The importance of containers and container shipping to the trade finance and supply chain industry has been demonstrated throughout 2021; from the Ever Given incident in the Suez Canal to port delays on the U.S. west coast and a global shortage of containers available for the shipment of goods.
In this context, there are a number of considerations that financial institutions (FIs) need to be accounting for. FIs will follow recent regulations from OFAC and others on the tracking of vessels, ensuring that ships do not have a history of calling at sanctioned ports, owners are not on a designated watch-list and movement activity of the vessel can be accounted for. The same due diligence may not always be translated to the individual container or series of containers found on a bill-of-lading.
One of the risk elements covering container transportation in the Middle East, for example, is for containers to be unloaded at a port in the UAE with the potential for transhipment to Iran. Understanding the journey of the container in regards to its planned route enables the container itself to be tracked and managed as a vessel can and would be.
In this context, a panel of industry experts, hosted by IHS Markit and the Institute of International Banking Law and Practice, will seek to provide clarity on what regulators expect from FIs for container due diligence:
- Are the compliance checks for a vessel and a container similar or different
- Should vessel and container screening be included in a sanctions programme
- Is transshipment common and how can it be managed effectively by a trade operations team
- How important is it in the context of the Ever Given and the invoking of general average that incoterms are understood and used appropriately
- Can the bill-of-lading and the container/ship route differ
- What is the current regulatory advice on managing container shipments from a tracking perspective
Join us to discuss these topics and more.
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