A bill of lading (B/L) is the document a shipping line or its agent issues for goods shipped by sea. It does three jobs: it is a receipt for the goods, evidence of the contract of carriage, and, when issued "to order", a document of title that controls who can take delivery. Originals are usually issued in a set of three, and the buyer needs them, a telex release or a sea waybill to collect the cargo.
Types of bill of lading
| Type | What it means |
|---|---|
| Order (negotiable) B/L | Can be endorsed and transferred; used with letters of credit |
| Straight B/L | Consigned to a named party; not transferable |
| Sea waybill | Not a document of title; cargo released to the named consignee |
| Master B/L | Issued by the shipping line to the forwarder |
| House B/L | Issued by the forwarder to the exporter |
Key details to check
- Shipper, consignee and notify party exactly as agreed with the buyer or in the LC
- Port of loading and discharge, vessel and voyage
- Description, marks, packages and weights matching the invoice and packing list
- "Shipped on board" notation with date, and freight prepaid or collect
- No clauses about damaged goods or packing, so it stays "clean"
Telex release and surrender
If originals are surrendered at the load port, the line can release cargo to the consignee at destination without the paper originals, which is called a telex release. Use it only when payment is secured, because it hands control of the goods to the buyer.
Common mistakes
- Details that differ from the LC, causing bank discrepancies
- Wrong consignee or notify party
- Releasing originals or telex before receiving payment
- Late "on board" date compared with the LC shipment date
Frequently asked questions
What is a bill of lading?
A document issued by the carrier that acts as a receipt for goods, evidence of the contract of carriage and, if negotiable, a document of title.
What is the difference between a master and house bill of lading?
The shipping line issues the master B/L to the forwarder; the forwarder issues a house B/L to the exporter.
What is a telex release?
Release of cargo at destination without the original B/L, after the originals are surrendered at the load port.
Why do LCs ask for a clean on board bill of lading?
It shows the goods were loaded on the vessel in apparent good condition, which the bank checks before paying.
How BuyGenix Solutions helps
We prepare and check export documents so they match each other, the buyer's order and any letter of credit, which avoids delays at customs and at the bank. BuyGenix members can also see live buyer requirements from importers in India and abroad.
Need Help Getting This Done?
BuyGenix Solutions handles bill of lading documentation and every related registration your business needs, from documentation to filing.
Get Registration Help →Looking for buyers for your products?
See live requirements from importers and bulk buyers in India and abroad: what they want, how much, and where. Contact them directly with a BuyGenix membership.
