Transhipment Under a Letter of Credit: What Exporters Need to Check
How UCP 600 treats transhipment and what to check when a credit prohibits it.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
Transhipment means unloading from one vessel or means of transport and reloading onto another during carriage from the place stated in the credit to the destination (UCP 600 Art. 19–20). Even when a credit prohibits transhipment (MT700 field 43T), a bill of lading indicating that transhipment will or may take place is acceptable if the goods are in a container, trailer or LASH barge and one bill covers the whole carriage (Art. 20(c)).
| MT700 | Field 43T |
|---|---|
| Bill of lading rule | Art. 20(b)–(c) |
| Container exception | Acceptable if one B/L covers whole carriage |
What to check
- 43T wording.
- Whether goods are containerised.
- One transport document covers the whole voyage.
- Ports match 44E/44F.
Risks
- Break-bulk cargo transhipped when prohibited.
- Separate transport documents for each leg.
Sources
- ICC — UCP 600 (Uniform Customs and Practice for Documentary Credits)
- Swift — MT700 Issue of a Documentary Credit (category 7 standards)
General guidance, not legal advice. Your bank examines documents independently.
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