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How to release the Cargo without Original Bill of Lading under COVID 19 Situation?

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How to release the Cargo without Original Bill of Lading under COVID 19 Situation?

As we know that, the pandemic that is COVID-19 is spreading in the world and disrupting global trade patterns like never before. When one part of the globe is starting to settle down, the other part starts or spikes.

No one has any real idea of how long it will take for the world to get back to normal and its after-effects.

Importers, Exporters, Seaports, Terminals, Airports, Airlines, Shipping Lines, and Marine Insurance companies have all been affected by the pandemic and continue to look for ways to make the business of shipping as easy as possible considering the severe constraints everyone is going through.

This issue is also putting some of the documentary issues and cargo releases to the test and leaving the industry to face the unknown.

One such issue that is affecting business is the transmission and handling of the Original Bill of Lading. As we know, the Bill of Lading, especially a negotiable one, is issued as a physical paper document signed and stamped by the carrier.

This bill of lading is then physically couriered to the consignee or receiver at the destination for releasing the cargo to the authorized party.

With the lockdown in various countries around the world due to COVID-19, there are severe restrictions for export customers to get original bills of lading after the cargo has been loaded onboard.

Similarly, for cargo that has arrived/arrived at a port of discharge during the lockdown period, importers may not get the original bill of lading on time or worse still if an original bill of lading is lost in this lockdown scenario.

Following are the Options to release the Cargo without Original Bill of Lading?

  • If the shipment has just happened and the bill of lading has not been issued as an Original yet, the shipper and consignee can discuss options and check
  • The bill of lading can be issued as a Sea Waybill of Lading which means there is no requirement for an original bill of lading and a Sea Waybill can be issued electronically.
  • The bill of lading can be issued as a Original Bill of Lading and originals surrendered at the POL itself (or place of issue) and the POL can send a “Telex Release” to the POD agent which negates the requirement of an Original Bill of Lading to be submitted at POD.
  • If a Letter of Credit is involved and it calls for the requirement of a Negotiable bill of lading, the shipper, consignee and banks involved can discuss and come to an agreement on amending this requirement and choose one of the above.
  • If a Negotiable Bill of Lading is absolutely required, then check if the shipper, consignee, shipping line and banks involved can be electronically connected via the various eBL platforms available.
  • There are several electronic bill of lading options available now, which can replace a traditional paper Bill of Lading.
  • If these can be done, then everyone can handle the transaction without the requirement of an original bill of lading.
  • If the House Bill of Lading is involved, then it can easily be made TELEX HBL just by informing the Freight Forwarder and its Agent at Origin.
       

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