Bill of Lading Guide — B/L Types and Functions

In the intricate world of maritime container shipping and chartering, the Bill of Lading (B/L) serves as a fundamental document, providing a legal record of the cargo and serving as a key negotiable instrument. Various types of Bill of Lading cater to specific needs and circumstances, each playing a crucial role in ensuring the smooth flow of goods across international waters. In this comprehensive guide, we will delve into the diverse types of Bill of Lading and their functions, shedding light on their significance in the maritime industry.

Clean Bill of Lading

A Clean Bill of Lading is issued when the cargo is in good condition and has been loaded onto the vessel without any apparent damage. It assures the consignee that the goods have been received by the carrier in proper condition.

Received for Shipment Bill of Lading

This type of B/L signifies that the carrier has received the goods but has not necessarily loaded them onto the vessel. It indicates that the cargo is ready for shipment.

Shipped on Board Bill of Lading

A Shipped on Board B/L is issued when the goods have been physically loaded onto the vessel. It is a confirmation that the cargo is on board and en route to the designated destination.

Through Bill of Lading

Through B/L covers the entire journey of the cargo, encompassing multiple modes of transport. It provides a seamless and unified document for the shipper, simplifying the logistics process.

Claused (or Dirty, or Foul) Bill of Lading

When a Clean Bill of Lading cannot be issued due to damaged or missing goods, a Claused Bill of Lading is issued. It includes remarks or clauses detailing the discrepancies in the cargo.

Container Bill of Lading

Container B/L is specific to containerized cargo, detailing the contents and conditions of the container. It has become increasingly prevalent with the rise of containerized shipping.

Charter Party Bill of Lading

Charter Party B/L is used in cases where a charter party agreement exists between the shipper and the carrier. It reflects the terms agreed upon in the charter party contract.

Multi-Modal Transport Document / Combined Transport Document

This type of B/L covers the entire journey of the cargo, including multiple modes of transportation. It offers flexibility and convenience for shippers using various transport methods.

Stale Bill of Lading

A Stale B/L is one that is presented to the carrier or consignee after the stipulated time frame mentioned in the document. It might lead to disputes and delays in the release of the cargo.

Short-term / Blank Back Bill of Lading

This type of B/L has limited validity and is often used for short-term shipments. Blank Back B/L provides space for additional terms and conditions to be added as needed.

Straight (or Non-Negotiable) Bill of Lading

A Straight B/L is non-negotiable and specifies a particular party as the consignee. It is commonly used in scenarios where the cargo is pre-paid or the consignee is known.

Order (or Negotiable) Bill of Lading

An Order B/L is negotiable and can be transferred to another party by endorsement. It provides flexibility in the transfer of ownership during the shipping process.

Bearer Bill of Lading

Similar to an Order B/L, a Bearer B/L is negotiable but does not require endorsement. Possession of the document is sufficient to claim the goods.

Surrender Bill of Lading

A Surrender B/L allows the consignee to take possession of the goods without presenting the physical document, simplifying the release process.

House Bill of Lading

House B/L is issued by a Non-Vessel Operating Common Carrier (NVOCC) or a freight forwarder and is distinct from the Master B/L issued by the carrier. It consolidates multiple shipments under a single document.

Master Bill of Lading

The Master B/L is issued by the carrier and serves as the primary document for the entire shipment. It outlines the terms and conditions of carriage for all the house B/Ls under its umbrella.

Functions of a Bill of Lading

Receipt of Goods (Main Function): Acknowledges that the carrier has received the goods for shipment.
Title of Goods (Main Function): Serves as a negotiable instrument, transferring the title of the goods from the shipper to the consignee.
Contract of Carriage (Main Function): Outlines the terms and conditions of the transportation agreement between the shipper and the carrier.
Proof of Shipment: Acts as evidence that the goods have been loaded onto the vessel and are in transit.
Delivery Order: Can be used as a basis for the consignee to claim the goods upon arrival at the destination.
Negotiable Instrument: For negotiable Bills of Lading, the document itself becomes a valuable asset that can be traded or used as collateral for financing. This function enhances the liquidity of the goods during transit, allowing for more flexible financing options for both buyers and sellers.
Customs and Port Clearance: Governments and customs authorities rely heavily on the B/L for processing and clearing maritime shipments at ports of entry. It provides essential information to ensure compliance with import/export regulations.
Documentation for Maritime Insurance: The B/L is often a key document required by maritime insurance providers. It helps determine the coverage and conditions of insurance, providing a critical link between the insured goods and the insurance policy.
Letter of Credit Compliance: In international trade, the Bill of Lading plays a pivotal role in complying with letters of credit. Banks often require a clean Bill of Lading, free from discrepancies, to release payment to the shipper.

Conclusion

In the dynamic world of maritime container shipping and chartering, the Bill of Lading stands as a linchpin, facilitating the movement of goods across the seas. Understanding the various types and functions of B/L is crucial for all stakeholders involved in international trade, ensuring the safe, secure, and efficient transportation of goods on a global scale.

SBB Shipping USA Inc. – Consider it shipped!™

SBB Shipping USA Inc.