A Bill of Lading (B/L) is a critical document in international trade that serves as a contract between the shipper (exporter) and the carrier (shipping company) for the transportation of goods. It also acts as a receipt of goods shipped and may serve as a document of title, enabling the transfer of ownership of goods.
The key purposes of a Bill of Lading are:
- Receipt of Goods: Confirms that the carrier has received the goods for shipment.
- Contract of Carriage: Outlines the terms and conditions of transporting goods from origin to destination.
- Document of Title: Enables the holder to claim ownership of the goods.
Types of Bills of Lading
1. Based on Mode of Transport
- Ocean Bill of Lading (OBL): Used for sea transportation.
- Air Waybill (AWB): Used for air freight; non-negotiable.
- Inland Bill of Lading: Used for road or rail transport within a country.
2. Based on Negotiability
- Negotiable (Order) Bill of Lading: Allows transfer of ownership through endorsement. Often used in Letter of Credit transactions.
- Non-Negotiable (Straight) Bill of Lading: Goods are delivered to a specified consignee and cannot be transferred to another party.
3. Based on Consignment Terms
- Clean Bill of Lading: Indicates that the goods were received in good condition without damage or shortages.
- Claused (Foul) Bill of Lading: Indicates that the goods were damaged or not in compliance with the terms at the time of receipt.
4. Based on Issuance and Purpose
- Master Bill of Lading (MBL): Issued by the shipping line or main carrier to the freight forwarder.
- House Bill of Lading (HBL): Issued by a freight forwarder to the shipper as part of consolidation.
- Switch Bill of Lading: A second B/L issued to replace the original, often used when there's a change in consignee or trade terms.
5. Other Specialized Types
- Through Bill of Lading: Covers multiple modes of transport under a single document.
- Combined (Multimodal) Bill of Lading: Used when goods are transported using two or more modes (e.g., sea and road).
- Shipped On Board Bill of Lading: Confirms the goods have been loaded on the vessel.
- Received for Shipment Bill of Lading: Confirms the carrier has received the goods but does not confirm loading onto the vessel.
Each type of B/L serves specific purposes and is chosen based on the trade terms, mode of transport, and nature of the transaction.