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An article explains the international ocean bill of lading in detail

2024-08-15 09:41

 In today's globalized world, international trade is becoming more and more frequent. In this process, the bill of lading, as the core document, plays a vital role. This article will introduce in detail what is a sea bill of lading and the main classifications of ocean bill of lading to help you better understand and make use of this important document

What is a sea bill of lading?

A bill of lading (B/L) is a document issued by a carrier or its agent to prove that specific goods have been received and that they promise to transport them to a specified destination and deliver them to a specific consignee. The ocean bill of lading is more than just a receipt, it has the following triple functions:

Contract of carriage: A sea bill of lading is a contract of carriage between the shipper and the carrier, which specifies the rights and obligations of both parties.

Cargo Receipt: It proves that the carrier has received the goods and records the type, quantity and condition of the goods in detail.

Certificate of title: The person who holds the bill of lading, i.e. the legal owner of the goods, can pick up the goods at the destination with this bill of lading.

The main classifications of ocean bills of lading

According to different issuing entities and usage scenarios, ocean bills of lading can be divided into the following two main types: shipowner's bill of lading and freight forwarder's bill of lading.

1. Shipowner's bill of lading

The Master Bill of Lading (MB/L) is a bill of lading issued directly by the shipping company. It is commonly used for the transportation of FCL cargo and has the following characteristics:

Direct issuance: The shipping company issues a bill of lading directly to the shipper, and after the goods arrive at the destination, the consignee can pick up the goods directly from the shipping company with this bill of lading, without going through an intermediary.

Scope of application: It is more suitable for the transportation of FCL cargo, because FCL cargo is usually sent by a shipper to a consignee, and there are fewer intermediate links.

Although the shipowner's bill of lading is more common in the transportation of FCL cargo, the use of the shipowner's bill of lading in the transportation of LCL cargo can be somewhat inconvenient.

2. Freight forwarder's bill of lading 

House Bill of Lading (HB/L) is issued by a freight forwarding company with NVOCC qualification. Compared with the bill of lading, the bill of lading has higher flexibility, which is mainly reflected in the following aspects:

Greater flexibility: The bill of lading allows freight forwarding companies to act as intermediaries to provide a wider range of services to shippers and consignees, such as hiding cargo resources, protecting trade secrets, and providing service options such as freight collect, DDU, DDP, etc.

Wide range of application: it is suitable for FCL cargo and LCL cargo. Freight forwarders are able to consolidate LCL shipments from multiple shippers for more efficient shipping and distribution.

In practice, the shipper of the bill of lading is usually the actual exporter, while the consignee information is filled in according to the letter of credit or other trade terms. This arrangement gives the freight forwarder bill of lading an advantage when dealing with complex international trade.

As an important document in international trade, the role and classification of the ocean bill of lading are crucial to ensure the smooth progress of trade. Whether it is a shipowner or a freight forwarder, each has its own unique advantages and applicable scenarios. The choice of bill of lading should be based on the specific trade needs, the nature of the goods, and the logistical arrangements.

In the global trade environment, understanding and correctly using the ocean bill of lading can effectively ensure the safety and smoothness of cargo transportation and escort the international business of enterprises. 

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