This type of B/L is also a non-negotiable and non-transferable document of title and is assigned to a named beneficiary. This type of B/L entirely meets the first two aforementioned functions of a B/L but it doesn’t comply with the requirements of the third function ”Certificate of Title” because this type of Bill is neither transferable nor negotiable. Moreover, the person or company needs to surrender at least one copy of the B/L. In such a case, the presentation of the identification of the consignee is mandatory in order to release the consignment. This refers to a non-negotiable and non-transferable bill of lading and is assigned as an Original document to a named collector/receiver of the goods. A few significant ones among them are discussed as follows: Straight Bill of Lading Bill of Lading typesĬonsidering the aforementioned functions of a B/L, we can classify B/L into certain categories. It gives the holder the authority to claim the shipment or assign it to someone else. The B/L here serves as a document that confers or proves ownership of the holder of the Bill of Lading when the goods are finally delivered at a predetermined destination. So, this B/L also serves as a receipt of the cargo service. The logistics company/carrier issues a B/L to the shipping agent of the seller which serves as evidence that the carrier has received the shipment from the shipping agent in a safe and sound condition as it was assigned to the shipping agent by the seller/sender of the goods. READ What Does Demurrage in container shipping business mean? This is to ensure that the transportation of the shipment is done in accordance with the sales contract between the seller/sender and the buyer/receiver. The first function of a Bill of Lading is that it serves as a PROOF of the contract of shipping which has been signed between the Seller/Goods owner and the shipping agent/carrier. So What Exactly a Bill of Lading Has to Do Here? But they overlook the fact that when the seller/shipper employed the services of the carrier/logistics company to carry the goods from origin to destination tey already made a contract and finalized the details involved. However, the general details of the goods such as their type, quantity, location where the goods are to be shipped, procedures to transfer the goods from one location to another, pricing and mode of payments are already discussed and sorted out between the buyer and the seller either through a written contract or through a verbal agreement.Īnother misconception about a Bill of Lading involves the notion that is is a general contract signed between a seller/shipper and the shipping company. People generally misunderstand the purpose of the Bill of Lading by considering it as a contract between the shipper/seller of the goods and the receiver/buyer. An affirmation/Proof of Contract of Carriage.A B/L has three basic roles which are as follows: To understand this, we need to look into the basic roles or functions of a Bill of Lading in the entire shipping process. However, it is more than merely a document containing details of the goods shipped. A Bill of Lading is issued by a shipping agent/carrier/logistics company and it contains the details of the consignment such as the quantity, nature and final destination of the products being carried. What refers to a Bill of Ladingīill of Lading (Abbreviation: B/L) is a vital legal document that plays the most significant role in the entire shipping and freight procedures. Whenever something happens ( containers lost overboard) with your cargo, you would refer to terms and conditions of carriage written on the other side of Bill of Lading.It is important to understand what roles are given to the leading shipping document in industry.
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