Bill of Lading

• A Bill of Lading is used for sea shipment and is a certificate of

ownership of goods. It must be produced at the port of final
destination by the importer in order to claim goods.
• As a document of title, the bill of lading is also negotiable
document and you may sell the goods by endorsing or handing
over to another authorized party, even while the goods are still at
sea.
• Although negotiable bills of lading are in common , some
countries does not allow them to use.
• The Bill of Lading is a formal, signed receipt for a specified
number of packs, which is given to the exporter by shipping line
when the shipping line receives the consignment.
 Definition of Bill of Lading
• A Bill of Lading is a document issued by a carrier or its agent to the shipper as a
contract of carriage of goods. It is also a receipt for cargo accepted for
transportation, and must be presented for taking delivery at the destination.
• A Bill of Lading contains the following details.
1. Consignor’s name and address
2. Consignee details
3. Notify Party
4. Port of Loading
5. Port of Discharge/ place of delivery
6. Name of the vessel and voyage number
7. Date of shipment
8. Expected date arrival of the vessel at the destination
9. Shipping Marks.
 Details in a Bill of Lading
10. Description of the goods
11. Number and kind of packaging
12. Net weight and Gross weight of the cargo
13. Volume of the cargo
14. Freight rate and total freight
A Bill of Lading serves as a proof of ownership (title) of the
cargo, and may be issued either in a negotiable or non-
negotiable form. In negotiable form, it is commonly used in
letter of credit transactions, and may be bought, sold or
traded or used as a security for taking post-shipment
finance.
 Bill of Lading
A Bill of Lading is required in all claims for compensation for any
damage, delay, or loss and for the resolution of disputes
regarding ownership of the cargo.
The rights, responsibilities, and liabilities of the carrier and the
shipper under a Bill of Lading (often printed on its back) are
governed either by Hague-Visby Rules.
The Bill of Lading is the single most important document in
international trade.
Knowledge and understanding of this transport document is a
matter of basic necessity for everyone working in the shipping,
forwarding, & Logistics sector as well as those involved in
international trade.
 Bill of Lading
A B/L may be consigned to the order of the shipper, where the
word ‘order’ appears in the consignee box; the shipper may
endorse it in blank or to a named transferee.
A B/L endorsed in blank is transferable by delivery. Once the goods
arrive at the destination they will be released to the bearer or
the endorsee of the original bill of lading. The carrier’s duty is to
deliver goods to the first person who presents any one of the
original B/L.
In general, the importer’s name is not shown as consignee. The bill
of lading has also provision for incorporating notify party. This is
the person whom the shipping company will notify on arrival of
the goods at destination.
 Bill of Lading
The particulars of the container in which goods are
stuffed are also mentioned in case of containerized
cargo. The document is dated and signed by the
carrier or its agent. The date of the B/L is deemed
to be the date of shipment. If the date on which
the goods are loaded on board is different from the
date of the bill of lading then the actual date of
loading on board will be evidenced by notation on
the b/l. In certain cases a carrier may issue a
separate on board certificate to the shipper.
 Types of Bill of Lading
1. Straight Bill of Lading:-
In Straight Bill of Lading Shipper/Importer/Consignee/Agent is named. It
is a document, in which a seller agrees to use a certain transportation to
ship goods to a certain location, where the B/L assigned to a certain
party.
2. Order Bill of Lading:-
This B/L uses express words to make the B/L negotiable e.g. it states that
delivery is to be made to the further order of the consignee using words
such as “delivery to a A Ltd. Or to order or assigns”.
3. Bearer Bill of Lading:-
This B/L states that delivery shall be made to whosoever holds the B/L .
In this B/L consignee column will be written just “ To Order” . A bearer
B/L can be negotiated by physical delivery.
 Types of Bill of Lading
4. Surrender Bill of Lading:-
Under L/C shipment the bank releases the original documents on receipt from the
negotiating bank but the importer does not pay the bank until the maturity of the
draft under the relative credit. This direct liability is called Surrender Bill of
Lading(SBL) i.e. when we hand over the bill of lading we surrender title to the goods
and our power of sale over the goods.
5. Clean Bill of Lading:-
A clean bill of lading states that the cargo has been loaded on board the ship in
apparent good order and condition. Thus , a B/L that reflects that the carrier
received the goods in good condition.
6. Soiled Bill of Lading:-
A soiled bill of lading reflects that the goods are received by the carrier not in good
condition
 Types of Bill of Lading
7. Combined Bill of Lading:-
A combined Bill of lading confirms that a carrier has used several modes of transportation
viz air, land, sea for the transportation of goods.
8. Shipped (On Board ) Bill of Lading :-
A Bill of lading issued after loading the cargo on board a vessel is called as Shipped On
Board Bill of Lading.
9. Received for Shipment Bill of Lading:-
A Bill of Lading issued after receiving the cargo duly Custom cleared but not loaded on
board the vessel, that B/L is called as ‘Received for shipment’ Bill of Lading. It certifies only
receipt of the goods for shipment.
10.Switch Bill of Lading:-
A switch Bill of Lading is issued upon request by the traders who do not want to
disclose the actual shipper and port of loading to their buyer. In switch B/L a first leg B/L is
issued and this will be surrendered at an intermediate port and another B/L is switched
from this port to final destination.