Charter Party Bill of Lading Under UCP 600 Article 20

Introduction

A charter party bill of lading is issued subject to a charter party—the agreement for the hire of a vessel. UCP 600 Article 20(a)(vi) prohibits any indication that a bill of lading is subject to a charter party. When a credit requires a charter party bill of lading, Article 22 applies instead. This guide addresses the boundary between Article 20 and Article 22, where charter party indications create discrepancy risk, and how to resolve the common failures.

Failure Mode Analysis

Failure Mode 1: Charter party reference on a standard B/L

The bill of lading contains "Subject to charter party dated 1 January 2026." The credit requires a bill of lading under Article 20. The charter party reference is a discrepancy under Article 20(a)(vi).

Failure Mode 2: Credit silent on charter party but B/L subject to one

The credit does not call for a charter party bill of lading. The beneficiary presents a bill of lading subject to a charter party. Article 22 does not apply because the credit does not require a charter party bill of lading. The bill of lading must comply with Article 20, which excludes charter party indications.

Failure Mode 3: Charter party clause on reverse side

The charter party clause appears on the reverse side of the bill of lading among the terms and conditions. Article 20(a)(v) permits terms and conditions of carriage, but Article 20(a)(vi) specifically excludes charter party indications regardless of location.

Failure Mode 4: Bill of lading issued under a charter but no explicit reference

The goods are shipped on a chartered vessel, but the bill of lading does not contain a charter party reference. The bill of lading complies with Article 20 because the absence of a charter party indication is what Article 20(a)(vi) requires. The underlying charter arrangement is irrelevant to the document examination.

Failure Mode 5: Credit requires "charter party B/L" but presents standard B/L

The credit requires a "charter party bill of lading." The beneficiary presents a standard bill of lading without a charter party reference. The document does not comply with the credit because Article 22 requires a charter party bill of lading when the credit calls for one.

Deterministic Resolution Architecture

1. Read the credit's transport-document requirement. Does it call for a bill of lading (Article 20) or a charter party bill of lading (Article 22)?
2. If Article 20 applies, confirm the bill of lading contains no charter party indication.
3. If Article 22 applies, confirm the bill of lading contains a charter party reference.
4. Examine the front and reverse side of the bill of lading for any charter party clause.
5. If the credit is silent on charter party, assume Article 20 applies and no charter party indication is acceptable.
6. If a charter party reference is found on an Article 20 bill of lading, obtain a clean bill of lading without the reference.
7. If a charter party reference is missing from an Article 22 bill of lading, obtain a document that includes the charter party reference.
8. Confirm the bill of lading type matches the credit requirement before presentation.

Conclusion

Article 20 and Article 22 are mutually exclusive regimes. Article 20 prohibits charter party indications; Article 22 requires them. The credit determines which article applies. A bill of lading that references a charter party when Article 20 applies is discrepant. A bill of lading that omits a charter party reference when Article 22 applies is also discrepant. The control is the credit text.

FAQ

Can a bill of lading reference a charter party without being a charter party B/L?
No. Any indication that the bill of lading is subject to a charter party makes it a charter party bill of lading under Article 22, regardless of the document's title.

Does a "subject to charter party" clause on the reverse side count?
Yes. Article 20(a)(vi) excludes any indication of a charter party, regardless of where it appears on the document.

Can the credit prohibit charter party bills of lading?
Yes. The credit may state that charter party bills of lading are not acceptable. But under ISBP 745, such a stipulation has no specific meaning unless the credit provides additional requirements.

Is a charter party bill of lading less valuable than a standard B/L?
A charter party bill of lading is a different document type governed by Article 22. It is not inherently less valuable, but it serves different commercial purposes.

What if the goods are shipped on a chartered vessel but the B/L has no charter party reference?
The bill of lading complies with Article 20 because it contains no charter party indication. The underlying charter arrangement does not affect the document examination.

Source Notes

• Canonical authority: UCP 600 Articles 20, 22; ISBP 745 paragraphs E1, G2.
• Live context: Google News RSS scan, ICC "Commentary on UCP 600," August 2019; ICC Academy "Certified UCP 600 Specialist (CUCP)," July 2025. Context only, not legal authority.