Letter of Credit Forum

Hi!

As I know, although AWB is not a title document, when the delivery agent of air transport companies see the AWB's consignee is a bank, they will usually treat the notify party as the consignee.  They will advise the notify party the arrival of goods and ask them to deliver the goods.  However, when there is no notify party shown on AWB, the delivery agent may ask for additional undertaking from bank for protection from wrong delivery.  The bank normally may not be willing to issue such additional undertaking, which normally needn't to be issued.  Therefore, some banks would establish the policy not to countersign the AWB without notify party.

The willingness of the bank depends on the their policies.  If you have enough bargaining power, the bank may be able to countersign the AWB for you.

Hope it may help!

VV

Hi  

That AWB is issued “to order” or “to  order of a named party” is a bad habit that has been practiced over and over again.

ISBP Para. 143 says: “An airport transport document (AWB) should not be issued “to order” or ”to order of a named party”, because it is not a document of title”. I wish to add “and thus, it is not transferable by endorsement on the reverse”.

That the issuing bank refuses to endorse the AWB is quite correct. However, to enable the applicant to take the consignment, the issuing bank  should issue a delivery authorization which  would contain the following details:

-         Name of the entity duly authorized to take the consignment

-         AWB No./Flight No./Flight date/

-         Consigner

-         Name of Goods

-         Port of loading/port of discharge

-         Invoice No./Invoice value

-         L/C No.

-         The issuing bank’s instruction to the transport entity to release the consigment to the authorized entity.

Best regards,

Nguyen Huu Duc

it is because of the fact that AWB are not documents of title and are not negotiable docs, the issuing bank cannot transfer the control of goods to your company by endorsing the AWB. The best way is that issuing bank have to issue a separate delivery order indicating your company as cosignee sothat delivery can be made by transport company to you.

Hi!

Sad but true.

In my knowledge AWB is not (non-) negotiable document and passing of the rights just by endorsement is impossible and so endorsement is not applicable or, better to say, forbidden.

This fact is also indirectly supported by ISBP. I reffer to ISBP Article 143 which is clearly stating position in reg AWB:

143. An air transport document should not be issued "to order" or "to order of" a named party, because it is not a document of title. Even if a credit calls for an air transport document made out "to order" or "to order of" a named party, a document presented showing goods consigned to that party, without mention of "to order" or "to order of", is acceptable.

If there cannot be "order" of someone in consignee whom You're expecting to make passing of the rights?

Good luck.