Transport Documents

OCEAN UNIVERSITY OF SRI LANKA

International Trade and Finance

MTL 2013
What is a Bill of Lading
• Also known as BOL or B/L, a Bill of Lading is evidence of a contract
between the carrier (transporter) and the exporter to deliver the
goods to a designated party (the importer, called the named
consignee) at a specified destination in the importer’s country.
• Normally issued by or on behalf of the carrier
Main Functions of a B/L

1. Proof of contract of Carriage

This is to ensure that the transportation of the shipment is done in accordance
with the sales contract between the seller/sender and the buyer/receiver.
2. It is a document to title of the goods being transported.
proves ownership of the holder of the Bill of Lading
3. It is a receipt for the goods.
serves as evidence that the carrier has received the shipment from the shipping
agent in a safe and sound condition
Contents of Bill of Lading
• The complete name and official address of the receiver and the
shipper.
• The Purchase orders or special reference/ invoice numbers which
helps the shipper and the consignee to release the goods for pickup
or accepted at delivery
• The date of the pickup which acts as a reference to track the freight
• The details of the item including the number of unit being shipper,
weight and dimension of the product, Container numbers, along with
the nature of the cargo being carried, i.e. dangerous goods etc.
Contents of Bill of Lading
• If the goods are hazardous, Department of Transportation hazardous
material designation is tagged, and it is cited on the bill to follow
special rules and requirements when shipping
• The details of the packaging used such as crates, palates, cartons,
pills, drums etc.
• Any special notes or instruction for the carrier
Who Can Sign a B/L
• Must Indicate the name of the carrier and Signed by
• Carrier or name agent for or behalf of the carrier or
• The Master or a Named agent for or on behalf of the master
Negotiable B/L and Non-Negotiable B/L
• Non-Negotiable B/L
• Also known as Straight B/L
• Assigned as an Original document to a named collector/receiver of the goods
• Not a Title Document and not negotiable
• Negotiable B/L
• Also known as order B/L
• When issued in Original and dispatched as ”To Order” or ”To Order of
Sender/Seller/Shipper” or ”To Order of XYZ Bank”.
• Title Document
Port to Port/Ocean B/L
• B/L the logistic company or carrier is only liable for the shipping of
goods from the origin port to the destination port.
• Therefore. the point of origin or final destination is not required to be
mentioned in such B/L.
Multimodal Transport B/L
• This B/L will cover whatever means or modes of transport have been
used to carry out the shipment from origin to destination.
• A single contract will cover all of the services and transportation
carried out to deliver the goods.
• The sections of ”Place of receipt by pre-carrier”, ”On-Carriage by” etc.
will be entered.
Clean B/L
• A clean bill of lading is a document that declares there was no
damage to or loss of goods during shipment.
• The clean bill of lading is issued by the product carrier after
thoroughly inspecting all packages for any damage, missing
quantities, or deviations in quality.
• Container carriers do not allow the clause “Clean On Board “ on the
B/L . Use “Shippers load stow and count “ or “ Said to Contain “ on
containerized cargo B/L
• The Opposite of a clean B/L is a Claused B/L
Foul B/L, Dirty B/L, Claused B/L
• If the goods were received in a damaged condition, the carrier
(shipping company) notes this on the bill.
• Bank Can Reject Such B/L
MBL and HBL

• HBL
• A bill of lading issued by a freight forwarder or NVOCC (Non vessel operating
companies) is called HBL House Bill of Lading.
• After receiving cargo from shipper, the freight forwarder releases House Bill of Lading
HBL to the shipper.
• MBL
• after receiving goods from shipper, re-book the same cargo to main carriers who are
vessel owners
• The main carriers, once cargo received, issues Bill of Lading to whom the cargo
booked with him.
• In a Master bill of lading, the shipper will be the freight forwarder who delivers the
cargo to main carrier and the consignee, the overseas counterpart party of the freight
forwarder who receives the goods from final shipper.
Charter Party B/L
• Charter Party Bills of Lading (CPBL's) are bills of lading that are issued
subject to the terms and conditions of a charter party.
• Why is it risky ??
Air Way Bill
• AWB is issued by an air carrier to acknowledge possession of a
shipment and which serves as a receipt for the consignor (shipper).
• Not a title document and not a negotiable
• AWB serves as a
(1) receipt of goods by an airline (carrier)
(2) as a contract of carriage between the shipper and the carrier.
• Also known as the Consignment Note or Dispatch Note
Functions of the AWB

• Evidence of receipt of goods by an airline

• Contact information among all parties
• Contract of carriage between shipper and carrier
• Customs declaration
• Description of the goods
• Guide for handling and delivering goods
• Tracking of shipment
More…
• AWB is typically a one-page document that is packed with important
information.
• The document itself is issued in eight sets of different colors, with the
first three copies being the original.
• The first original (green) is the issuing carrier’s copy.
• The second (pink) is the consignee’s copy.
• The third (blue) is the shipper’s copy.
• The fourth copy is brown and functions as the receipt and proof of
delivery. The other four copies are white.
Information conveyed in an Air Waybill:
• Name and address of the carrier
• Name and address of the sender
• Place and address of the shipper
• Nature and quantity of goods, including weight and sizes of package
• Place and date of loading
• Price of transport, the date and place of its payment
• Any declared value of the goods.
Air Waybill vs. Bill of Lading
Difference between MAWB and HAWB

• MAWB issued by main carrier of goods on receipt of goods from a

freight forwarder to deliver at destination as per agreed terms.
• HAWB issued by a freight forwarder on receipt of goods from shipper
agreeing to deliver goods at destination.
Forwarder’s Cargo Receipt (FCR)

• Issued by the freight forwarder or his agent to the shipper of the

cargo, when the cargo has been handed over to the freight forwarder.
• It serves only as confirmation that the cargo has been received for
shipping.
• The FCR does not confirm the condition of the cargo nor that the
cargo has left the country of origin.
• Not a title document
Road, rail and inland waterway transport documents

• Known as Road or rail consignment notes or Truck Waybills.

• These documents provide evidence that the goods have been
received by the carrier and the address of the consignee
• Not documents of title and not negotiable documents
• Delivery is to the named consignee at the address shown on the
document
Functions performed by a freight
forwarder
• Give recommendations to the exporter
• The Freight forwarder advice the exporters about their responsibilities
and responsibilities as per law
• They help the exporter in choosing the most affordable means of
freight shipping; they also bargain for the best cargo shipping rates
inland
• They make the exporter choose the best way to ship their goods
• Give marking and packaging recommendations
• Give explanations of port functionality
Functions performed by a freight
forwarder
• Makes clear what tasks they would perform and what the exporter
would require to perform during the shipping process
• Give advice on ways of receiving payment of exported goods
• Inform in advance about the possible problems of freight shipping
• Provide a complete estimate of export
• Understand and organize Letters of Credit
• They may help exporters get in touch with the experts of trades like
international marketing, financing, international banking, marine
insurance and government export