International Transport Intermediaries Club Ltd

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International Transport Intermediaries Club Ltd
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• Quizzes for Import Export Clerks
• Julia Mavropoulos
• 2 October 2008

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Quiz for Import Clerks
Q You are the agent for a shipping line. The
consignee has presented an original NVOCC bill of
lading, which has been negotiated through a bank
and is stamped freight prepaid. The consignee
is unable to produce the shipping lines original
bill of lading, but is obviously the owner of the
cargo. Do you have the right to refuse delivery
of the cargo?
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Quiz for Import Clerks

• A YES as the agent for the shipping line you
  must collect the lines bill of lading in
  exchange for delivery of the cargo. In addition,
  you can only deliver the cargo to the consignee
  on the shipping lines bill of lading, or to any
  party to whom the consignee allows release. The
  consignee on the shipping lines bill of lading
  is unlikely to be the same entity as the
  consignee on the NVOCC bill of lading. The
  shipping lines original bill of lading may be
  with the loadport agent awaiting the payment of
  freight by the shipper, or there may be a dispute
  between the NVOCC and his customers. You are the
  agent for the shipping line and you should not
  become involved in these disputes.

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Quiz for Import Clerks
Q The shipper paid freight late and the b/l was
never issued by the loadport agent. The ship has
arrived at the discharge port and the shipper has
asked for a telex release to avoid delay. What
is a telex release? Can the discharge port
agent agree to this request?
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Quiz for Import Clerks

• A Telex release is release of cargo against an
  instruction from one agent to another, in which
  the bs/l are handed to a third country agent,
  rather than to the discharge port agent. The
  third country agent confirms to the discharge
  port agent that the original bs/l have been
  collected and that delivery can be affected to a
  named consignee. The discharge port agent can
  only perform a telex release if the principal
  authorises him to do so. If there is no blanket
  authorization from the principal (possibly in the
  Agency Manual) the agent must obtain the
  principals authority. The agent must obtain full
  details of the cargo to be released (not just a
  container number or a b/l number) and proof of
  identity from the named consignees before cargo
  is released.

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Quiz for Import Clerks
Q An original bill of lading has been
surrendered and the holder of the bill of lading,
who is not mentioned on the bill of lading, is
demanding delivery of the cargo. The consignee on
the bill of lading is to order of the shipper.
The shipper has endorsed the b/l without giving
any instructions as to who the cargo should be
delivered to. Can the agent deliver to the holder
of the b/l?
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Quiz for Import Clerks

• A Yes if the to order party has endorsed the
  b/l by a simple stamp and signature this is an
  endorsement in blank. Any person to whom the
  b/l is intentionally passed can claim to be the
  valid holder of the b/l and therefore entitled to
  delivery of the cargo.

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Quiz for Import Clerks
Q The notify party on the b/l has handed to you
a full set of original bs/l which have been
endorsed by him. The bs/l are to order bills.
Can you release cargo to the notify party?
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Quiz for Import Clerks

• A No. A to order b/l must be endorsed by the
  shipper. Even though the full set of originals
  has been handed in, the notify party is not a
  valid holder of the bs/l unless the shipper
  endorses them. He could have obtained possession
  of the bs/l by fraud (or even by accident).

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Quiz for Import Clerks
Q Several used cars were shipped at Bremerhaven
for Nigeria. The shipper requested a sea waybill
be issued and that the cars be released at
Nigeria to the consignee on the sea waybill
(Consignee A). After the cars had arrived at
Nigeria, but before the agent had issued a
delivery order, the shipper notified the carrier
that he should deliver to a different consignee
(Consignee B). Consignee A produces the original
sea waybill and demands a delivery order.
Consignee B is also demanding a delivery order be
issued. Who should the agent release the cargo
to?
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Quiz for Import Clerks

• A From a legal point of view the correct
  receiver is Consignee B. A sea waybill is not a
  document of title and possession of the original
  sea waybill does not confer ownership. The
  consignee on a sea waybill has no legal status
  the waybill is a contract between the carrier and
  the shipper, and the shipper is entitled to
  change the consignee if he so wishes provided he
  does so before the cargo is released. However, an
  agent should always refer to his principal for
  instructions when two parties are claiming the
  same cargo. It may be that the local courts will
  have to decide which of the two parties is
  entitled to delivery.

