What is the Bill of Lading (B/L) and why is it vital for your maritime cargo?
If you are importing or exporting using maritime transport, the Bill of Lading (B/L) is the document you need to know, as its use is mandatory. It is much more than a simple piece of paper: it is the key that gives you control and ownership over your goods in relation to the freight forwarder and shipping lines. Without it, your cargo cannot move.
The B/L is issued by the shipping line or its agent (the carrier) and has three essential legal and logistical functions:
It is a receipt for the goods
When the carrier loads your goods onto the vessel, the B/L acts as a receipt. It confirms that the cargo has been received in good condition and in the declared quantity. It is your proof that the shipping line has taken possession of the goods.
It is a contract of carriage
The B/L is the legal proof of the contract between the exporter (shipper) and the carrier. It details the terms and conditions of the shipment: the origin, the destination, the route, the name of the consignee (receiver), and the responsibilities of each party.
It is a title of ownership
This is the most important function. The original B/L is a negotiable document, meaning it is the title of ownership of the goods. Whoever possesses the original B/L can claim the cargo at the destination port. This gives the seller total control over the shipment, as they can demand payment before delivering the document to the buyer.
Types of Bill of Lading: which one do you need for your shipment?
There are different types of B/Ls, and choosing the correct one speeds up your logistics and improves the security of your maritime transport operation:
Original B/L (Original Bill of Lading)
Several physical copies are issued (usually 3). To release the cargo at the destination, it is mandatory to present at least one of these original copies. It is the most secure for the seller, as it guarantees that the buyer will only receive the goods once they have paid for and received the document.
Telex Release
This is a digital version of the original B/L. The carrier at origin sends an electronic notification (telex) to its agent at destination to release the cargo. This eliminates the need to send physical documents, saving time and courier costs, making it ideal for high-trust transactions.
Seaway Bill
This is a non-negotiable document, similar to a consignment note. It is used for shipments where there is a relationship of trust, such as between subsidiaries of the same company. The goods are delivered directly to the consignee named in the document without the need to present an original.
What information does a B/L contain?
A complete Bill of Lading must include the following information:
Details of the shipper (exporter), the consignee (importer), and the shipping line.
Names of the loading and discharge ports.
Vessel information and voyage number.
Marks and numbers of the packages for clear identification.
Special handling instructions.
The freight (cost of transport) and payment terms.
Detailed description of the goods, including the number of packages, weight, and volume.
Remember:
An error-free B/L is crucial for efficient maritime transport. Any discrepancy in the data can cause significant delays and additional expenses at customs.
Related Documentation
House Bill of Lading (HBL)
Document issued by the freight forwarder for each individual client.
Commercial Invoice and Packing List
Details of the commercial transaction and package contents.
Cargo Manifest
Official list of all cargo aboard the vessel.
Certificate of Origin (COO)
Certifies the country of manufacture of exported goods.
Marine Insurance Policy
Covers risks of loss or damage during maritime transport.
Charter Party
Contract between ship owner and charterer for vessel use.
Health, Phytosanitary or Veterinary Certificates
Guarantee compliance with health standards for certain products.