Classification of Bill of Lading

Bill of Lading can be divided based on different attributes.

Let us discuss on the types of Bill of lading.

Based on carrier

1. Master Bill of Lading (MBL): Once goods are received by the shipping
line / carrier and the vessel is sailed, the shipping line issues a Bill of Lading
to the booking party (in case of direct booking, the booking party is the
shipper, but if house B/L is involved then booking party will be a freight
forwarder), that Bill of Lading is known as the Master Bill of Lading.

2. House Bill of Lading (HBL): Once goods are received by the shipping line
and the vessel is sailed, shipping line issues a Master Bill of Lading to the
freight forwarder and the freight forwarder issues a House Bill of Lading to the
shipper. For each HBL there is a MBL.

Based on payment & condition of goods

3. Clean Bill of Lading: Carrier issues Clean Bill of Lading once goods are
received in good condition and there is no damage to the goods.

4. Claused Bill of Lading (Dirty Bill of Lading): If goods or containers are

received in damaged condition, carrier issues bill of lading mentioning all
details of the damages is known as Claused or Dirty Bill of Lading.
Based on ownership of goods

5. Order Bill of Lading: The Bill of Lading which is consigned "To order", "To
the order" "To the order of ABC limited" is known as Order Bill of Lading. In
case of Order Bill of Lading, ownership can be transferred to the third party by
endorsing on the backside of BL.

6. Bearer Bill of Lading: In case of Bearer Bill of Lading, whoever holds the
physical Bill of Lading will be allowed to take the delivery. In Bearer Bill of
Lading, consignee field is kept blank or "Bearer" is mentioned in consignee
field.

7. Seawaybill: Seaway Bill is similar to Bill of Lading, which acts as Contract

of Carriage and Receipt of the Goods, Seaway Bill confirms that the
mentioned goods are loaded on the mentioned vessel and the same will be
shipped from one place to another. But the Seaway Bill does not act as
Document of title, so it can not be used for negotiation with bank, Seaway Bill
can not be used if Letter of credit involved, in case of Seaway Bill the
ownership can not be transferred to third party, consignee is not required to
submit original and endorsed copy of Seaway Bill to the carrier for taking
delivery of goods, carrier will identify the consignee, verify based on the
details mentioned in the Seaway Bill and deliver the goods to the consignee.

Based on Vessel status

8. Received for Shipment Bill of Lading (RFS Bill of Lading): When the
shipment is handed over to the carrier inside the port or terminal, but it's not
yet loaded onto the vessel, in this point time if shipper required that Bill of
lading, carrier issues a Received for Shipment (RFS) Bill of Lading. RFS B/L
only confirms that the goods are received by carrier for loading onto the
vessel but not yet loaded.

9. Shipped on board Bill of Lading (SOB Bill of Lading): After shipment is

at port or terminal, loaded onto vessel and the vessel is sailed, carrier will
issue Shipped On Board Bill of Lading. Shipped On Board Bill of Lading is the
confirmation that the carrier received the goods and loaded onto the vessel.

10. Stale Bill of Lading: A normal Bill of Lading is converted in Stale Bill of
Lading if it is not presented to the nominated bank within presentation period.

Based on type of transportation

11. Combined transport or Multimodal Bill of Lading: When more than

one mode of transportation involved in a shipment (e.g. rail and sea), the Bill
of Lading issued for entire shipment is known as Multimodal Bill of Lading
which is also known as Combined transport Bill of Lading.
12. Through Bill of Lading: Through Bill of Lading is a Bill of Lading which
covers the receipt of goods at point of origin to the delivery of the same at
place of delivery, more than one mode of transport can be used.

13. Charter Party Bill of Lading: Mostly in case of bulk cargo, charterers hire
the vessel from the ship-owners (terms and condition are as per Charter party
contract) and handle all the operations. In this case Charterer and shipper
enters onto an agreement named as "Contract of carriage" and the charterer
issues Charter Party Bill of Lading.

14. Ocean Bill of Lading: The Bill of Lading used for the overseas
transportation through international water is known as Ocean Bill of Lading.

15. Direct Bill of Lading: Sometimes the vessel in which the goods are
loaded in place of origin deliver the goods at the final place of destination, in
this case Direct Bill of Lading issued.

Based on post issuance activities

16. Surrendered Bill of Lading: After departure of the vessel, it takes 2-3
days to issue the Original Bill of Lading, after that shipper send those
documents to the consignee which takes another 3-5 days (depends on the
distance), so as a whole it takes more than a week time for the documents to
get delivered to the consignee. Now think, if the transit time is less than one
week, consignee will receive the Bill of lading after arrival of vessel which may
lead to Demurrage/ Detention charges.

17. Switch Bill of Lading: Switch Bill of Lading or Switch B/L is the substitute
of the first set of Bill of lading (original Bill of Lading) issued by the carrier or
their agent. Switch B/L is same as the original B/L, which serves the same
purpose as original B/L (first B/L).

If a trader (A) buys a product from a seller (B) and sells the same product to a
customer (C) on higher price (adding their margin), the cargo is shipped
directly from the seller's (B) place to the customer (C). The original B/L will
show B as shipper and A as consignee, but A does not want to reveal the
identity of B to C for obvious reason. In this case, A will surrender the original
B/L to the carrier or their agent and request for a Switch B/L, carrier or agent
will issue a new Bill of Lading, which shows A as shipper & C as customer,
the new B/L is called as the Switch B/L. Switch B/L can be issued at any port
of any country (comes in the vessel route) except country of origin.

We have written various articles on the topics related to export, import,

logistics and supply chain; click on below links if you want to read.