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Which is the most important function of the bill of lading, and why .. ??


  • The bill of lading is a widely used document for all types of cargo movements.
  • The bill of lading has three functions
  • Each feature meets the different needs of carriers and customers

NS bill of lading (B / L) is one of the most commonly used commercial documents in the history of transportation and freight. This document is published in one of the following formats for all shipments in container, bulk, break bulk, RoRo, or any other format. carriage..

Bills of lading have three basic functions or roles (in no particular order):

1) Evidence of contract of carriage

B / L is evidence The content of the contract of carriage between the “carrier” and the “carrier or owner” to carry the freight (not to be confused with the sales contract between the buyer and the seller).

Receipt image 2) Receipt of goods

AB / L is issued by the carrier or its agent to the shipper or its agent as the following evidence: receipt Freight ..

The issuance of B / L proves that the carrier has received the goods from the shipper or his agent in apparently good condition, as delivered by the shipper.

 

Title document image3) Product ownership document

This role of the bill of lading determines who is the owner of the bill of lading. Product title Based on which cargo will be released.

 

Therefore, of these three functions, the most important function of the bill of lading is .. ??

For the container business, the most common types / common methods of issuing bills of lading are:

  1. Straight bill of lading
  2. Order a bill of lading
  3. bill of lading

All types of bills of lading above meet features 1 and 2 – Evidence of contract of carriage When Receipt of goods However, only order bills of lading meet Function 3 – Title document..

Why don’t the other two types satisfy function 3 .. ??? Please let me explain.

1) If B / L is issued to the original “nominated” consignee, it is “Straight B / LAnd straight bills of lading are non-transferable and non-transferable documents. The bill of lading stationery does not have the word straight bill of lading, but it may include a bill of lading or a port-to-port bill of lading. Up..

Releases of cargo at the destination can only be issued to designated consignees and can only be issued if at least one of the original invoices issued has been delivered. This release condition is subject to the COGSA (Marine Freight Forwarding Act) of the relevant country and jurisdiction. ..

Straight B / L does not meet Function 3 (Title Document) because the document is neither negotiable nor transferable.

2) A B / L was issued to the “nominated” consignee, No original When using Sea Waybill or Waybill Stationery,Sea waybill“.. This B / L is also a non-transferable and non-transferable document.

For sea waybill, no surrender is required as the original is not issued.

The sea waybill does not meet Function 3 (Title Document) because the document is neither negotiable nor transferable.

 

Below is a ready calculator for what type of bill of lading fulfills which role (in a container shipping environment).

Ready for bill of lading function Calculator image

 

Below is an example of how each of the above bills of lading is outsourced and how it relates to the above functions.



Bill of lading sea waybill

 

So which is the most important function of the bill of lading .. ??

The answer is: One feature is less important than the other, as each feature has its own uses and needs, as shown below.

Evidence of contract of carriage Why is proof of contract of carriage an important function of the bill of lading?
1) To prove that a shipping contract exists between the freight owner (exporter / shipper / distributor) and the carrier (shipping company / carrier / NVOCC).
2) Check the terms of the contract and identify the start and end points of the contract. The start and end points of the contract may be identified by the way the B / L was issued. Invoice or combined transportation invoice.
Receipt of goods Why is the receipt of goods an important function of the bill of lading?
1) To prove that the cargo listed on the bill of lading has been delivered to the carrier by the cargo owner.
2) To prove that the container and cargo have been delivered from the cargo owner to the carrier. This may not apply in the FCL situation where the freight owner packs the container without the involvement of the transport line, but for freight such as Flatracks, Platforms, or Open Tops Out of Gauge freight, the carrier You can check the condition of the cargo when you accept the same.
3) To prove delivery, if the container becomes AWOL after loading (yes, it happened) and is not ejected to its destination.
Product ownership document Why is the document of ownership of goods an important function of the bill of lading?
1) The ownership document gives the legal owner of the goods the right to claim the goods from the shipping company.
2) Who the title is transferred to depends on how the cargo is consigned. For example, the order invoice example shows the consignee an order, a shipper’s order, an XYZ bank order, and so on.
Learn more about how bills of lading need to be entrusted and who needs to approve it.

Does the bill of lading function outperform other functions for you .. ?? If so, why .. ??


Article reposted after some updates

post Which is the most important function of the bill of lading, and why .. ?? First appeared Shipping and freight resources..

Which is the most important function of the bill of lading, and why .. ??

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