Understanding Bills of Lading

Knowledge of Bills of Lading: Understanding Bills of Lading (1)

Bill of Lading (B/L):
A document issued by a logistics entity as proof of cargo receipt, provided to the shipper or consignee.
(Shipowner/airline issues it to the freight forwarder; the freight forwarder issues it to the factory or consignee.)

1. Classification by Issuer:
   A. Sea Freight/Railway:
   • House Bill of Lading (HBL): Issued by the freight forwarder
   • Master Bill of Lading (MBL): Issued by the shipowner or railway company
     B. Air Freight:
   • House Airway Bill (HAWB): Issued by the freight forwarder
   • Master Airway Bill (MAWB): Issued by the airline
2. Classification by Form of Issuance:
   • Original Bill of Lading
   • Telex Release Bill of Lading
   • Sea Waybill
3. Classification by Transport Type:
   • Railway Bill of Lading
   • Airway Bill of Lading
   • Sea Bill of Lading
4. Classification by Number of Copies:
   A. 3/3: 3 signed and stamped originals, 3 unstamped and unsigned copies
   B. 3/2: 3 signed and stamped originals, 2 unstamped and unsigned copies
   C. 3/1: 3 signed and stamped originals, 1 unstamped and unsigned copy
   • Option A is the most common. However, more shipowners are adopting B or C to cut costs. Freight forwarder bills often use A or B.
   • Letters of Credit typically require 3/3.
5. Classification by Consignee Designation:
   • Nominative Bill of Lading: Specifies the consignee’s name; only the named consignee can take delivery, non-transferable.
   • Order Bill of Lading: States “to order” or “to the order of [someone]”; transferable by endorsement.
   • Bearer Bill of Lading: No consignee specified; anyone holding the document can claim the goods, transferable without endorsement.
6. Classification by Transportation Method:
   • Direct Bill of Lading: Goods are shipped directly from the port of loading to the port of destination without transshipment.
   • Transshipment Bill of Lading: Goods are transferred to another port during the journey.
   • Multimodal Transport Bill of Lading: Goods are transported via multiple modes (e.g., sea, land, air) to reach the destination.
7. Classification by Issuance Timing:
   • Advanced Bill of Lading: Issued before the goods are loaded, used to arrange transportation in advance.
   • Backdated Bill of Lading: Issued after loading but with an earlier loading date.
   • On-Date Bill of Lading: Issued at the time the goods are actually loaded.