In today's globalized business environment, the transportation of goods is essential. What many may not realize is that different shipping methods utilize distinct types of bills of lading - critical documents that serve as both proof of shipment and determinants of ownership transfer. This article examines seven common bill of lading types used in maritime, air, and land transportation to help businesses navigate shipping processes more effectively.
I. OCEAN BILLS OF LADING
International maritime shipping primarily utilizes three bill of lading types:
1. Straight Bill of Lading
This non-negotiable document is issued to a specific consignee. The buyer's name appears directly on the bill, with their customs broker typically listed as the notify party. The carrier issues three original copies, one of which must be signed and presented by the consignee at destination for cargo release. Straight bills are commonly used when buyers haven't made full payment.
2. Order Bill of Lading
Unlike straight bills, order bills use "to order" or "to [party]" phrasing and are negotiable instruments. Possession of this document signifies ownership. These are frequently used in letter of credit transactions or when goods change hands while in transit.
3. Telex Release (Electronic Bill of Lading)
This method eliminates the need for presenting original bills at destination. The shipper submits signed originals to their local agent, who then notifies the destination agent via electronic message to authorize cargo release. This approach suits transactions where partial or full payment precedes arrival.
4. Express Bill of Lading
A non-negotiable document that releases cargo only to specified consignees or notify parties without requiring original bills. Importers with established credit or prepaid arrangements often use this to expedite clearance.
II. AIR WAYBILLS
Air cargo transportation primarily uses the Air Waybill (AWB), which serves multiple functions:
- Non-negotiable: Airlines deliver goods directly to consignees upon arrival without requiring document presentation
- Multipurpose document: Functions as both transport contract and cargo receipt while providing special handling instructions when needed
For letter of credit shipments, shippers may submit AWBs to banks. In these cases, consignees must complete payment before banks issue release instructions to airlines - a process that may incur storage fees during the several-day waiting period.
III. LAND TRANSPORT DOCUMENTS
North American land shipments commonly use:
Waybill
A simplified contract referencing carrier terms without detailed provisions. Shippers should request specific information about applicable liability limits. Waybills may also facilitate "collect on delivery" shipments with additional carrier handling fees.
Uniform Bill of Lading
An expanded version of waybills that can be negotiable and includes comprehensive terms and conditions, typically used when detailed legal provisions are required.
Hand Tag
Used during pickup and loading, these brief contracts are completed manually by truck drivers during collection.
CONCLUSION
Different transportation modes employ specialized bills of lading reflecting their unique legal implications and operational requirements. Proper understanding and application of these documents enables more efficient logistics management and risk mitigation across maritime, air, and land shipments. Mastering these distinctions provides businesses with greater control in the complex world of global freight movement.