Table of Contents
- Introduction
- What is a Shipped on Board Date?
- UCP 600 Guidelines on Shipped on Board Dates
- Practical Scenarios in Shipping
- Assessing the Policies of Shipping Lines
- Conclusion
- FAQs
Introduction
In international shipping, precision and details are critical. One such detail that often raises questions is the "shipped on board (SOB) date" on a bill of lading. A reader recently inquired about the necessity of having a "signed shipped on board date" when the shipping line asserts that the bill of lading’s signature suffices. This brings us to an essential discussion on the roles and requirements of the SOB date. Understanding these nuances is key for ensuring compliance with trade terms, particularly when dealing with letters of credit.
This post endeavors to clarify what a shipped on board date is, its importance, and the specific requirements according to the Uniform Customs and Practice for Documentary Credits (UCP 600). By the end of this article, you will have a comprehensive understanding of whether the shipped on board date should be stamped and signed by the shipping line and other related intricacies.
What is a Shipped on Board Date?
The Significance of a Bill of Lading
At the center of global shipping is the bill of lading, which serves three primary roles:
- Evidence of Contract of Carriage: It is a contract between the shipping company and the shipper.
- Receipt of Goods: Acknowledgment that the goods are received for shipment.
- Title to the Goods: It can act as a document of title, enabling the transfer of ownership of the goods.
Concept of Shipped on Board Date
The "shipped on board date" on the bill of lading signifies the date when the cargo was physically loaded onto the vessel. This notation confirms to the stakeholders that the shipment process has begun and the goods are en route to the destination. This date is crucial for several reasons:
- Establishing Timeline: It helps in defining the timeline for delivery.
- Compliance with Letters of Credit: Banks and other financial entities may require this for payment processing under letters of credit.
- Insurance Purposes: Ensuring the validity of marine insurance.
Given its importance, one might expect explicit rules about how this date should be noted and authenticated.
UCP 600 Guidelines on Shipped on Board Dates
UCP 600 Article 20 – Section A: Shipped on Board Date Notation
Under the UCP 600, Article 20, section A, sub-section II specifies the guidelines for the shipped on board date. It states that, by default, the date of issuance of the bill of lading is deemed the shipment date unless an onboard notation indicates otherwise. Therefore:
- Absence of SOP Date: The issuance date of the bill of lading is taken as the shipment date.
- Presence of SOP Date Notation: If the bill of lading includes an onboard notation with a date, that date is considered the shipment date.
Signing the Shipped on Board Notation
Another point of concern is whether the shipped on board date notation needs a separate signature. According to UCP 600 Articles:
- Article 3: Indicates that a document can be authenticated by several methods including handwriting, facsimile, stamp, or any other mechanical or electronic method.
- Article 17(b): States that a bank should treat any document with an original-looking signature, mark, stamp, or label as an original unless stated otherwise.
Based on these regulations, there is no explicit requirement for the SOB date to be separately signed. A shipping line's general signature on the bill of lading is considered sufficient to cover all information including the SOB date unless specified otherwise by the customer or due to the shipping line’s own policies.
Practical Scenarios in Shipping
Instances Where SOB Date is Not Separately Signed
In practice, some shipping lines may choose not to separately sign the shipped on board date notation. Instead, a general signature on the bill of lading implies that all represented details, including the shipment date, are authenticated.
Requests from Letters of Credit
For letters of credit (LC) transactions, if the LC explicitly demands a signed shipped on board date, the shipper must ensure the shipping line accommodates this. Otherwise, the financial institution may not honor the document.
Assessing the Policies of Shipping Lines
Diverse Practices
Shipping lines have different practices regarding the shipped on board date:
- Stamped Notations: Some lines may add a physical stamp indicating "shipped on board" along with or without a date.
- Printed Notations: Others may use a printed notation with automated date entries.
Advantages of Compliance
Aligning with the requirements:
- Reduces Discrepancies: Fewer errors and disputes in document processing.
- Enhances Authentication: Ensures notarized confirmation of the shipment date.
- Meets Clients' Expectations: Fulfill clients' requirements, especially those bound by specific LC conditions.
Conclusion
The shipped on board date on a bill of lading plays a pivotal role in the logistics and financial aspects of trade documentation. According to UCP 600, if a bill of lading is issued with a general signature, it is considered sufficient to cover the shipped on board date notation. However, in cases where specific signed SOB notations are requested, it is prudent to comply with these requirements to avoid complications.
Understanding the practices and ensuring clear communication with shipping lines can significantly streamline operations and ensure compliance with international trade standards.
FAQs
Does the shipped on board date need to be signed separately?
No, the shipped on board date notation does not require a separate signature, as long as the bill of lading is signed and covers all necessary information.
What happens if the bill of lading does not have an SOB date?
If there is no specified SOB date, the date of issuance of the bill of lading is deemed to be the shipment date according to UCP 600 guidelines.
Can a letter of credit necessitate a separate SOB date signature?
Yes, if the letter of credit explicitly requires a signed shipped on board date, the shipping line must comply, unless it conflicts with their policies.
How should discrepancies be handled between the issuance date and the SOB date?
If an SOB date is noted and it is different from the issuance date, the SOB date will prevail as the shipment date.
By paying close attention to these details, traders can ensure smooth processing of documents and compliance with both financial institution requirements and international shipping standards.
