A bill of lading, or consignment note, is a valuable legal document that contains details of the shipper, consignee, notifying party, and other information relevant to the shipping process. This document indicates that goods have been loaded onto a vessel and includes the names of the sender and receiver. What is a Bill of Lading? A bill of lading is considered a transportation contract and ensures the secure and orderly completion of shipping operations. Here’s our comprehensive guide to what a bill of lading is and the various types of it.
Types of Bills of Lading
Bills of lading in maritime transportation generally fall into two major categories:
- By transfer type.
- By loading status.
Additionally, there are specialized maritime bills of lading.
Bill of Lading Types by Transfer Direction
Bills of lading can be arranged in three different ways based on the direction of transfer, depending on the shipper’s request. These are:
Straight Bill of Lading
Straight bills of lading are those that cannot be transferred through endorsement but can be transferred through delivery with ownership rights. Only the person named in the bill of lading can receive the goods, and transfer by endorsement is not allowed.
Negotiable Bill of Lading
This type of bill of lading can be transferred through endorsement. Whoever the bill of lading is issued to, the goods can only be transferred with their endorsement.
Bearer Bill of Lading
This type of bill of lading is rarely used due to its high risk. Whoever holds the bearer bill of lading can request the delivery of the goods from the carrier.
Bill of Lading Types by Loading Status
This classification involves whether the carrier has immediately loaded the goods onto a ship or not. The two types of bills of lading under this category are:
Received for Shipment Bill of Lading
This bill is issued for goods that have been received for shipment but not yet loaded onto a vessel. If a note indicating when and on which ship the goods were loaded is added, it can become a shipped bill of lading.
Shipped Bill of Lading
This bill of lading is issued once the goods are loaded onto the ship. It is commonly used in international shipping.
Specialized Maritime Bills of Lading
Specialized maritime bills of lading exhibit unique features and are often used in specific contexts. Examples include:
Clean Bill of Lading: This bill indicates no visible damage to the goods or packaging.
Dirty Bill of Lading: The carrier indicates visible damage to the goods or packaging.
Stale Bill of Lading: Issued when bills are not presented within a legal timeframe.
Short Form Bill of Lading: A simplified version without detailed transport terms on the back.
Liner Bill of Lading: Issued for ships operating on regular routes.
Container Bill of Lading: Used for containerized goods.
Through Bill of Lading: Covers multi-modal transport.
Non-Negotiable Bill of Lading: Designed to avoid delays caused by negotiable bills of lading.
Significance of a Bill of Lading in Maritime Transportation
The bill of lading is crucial in maritime transportation, serving as the contract between the shipper, consignee, and carrier, confirming that goods have been received and will be delivered as agreed. It’s also necessary for customs clearance, making it a vital document in international trade.
How is a Bill of Lading Created?
Typically, the carrier or the shipping agency prepares the bill of lading, which should include details such as:
- Names, addresses, and contact information for the shipper and consignee
- A detailed description of the goods (type, quantity, value)
- Information on the port or terminal where the goods are to be delivered
- Delivery conditions and freight charges
- Insurance information (if applicable)
Accurately preparing and using the bill of lading is critical for secure and effective transportation. What is a bill of lading? This document is key to managing relationships and responsibilities during shipping and ensures the smooth handling of goods through customs and delivery processes.