Discharge of Break Bulk Cargo


Disclaimer

  1. The names of the parties, as well as the data and information in the cases stated below, have been sanitized in order to protect the identity of the parties involved.
  2. Our expert's responses to queries do not necessarily reflect the views of the ICC or the ICC Commission on Banking Technique and Practice. No legal imputation should be attached to any of the contents of the cases and no legal responsibility is accepted for any errors, omissions or misleading statements or opinions caused by negligence or otherwise. Our expert's responses are given for your reference only and you should not rely upon or act on our responses, of which we are not held liable. You should consult your legal counsel or other experts for their opinions in your specific cases.
  3. No query or response can be reproduced in whole or in part without our express written permission.



1st Query from R.S.:

Dear To.

How are you? I need you assistance is understanding the meaning of “NO DIRECT OVERSIDE DISCHARGE OR DIRECT DELIVERY' which appeared on Bill of Lading? Can you please help me understand it?

Regards,

R. S.,
Senior Risk Consultant, Trade Finance Operations
Z Bank


1st Response from T.O. Lee:

Dear Mr. S.,

Please send the BL, invoice & PL in order to provide more information, such as the nature of the merchandise, the transport mode etc, which are useful to interpret the intent of such clause.

All info will be kept confidential.

T. O.


2nd Query from R.S.:

Dear Mr. Lee

I only have the copy of B/L at the moment which is attached. Shipping agent advised that” This clause means cargo will be discharged immediately as soon as the vessel arrives at the port and the vessel will not wait for the truck to come to pick up the cargoes. This is a standard clause for breakbulk shipment.”

Somehow I am not satisfied with their explanation that is why I thought of you.

Regards,

R. S.,
Senior Risk Consultant, Trade Finance Operations
Z Bank


2nd Response from T.O. Lee:

Dear Mr. S.,

My comments on the term “NO DIRECT OVERSIDE DISCHARGE OR DIRECT DELIVERY" that appears on your attached BL are:

  1. This term only refers to discharge, not loading of a break bulk (not containerized) cargo, being wood pulp.
  2. Discharge of break bulk cargo can be done in many ways, to name a few:
    1. If the vessel is anchored in the middle of the harbour, chained to a buoy, then the discharge will be made on to a barge. If the break bulk cargo is big enough to fill the whole barge, the buyer may send for his own barge and the port agent has to notify the consignee when to come and there may be queuing with other barges, on first come first served basis.
    2. If the vessel is moored alongside a pier, wharf or break bulk terminal (not a container terminal), then the cargo will be discharged onto the shore and to be stowed temporally in the wharf/terminal warehouse for the buyer's truck to come and collect against a delivery order, exchanged with an original BL.
    3. The buyer may contact the port agent for his intent to pick up the goods by a truck alongside the vessel in the wharf/terminal. This is a special arrangement to save delays and storage fee too due to warehousing after discharge from the vessel as described in (b) above. The BL appears to address to this mode of delivery and say No to such delivery in the BL.
    4. Other forms of discharge of cargo, such as FO, hose to hose, roll-roll, manifold to manifold etc.etc..
Let us stop right here as the other discharge modes do not concern your query.

This is the first query from you and I would entertain it this time as a friend.

Please note that we have high running costs. Hence in the future we have to charge you for the consultant fee on case by case basis. To achieve savings, you may consider to subscribe to our retainer services for payment by annual basis, that ranges from CAD6,000 to 40,000 per annum depending on the frequency of your queries.

If you can refer us to three of your clients who have subscribed successfully to our retainer services for importers and exporters, you may be awarded a bonus retainer service.

Best regards,

T. O.

 

 
---bar---
Phone (905) 237-6465 Fax (905) 237-6867
---bar---

Home Page Column Page About the Founder Send Email
Site Map Attend Workshop

Email: experts@tolee.com   © 1992-2012 T.O. LEE CONSULTANTS LTD.   ALL RIGHTS RESERVED.