In international trade, transport documents often include special notations or remarks. These can create confusion about whether goods are shipped securely and in accordance with a Letter of Credit (LC). Article 26 of UCP 600 addresses three important notations that appear frequently on bills of lading and other transport documents: “on deck,” “shipper’s load and count,” and “said by shipper to contain.”
This article ensures clarity on how banks treat such notations when examining documents under LCs.
What Does Article 26 of UCP 600 Say?
A transport document may sometimes include these phrases:
1. On Deck Notations
- If the document states that goods were actually loaded on deck, it will only be acceptable if the LC expressly permits on-deck shipment.
- If the document merely says goods “may be loaded on deck” or uses general conditions about deck carriage, it is acceptable, because it does not confirm actual deck loading.
2. Shipper’s Load and Count
- If a bill of lading includes the phrase “shipper’s load and count”, it means the goods inside the container or packages were counted and loaded by the shipper, not verified by the carrier.
- Banks accept such notations, since carriers are not responsible for confirming the actual contents.
3. Said by Shipper to Contain
- If a transport document says “said by shipper to contain”, banks will also accept it.
- This phrase again shifts responsibility to the shipper for the description of goods, not the carrier.
Breaking Down Article 26
Why This Matters?
- Protects banks by confirming they do not check where or how goods are loaded, or what exactly is inside containers.
- Prevents unnecessary rejection of documents just because such standard shipping notations appear.
- Gives clarity to exporters and importers on acceptable wording in transport documents.
Exporter’s Responsibility
✔ Ensure that, unless the LC allows it, transport documents do not state “on deck”.
✔ Work with carriers to issue compliant bills of lading.
✔ Be aware that “shipper’s load and count” and “said to contain” will not cause discrepancies.
Importer’s Responsibility
✔ If unwilling to accept on-deck shipment (risk of exposure/weather damage), the LC should clearly prohibit it.
✔ Understand that carrier disclaimers like “shipper’s load and count” are standard and do not affect banks’ acceptance.
Bank’s Role
✔ Banks examine documents only, not the goods.
✔ If “on deck” appears without LC permission → discrepancy.
✔ If “shipper’s load and count” or “said to contain” appears → acceptable, no discrepancy.
Practical Trade Example
An exporter in Vietnam ships machinery parts to a buyer in Spain. The bill of lading shows:
- “Shipper’s load and count: 50 cartons.”
- “Said by shipper to contain: electronic spare parts.”
- No “on deck” notation.
✔ Bank accepts this under Article 26.
❌ If the bill of lading had stated “Loaded on Deck, Hold No. 3,” and the LC prohibited on-deck shipment → bank must reject it.
Why Article 26 Matters
- Clarifies how banks interpret deck shipment notations and carrier disclaimers.
- Protects all parties by standardizing document acceptance rules.
- Prevents unnecessary rejection of compliant documents due to standard industry language.
- Ensures smooth trade flows by distinguishing between acceptable and unacceptable transport notations.
Final Thoughts
Article 26 of UCP 600 reinforces the documentary nature of LCs. It ensures that on-deck shipments are controlled strictly by LC terms, while common carrier disclaimers like “shipper’s load and count” and “said by shipper to contain” are treated as acceptable.
For traders, the takeaway is simple: carefully draft the LC to reflect risk preferences, and work with carriers to avoid unwanted discrepancies in transport documents.
bangladesh