A Study On The Legal Status Of Orderer In Order Bill Of Lading

Under the letter of credit(L/C) business, the issuing bank as the orderer of the order bill of lading(B/L), I think, the orderer’s order contains two meanings, the one is that the carrier should deliver the cargoes to the holder of B/L, the other is that the applicant should timely redeem the B/L and other related documents from the issuing bank, and take delivery the cargoes, this is the order in the two aspects performance between different subjects. So, that makes the orderer establishing the cargoes transportation legal relationship with the parties of the international payment. Orderer as a subject participates to different legal relationships, and form different rights and obligations with the different parties. The author believes that as the identity of the orderer is both the holder of B/L and consignee of certain condition, the right is the control of the goods and taking delivery the cargoes with nobody who declare the ownership of the cargoes in the maritime transportation legal relationship. The legal relationship between the issuing bank and the applicant are according to the contract of L/C. At present, in the international payment business, the issuing bank usually require to enjoy the pledge of B/L which will transfer to the hands of the bank to guarantee the interests itself. The limitation of the pledge is that the pledgee couldn’t dispose the cargoes under B/L. The fulfillment of the right depends on the priority of the pledge and the lake of the debt transform to the general creditor’s right. The reasonable issuing bank will choice the more beneficial way from the different rights of the different legal relationship to guarantee the interests. This is the pledge of B/L, not the holder of B/L or consignee. Therefore the right of the carrier that require the orderer to take delivery of the cargoes is uncertain. In order to balance the right and obligations of the parties, the author suggest that the orderer should undertake the obligation that taking delivery the cargoes with nobody declaring the ownership of the cargoes in the legislation.