ABSTRACT
This chapter primarily addresses insolvency protection, which depends largely on the passing of property. The system of international trade that was developed by the trading problem, and given effect to by the courts, during the late nineteenth and early twentieth centuries was also capable, in principle at least, of protecting the trading parties against the insolvency of those with whom they dealt. The problem arises in two main situations. First, particularly with containerized traffic, the documents cannot keep pace with the increased speed of modern ships. There is, however, less need than in other trades for bills of lading to be issued at all, and the parties often prefer to use alternative documentation. Secondly, with bulk commodities, and in particular bulk oil, the documents are slowed by the cargo typically being sold many times on the voyage. The chapter considers the consequences of departure from tradition, particularly where one of the parties becomes insolvent.
