Bill of lading (B/L)
The sea “waybill” and at the same time a document of title: it confirms the goods are on board and entitles the holder to take delivery at the port of destination.
Definition
A bill of lading (B/L) is the sea transport document and at the same time a document of title: it confirms that the goods have been received on board and gives the right to collect them at the port of destination. The original B/L equals ownership of the goods in transit.
Bills can be negotiable (to order) or straight (named consignee); the type determines how the goods are handed over.
How it works in practice
The bill of lading is issued by the shipping line after the vessel sails. It shows the shipper, consignee, description of goods, container and seal numbers. Without it the container will not be released at the port of destination.
Tranzit3 works with a telex release or a sea waybill when the payment terms do not require originals — this saves days of couriering paper. An original “to order” bill of lading is needed if a bank or you as the supplier want to keep control of the goods until payment under a letter of credit.
Bill of lading: frequently asked questions
What is the difference between an original B/L and a telex release?
The original is a document of title that must be physically presented at the port of discharge. A telex release is the line’s notice that the originals have been surrendered at the port of loading and the goods can be released to the consignee without paper. For most commercial shipments a telex release is enough.
What does a “clean” bill of lading mean?
One without the carrier’s remarks about the condition of the goods or packaging on receipt. If the line has noted damage, the bill is “claused” — a bank may refuse it for payment and an insurer may dispute a loss.
Who should be named as consignee?
The Russian importer under the contract, or their forwarder with a “notify party” entry. A mistake in the consignee details can only be corrected through the line and costs time and money, so we check the draft bill of lading before it is issued.
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