanding of LOI, who holds it , when it is realeased.
November 2, 2026
November 2, 2026
November 2, 2026
November 2, 2026
