Types of Bills of Lading

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Types of Bills of Lading

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1. Based on the Carrier


 House Bill of Lading

A House Bill of Lading is a document issued by the freight forwarder


or NVOCC (Non-Vessel Operating Common Carrier) operator. In this
document, the. “consignor” is the actual seller/sender/exporter and the
“consignee” is the actual buyer/receiver/importer. Like all Bills of Lading,
this also contains details of the cargo, carrier, destination and so on.

 Master Bill of Lading

The Master Bill of Lading is issued by the shipping line or carrier. It is also
known as the Ocean or Carrier Bill of Lading.

In the Master BL, details of the cargo and carrier must be identical to that
of the House BL barring one crucial difference. The “consignor” in the
Master Bill of Lading is the agent, freight forwarder or NVOCC of the actual
seller while the “consignee” is the agent freight forwarder or NVOCC of the
actual buyer.

But it’s not as straightforward as that.

Shippers can decide if they want to move shipments directly using a


Master BL. Whether they opt for this is determined by the trade terms the
shipper and the consignee have agreed upon.
Details on the Master BL therefore depend on whether the freight forwarder
has introduced a House BL for the shipment or not. If the shipment is being
executed directly using a Master BL, the “consignor” is the actual shipper
and the “consignee” is the actual receiver. But if a House BL has also been
introduced, the “consignor” in the Master BL changes to the agent/freight
forwarder/NVOCC as mentioned above.‍

2. Based on Payment and Consignee


 Straight Bill of Lading

A Straight Bill of Lading is issued when the customer has made the
complete payment for the shipment in advance, and gets the right to
receive the consignment directly. The consignee must receive the delivery,
and has no way to renounce the right to another person. This is why it is
known as a non-negotiable instrument.

 Order Bill of Lading

This is the most common kind of Bill of Lading. Unlike the Straight Bill of
Lading, it is a negotiable instrument that allows the consignee named in
the document to renounce their right to receive the goods to a third party.

 Bearer Bill of Lading

A Bearer Bill of Lading is one that promises delivery to whomsoever holds


the document. The name of the consignee in this document may be
“bearer”. It is a negotiable instrument allowing a third party to accept the
goods on arrival.
 Clean Bill of Lading

This Bill of Lading is issued by the carrier after it inspects the goods. The
document declares that the shipment was received in good condition, in
the right quantity and packaging and that there was no damage during
transport.

 Foul/Dirty or Claused Bill of Lading

This document is a Bill of Lading that contains clauses regarding quality


defects or quantity shortcomings in the shipment. The carrier outlines the
damages and other discrepancies to the cargo in these clauses or
notations on the Bill of Lading, allowing the consignee to refuse to accept it
and/or their bank to refuse to release payment.

3. Based on Transportation

 Inland Bill of Lading: For domestic shipments


 Ocean Bill of Lading: For overseas shipments
 Through Bill of Lading: When the carrier moves the goods across
several destinations using single or multiple modes of transportation
 Multimodal Bill of Lading: Used when goods will move across at least
two modes of transport


‍4. Other Important Bills of Lading

 Seaway bill

A Seaway bill, also known as the Express Release Bill of Lading or Straight
Bill of Lading, is not technically a Bill of Lading. It is similar to the Bill of
Lading because it acts as a receipt of the goods as well as a contract of
carriage. The key difference, however, is that it is not a document of title.

A Seaway bill is used when there is a high level of trust between the
shipper and the owner of goods. The receiver doesn’t need to present it for
cargo delivery; they will only have to establish their identity to take
possession of the goods once it arrives at the port.

 Received for Shipment Bill of Lading

The carrier issues the RFS or Received for Shipment Bill of Lading to
confirm the receipt of the container at the port for loading purposes. It does
not indicate that the goods have been placed on board the ship. This
document is replaced by a Shipped on Board Bill of Lading when the goods
are placed on the ship.

The Received for Shipment BL is generally used for shipments with shorter
transit times. Usually, a Bill of Lading is couriered to the consignee so that
they can take delivery of the shipment when it arrives at the port. But when
transit times are short, sometimes the consignee doesn’t get the Bill of
Lading in time to receive the cargo. Carriers usually release a Received for
Shipment Bill of Lading to give the shipper more time to courier the
document to the consignee.


 Shipped on Board Bill of Lading

The Shipped on Board Bill of Lading is an acceptance from the carrier that
it has received the goods and loaded the goods onto the ship. It is released
post the sailing of the vessel.

 Switch Bill of Lading

A Switch Bill of Lading helps in the smooth conduct of triangular shipments


– a common scenario today, where one transaction can involve three
different parties based in three different countries.

It is used when an importer makes an international purchase from a


middleman or trader and not from the actual manufacturer. This middleman
or trader usually wants to conceal the identity of the manufacturer to
prevent the buyer from contacting the manufacturer directly, and eating
into their business.

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