Bills of lading are very important and there are many types of them. International trade researchers have listed various classifications for bills of lading, but for novices, there are only a few useful classifications in actual operations:
1. Classification based on the issuer of the bill of lading. The bill issued by the shipping company is called the master bill of lading (MASTER B/L), and the bill issued by the freight forwarder is called the freight forwarder bill of lading (HB/L). Obviously, in theory, the master bill of lading is the safest, after all, the ship is his, and the shipping company is strong and capable of taking full responsibility. With the master bill of lading, you can pick up the goods directly at the destination port. The freight forwarder bill of lading is issued by the freight forwarder after obtaining the consent of the shipping company, and the freight forwarder is responsible for it. If you take the freight forwarder bill of lading, you need to go to the shipping company’s port agent to exchange it for a bill of lading before you can pick up the goods.
2. Classification based on the consignee column on the bill of lading. If the consignee (foreign customer or its resale buyer) is directly filled in this column, it is called a straight bill of lading (Straight B/L). If it says “To the order” or “To order of XXXX”, that is, “to order”/”to order of XXXX”, it is called an order bill of lading (Order B/L). The meaning of an order bill of lading is that the consignee is not limited for the time being, and will be specified later (usually after ensuring that the payment has been received). A named bill of lading limits the consignee, and only he can pick up the goods, so the bill of lading cannot be transferred; while an order bill of lading can be resold at will by endorsement (the so-called endorsement means that the owner of the bill of lading signs and seals on the back of the bill of lading to indicate the transfer, and whoever gets the bill of lading next is the owner of the goods. Naturally, the shipper will be the first endorser).
In actual operation, order bills of lading are more popular. Because for exporters (usually shippers), order bills of lading are safer and are a guarantee for recovering the payment. For importers, because they can resell the goods directly with the bill of lading, they save the trouble of picking up the goods in person. Of course, if the customer plans to pick up the goods by himself from the beginning, he will also ask for a named bill of lading.
It should be noted that because the named bill of lading specifies the consignee, in many countries, the original named bill of lading is not required. You can pick up the goods with just a copy or even a photocopy and prove your identity as the consignee. Through the study in the past few days, it is not difficult for us to understand the harm. In this case, the consignor loses control of the property rights – even if the original bill of lading is still in hand.
Because there is such a big difference, whether it is named is the key point in the selection and review of the bill of lading. The letter of credit will clearly indicate this in the terms related to the bill of lading. At the same time, it is not unreasonable for many foreign trade peers to reject the named bill of lading as a soft clause when operating the letter of credit.
3. According to the mode of transportation, it can be divided into direct B/L (i.e., a transport bill of lading from the port of departure directly to the port of destination), transhipment B/L (i.e., a transport bill of lading that can be transshipped at a port during transportation) and through B/L (i.e., a bill of lading that can be transported by land, air and sea, which is common in transportation where the departure and/or destination is inland). Direct B/L and transhipment B/L are more common. Transhipment B/L is more popular because it allows the transporter to arrange the voyage according to circumstances, which is particularly beneficial when the port of departure and/or the port of destination is relatively small and the number of voyages is small.
4. According to the complexity and simplicity of the content of the bill of lading, it can be divided into long form B/L and short form B/L. The long form B/L specifies the respective rights and obligations between the carrier and the shipper on the back of the bill of lading in detail; the short form B/L only specifies the basic information of the goods to be transported and the name, address, consignee, etc. of the shipper. Occasionally, some cautious foreign traders will specifically note that the use of simplified bills of lading is not allowed to emphasize the responsibility of the freight forwarder.