Onesphore RAKOTOMALALA
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What is a Bill of lading ?
➝ Bill of lading, often abbreviated as B/L, is an important document in
international trade and shipping.
It serves as a contract between the shipper (exporter) and the carrier
(shipping company), detailing :
the type the quantity the destination
... of the goods being transported.
Essentially, it is a receipt issued by the carrier acknowledging that they have
received the goods for shipment.
When Is a Bill of Lading Issued?
A Bill of Lading is issued by the carrier or their agent when the goods are loaded
and ready for shipment.
Parties involved in Bill of lading
➝ Parties involved in Bill of Lading are :
Carrier: The shipping company responsible for transporting the goods.
Shipper: The exporter or supplier who initiates the shipment.
Consignee: The recipient or buyer of the goods.
Notify Party: Party to be notified upon arrival of the goods.
Freight Forwarder: Facilitates the transportation process on behalf of the
shipper.
Purpose & Importance of Bill of lading
➝ The bill of lading document is meant to act as a transport document as evidence
of the contract of carriage of the goods.
Purpose of a Bill of Lading
A bill of lading has the following legal qualities:
Grant the right for delivery to the possessor.
Act as a document of title enabling sale of goods in transit.
Provide evidence for carriage contract terms and conditions.
Importance of a Bill of Lading
The bill of lading is important as it:
Confirms legal ownershi p of the cargo.
Serves as a re ei t for t e goods shipped.
c p h
Represents the c arriage ontra t, specifying the carrier s duties.
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Functions of Bill of Lading
Title Serves as a document of ownership, allowing the
Document transfer of goods.
Contract of
Outlines the terms and conditions of transportation.
Carriage
Receipt of Acknowledges the receipt of goods by the carrier for
Goods shipment.
Evidence of Acts as evidence of the agreement between the shipper
Contract and the carrier.
Document of Ensures compliance with customs regulations and trade
Compliance requirements.
Classification & Types of Bill of Lading
➝ Depending on the shipping destination and cargo type, various types of lading bills
exist, classified by execution method and operation mode.
Based on Carrier
Master Bill of Lading (MBL): Issued by the shipping line to the booking party (usually the
shipper or a freight forwarder) once goods are received and the vessel has sailed.
House Bill of Lading (HBL): Issued by the freight forwarder to the shipper, referencing the
Master Bill of Lading. Each HBL corresponds to an MBL.
Based on Payment & Condition of Goods
Clean Bill of Lading: Issued when goods are received in good condition with no
damage.
Claused Bill of Lading (Dirty Bill of Lading): Issued if goods or containers are
received in a damaged condition, detailing the damages.
Classification & Types of Bill of Lading
Based on Ownership of Goods
Order Bill of Lading: Allows ownership transfer to a third party through
endorsement.
Bearer Bill of Lading: Allows delivery to whoever holds the physical document, with
the consignee field left blank or marked as "Bearer."
Seaway Bill: Acts as a contract of carriage and receipt of goods but doesn't act as
a document of title.
Based on Vessel Status
Received for Shipment Bill of Lading (RFS Bill of Lading): Confirms receipt of goods
by the carrier for loading onto the vessel, though not yet loaded.
Shipped on Board Bill of Lading (SOB Bill of Lading): Confirms loading of goods
onto the vessel and departure.
Stale Bill of Lading: ccurs when the document isn't presented to the bank within
O
the required timeframe.
Classification & Types of Bill of Lading
Based on Type of Transportation
Combined Transport or Multimodal Bill of Lading: Covers shipment involving
multiple modes of transportation.
Through Bill of Lading: Covers receipt and delivery of goods using multiple modes
of transport.
Charter Party Bill of Lading: Used in bulk cargo shipments where charterers hire
vessels from ship-owners.
Ocean Bill of Lading: Used for overseas transportation through international
waters.
Direct Bill of Lading: Issued when the vessel delivers goods directly to the final
destination.
Classification & Types of Bill of Lading
-
Based on Post Issuance Activities
Surrendered Bill of Lading: Delivered to the consignee after vessel departure to
avoid delays.
Sw tch
i Bill of Lading: Acts as a substitute for the original Bill of Lading, serving the
same purpose.
Ex ma ple of Bill of Lading
➝ An exemplary Bill of lading might resemble:
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