Coping strategies for delays in foreign trade delivery: application of backdating and advance bills of lading

In foreign trade transactions, delivery time is a crucial element, and the “Last Shipping Date” (LASTED SHIPMENT DATED) is usually clearly specified in the contract and letter of credit. This period is determined based on the “Onbord Dated” on the bill of lading. However, in practice, delivery delays often occur, leading to serious default risks. If the goods are not delivered within the stipulated time limit, the customer may refuse to pay for the goods, or use this as a reason to demand price reduction compensation. The bank may also deduct money due to non-compliance with the requirements of the letter of credit.

Faced with delivery delays, there are some strategies that can help forwarders and exporters mitigate losses. This includes two effective solutions: reverse bill of lading and advance bill of lading.

First of all, Ante Dated B/L is a common workaround. For example, if the original deadline for shipment is August 8, but the shipment actually takes place on August 15, the freight forwarder can indicate “shipping on August 8” on the bill of lading. There is no problem with this approach on the surface, because foreign trade transactions are conducted based on documents. As long as there are no discrepancies in the documents, potential troubles can be avoided.

Secondly, the advance bill of lading (Ad-vanced B/L) is a supplement to the reverse bill of lading. When using the backdating method, although there is no problem with the date of the bill of lading, if you wait for the bill of lading to be issued on August 15, according to normal procedures, you may miss the time limit for the presentation of the letter of credit. At this time, after confirming that the goods can be boarded, the bill of lading can be issued in advance so that it can be submitted to the bank in time. This approach ensures that even though the actual shipment time has been delayed, August 8 can still be marked on the bill of lading, thus avoiding risks and losses related to the letter of credit.

Although backdating and advance bills of lading are very common in practice, it should be noted that if these measures are taken unilaterally without the consent of the customer, it may lead to a deceptive nature. Therefore, when exporters use the estos method, they must ensure that customers do not suffer substantial losses in order to maintain trust and cooperative relationships between both parties.