Shipping Guarantee
Allows goods release without an original bill of lading, backed by the bank.
Detailed Description
Shipping Guarantee
What is a Shipping Guarantee?
A Shipping Guarantee is a financial instrument issued by a bank that allows the release of goods without the original shipping documents.
Who are the parties involved in a Shipping Guarantee transaction?
The parties involved include the importer, exporter/supplier, shipping company, and the bank/financial institution.
What are the benefits of using a Shipping Guarantee?
Benefits include faster access to goods, reduced risk of loss, and improved cash flow for importers.
What types of Shipping Guarantees exist?
Common types include Standard, Blanket, and Conditional Shipping Guarantees.
What are some risks associated with Shipping Guarantees?
Risks include financial liability for the bank, potential fraud, and documentation issues.