Detailed explanation of ocean bill of lading and its classification in practical operation

Ocean Bill of Lading (B/L), referred to as bill of lading, is a document issued by the carrier or its agent to prove the establishment of a maritime cargo transportation contract. It is also a certificate of ownership of the goods. The bill of lading lists the detailed information of the goods, including but not limited to the consignor, consignee, description of the goods, quantity, weight and shipping details. In addition, the bill of lading also contains the freight payment status and the carrier’s statement of responsibility.

Format and content of bill of lading

A bill of lading usually consists of three originals and three copies. The original can be used to pick up the goods, while the copies are only for backup reference. The main columns of the bill of lading include Shipper, Consignee, Notify Party, Ocean Vessel, Voyage No., Place of receipt, and Shipment. Port (Port of Loading), destination port (Port of Discharge), place of delivery (Place of delivery), transportation marks and classification of goods (Marks and Numbers), name and quantity of goods (Number and Description of Goods), gross weight of goods, volume of goods (Measurement), date of shipment (Onboard Date), signature of the issuer of the bill of lading (Sign by), freight (Freight), etc.

Classification in actual operation of bill of lading

Classified by issuer

• Shipowner’s Bill of Lading (MASTER B/L): Issued directly by the shipping company, it is the safest.
• Freighter’s Bill of Lading (H-B/L): Issued by the freight forwarder, the bill of lading needs to be exchanged first.

Classified by consignee

• Straight B/L: Fill in the name and address of the consignee directly.
• Instruction Bill of Lading (Order B/L): Fill in “To the order” or “To order of XXXX”.

Classified by transportation method

• Direct B/L: Directly from the departure port to the destination port.
• Transhipment B/L: Transshipment in transit.
• Through B/L: A combination of multiple modes of transportation.

Classification by content, Traditional and Simplified Chinese

• Long Form B/L: Detailed terms.
• Short Form B/L: Basic information only.

Importance of bill of lading

The bill of lading is not only proof that the carrier has received the goods, but also a certificate of ownership of the goods. It can be used by banks to negotiate payment and to pick up the goods from the carrier. The bill of lading is also proof of the contract of carriage between the carrier and the shipper. When the bill of lading is in the hands of the consignee, it is the final evidence that the carrier has taken over the goods.

Other types of bills of lading

In addition to the above categories, bills of lading also include but are not limited to On Board B/L, Received-for Shipment B/L, Clean B/L, and Unclean bills of lading. Bill of Lading (Foul B/L), Liner Bill of Lading (Liner B/L), Charter Party B/L, Expired Bill of Lading (Stale B/L), Advance Bill of Lading (Advanced B/L), Ante-Dated B/L, On Deck B/L, etc.

Sea waybill and electronic bill of lading

• Sea Waybill, Ocean Waybill, WB: Not negotiable and transferable, only for designated consignee.
• Electronic B/L: Transmitted electronically to prevent fraud.

Understanding the classification of these bills of lading can help foreign trade practitioners better handle matters related to international cargo transportation, ensuring that the goods reach their destination safely while also protecting their own rights and interests.