{"id":92454,"date":"2022-07-02T15:58:35","date_gmt":"2022-07-02T07:58:35","guid":{"rendered":"https:\/\/jingsourcing.com\/?p=92454"},"modified":"2024-04-30T15:09:13","modified_gmt":"2024-04-30T07:09:13","slug":"b-bill-of-lading","status":"publish","type":"post","link":"https:\/\/jingsourcing.com\/b-bill-of-lading\/","title":{"rendered":"What is B\/L in Shipping? | Template & 8 Most Common Types"},"content":{"rendered":"\t\t
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The Bill of Lading (BL) was historically used only in sea shipping, but today it applies to any mode of shipping. Generally, when speaking of BL, we mean marine BL or ocean BL. It is a core document that can help control international trade<\/a> and shipping risks. People engaging in international trading are supposed to have a good understanding of BL. So I write this guide, with a focus on the following 6 aspects.<\/p>

  1. Bill of Lading meaning and 3 functions.<\/a><\/li>
  2. Under different incoterms, who’ll get B\/L?<\/a><\/li>
  3. Bill of lading example | key info you must read.<\/a><\/li>
  4. Most common 2 bills of lading: House BL and Master BL.<\/a><\/li>
  5. Original BL, Surrendered BL, Seaway BL | when to use it?<\/a><\/li>
  6. Common 3 BL types that are easy to confuse.<\/a><\/li><\/ol>

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    What is the Bill of Lading in Shipping?<\/h2>

    Meaning and 3 Functions<\/b><\/span><\/h3>

    A bill of lading, abbreviated as B\/L or BOL, is the document issued by carriers and used to pick up goods. Carriers can be shipping companies and freight forwarders<\/a><\/span>. The latter is more familiar to us. Because in real business, we deal more with freight forwarders, as shown in the below image.<\/p>

    \"how<\/p>

    In shipping, BL typically has 3 major purposes.<\/p>

    1. Title to the shipped goods.<\/h4>

    This is the most important function. It is kinda like your certificate of real estate ownership. The difference is that BL is more flexible. Just like the bill of exchange<\/a>, BL can be transferred as well but requires endorsement.<\/p>

    Generally, people possessing the original BL have the ownership of shipments listed on the BL.<\/p>

    2. The receipt of shipments.<\/h4>

    BL is a receipt issued by carriers to shippers, simply put, from the freight forwarder to the seller. Forwarders use it to confirm that they have received goods.<\/p>

    3. Evidence of the transport contract.<\/h4>

    BL specifies the type of goods, quantity, and destination. Sometimes it also includes specific terms of shipment. Remember that BL is not an actual contract, but a document providing evidence.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    When speaking of BL, generally we mean ocean BL. For air freight, we call it air waybill. For railway freight, we call it rail waybill.<\/p>

    The fundamental difference is that the ocean BL is a document of the title to the shipped goods and it can be transferred after endorsement. While air waybills and railway waybills are not documents of title, so they cannot be transferred.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    Under Different Incoterms, Who’ll Get B\/L?<\/b><\/span><\/h3>

    Under all Incoterms<\/a>, freight forwarders issue BL to sellers who are the owner of goods and the shipper in most cases. Taking CIF<\/a>, DDP and DDU<\/a> terms as an example, sellers arrange the delivery<\/a> as the shipper and get the BL, usually 2-3 days after the vessel leaves.<\/p>

    What is controversial here is the FOB<\/span><\/a> term. Under this term, buyers book the shipping container space<\/a> as the shipper while sellers are responsible for loading the goods on board as the cargo owner. In this case, freight forwarders issue BL to the seller, that is, the cargo owner. Only with authorization from the seller can forwarders give BL to the buyer. Sellers will give the forwarder authority to do that only when they have received the full payment before shipping.<\/p>

    Under the EXW term<\/a>, there are two situations. If buyers want to make the payment<\/a> within a period as negotiated or sellers need a drawback for export duties paid, BL will be given to sellers. If there is no need to control goods, BL will be given to buyers by default.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    The supplier will transfer B\/L to you after you’ve paid for the order<\/a>, no matter which payment term you choose, L\/C<\/a><\/span>, D\/P, T\/T<\/a><\/span>, etc.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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    Bill of Lading Example | Key Info You Must Read<\/h2>

    The BL form varies from one shipping company or freight forwarder to another one. However, the contents of BL are basically the same. You’ll find a series of key info on any bill of lading.<\/p>

    Here I use a BL example to explain it.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    1. Shipper<\/b><\/span><\/h3>

    Usually, this is your product supplier which can be a factory or trading company<\/a>. Here the info includes your supplier’s company name and address.<\/p>

    If under the L\/C<\/a><\/span> payment term, here the info must be the same as L\/C’s, as the bank would strictly check the BL.<\/p>

    2. Consignee<\/b><\/span><\/h3>

    The Consignee<\/a> is you. Here the info includes your company name and address. If necessary, it is OK to add telephone, fax, or code.<\/p>

    If it is the Order BL, here will be “to order” or “to order of XXX”. If under L\/C, here the info must be the same as L\/C’s, usually the bank. If it is an airway bill, this column must specify the info of you or your agent.<\/p>

    3. Notify Party<\/b><\/span><\/h3>

    Notify Party is the person who will be notified to pick up cargo when it arrives at the destination. Usually, you’ll see “same as consignee”.<\/p>

    If under L\/C, here the info must be the same as L\/C’s, usually the buyer + bank.<\/p>

    4. Bill of Lading No.<\/b><\/span><\/h3>

    Generally, you’ll see it in the upper right corner of the BL.<\/p>

    5. Vessel\/Voyage<\/b><\/span><\/h3>

    That is the name of the vessel, the sea route, and the number of voyages. Knowing this info, you can easily find out when the vessel starts shipping and arrives, including what port it passes through in the process.<\/p>

    If it is an air waybill, this column displays the air flight number and BL No., with which you can check the logistics info on the airline website.<\/p>

    6 & 7. Port of Loading, Port of Discharge<\/b><\/span><\/h3>

    Names of the departure port and discharge port. If your goods need to be transshipped, the transit port can be listed after the port of departure or destination.<\/p>

    If under L\/C, here the info must be the same as L\/C’s.<\/p>

    8. Shipping Marks & No., Packages, Description of Goods, Gross Weight, Measurement.<\/b><\/span><\/h3>

    These are all cargo details.<\/p>