What You Need to Know About Banks and Cargo

There is a lot of paperwork to deal with when it comes to shipping goods abroad.  Everything from the bill of lading to the proper labeling and documentation at each port of call needs to be carefully done.  Working with a logistics expert is important when it comes to shipping items with a letter of credit.  Why?  Here are a few things to consider when it comes to banks and cargo.

One example is the letter of credit.  There is often a lot of dispute by the bank when it comes to receiving goods that are labeled a certain way or if there is a discrepancy in the shipped on board clause or even the date or stamp or signature can provoke delays.  But despite all this fuss over the paperwork, the bank isn’t actually going to verify that the items listed on board are actually on board.  They are only expected to verify the paperwork.

What does it mean?  It means the bank is not liable for any shipping inaccuracy that may occur, including weight, quantity and even the quality or condition of the packed items.  The bank only verifies that the container has been cleared by customs and physically loaded on the vessel.  They merely check the description against the bill of lading. 

What does this mean for you?  It means two things.  First, you need to work with a logistics firm that has a lot of experience with letters of credit so that you don’t run into any banking snafus that could have been easily avoided.  Your logistics company should be very detail oriented and have a lot of experience in making sure the paperwork is exactly right.  But you also need the personal touch.  Since you can’t rely on the bank to ensure that what is on the boat is really what is loaded and making it from port to port, you can rely on K International’s experience to ensure you get a single point person assigned to your shipment from start to finish.