WtraLab – Global Trade Lab

If there is one document that sits at the heart of international shipping, it is the Bill of Lading (B/L). Understanding what it is, how it works, and the different types available is essential for anyone involved in global trade.

What is a Bill of Lading? A Bill of Lading is a legal document issued by a carrier (shipping line) to a shipper. It serves three critical functions: it is a receipt confirming the carrier has received the goods, a contract of carriage outlining the terms of transport, and a document of title that can be used to claim ownership of the goods at the destination.

Key Information on a Bill of Lading Every Bill of Lading contains the shipper’s name and address, consignee’s name and address, notify party, vessel name and voyage number, port of loading and port of discharge, description of goods, HS Code, number of packages, gross weight, and freight payment terms.

Types of Bill of Lading

A Straight Bill of Lading is non-negotiable and consigned directly to a named consignee. Only that specific party can claim the goods. It is commonly used when payment has already been made.

An Order Bill of Lading is negotiable and can be transferred to another party by endorsement. It is widely used in Letter of Credit transactions where the bank controls the release of goods until payment is made.

A Switch Bill of Lading is issued to replace an original B/L, often used in re-export trade to conceal the original supplier’s identity.

A Seaway Bill is a non-negotiable transport document used for shipments between trusted trading partners. Goods can be released without presenting the original document.

Original vs. Telex Release Traditionally, three original Bills of Lading are issued. The consignee must present one original to claim the goods. A Telex Release (or Express Release) allows the carrier to release goods without presenting the original B/L, used when the shipper surrenders the originals at the port of loading.

Common Bill of Lading Mistakes to Avoid Always ensure the description of goods matches the actual shipment exactly. Discrepancies between the B/L and other trade documents such as the Commercial Invoice can cause serious delays. Never sign a clean B/L if the goods are damaged — request a claused B/L noting the condition of the cargo.

Conclusion The Bill of Lading is one of the most powerful documents in international trade. Understanding its types and functions will help you manage shipments more effectively and avoid costly disputes.