Why is it important to check the Vessel Sailing Date..??
“In the context of International Freight Forwarding, why is it important to check the Vessel Sailing Date?” is a question asked by Clarisse..
Clarisse, whether in the context of International Freight Forwarding or any other context of shipping, it is always important to check the vessel sailing date.. A lot of the shipments are done on the basis of a Letter of Credit (L/C) or Document against Payment (D/P)..
For both these types of payments a proof of shipment is essential.. This is mostly accomplished by the issuance of a Bill of Lading which should reflect the sailing date of the vessel..In an L/C situation, the negotiating bank will not accept a bill of lading without a proper sailing date of the vessel reflected on the body.. The L/C will stipulate a latest date of shipment and if the sailing date of the vessel is not ON or BEFORE this date, then the bank is well within its right to reject the proof of shipment document..
In the case of D/P, the shipper has to show proof of shipment which again is the bill of lading showing the sailing date of the vessel, upon submission of which only, the buyer will make the payment for the goods to the seller..
Above mentioned are the two most common of the methods of payment in International Trade.. Other methods being Cash-in-Advance, Open Account..
In the specific case of freight forwarding, as the forwarder is undertaking to move the cargo from Point A to Point B for the shipper, it is important that they keep a close watch on all these requirements of the shipper and advise him suitably in matters of shipping..
It is also one of the functions of a freight forwarder to ensure that all the documentary requirements of their client is fulfilled and all the data provided is correct in order to avoid any delays.. Any delay in the payment to the shipper might also mean a delay in their payment..
For a better understanding, also read below articles relating to sailing date of vessel and bill of lading..