What is a bill of lading and its types?

A bill of lading is a document issued by a carrier to a shipper, listing and acknowledging receipt of goods for transport and specifying terms of delivery. 

It serves three main functions: (1) a document of title to the goods described in the Bill of Lading; (2) a receipt for the goods; and (3) as evidence of the terms and conditions agreed upon for the transportation of the goods.

Abbreviation: B/L; plural Bs/L. 

There are two basic types of bill of lading,
the straight bill and the order bill.
1. A straight bill of lading is a non-negotiable document, made out to a specifically named consignee, from which the steamship company acknowledges receipt of the freight and agrees to move it to its destination.
Unlike an order bill, the straight bill does not have to be surrendered to the carrier in order for the importer to obtain possession of the goods.
2. An Order bill of lading is a document that is made out to the order of of the foreign importer or its bank, or the order of the export firm, its bank, or another designated party.




No comments:

Post a Comment

Only genuine comments please!

Most Popular Posts