Explanation of UCP600 Article 21 with Examples
Clause a(i):
Clause: A non-negotiable sea waybill, however named, must appear to indicate the name of the carrier and be signed by:
- the carrier or a named agent for or on behalf of the carrier, or
- the master or a named agent for or on behalf of the master.
Any signature by the carrier, master, or agent must be identified as that of the carrier, master, or agent. Any signature by an agent must indicate whether the agent has signed for or on behalf of the carrier or for or on behalf of the master.
Explanation: The sea waybill must clearly show the name of the carrier and be signed by an authorized person. The signature can be from the carrier directly, the ship’s master, or an agent authorized by either the carrier or the master. The role of the signatory must be clearly stated.
Example:
- A sea waybill shows the carrier as “ABC Shipping Co.” and is signed by “John Doe, Agent for ABC Shipping Co.”
- A sea waybill shows the carrier as “ABC Shipping Co.” and is signed by “ABC Shipping Co.”
- A sea waybill shows the carrier as “XYZ Maritime” and is signed by “Jane Smith, Master of MV Oceanic.”
Clause a(ii):
Clause: The sea waybill must indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit by:
- pre-printed wording, or
- an on board notation indicating the date on which the goods have been shipped on board.
The date of issuance of the sea waybill will be deemed to be the date of shipment unless the sea waybill contains an on board notation indicating the date of shipment, in which case the date stated in the on board notation will be deemed to be the date of shipment.
Explanation: The sea waybill must confirm that the goods are on board a specific vessel at the designated port. This can be indicated through pre-printed text or a specific on board notation. The shipment date is typically the issuance date unless a separate onboard date is mentioned.
Example:
- A sea waybill states “Shipped on board MV Horizon on 15th July 2024.” Date of issuance as 08th July 2024. Then 15th July 2024 will be considered as shipment date
- A sea waybill with pre-printed text “Shipped on board” and the date of issuance as 20th July 2024, will have 20th July 2024 as the shipment date unless an on board notation specifies a different date.
- A sea waybill states date is issuance as 08th July 2024 and does not contain any separate onboard notation then issuance date will be considered as shipment date
Clause a(iii):
Clause: The sea waybill must indicate shipment from the port of loading to the port of discharge stated in the credit. If the sea waybill does not indicate the port of loading stated in the credit as the port of loading, or if it contains the indication “intended” or similar qualification in relation to the port of loading, an on board notation indicating the port of loading as stated in the credit, the date of shipment, and the name of the vessel is required.
Explanation: The sea waybill must clearly specify the ports of loading and discharge as mentioned in the credit. If there is any ambiguity (e.g., “intended port” or similar words or if it contains a different port of loading), an on board notation must state the actual port of loading (as per credit), the shipment date, and the vessel’s name.
Example:
- A sea waybill shows “Port of Loading: Shanghai” and “Port of Discharge: Los Angeles.”
- If the sea waybill states “Intended Port of Loading: Shanghai,” it must also include an on board notation, such as “Loaded at Shanghai on MV Horizon on 15th July 2024.”
Clause a(iv):
Clause: The sea waybill must be the sole original non-negotiable sea waybill or, if issued in more than one original, be the full set as indicated on the sea waybill.
Explanation: The sea waybill presented must be the only original copy or part of the full set of originals issued. If multiple originals are issued, the complete set must be presented.
Example:
- A sea waybill indicates “Original – 1 of 1.” Then 1 original needs to be presented.
- If it states “Original – 1 of 3,” then all three originals must be presented.
Clause a(v):
Clause: The sea waybill must contain terms and conditions of carriage or make reference to another source containing the terms and conditions of carriage (short form or blank back sea waybill). The contents of terms and conditions of carriage will not be examined.
Explanation: The sea waybill should include or reference the terms and conditions of carriage. The specific terms do not need to be checked.
Example:
- A sea waybill includes the text “Terms and Conditions as per carrier’s standard form mentioning all the detailed conditions.” Generally it is mentioned in the back side of sea way bill.
- A sea waybill references “Terms and Conditions available at www.abcshipping.com.”(this is called short form or blank back sea way bill)
Clause a(vi):
Clause: The sea waybill must contain no indication that it is subject to a charter party.
Explanation: The sea waybill must not indicate that it is governed by a charter party agreement.
Example:
- A sea waybill without any mention of a charter party is acceptable.
- A sea waybill that states “Subject to Charter Party dated 1st July 2024” would not be acceptable.
Clause b:
Clause: For the purpose of this article, transhipment means unloading from one vessel and reloading to another vessel during the carriage from the port of loading to the port of discharge stated in the credit.
Explanation: Transhipment is defined as transferring the goods from one vessel to another during the journey from the loading port to the discharge port.
Example:
- Goods loaded on MV Horizon in Shanghai and transhipped onto MV Oceanic in Singapore before reaching Los Angeles.
Clause c(i):
Clause: A sea waybill may indicate that the goods will or may be transhipped provided that the entire carriage is covered by one and the same sea waybill.
Explanation: The sea waybill can state that transhipment may occur as long as the entire journey is documented under the same sea waybill.
Example:
- A sea waybill states “Goods may be transhipped at Singapore”. If the entire journey completed through single transport document then it is acceptable .
Clause c(ii):
Clause: A sea waybill 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 barge as evidenced by the sea waybill.
Explanation: Even if a letter of credit prohibits transhipment, a sea waybill indicating transhipment is acceptable if the goods are shipped in a container, trailer, or LASH barge.
Example:
- A sea waybill shows “Goods in container, may be transhipped,” and in the sea way bill somewhere else it is evidenced that goods shipped in a container. The letter of credit prohibits transhipment. This is acceptable.
Clause d:
Clause: Clauses in a sea waybill stating that the carrier reserves the right to tranship will be disregarded.
Explanation: Any statements in the sea waybill about the carrier reserving the right to tranship will be ignored.
Example:
- A sea waybill includes “Carrier reserves the right to tranship.” This clause will not affect the acceptance of the sea waybill.