“Shipping Guarantee” clause

QUESTION:

Is a ‘Shipping Guarantee’ clause permissible?

ANSWER:

“Shipping Guarantee” refers to a written guarantee, issued by the bank which will bear joint liability, and is represented by the importer to the carrier or its agent, for picking up the goods in the case of arrival of cargo prior to the shipping documents. The above seems to be in order if there isn’t any form of insurance involved. In conclusion, with the shipping documents, customs are cleared and goods are removed before receiving shipping documents. This enables them to lower total demurrage costs, which are charged on a “per container” and “per day” basis after crossing the free time.

ALLAH TA’ALA IN HIS INFINITE KNOWLEDGE KNOWS BEST!

ANSWERED BY:

Mufti Mohammed Desai

Date: 17 Dhul Hijjah 1445 / 24 June 2024