Legrant advised a foreign grain trader in a dispute of non-release of the cargo under the bills of ladingJanuary 28, 2019 · News
Legrants’ client, a foreign grain-trader, acted as a seller of a wheat in containers on CIF Jakarta terms.
After the cargo had been loaded on the vessel the carrier issued the bills of lading. According to the agreement, the seller in the bills of lading was named as a shipper acting “on behalf of the buyer”.
However, the buyer has proved to be unreliable and refused to accept and pay for the cargo. The seller resold the cargo to a new counterparty, in this connection having instructed the carrier to re-issue the bills of lading.
From its part the carrier refused to re-issue the bills of lading, citing to the fact that according to the document the seller acted on behalf of the original buyer. In the opinion of the line, in order to amend the bills of lading, the permission of the original buyer should have been presented. Consequently, the release of the cargo was blocked, the risk of violation of the sales-purchase agreement has arisen.
Legrants’ lawyers have analyzed the situation and advised the seller on legitimacy of its position. In further discussion the carrier accepted the position of Legrants’ client and reissued the bills of lading in accordance with the instructions.