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The Bill of Lading is perhaps the most important document in the overall logistics & shipping setup in international trade. Simply put, it’s a three-way contract between the exporter, the shipper, and the importer.
There are mainly 3 kinds of the bill of lading at present but how to distinguish them and choose the most suitable one ?
Let HACOS teaches you!
What's the differences between
BLANK B/L,
Straight B/L,
Order Bill of Lading?
BLANK B/L
BLANK B/L or OPEN B/L，is a kind of of Bill of Lading with no Consignees or “ORDER”on it . So any bearer of the bill has a right to take delivery of the goods. You can transfer the BLANK B/L without endorsing and any bearer of it could request the carrier to deliver the goods. It’s rarely used because of its high risk.
Straight B/L
Straight B/L is a kind of Bill of Lading that with specific consignees on it.
There are some registered ways as below:
Consigned to A Co. Ltd.
Deliver to A Co. Ltd.
Onto A Co. Ltd.
Only specific consignees with Straight B/L can receive the goods, and that Bill of Lading can’t be transferred. These can avoid the risk during the transfer.
There is a convention that the consignee of the Straight B/L can just bring the Endorsement of the Notice of Arrival & the Identification of the delivery person, to pick up the goods in some countries,such as America, Brazil, Hondura, Salvado, Dominic, Venezuel, Turkey and etc.
Risk Reminder
You must use the Straight B/L cautiously! If the Letter of Credit request a Straight B/L ,you had better ask for a replacement. However, if the clients insist on using the Straight B/L,you had better understand the reasons and know about the Chinese legal provisions of the real right attribute of the forwarding.
If the goods are delivered to America, then you had better not use the Straight B/L or add a statement---"the Bill of Lading is applied to The Maritime Law of China".
These can not only restrict the carrier to release the goods with original Bill of Lading, but also make sure the safety of the trade under the Letter of Credit.
Order Bill of Lading
An Order Bill of Lading must has words of "to Order" or "to the Order of" on the consignee column. The former one is called Bear Order B/L, the carrier should deliver the goods with the instructions of the consignor. The latter one is called Registered Order B/L, the carrier should deliver the goods with the instructions of registered assignor.
There are 4 titles of the Order Bill of Lading:
By the construction of the bank.
The consignees column should be:"to the order of xx Bank".
By the construction of the consignees.
The consignees column should be:"to the order of A.B.C. Co. Ltd".
By the construction of the shipper.
The consignees column should be:"to the order of shipper", and the shipper should leave a blank the endorsement on the back of the Bill of Lading. This kind of the Bill of Lading can be made into a registered endorsement according to the Letter of Credit. If the Bill Agent doesn't make an endorsement, only the shipper can pick up the goods in this case because the seller keeps the ownership of the goods.
Bearer Instruction.
The consignees column should be:"to the order". The shipper can leave a blank endorsement on the back of the Bill of Lading or make a registered endorsement according to the Letter of Credit either.
Risk Reminders
Using Consignee's Order B/L cautiously because of the two reasons below. This kind of the Order Bill is something like a Straight B/L . There is a risk that the consignee can pick up goods without the original Bill of Lading. With the Settlement Modes of L/C and DP, if the consignee refuses to redeem the bills, or the original buyer refuses to coordinate, it will be hard to return the goods.
Hope they can help you. Please share with your friends!
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