News

BP incorporates CargoDocs electronic Bill of Lading clause into its Voyage Charter Party

13/05/2016

Article in International Shipping News - 12 May 2016

BP recently incorporated a CargoDocs electronic Bill of Lading clause into its latest Charter Party, BPVOY5, as eB/L adoption continues to accelerate across Energy trades globally.

BPVOY5 Clause 30 (pertaining to Bills of Lading) states that (i) Bills of Lading may be ‘transmitted electronically using the ESS-Databridge', i.e. via CargoDocs and in accordance with the terms and conditions of the DSUA, and (ii) that an eB/L satisfies all the requirements to be deemed the legal equivalent of a paper Bill of Lading.

Specifically, relevant sub-sections from the eB/L clause in BPVOY5 read as follows:

30.3 - Charterers may require Owners to ensure that any Bill of Lading under this Charter (whether or not signed on behalf of Owners) is issued and signed in electronic form and transmitted electronically using the ESS-Databridge (such Bill of Lading an "eDoc") in accordance with the terms and conditions of the ESS-Databridge Services & Users Agreement as amended from time to time in accordance with its terms ("the DSUA").

30.4 - An eDoc shall be deemed to satisfy any applicable law, contract term, custom or practice requiring that any Bill of Lading issued under this Charter be made or evidenced in paper format and/or in writing and/or signed.

The inclusion of the above comes at a time when eB/L uptake is ramping up across Tanker and Bulker trades in the Energy, Agri, Metals and Chemicals sectors.

Most notably, it marks the first time an Energy Major such as BP has incorporated an eB/L clause in its Charter Party, following a similar move by leading Mining and Agri companies over the past two years.

Source: essDOCS


Back to recent news

Recent News

26/11/2024

The latest newsletter is now available in the members trade information section under the category of 'Newsletters'...more

ICC release Technical Advisory Briefing No. 11 - Definition of Trade Finance 19/09/2024

Recognising that there is no global standard for the defining Trade Finance, this Briefing document provides a suggested text and has been recommended for use by the ICC Banking Commisison Steering Committee...more

Latest Question

We, as the issuing bank, requested the below document, under field 46A. “Insurance policy/certificate for 10.00 percent above CIF value payable to the order of Sampath bank PLC, covering institute cargo clauses (a), institute war clauses (cargo), institute strike clauses (cargo), transshipment risks marked premium paid claims payable in Colombo irrespective of percentage.” Insurance certificate is presented containing below wording on the face side of the document. “The settlement of loss and damage will be effected, unless otherwise provided, through the intermediary of Marsh SA/NV to whom all documents are to be forwarded for this purpose, and will collect the indemnity under deduction of a commission of one percent” Also, it indicates the LC conditions as a mirror image as follows under the heading of "letter of credit conditions" whereas insurance conditions are incorporated separately in the certificate: "covering institute cargo clauses (A), institute war clauses (cargo), institute strike clauses (cargo), transshipment risks marked premium paid claims payable in Colombo irrespective of percentage" Having considered the above clauses, we have quoted below discrepancies. 1) Insurance policy indicates a deductible of 1 pct instead of irrespective of percentage. 2) Insurance not marked premium paid Beneficiary’s bank disagrees with our discrepancy and raised below argument: “Insurance policy/certificate does not indicate a deductible of 1 pct irrespective of percentage on the face of the document and banks will not examine terms and condition in insurance document as per ISBP paragraph K22 and marked as premium paid under the LC conditions. Considering above, may we have your opinion on the discrepancy quoted by us and the counter argument raised by the beneficiary’s bank.