Can a cargo carrier deliver goods without a bill of lading? This is a simple question and yet full of implications for international trade and finance which relies on the use of a document of title called a bill of lading. The answer is of course no. Without the presentation of a bill of lading,a carrier delivers the goods at his peril. If the carrier is able to deliver the goods without the presentation of the bill of lading,the countless number of bills of lading held by the banks in international trade would be worthless and all international transactions based on a bill of lading would be disrupted. That would be to the detriment of all - the banks,the carriers,the traders and the public in general.

Recent Court Decision in Korea

There was a recent trial court decision in Korea,where a carrier who delivered goods without the presentation of a bill of lading was held to be without fault. As a result,the bank which had sued the carrier for the price of the bill of lading that the bank held,lost the case and the bill of lading that the bank held became worthless.

In a short opinion comprised of only seven pages,the court examined the arguments of the bank and the carrier and upheld the argument of the carrier.