What Is a Bill of Lading? Types and Use
The bill of lading (B/L) is, in sea transport, the evidence of the contract of carriage, a receipt showing that the cargo has been taken over by the carrier and, as a rule, a document of value representing ownership of the goods.
What Is a Bill of Lading? Types and Use
The bill of lading (B/L) is, in sea transport, the evidence of the contract of carriage, a receipt showing that the cargo has been taken over by the carrier and, as a rule, a document of value representing ownership of the goods.
The bill of lading performs three functions
- Evidence of the contract of carriage: shows the terms between the carrier and the shipper.
- Receipt: documents that the cargo was taken on board in the stated condition.
- Document of title: in negotiable (order) bills of lading, it represents the right to demand delivery of the cargo.
Types of bill of lading
- Master B/L (MBL): the document the carrier issues to the forwarder. House B/L (HBL): the document the forwarder issues to the shipper.
- Straight (named consignee): the cargo is delivered only to the consignee named in the document. Order: transferable by endorsement.
- Clean: the cargo was received in good order. Claused: there is a reservation about the cargo.
- Shipped on board: the cargo has been loaded on the vessel. Received for shipment: the cargo has been handed to the carrier but may not yet have been loaded.
Telex release and sea waybill
When the physical circulation of the original document wastes time, it can be surrendered to the carrier as a telex release; the cargo is then released without presentation of the original. A sea waybill, on the other hand, is a transport document that is non-negotiable from the outset and does not represent title.
What to check on a bill of lading
- Details of the shipper, consignee and notify party.
- Vessel, voyage, ports of loading and discharge.
- Container and seal numbers, number of packages and gross weight.
- Freight term (prepaid / collect) and the number of original copies.
Frequently asked questions
What is the difference between a B/L and an AWB?
The B/L is a sea transport document and can represent title to the goods; the AWB is an air transport document, cannot be endorsed and is not a document of title.
How many copies of a bill of lading are issued?
Usually three originals are issued; once one original is presented, the others become invalid.
When is a telex release used?
When the original documents will not reach the port of arrival in time, they are surrendered to the carrier so that the cargo can be released quickly.