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Quiz for Export Clerks
Q A cargo of timber has been loaded in Malaysia
and shipped to India via Singapore. You are the
agent for the ocean carrier at Singapore. You are
approached by the consignee (Consignee A) of the
bill of lading issued in Malaysia, who surrenders
to you the full set of original bills of lading
issued in Malaysia. Consignee A asks you to issue
three split or switch bills at Singapore which
divides the timber into three parcels, show
Consignee A as the shipper, three separate Indian
consignees, and change the port of loading to
Singapore. What should you do?
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Quiz for Export Clerks

• A You must refer the request for split bills of
  lading to your principal (and the ship owner if
  the ship owner is not your principal) and obtain
  their authority in writing to issue the split
  bills of lading showing different
  shippers/consignees. However, even if your
  principal authorizes you to change the port of
  loading on the split bills to Singapore you must
  refuse to do so as this is a false statement
  intended to deceive the three Indian consignees.

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Quiz for Export Clerks
Q The shipper of a cargo has requested that the
bill of lading show on its face a full cargo
description, which includes the sale value, for
his Letter of Credit purposes. What should the
agent do?
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Quiz for Export Clerks

• A REFUSE the agent should refuse this request
  as the mention of the sale price on the face of
  the bill of lading may be seen by a court as an
  ad valorem declaration of value and may deprive
  the carrier of his right to exclude or limit his
  liability. If the carrier loses his right to
  limit liability then he will certainly claim the
  difference from his agent.

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Quiz for Export Clerks
Q You are the agent for the time charterer of a
ship and have been instructed by your principals
to issue freight prepaid bills of lading to the
shipper. Before you can do so, you receive a
notification from the head owners of the ship
informing you that you are not authorised to
issue bills of lading because the charter hire
has not been received by them. The owners notify
you that they will hold you responsible for the
freight in the event that you issue the bs/l
contrary to their instructions. The bills of
lading are charterparty bills and will be issued
on behalf of the Master and owners. Should you
follow the instructions of A) the time charterer
or B) the owner.
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Quiz for Export Clerks

• A The answer is B. Although you are the agent
  for the time charterers and are not the agent for
  the owners, if you issue bills of lading on
  behalf of the owners when they have instructed
  not to do so you would be liable to them for the
  consequences.

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Quiz for Export Clerks
Q Twenty containers are to be shipped from the
USA to Norway. Fourteen containers are loaded on
the ship on 31st March, and the last container is
loaded on 1st April. The shippers Letter of
Credit expires on 31st March and he needs a bill
of lading with a shipped on board date of 31st
March. What shipped on board date should be
entered on the bill of lading?
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Quiz for Export Clerks

• A. The only correct date is 1st April which is
  the only date when all the cargo carried under
  the bill of lading is on board the ship. Under no
  circumstances should the shipped on board date
  be prior to the date on which the completion of
  loading occurred. The date on the bill of lading
  should be the date of last loading. If the bill
  of lading is dated 31st March and the price of
  the commodity shipped changes on 1st April, the
  consignee would have a claim against the carrier
  for his losses.

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Quiz for Export Clerks
Q If the shipper on the bill of lading informs
you that the original set of bills has been lost
due to a flood in their offices and asks for
another set. What should you do?
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Quiz for Export Clerks

• A Request and obtain your principals written
  authority to issue a second set of bills. Then
  send a message to the agent at the place of
  delivery on the bill of lading advising them
  that you are issuing a duplicate set of bills of
  lading. Only then, should you issue a second set
  of bills with exactly the same details as the
  original set, including the word duplicate
  originals on the front of the bills of lading.