18. HAWB: House airway bill (HAWB) A bill of lading issued by a freight forwarder for consolidated air freights shipments. In a
documentary letter of credit transactions, HAWBs are treated exactly the same as
24. THE BILL OF LADING ALSO HAS THREE MAIN FUNCTIONS
1. Proof of the contract of carriage
A bill of lading is evidence of a contract of carriage between the "carrier" and the "shipper or owner" for the purpose of carrying
the goods (not to be confused with a contract of sale between the buyer and the seller).
2. It acts as a receipt
When the carrier issues the bill of lading to the shipper, it confirms that the goods have been loaded onto the transport vessel.
The shipper usually issues several original bills of lading which can be passed on to different parties along the way, essentially
taking control of the cargo.
3. Ownership as a commodity (representing ownership)
The bill of lading usually includes details of the consignee (buyer/consignee) to which the carrier ships the goods. However,
the title does not pass until the bill of lading is passed on to the receiver. The shipper may forward a copy of the bill of lading to
the consignee as proof of transport, but the person holding the original bill of lading retains title to the goods. Bills of lading are
usually delivered to the consignee only after full payment.