What Are The Types Of Ocean Bills Of Lading? The 3 Most Important Types Of Bill Of Lading

1. Bill of Lading - What is the Bill of Lading?

Sea freight forwarder is abbreviated as B/L, or Bill of Lading. This is a popular and important type of document in sea transport in general and container transport in particular. When the goods are loaded onto the ship or confirmed by the shipowner, the bill of lading will be issued to the shipper.

2. The importance of ocean bills of lading in international trade

According to the concept mentioned above, the bill of lading is a very important document in sea transport. Below are the reasons why B/L is one of the indispensable elements in sea transport.

• Shipping documents: The bill of lading is one of the important documents in the goods transportation process. The bill of lading includes detailed information about the goods, such as:
  • Shipping and receiving locations.
  • Transported road.
  • Estimated time of order.
  • Terms and conditions during transportation. This information will help the shipper's goods be transported according to the contract and agreed-upon terms.
• Document of ownership: This bill of lading is used to determine the consignee's ownership of the goods. To prove that you are the owner or manager of any goods, the consignee needs a bill of lading.

• Customs and payment documents: A bill of lading needs to be presented when carrying out customs procedures and making international trade payments. This type of paper helps provide information to customs authorities about the import and export of goods. Additionally, it also helps ensure compliance with import taxes and regulations.

• Basis for financial transactions: A bill of lading can be used to borrow capital from banks or financial institutions. The bill of lading is issued after the goods are loaded onto the ship with financial value, helping to ensure financial transactions during transportation.

• Right to claim compensation: If damage or loss occurs during transportation, the bill of lading can be used to claim compensation from related parties, such as carriers or insurance. The shipper can use it as evidence of having sent the goods, according to the terms of the agreement, and claim the right to compensation.

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3. How to classify bills of lading documents in sea transport

Currently, ocean bills of lading are classified according to many different purposes to be able to meet all customer needs. The most popular classification so far is the classification by recording the consignee. This classification also corresponds to the most important function of "ownership documents." Because of actual needs, a number of other classification criteria will be formed as follows:.

3.1 Classify bills of lading according to the consignee

• Straight bills of lading: This type of bill of lading clearly states the information of the consignee, and only this person has the right to receive the goods when presenting a valid bill of lading. Such information includes:
  • Recipient's name.
  • Receiver's address.
  • Phone number.
  • Fax number.
  • Email of the consignee.

• Order bills of lading: This is also the most common type in international trade and transportation. The carrier will deliver the goods according to the order of the shipper or of the person listed on the bill of lading.

 Bearer bills of lading: This type can be considered a type of bill of lading ordered but not ordered by a specific person. The person presenting the bill of lading will be allowed to receive the goods. On the other hand, an ordered bill of lading is converted into a bearer bill of lading by endorsing the back without specifying who ordered the delivery.

3.2 Classify the bill of lading samples according to the notes on the bill of lading paper

Subsequent ocean bills of lading are classified based on the notes on the bill of lading paper. This type of classification includes two types: the perfect bill of lading and the imperfect bill of lading.

• Perfect bill of lading, clean B/L: This bill of lading is also known as a clean bill of lading. On the bill of lading, there will be no notes about defects in goods or packaging.
• Imperfect bill of lading: Unclean B/L: This bill of lading is also known as a dirty bill of lading. On the bill of lading, there will be a note about defects in goods and packaging.

3.3 Classify bills of lading according to delivery status.

The next type of classification of ocean bill of lading documents mentioned is classification according to delivery status. This classification includes two types: bills of lading for loading goods on board and bills of lading for receiving goods for loading.

• Shipped on board B/L: A bill of lading will be issued after the goods have been loaded on board, including a detailed on-board date.

• Received for shipment, B/L:
  • A bill of lading will be issued before goods are loaded onto the ship.
  • The bill of lading will not have the ship name or a specific loading date.
  • When adding confirmation of the ship name and actual loading date on board, the bill of lading will be converted into a "shipped bill of lading.".

3.4 Classified by bill-of-lading issuer

One of the popular classifications of ocean bills of lading that cannot be ignored is the classification according to the issuer of the bill of lading. This type of classification is divided into two types: the master bill of lading and the house bill of lading.

