ABSTRACT
In many trades, such as the container trade, it is not expected that the goods will be resold while afloat. The use of the bill of lading can cause problems if the goods reach the port of discharge before the bill of lading comes into the hands of the buyer. It will only be able to persuade the shipowner to deliver if it provides a suitable guarantee to indemnify the shipowner against any misdelivery claims. Apart from the inconvenience caused by arranging such guarantees, there will also be some cost involved for the buyer if the shipowner insists on a bank providing the guarantee.
