Onesphore RAKOTOMALALA

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 What is a Bill of lading ?

➝ Bill of lading, often abbreviated as B/L, is an important document in

international trade and shipping.

It serves as a contract between the shipper (exporter) and the carrier

(shipping company), detailing :

the type the quantity the destination

... of the goods being transported.

Essentially, it is a receipt issued by the carrier acknowledging that they have

received the goods for shipment.

When Is a Bill of Lading Issued?

A Bill of Lading is issued by the carrier or their agent when the goods are loaded

and ready for shipment.

 Parties involved in Bill of lading

➝ Parties involved in Bill of Lading are :

Carrier: The shipping company responsible for transporting the goods.

Shipper: The exporter or supplier who initiates the shipment.

Consignee: The recipient or buyer of the goods.

Notify Party: Party to be notified upon arrival of the goods.

Freight Forwarder: Facilitates the transportation process on behalf of the

shipper.
 Purpose & Importance of Bill of lading

➝ The bill of lading document is meant to act as a transport document as evidence

of the contract of carriage of the goods.

Purpose of a Bill of Lading

A bill of lading has the following legal qualities:

G rant the right for delivery to the possessor.

Act as a document of title enabling sale of goods in transit.

Provide evidence for carriage contract terms and conditions.

Importance of a Bill of Lading

The bill of lading is important as it:

C onfirms legal ownership of the cargo.

S erves as a receipt for the goods shipped.

R ’
epresents the carriage contract, specifying the carrier s duties.
Functions of Bill of L
ading

Title Serves as a document of ownership, allowing the

Document transfer of goods.

Contract of Outlines the terms and conditions of transportation.

Carriage

Receipt of Acknowledges the receipt of goods by the carrier for

Goods shipment.

Evidence of Acts as evidence of the agreement between the shipper

Contract and the carrier.

Document of Ensures compliance with customs regulations and trade

Compliance requirements.
 Classification and Types of Bill of L ading

Depending on the shipping destination and cargo type, various types of lading bills
➝

exist, classified by execution method and operation mode.

Based on Carrier

( )
Master Bill of Lading MBL : Issued by the shipping line to the booking party (usually the

shipper or a freight forwarder) once goods are received and the vessel has sailed.

House Bill of Lading (H )BL : Issued by the freight forwarder to the shipper, referencing the

Master Bill of Lading. Each H BL corresponds to an M

BL.

Based on Payment & Condition of Goods

Clean Bill of Lading: Issued when goods are received in good condition with no

damage.

Claused Bill of Lading (Dirty Bill of Lading): Issued if goods or containers are

received in a damaged condition, detailing the damages.

 Classification and Types of Bill of Lading

Based on Ownership of Goods

Order Bill of Lading: Allows ownership transfer to a third party through

endorsement.

Bearer Bill of Lading: Allows delivery to whoever holds the physical document, with

the consignee field left blank or marked as "Bearer."

Seaway Bill: Acts as a contract of carriage and receipt of goods but doesn't act as

a document of title.

Based on Vessel Status

Received for Shipment Bill of Lading (RFS Bill of Lading): Confirms receipt of goods

by the carrier for loading onto the vessel, though not yet loaded.

Shipped on Board Bill of Lading (SOB Bill of Lading): C onfirms loading of goods

onto the vessel and departure.

Stale Bill of Lading: Occurs when the document isn't presented to the bank within

the required timeframe.

 Classification and Types of Bill of L ading

Based on Type of Transportation

Com b ined Transport or Multimodal Bill of Lading: C overs shipment involving

multiple modes of transportation.

Through Bill of Lading: C

overs receipt and delivery of goods using multiple modes

of transport.

Charter Party Bill of Lading: U

sed in bulk cargo shipments where charterers hire

vessels from ship-owners.

Ocean Bill of Lading: U sed for overseas transportation through international

waters.

Direct Bill of Lading: Issued when the vessel delivers goods directly to the final

destination.
 Classification and Types of Bill of Lading

Based on Post -Issuance Activities

Surrendered Bill of Lading: Delivered to the consignee after vessel departure to

avoid delays.

Switch Bill of Lading: Acts as a substitute for the original Bill of Lading, serving the

same purpose.
 Exam ple of Bill of L
ading

➝ An exemplary Bill of lading might resemble:

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