• Master Bill of Lading (MBL): The bill of lading will be issued by the shipping company; the shipper and consignee can be the goods owner, forwarding company, or agent.

• House Bill of Lading (HBL): The House Bill of Lading will be issued by the freight forwarding company. The consignor and consignee are the goods owners (import-export company).

3.5 Classify the bill of lading samples according to the form of presentation 

This type of classification is divided into three main types: the original bill of lading, the electronic delivery bill of lading, and the presented bill of lading. Specifically, each type is as follows:

• Original B/L: To have a delivery order (D/O), the consignee must present the original bill of lading.

• Telex Release B/L: Because there is electric delivery, the consignee does not need to present the original bill of lading.

• Surrendered B/L: Surrendered B/L:
  • The bill of lading is presented to the shipping line or shipping line's representative, usually at the loading port (after issuance).
  • The consignee does not need to present the original bill of lading but only needs to complete proceduresto pay local charges at the port of discharge to be able to get the D/O.

3.6 Classified by the charter method 

Classification by charter method is also one of the most popular forms of classification for ocean bills of lading. This type of classification is divided into two main types: shipping bills of lading and shipping bills of lading.

• Liner Bill: This is the most common type of bill of lading and dominates most of the market. This type of bill of lading is often used by businesses that rent container ships to transport goods.

• Voyage Charter Bill: This bill of lading is issued to the shipper when using a voyage vessel to transport goods and is often accompanied by a charter contract (to be used with a charter party).

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3.7 Classified by itinerary and mode of transport

The final classification of ocean bills of lading is based on itinerary and mode of transport. This type of classification is divided into three main types: direct bill of lading, through bill of lading, and multi-modal bill of lading.

• Direct Bill: This is a bill of lading for goods transported directly from the loading port to the unloading port, without going through a transshipment or a ship calling at any port.

• Bill of Lading: This bill of lading will have many carriers or ships. But there is only one bill of lading that has sole ownership; the shipper does not have to care whether the goods are transported or not. In addition, there is also a local bill of lading (Local B/L) that has no ownership and is only considered a receipt to record the carrier and exchange of goods.

• Multimodal Bill of Lading (Multimodal Bill, Intermodal Bill, or Combined Bill):
  • The bill of lading used in container transportation is in the form of "door to door.".
  • There are many combined transportation methods, such as sea, air, road, etc.

4. The 3 most important types of ocean bills of lading

Among the types of ocean bills of lading mentioned above, there are three most important types of bills of lading. Those bills of lading are the original bill, the surrendered bill, and the seaway bill, respectively. To better understand these three types, follow the article below.

4.1 Original Bill of Lading

The original bill is a bill of lading issued by the shipping company or forwarder. Attached are 3 bills of lading in sequential order: first original, second original, third original, and 3 copies.

• Conditions for receiving goods when getting the original bill: The consignee needs to bring the original bill to the port to receive the goods. However, this often takes a lot of time and money. Therefore, shipping lines have allowed seaway bills or telex releases to be more economical and faster.

• In case the original bill is lost: this is one of the taboos, because if the original bill is lost, shipping companies will not release the goods to you. To release the goods, you need to make a commitment to the goods, then pay a fee in cash equivalent to 150% of the value of the goods to the company. Ships will keep this fee for 2 years.

• Disadvantages of the Original Bill:
  • Expenses for quick fax transmission and loss of the original bill arise.
  • The consignor needs to send the original bill documents to the consignee. Sometimes you will encounter a situation where the ship has arrived, but the consignee has not yet received the original bill from the sender. This affects delivery time, making customers feel disappointed.

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4.2 Surrendered Bill

Surrendered bill, also known as Electronic Delivery/Presentation Bill of Lading. Having this paper is very convenient for the sender and recipient during the delivery and receipt of goods. The surrendered bill completely overcomes the disadvantages of the original bill.

• Advantages of a Surrendered Bill
  • If you want to make a surrendered bill, the shipper will pay a telex release fee, also known as a telex release fee.
  • The surrendered bill is attached to the Telex release, intended to help the consignee prove he is the order owner without needing the original bill.
  • Surrendered A bill helps the consignee receive the goods if the original bill has not yet reached the consignee.
• Disadvantages of a Surrendered Bill:
  • Telex release surcharges range from $25 to $30 (depending on the shipping company).
  • You need to choose a reputable FWD to limit the situation of not receiving delivery electricity, leading to additional DEM and DET fees.

