A crucial document for transporting goods across international waters. It serves as a contract between the shipper and the carrier, ensuring that the exporter gets paid and the importer receives the goods. Additionally, it acts as a receipt and title document, containing a description of the goods and routing instructions.
Types of Ocean Bills of Lading
- Straight Bill of Lading
Used when a shipment is consigned directly to a specific receiver, with no other party involved. This is common in open account or cash-in-advance transactions. The consignee must present a signed original bill of lading to claim the goods upon arrival - A Negotiable (“To Order”) Bill of Lading
Allows for transfer of ownership. The shipper (or their representative) endorses the document on the back, after which it is sent to a bank in the buyer’s country. The bank holds the bill until the buyer completes the transaction. Once the buyer presents the endorsed original bill of lading along with any required documents, ownership is transferred, allowing them to claim the goods