Not all goods move by sea or air — many shipments are carried by road, rail, or inland waterways. Article 24 of UCP 600 sets the rules for when these transport documents are acceptable under a Letter of Credit (LC).
These documents are similar to an Air Waybill or Sea Waybill: they act as receipts and evidence of carriage, but they are not negotiable and do not transfer ownership.
What Does Article 24 of UCP 600 Say?
To be compliant, a valid land or inland waterway transport document must:
1. Evidence of Shipment
- Must indicate that goods have been dispatched, taken in charge, or shipped from the place of loading stated in the LC.
- The date of issuance is considered the shipment date.
2. Issuance & Signature
Must be issued and signed by:
- The carrier, or
- A named agent acting on behalf of the carrier.
The signatory’s capacity must be clearly identified.
3. Non-Negotiable
- Road, rail, and inland waterway transport documents are always non-negotiable.
- They cannot be endorsed to transfer title.
4. Places of Dispatch and Destination
- Must clearly show the place of dispatch (loading) and destination (discharge) as required by the LC.
- If the LC specifies cities, the document must show locations serving those cities.
5. Transshipment
- Permitted, even if the LC prohibits it, since these modes of transport often require transfer of goods between vehicles, trains, or barges.
6. Number of Originals
- If the document does not indicate how many originals have been issued, it will be accepted as if the full set was issued.
Breaking Down Article 24
Key Features
- Works like an Air Waybill or Sea Waybill — a receipt and evidence of carriage, but not a title document.
- Important for inland trade (e.g., Europe’s rail and river transport, South Asia’s inland waterways, cross-border trucking).
Why Important?
- Not all shipments go by sea or air; land and inland water routes are vital in many regions.
- Ensures LCs can cover these shipments under clear, uniform rules.
Exporter’s Responsibility
- Ensure the document is properly signed by the carrier/agent.
- Verify that loading and destination points match the LC.
- Confirm that the document shows “dispatched/taken in charge/shipped” wording.
Bank’s Role
- Banks only check that the document complies with LC and Article 24 requirements.
- They do not investigate actual carriage.
Practical Trade Example
A Bangladeshi jute exporter sells to a buyer in India under an LC requiring a railway consignment note.
The exporter presents:
- Rail consignment note issued by Indian Railways.
- Signed by the railway authority.
- Dated 15 November 2025 (taken in charge date).
- Dispatch: Benapole, Bangladesh.
- Destination: Kolkata, India.
✔ Bank accepts it since it complies with Article 24.
If the exporter had failed to show the dispatch place (Benapole) → ❌ discrepancy.
Why Article 24 Matters
- Provides a framework for non-sea and non-air shipments.
- Brings clarity for road, rail, and inland waterway transport under LCs.
- Reduces disputes by defining what makes such documents valid.
- Ensures exporters in landlocked or river-linked countries can still trade under LC terms.
Final Thoughts
Article 24 of UCP 600 ensures that road, rail, and inland waterway transport documents are treated with the same consistency as sea and air documents. While they lack negotiability, they provide vital flexibility for cross-border and inland trade. Exporters must ensure these documents are properly issued and signed, with clear dispatch and destination details, to avoid discrepancies and ensure smooth LC payments.