4.3 Seaway Bill

The seaway bill is the bill of lading that the shipping company, or FWD, will issue to the customer when they fully pay the costs of the goods. Seaway Bill has only one document, so it cannot be transferred, nor can an original be issued. A seaway bill is not a document of ownership of goods and is only applied to a straight bill of lading (a straight B/L).

A seaway bill is often used for non-commercial transactions, perhaps between subsidiaries in a corporation or transactions not related to seaway bills of lading. A seaway bill is issued after the ship departs and upon receiving the full amount of payment from the shipper. The recipient just needs to come to the port to receive the goods without having to present the original bill of lading or delivery cable.

Seaway will not charge additional fees, like Telex Release. However, some companies stipulate the time to pay after the train departs. If you do not ensure that payment time, you will be charged an additional fee. In addition, in one country, this type of bill of lading is not applicable.

4.4 The relationship between these 3 types of bills of lading

Below is the relationship between the three types of bills of lading described above that you need to know:

• Surrendered issued the original B/L set and then withdrew it, while Seaway B/L did not issue the B/L set.
• Surrendered has the form of releasing goods, and the implementation method is Telex Release.
• Seaway B/L has an implementation method called Express Release.
• Seaway B/L and Surrendered B/L are not considered documents of ownership of goods, while Original B/L is considered a document of ownership of goods.

5. Why is it necessary to have many original bills of lading documents in sea transport?

It is necessary to have many original copies of the bill of lading because the parties involved will need one copy for storage and use. Here are a few specific reasons you need to understand:

• Distinguishing and authenticating: The original is printed and stamped with the word "original" to be able to distinguish it from the copy. This helps ensure authenticity and limits confusion during the transportation of goods.

• Storage and use: During the transportation process, the parties involved need an original copy of the bill of lading to store or use for legal and accounting purposes. It is used to document the carriage of goods and the associated terms and conditions.

• Trust and payment: Exporters require original bills of lading to increase trust. When they receive the original bill of lading, they will have more confidence and fulfill their payment obligations. The exporter needs to present the original bill of lading to the importer; similarly, the importer must request the original bill of lading in advance. This helps save time on the delivery of goods.

Therefore, needing many ocean bills of lading is extremely necessary to ensure authenticity, trust, and payment during the transportation of goods.

6. Some samples of ocean bills of lading: Bill of Lading

The detailed content on the front of the bill of lading will vary between goods. However, they all have the main contents for market shipping containers. The bill of lading for the ship will have differences, such as no seal or no container number.

• Logo and name of the carrier.
• Vessel name and trip number (Vessel Voyage No.)
• Number of Originals (No. of Originals)
• Bill of lading number (B/L No.)
• Notify Party
• Shipper
• Consignee
• Port of loading
• Port of Discharge
• Container No. (Container No.)
• Lead (Seal No.)
• Description of Goods and Packages
• Gross Weight
• Capacity (Measurement)
• Freight and charges
• Place and date of issue
• Other content…

You can refer to the sample sea bill of lading images of MSC ships below:

This information is prepared and pre-printed by the carrier; the goods owner cannot change any information. However, this information must be consistent with the regulations of international conventions and practices on transporting goods by sea. The content on the back of this bill of lading form will include information such as:

• Define.
• General Terms.
• Responsibility of the carrier.
• Loading, unloading, and delivery.
• Freight and surcharges.
• Limitation of the carrier's liability.
• Exemption from the carrier's liability.

For imported goods, the person doing the procedures should pay attention to the important contents that need to be entered in the customs declaration as follows:

• Bill of lading number and date.
• Container number and seal number.
• Name of loading and unloading port.
• Total weight.
• Number and type of packages.

In addition, you also need to compare the data with other documents, such as:

• Packing List.
• Commercial Invoice.
• Certificate of Origin.

For exported goods, it is necessary to check the draft of the bill of lading to detect errors. When you need to edit the content, you need to do it as soon as possible to avoid incurring bill correction fees applied by the shipping company.

Above is all the information about the ocean bill of lading that you can refer to. Dolphin Sea Air hopes this will be useful information for you. If you have any questions, don't hesitate to contact us via our hotline or website.

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