Business

Bill of Lading

What is a sea bill of lading?

A sea bill of lading is a document required to transport goods overseas across international waters. The ocean bill of lading is both a receipt from the carrier to the shipper and a collection document or invoice. A contract is a legally binding document between the shipper and the carrier of the goods.

A bill of lading is a legal document or contract between the shipper and the carrier that details the type, quantity and destination of the goods carried. The bill of lading serves as a shipping receipt when the goods are delivered at the intended destination. There are different kinds of bills of lading, each with unique rules and conditions.

How the Ocean Bill of Lading Works

Ocean bills of lading allow shippers to transport goods in international waters. The document or contract provides details concerning the nature of the transport, including the materials and quantities transported, and the place where the goods will be transported. Other information listed in the contract includes the value of the goods to be shipped and the type of packaging used during transportation.

The shipper receives the contract at the time of delivery. This document must be signed by both the shipper and the carrier. Once the shipment is complete, the documents will be handed to the consignee. After receiving the goods, the consignee must also sign the contract.

If the goods are first transported by land, additional documentation is required – called an inland bill of lading. The inland waybill only allows the material to reach the shore, and the sea waybill allows the goods to be shipped overseas.

If the goods need to be further transported in the destination country after arriving at the terminal, an inland bill of lading is required.

Example of ocean bill of lading

As mentioned above, ocean bills of lading are used when goods are transported overseas by water. When an automaker ships a vehicle to an overseas dealership, it needs an ocean bill of lading to complete the transfer of the goods. If the vehicle has to be diverted to a further destination country – further from the port – it must have an inland bill of lading to move the vehicle. Therefore, a US dealer will sign an ocean bill of lading with a Japanese automaker to ship the vehicle to the US. If the shipment arrives in Seattle but is destined for Billings, Montana, an additional inland bill of lading is required.

key takeaways

  • A sea bill of lading is a document required to transport goods overseas across international waters.
  • The contract is legal and outlines the type, quantity and destination of the goods carried.
  • The shipper and the carrier sign the ocean bill of lading at the time of shipment, and the consignee signs the document at the time of receipt.

Common types of ocean bills of lading

There are several different types of ocean bills of lading used. A direct bill of lading is non-negotiable and marked as such. When the goods arrive at the port of destination, the only person who has a claim on the goods is the person on the bill of lading. These bills usually involve parties with open accounts, and the shipper may not need to obtain funds from the receiver up front. A non-negotiable ocean bill of lading allows the buyer to take delivery of the goods upon presentation of proof of identity.

A shipper’s order is a negotiable bill of lading, usually implemented when the shipper wants to ensure that certain terms and conditions are met before the goods are released to the consignee. This is used when the payee’s payment is backed by a letter of credit.

Related Posts

1 of 2,105

Leave A Reply

Your email address will not be published.