importance of B/L, features and types of B/L

1. BILL OF LADING
A detailed list of a ship's cargo in the form of a receipt given by the
master of the ship to the person consigning the goods.

2. Types Of B/L
 Master B/L: Shipper gives it to Freight Forwarder
 Original B/L: Physical paper given to shipper at
port(Negotiable Document)
 House B/L: NVOCC gives it to customer(Non-
Negotiable Document)
 Telex Release: A message that is sent by the agent
or shipping line from origin to their agent or office at
destination to acknowledge that the shipper has
surrendered the Original Bill of Lading that has been
issued to them
 Straight B/L: Non-negotiable B/L used where the
goods have been paid for or do not require payment

3. Function
 A bill of Lading must be transferable,and
serves three main functions:
 It is a conclusive receipt,i.e. an
acknowledgement that the goods have been
loaded
 It contains or evidences the terms of the
contract of carriage; and
 It serves as a document of title to the
goods, subject to the nemo dat rule.

4. Points to Remember
 Without B/L the goods will not be released from
the destination port.
 B/L is a Legal document
 A negotiable bill of lading instructs the carrier to
deliver goods to anyone in possession of the
original endorsed negotiable bill, which itself
represents title to and control of the goods.
 A non-negotiable bill of lading sets out a specific
cosignee to whom the goods are to be shipped,
and does not itself represent ownership of the
goods. Because of this, a negotiable bill of lading
must be used for a documentary sale.