Transshipment Not Allowed

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📖 Detailed Explanation

"Transshipment Not Allowed" is an important clause in international cargo transportation, typically appearing in bills of lading, letters of credit, or sales contracts. It means that the goods must be carried by the same vessel directly from the port of loading to the port of destination, without transferring to another vessel en route. It is commonly used when letters of credit require it or when the buyer has high demands for transit time and cargo safety, such as for perishable goods, high-value cargo, or routes to politically sensitive regions. Note: If a letter of credit stipulates "Transshipment Not Allowed" but transshipment actually occurs, the bank may refuse payment; the seller should ensure the carrier provides a direct route and note "Transshipment Not Allowed" on the bill of lading. Compared with "Transshipment Allowed," the latter is more flexible but may increase the risk of cargo damage and delay. The difference also lies in: "Transshipment Not Allowed" emphasizes direct shipment, while "Transshipment Allowed" may complete transport via a transshipment port. In practice, if direct shipment is unavailable, the seller should negotiate with the buyer in advance to amend the clause to avoid document discrepancies.

📝 Examples

1. The letter of credit stipulates: Transshipment Not Allowed. Please be sure to arrange a direct vessel and show the corresponding remark on the bill of lading. (Note: In letter of credit transactions, the seller must book space strictly according to the clause, otherwise the bank may refuse payment.) 2. The goods under this contract are not allowed to be transshipped. If delay or cargo damage occurs due to transshipment, the seller shall be liable for compensation. (Note: The sales contract clearly defines liability, strengthening the seller's obligation to control the mode of transport.)

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