What Is a Bill of Lading (BL) and How Does It Work?
The Bill of Lading (BL) is an essential document for transporting goods by sea. Are you moving or going on a long trip abroad? The bill of lading is a must-have document for transporting your personal effects, as it is their ship’s ticket. Here’s everything you need to know about this document.
What Is a Bill of Lading?
Definition of a Bill of Lading
The bill of lading is the Sea Way Bill (SWB) concluded between the carrier and the shipper, and the act of ownership of the goods. It is a compulsory supporting document to transport your goods by sea freight that accompanies them for the entire duration of their transport. It is drawn up in several copies for the shipper, the carrier and the shipowner.
Commonly known as a B/L or BoL, it is a standardized model document.
Here is a bill of lading example
What Does This Document Contain?
The bill of lading gathers information on the identity of the shipper, the carrier’s consignee, the goods shipped (nature, quantity, weight, dimensions), their itinerary and any specific conditions of transport.
It contains the following key information:
- name and address of the shipper
- name and address of the consignee
- points of departure and destination
- ports of loading and unloading
- nature, weight and volume of goods transported
- terms of sale of the shipment
- where and when the document was created
- date of shipment
- BL number
The BL number is the shipment’s tracking number. Note that a copy of the BL is generally sufficient to retrieve the shipment. However, for certain destinations, the original BL will be required.
What Is It Used For?
The bill of lading has 3 main functions:
- It embodies the Sea Way Bill (SWB) between the shipper and the carrier and defines its terms and obligations.
- It represents a receipt of the goods by the carrier, thereby acknowledging having received them and taking legal responsibility for them.
- It acts as a title to the goods for the duration of their transport.
Types of Bills of Lading
The bill of lading can take different forms, depending on the needs of the shippers and the conditions of transport. Here are the main types of sea bills of lading:
Straight Bill of Lading
The straight bill of lading explicitly designates the consignee of the goods. This type of bill can only be transferred to the person named on the document. To collect the goods, the consignee must present this bill of lading to the carrier.
Order Bill of Lading
The order bill of lading offers greater flexibility. It is generally issued in the name of a company or an individual (name of consignee preceded by the words “to the order of”), but it can be transferred to a third party by simple endorsement. This means that the holder of the bill of lading can sell or assign the goods to another individual by handing over the document.
Bearer Bill of Lading
The bearer bill of lading may be transferred by simple surrender. The holder of this bill of lading has the right to claim the goods.
Negotiable vs. Non-Negotiable Bills of Lading
Negotiable bills of lading, like order and bearer bills of lading, allow easy transfer of ownership. On the other hand, non-negotiable bills of lading, such as straight bills of lading, impose restrictions on the transfer of ownership. The latter type is often used for shipments where the shipper wishes to retain control over the destination of the goods.
Issuing a Bill of Lading
The bill of lading is issued by the carrier (ship’s captain or his representative) as legal proof that the goods have been taken over.
This document is created in 3 stages:
- The carrier collects and checks the information to be filled on the bill of lading form.
- Drafting of the B/L by the carrier, adding any information deemed relevant to the transport of the goods.
- Copies are delivered to the parties concerned, and a copy is also enclosed to accompany the goods in transit.
By issuing it, the carrier acknowledges having received the goods under normal transport conditions. He undertakes to transport them and to deliver them at destination.
Difference Between the Bill of Lading and Other Transport Documents
Bill of Lading (BL) and Air Waybill (AWB)
Bill of Lading (BL) and Air Waybill (AWB) are two key documents in the international transport of goods, but they differ on several levels. One is used for sea freight, the other for air freight. The AWB serves as a contract between the shipper and the carrier. It acts primarily as a tracking and proof document of the transport agreement but does not transfer ownership of the goods. In addition to being a contract of transport, the B/L also serves as a title deed, transferring possession of the goods to the buyer or a third party.
Differences with CMR waybill
Bills of Ladings (BL) and “contrats de transport de marchandises par route” (CRM) differ mainly in their nature and function. The CMR formalizes the agreement between the shipper and the road carrier, without transferring ownership, unlike the bill of lading. In terms of regulations, the bill of lading is subject to international maritime conventions, while the CMR is governed by the CMR Convention, which unifies road transport laws. Finally, in the event of a dispute, recourse and liability differ: the ocean carrier is liable for loss or damage, while liability under the CMR is limited and governed by specific time limits.
The bill of lading is an essential document for the safe and efficient transport of your personal belongings by sea. Understanding the specifics of the bill of lading and how to obtain it will enable you to navigate with confidence as you prepare for your voyage. If you have any questions or would like personalized assistance with your upcoming trip, please do not hesitate to contact our teams!