A bill of lading, or a sea waybill, is the primary document used in sea transport and a security one can use to transfer the ownership title of the cargo. A confirmation of a shipping contract having been concluded, a bill of lading plays a major role in international trade. As a security, a bill of lading represents the underlying cargo and the title to it, especially the right to dispose of the cargo. The sea waybill is the subject of trade transactions, both sales and purchases. The holder of the document may pick their cargo at the port of destination.
A bill of lading, or a sea waybill, is the primary document used in sea transport and a security one can use to transfer the ownership title of the cargo. A confirmation of a shipping contract having been concluded, a bill of lading plays a major role in international trade. As a security, a bill of lading represents the underlying cargo and the title to it, especially the right to dispose of the cargo. The sea waybill is the subject of trade transactions, both sales and purchases. The holder of the document may pick their cargo at the port of destination.
The bill of lading covers:
- Bill of lading conditions laid out by a shipping house or a shipper;
- Loader’s details;
- Recipient’s details;
- Details of the company or a person who shall be notified of the container having arrived;
- The reference number of the container, quantity, name and weight of the goods. Other important information can also be included.
Bills of lading are issued on the basis of freight instructions from the loader or exporter or based on the letter of credit. The document is effectively issued if signed and stamped by a person authorized by a shipping house, a sea freight operator or a shipper. The document is issued in several numbered copies, each being the original. The bill of lading is usually issued in 3 copies numbered 1/3, 2/3 and 3/3. A bill of lading is a kind of security; if you lose it, the shipping house, a sea freight operator or a shipper will refuse to release the goods until an original bill of lading is provided.
Besides the originals, the copies of bills of lading are also made. However, these do not give the holder the right to dispose of the cargo. They are intended only for importer’s and exporter’s internal use. The number of copies depends on customer’s needs; however, there are usually 6 of them. The recipient needs to produce 1/3 of the original bills of lading to claim the cargo.
Respectively, the bills of lading or containers / goods are usually released upon settlement of freight and service fees.
A bill of lading is issued for specific batches of cargo. With FCL container shipping, a bill of lading can be issued for a single container or a batch of containers.
A bill of lading plays several roles:
- It is a proof that a given shipment has been accepted for shipping. Based on the document, a transport operator shall release the cargo to the holder of a bill of lading.
- It is a commodity paper representing relevant cargo and providing the holder with the right to dispose of the cargo.
- It is a security as it transfers the ownership title to the cargo specified in the bill of lading.
- It is a document that can be transferred by handing, endorsement or by transfer, depending on the type of the bill of lading.
- It is not a shipping contract for related cargo.
- A bill of lading is not a shipping contract for the cargo/goods between the transport operator and a loader or between the transport operator and the recipient.
The following types of bills of lading are used in sea transport:
- Shipped, On board and Recevied for shipment;
- Clean bill of lading and Foul, Claused bill of lading;
- Liner bill of lading and Bill of lading to be used with charter-party;
- Electronic bill of lading;
- Through bill of lading;
- Transshipment bill of lading.
The basic type of a bill of lading is the Shipped, On board one, which confirms that the cargo has been loaded for shipping. This one specifies the name of a ship and the time when the loading is to be completed, as well as the fact that the cargo has been accepted for shipping. The responsibility on the part of the transport operator starts upon the issue of the document.