A Bill of Lading (BoL) is a document required for both local and international import and export shipping. In 2023, over 16 million BoLs were processed, an average of 44,000 per day.
A BoL serves as a contract and a title deed. Knowing which types of bill of lading your shipment needs is the first step for smooth shipping. Learn about different types of bills of lading here, or contact Twings Supply today for assistance, support, and tailored shipping solutions.
What is a Bill of Lading?
A bill of lading (BoL) is a legal document issued by a carrier to a shipper, detailing the type, quantity, and destination of goods being transported. It serves as proof of shipment for the goods, a contract of carriage between the shipper and carrier, and a document of title, which can be transferred to others.
The bill of lading document must accompany the shipped goods on their journey and be signed by authorized representatives of the shipper, carrier, and receiver.
What’s in a Bill of Lading?
A bill of lading includes the following information:
| Detail | Description |
|---|---|
| Shipper and Receiver Details | Names, addresses, and contact information of the parties involved |
| Carrier Information | Name and contact details of the carrier responsible for the transportation |
| Description of Goods | Including type, quantity, weight, dimensions, and packaging |
| Origin and Destination | The points where the goods are picked up and delivered to |
| Terms of Carriage | Conditions under which the goods are transported, including any special instructions or handling requirements |
| Freight Charges | Details of shipping costs and payment terms |
| Date of Shipment | The date on which the goods are shipped |
| Bill of Lading Number | A unique identifier for tracking and reference purposes |
When is a Bill of Lading Required?
A bill of lading is required whenever goods are transported from one place to another via a carrier, whether by land, sea, or air. It’s a legally binding document that provides the carrier and the shipper with all the necessary details to accurately process a shipment.
Most Common Types of Bills of Lading
Most bills of lading are either negotiable or non-negotiable, clean or claused, straight or order, and inland or ocean.
Negotiable vs. Non-Negotiable Bills of Lading
A negotiable bill of lading allows the transfer of ownership of goods to another party. This means the consignee can endorse the bill to a third party, facilitating the sale of goods while in transit. A non-negotiable bill of lading specifies a particular consignee to whom the goods must be delivered and cannot be transferred to another party.
Clean vs. Claused Bills of Lading
A clean bill of lading indicates that the goods were received in good condition, with no apparent damage or irregularities noted. A claused (or “foul”) bill of lading notes specific issues such as damage, shortages, or other discrepancies.
Straight vs. Order Bills of Lading
A straight bill of lading is used when the items in the cargo have already been paid for by the receiver. An order bill of lading is used when the shipment is carrying items that are yet to be paid for.
Inland vs. Ocean Bills of Lading
An inland bill of lading is used for the transportation of goods over land, such as by truck or rail. It’s often issued when goods are transported to a port or another location before being transferred to an ocean carrier.
An ocean bill of lading is used for goods being transported by sea. It acts as a contract between the shipper and the shipping line for the carriage of goods across international waters.
Other Types of Bills of Lading
Other commonly used bills of lading include a thorough bill, a multimodal bill, an electronic telex release, an express bill, and a blind bill of lading.
Through Bill of Lading
A thorough bill of lading covers the transportation of goods across different carriers and often various modes of transport, such as sea, rail, and road. It streamlines the shipping process by consolidating all segments under a single document. It must include an inland or ocean bill of lading, depending on where its final destination is.
Multimodal/Combined Transport Bill of Lading
A combined transport or multimodal bill of lading is used when goods are shipped using at least two different modes of transportation under a single contract. It’s different from a through BoL in that a multimodal bill is for multiple modes of transport (e.g. land and sea), whereas a thorough bill may involve multiple carriers but not necessarily different transport modes.
Electronic Telex Release
An electronic telex release allows for the release of goods at the destination port without the physical presentation of the original bill of lading. After the shipper surrenders the original bill at the origin, the carrier instructs the destination agent to release the cargo to the consignee upon arrival. This speeds up the release process and reduces the risk of document loss.
Express Bill of Lading
An express bill of lading is a non-negotiable document where no original bills are issued. It’s used when there’s a high level of trust between the shipper and consignee, like in intra-company shipments or when payment has been made in advance. This type of bill helps with quicker cargo release upon arrival, as no original documents are required for the consignee to take possession.
Blind Bill of Lading
A blind bill of lading conceals the identity of the shipper or consignee, used in transactions where a third party wishes to prevent the buyer and seller from knowing each other’s identity. This practice is common in brokerage or distribution scenarios to protect business relationships and prevent circumvention.
What’s the Difference Between Master and House Bills of Lading?
The Master Bill of Lading (MBL) and House Bill of Lading (HBL) differ in their purpose, issuer, and use:
| Master Bill of Lading | House Bill of Lading | |
|---|---|---|
| Issued By: | The carrier or shipping line | A freight forwarder or non-vessel operating common carrier (NVOCC) |
| Recipient: | Usually issued to a freight forwarder or NVOCC | Provided to the actual shipper (exporter) and consignee (importer) |
| Purpose: | Represents the agreement between the shipping line and the freight forwarder/NVOCC | Serves as a contract between the freight forwarder and the shipper or consignee |
Types of Bill of Lading FAQs
What is a stale bill of lading?
A stale bill of lading is presented to the consignee or bank after the shipment has already arrived at the destination port. Not having the documents on hand upon arrival can delay the goods release.
How does a bill of lading differ from a bill of entry?
A bill of lading is a legal document issued by a carrier to a shipper, acknowledging the receipt of goods for shipment. It’s a receipt, a document of title, and a contract for the carriage of goods.
A bill of entry is a legal document filed by the importer or customs clearance agent with the customs authorities upon the arrival of goods in a country. It contains details like the name of the ship, number of packages, marks on the packages, and the name and address of the exporter. The bill of entry is necessary for customs clearance and determines the import duties and taxes payable.
What’s the difference between a BoL and a waybill?
A bill of lading is a document of title, a receipt of goods, and a contract of carriage. It may be negotiable and can be transferred by endorsement, allowing the holder to claim the goods.
A waybill is a receipt of goods and a contract of carriage but does not function as a document of title. It’s non-negotiable, meaning the consignee named in the waybill is the only party entitled to receive the goods.