Types of Bills of Lading

What is Bills of Lading ?

A bill of lading (BL) is issued by a shipping line or carrier to the shipper whose cargo is being transported by the carrier. It is a legal and mandatory document which is the proof that the shipping line or carrier received the cargo as per the details mentioned in the bills of lading and shipping line has to deliver the said cargo to the destination as per agreed terms. Bills of Lading is also a proof of ownership of the shipped cargo.

The main purpose of Bills lading is a) it show the title of shipped goods, b) it acts as transporting document (or transit receipt) and c) it is a contract between the shipper and the shipping line.

Details shown in Bills of Lading:-

Bills of lading shows the name of Shipper/ Exporter, Consignee Name, Notify Party Name, Bills of Lading Number, Vessel Name, Voyage Number, Port of loading, Port of discharge, Place of receipt, Place of delivery,  Description of cargo, Gross weight, Net Weight, Shipped on board, Clean on board, Freight prepaid or freight collect and other details.

Types of Bills of Lading

There are different types of bills of lading which is issued by shipping lines as per contract with shipper :

Clean Bill of Lading

When cargo is stuffed and containers and loaded in Vessel without any declaration by shipping line or by its agents on the defective/ damaged goods or packages. If there is no such clause, the bill of lading are Clean Bill of Lading

Claused Bill of Lading

When there is cargo damage or quantity mismatch, in this case bill of lading is issued with this description of damaged / mismatched quantity by the shipping line or its agent and it is termed as Claused bills of lading.

RFS (Received for Shipment) Bills of Lading

Received for Shipment bills of lading issued by the shipping line or its agent upon receipt of cargo for shipment. It is issued prior to the loading of vessel and goods are not onboard.

Through Bills of Lading

This type of bills of lading allows the shipping carrier to pass the cargo in different modes of transportations or through different distribution channels. This includes both the inland and ocean bill of lading depending upon the destination.

Charter Party Bills of Lading

Charterparty Bills of lading issued to the charterer of the Vessel. It is an agreement between the vessel owner and the charterer of vessel.  Charterer of the vessel issued charterparty bills of lading to the shippers whose cargo is onboard. This type of Bills of lading is issued in the break bulk shipment.

Container Bill of Lading

Container Bill of Lading is a document that gives information about goods that are delivered in a safe container or containers from one port to another.

House Bills of Lading

House Bills of lading is issued by NVOCC (Non-Vessel Operating Common Carrier) or an Ocean Transport Intermediary Freight Forwarder. This is also known as Forwarder Bills of Lading.

Master Bill of Lading

This document specifies the terms and condiitions that are required for transporting the freight, details of the consignor or the shipper, the consignee and the respective person who possess the goods. This document is created for shipping companies by their carriers as a receipt of transfer.

Multi modal Transport Document/ Combined Transport Document

This type of document requires a minimum two different modes of transportation. Like land & ocean etc. It can be classified as a through bills of lading also.

Stale Bill of Lading

Stale Bill of Lading is presented for negotiation after 21 days from the date of shipment or any other date/ number of days stipulated in the documentary credit.

Short-term/ Blank Back Bill of Lading

When the detail terms and conditions of the carriage is not given on the body oar back of the bills of lading, it is called Short term or Blank Back Bill of Lading.

Straight Bill of Lading

This is also considered as non-negotiable bills of lading. It indicates that the goods are consigned to a particular person and it is not negotiable free from the existing equities. This means that an endorsee acquires no better rights other than those that are held by the endorser. In banking point of view, such bills of lading are not considered safe.

Order Bill of Lading

Order Bill of Lading is the bill that expresses words that make the bill negotiable. This explains that the delivery is to be made to the further order of the consignee using terms such as ‘delivery to A Limited or to order or assigns.

Bearer Bill of Lading

This bills of lading means that the cargo will be delivered to whosoever hold the bills of lading.

A bearer bill can be negotiated by physically delivering it.

Surrender Bill of Lading

Surrender Bill of Lading works under the term ‘import documentary credit’, where the bank releases documents on receipt from the negotiating bank. The importer does not make the payment to the bank until the maturity of the draft under the relative credit.