UCP 600 article 26 clarifies that a transport document must not indicate that the goods are or will be loaded on deck, although a clause stating that goods may be loaded on deck is acceptable.
The term ‘on deck' means that a cargo has been placed on or above the deck of a ship, thereby exposing it to any adverse weather conditions and perils of a sea journey. This may be because the goods are too large to be placed below deck, or they contain dangerous materials.
Although containers are usually stacked well above the deck line of a vessel, it would be highly unusual for a bill of lading or multimodal transport document, indicating shipment effected by containerised shipment, to indicate ‘goods shipped on deck'. However, care should still be taken if this term does appear for a containerised shipment, as it is not absolutely definite as to the outcome of any potential court judgement.
An article of this type has been in existence since the very first UCP wherein it was stated that banks had the right to accept bills of lading mentioning stowage on deck of goods of a special nature provided that appropriate insurance was evidenced. More details of the history of this particular article can be found in our earlier blog: UCP 600 comparison - Part 5.
Reference within ICC Opinions includes TA827rev, which concludes that a copy of bill of lading indicating that goods are or will be loaded on deck or including a clause or notation expressly declaring a defective condition of the goods or their packaging is not discrepant. The rational being that article 26 only applies to original transport documents.
Conversely, and in line with Opinion R358, a bill of lading which states "Perishable Cargo on Deck at Shipper's Risk" is a clear indication that the goods are loaded on deck, and if not allowed by the credit, such a bill of lading should be refused for an on deck shipment having taken place.