Serious Consequences for Failure in Instalment Shipments

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Question from H.:
Dear all,
Is the instalment shipments will be limited to shipments of same merchandise according to a specified schedule. Goods with different description and/or order no. and/or style no. should be treated as same under UCP600 article 32?
Example:
Goods description: T-shirt, pants, skirts
Shipment for T-shirt:
order no.ABCD for 5,000 pcs to be shipped between 1/1/2009 to 31/1/2009.
order no.EFGH for 5,000 pcs to be shipped between 1/2/2009 to 28/2/2009.
Shipment for pants
order no.ABCD for 5,000 pcs to be shipped between 1/3/2009 to 31/3/2009.
order no.EFGH for 5,000 pcs to be shipped between 1/4/2009 to 30/4/2009.
Shipment for skirts:
order no.ABCD for 5,000 pcs to be shipped between 1/1/2009 to 31/1/2009.
order no.EFGH for 5,000 pcs to be shipped between 1/4/2009 to 30/4/2009.

If T-shirts already late shipment (order no.ABCD for T-shirts shipment on 2/2/2009) and credit would cease to be available for all further shipments under merchandise T-shirts only or all goods (T-shirt, pants, skirts)?

Response from T.O. Lee:

Dear All,
Some L/C practitioners may not understand the purpose of this "instalment shipment" provision in UCP because they do not trade.
Let me share with you my experience in supply of building materials under a tender to build a civil contract, such as to build a bridge.
The tender document states that the successful supplier under the tender for building materials such as cement, I-beams, steel wires, and other items, must warrant timely delivery of the items in each installment delivery. Those items such as cement, I-beams etc are used to build the bridge in Phase 1, Phase 2 etc.. If one item is not delivered timely, the other items would be "useless" to complete the same phase, say Phase 1.
The contractor may also lose faith with the supplier and wonder whether he or she could deliver the next instalment timely. The contractor does not wish to make the same mistake twice. Hence that is why if one item in the instalment were not delivered timely, all the other items in the same installment would be "useless" as far as timely completion of the same phase is concerned. The successful tenderer has to meet claims for the damages by the contractor who in turn will meet the claim by the municipal government or the owner of the project. Such instalment penalty is often stated in the tender documents.
The UCP is to match such trade practice.
I understand that we all are busy and are at times inclined to give very brief answers or opinions without stating the underlying reasons. However, for the benefits of the viewers, I would suggest those who give opinions in L/C View should give reasons for their answers so the viewers can see the basis of their arguments, opinions or decisions. Just saying this is not a discrepancy without giving reason is not so helpful to the other viewers.
A Chinese proverb says very well: "One can remember and be convinced much better if one understands the underlying reasons".
T. O.

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