Importing and exporting businesses are heavily dependent on the transportation of goods. In technical terms, a bill of lading is an agreement between the carrier and the shipper specifying details about the product’s size, quantity, and nature.
Suppose you are willing to transport your goods without any hassle and want to make your business grow. In that case, ImportDoor can provide various benefits to your venture in identifying, examining, and applying ample business opportunities.
By the end of this article, you will have complete information about bill of lading types, how each of them varies, and the importance of the bill of lading in business.
What is the Bill of Lading Types?
Technically, the bill of lading is not limited to the legal document; it also defines the mode of transportation a carrier will use to ship your goods. Moreover, the authorized carriers, suppliers, and receivers sign a document to ensure everything is covered successfully.
Depending on the mode of transportation and other related conditions, the following are the bill of lading types:
Bearer Bill of Lading
A bearer bill of lading is associated with the rule that delivery will be made to whoever holds the bill. Such bills are specifically created, or sometimes an order doesn’t include a cosigner’s involvement in the agreement. However, it can be negotiated while delivering the order physically.
Surrender Bill of Lading
This bill of lading type is implemented with the terminology ‘import documentary credit,’ where the negotiating bank receives the documents from the bank. The importer does not pay to the bank until the draft’s maturity under the relative credit.
Multimodal Transport Document
As the name suggests, the multimodal transport document is the bill of lading type in which two modes of transportation are involved. However, the modes of transportation can be any mode, including ocean and land or boat to air.
Charter Party Bill of Lading
This bill of lading type is the agreement between the vessel owner and the charterer. The charterer gives this document to the shipper for the complete goods transported from the vessel.
Order Bill of Lading
Order bill of lading is one of those bill of lading types where words are used to negotiate the bill. Technically, it states that the delivery can be made after the further order of the consignee; usually, it uses the terms like ‘delivery to limited or to assigns or order.’
Blank Back/ Short Form Bill of Lading
A blank back or short-term bill of lading is given when the product details are not mentioned correctly on the product body or the back of the bill of lading.
Master Bill of Lading
This is one of those bill of lading types created by the carriers for the shipping companies as a transfer receipt. Subsequently, the document consists of all the details about the freight, transporting information, the consignor, and the receiver of the goods.
House Bill of Lading
Ocean Transport Intermediary cargo forwarder or non-vessel controlling company generates the House bill of lading document. The document states the information about the shipped goods and is issued to the suppliers once they receive the order. Such bill of lading types is also called Forwarders’ bill of lading.
Through Bill of Lading
Through Bill of Lading is considered one of the most complex bill of lading types. Its documents state the information about transferring goods through various modes of transportation or distribution centers. The bill may include Ocean BOL or Inland BOL, depending on the final destination.
Clean Bill of Lading
A clean bill of lading is where the document is issued by the shipping company or its representatives without any declaration of the goods from the defective constitution. The package or order is packed or stuffed in containers.
Claused Bill of Lading
A claused bill of lading is issued when the order or package is damaged, or some of its contents are missing.
Container Bill of Lading
A container bill of lading is the legal document generated to give the information about the goods to be delivered in a safe container from one port to another.
Stale Bill of Lading
This bill of lading type is issued for the negotiation after 21 days of shipment or any other number of days mentioned in the agreement.
Received for Shipment Bill of Lading
The carrier company issues such bills of lading documents as proof of receipt of goods delivered. Usually, it is delivered before the vessel loading; therefore, not part of the onboard BOL.
Straight Bill of Lading
A straight bill of lading states that the goods belong to the particular consignor and it is free from the existing equities. This indicates that the endorsee owns only those rights that the endorser defines.
Bill of Lading Types ( Based on Transferability)
Based on the mode of transferability, bill of lading types are divided as follows:
Negotiable Bill of Lading
A negotiable bill of lading is the document that allows the third party to receive the shipment that claims to be the title of possession of the transported goods.
Non-Negotiable Bill of Lading
Non-Negotiable BOL can also be referred to as non-transferrable, meaning only the consignee mentioned on the document can claim to be the title of possession of the shipped goods.
Purpose of Bill of Lading in Exports
In technical terms, the purpose of the bill of lading is as follows:
- It is a document stating the title of the shipped goods.
- The BOL acts as a receipt for the transported goods.
- BOL states all the agreed terms and conditions for the shipped goods.
Bottom Line
Many factors are involved in preparing a bill of lading document. These factors include providing the carrier and receiver with the necessary information, including the quantity, nature, and weight of the goods shipped.
Upgrading your shipping accuracy by evaluating the proper bill of lading conditions is necessary for the flawless and hassle-free transportation of goods. ImportDoor offers complete guidance and information about bills of lading to make your business grow faster.
Bills of lading are undoubtedly an important factor in the growth and development of the freight industry. Understanding and implementing the documents is the key to improving customer trust and making better business decisions.
