Bill of lading

Bill of lading (B/L): a document the carrier issues to the shipper in sea transport. It has three functions. It confirms that the cargo has been accepted for carriage. It evidences the contract of carriage. And it is a document of title: whoever lawfully holds the original receives the cargo at the port of destination. In Russia, the rules on bills of lading are set out in the Merchant Shipping Code.

Types

• by consignee: straight (named), order (transferred by endorsement) and bearer;
• by notations: clean, and claused, with remarks on the condition of the cargo or packaging;
• by time of issue: shipped on board, when the cargo is already on the vessel, and received for shipment;
• liner and charter party;
• the carrier’s master bill of lading and the forwarder’s house bill of lading.

A sea waybill is similar to a bill of lading but does not give the right to dispose of the cargo. The cargo is released to the named consignee without an original.

Where it comes up in a payment

• When payment is made after shipment, a copy of the bill of lading confirms that the goods have been shipped. The supplier sends it before the balance is paid.
• Under a letter of credit and a documentary collection, the bank checks the bill of lading against the terms and only then pays or releases the documents.
• For customs and currency control, the bill of lading is one of the transport documents for the delivery.
• When paying freight, the bill of lading number links the carrier’s invoice to a specific shipment.

What to watch for

• The shipper, consignee, goods and ports must match the contract and the invoice.
• Check whether there are any remarks about damage to the cargo.
• Find out how many originals were issued and who holds them.
• The loading date must fall within the delivery period under the contract.

Freight to a foreign carrier or forwarder can also be paid through an agent from our pool, with documents for your accounting: Freight payments.