{"id":62,"date":"2024-02-14T22:00:00","date_gmt":"2024-02-14T12:00:00","guid":{"rendered":"https:\/\/incodocs.com\/blog\/?p=62"},"modified":"2024-12-30T16:59:56","modified_gmt":"2024-12-30T06:59:56","slug":"bill-of-lading-in-international-trade-shipments","status":"publish","type":"post","link":"https:\/\/incodocs.com\/blog\/bill-of-lading-in-international-trade-shipments\/","title":{"rendered":"Bill of Lading meaning and types used in Global Trade"},"content":{"rendered":"<p>\n\n\n<\/p>\n<h3>What is a Bill of Lading in Import, Export and Shipping?<\/h3>\n<p>First, a\u00a0<a href=\"https:\/\/incodocs.com\/template\/bill_of_lading\" target=\"_blank\" rel=\"noopener noreferrer\">Bill of Lading<\/a>\u00a0is a the most important shipping document involved in the import export process.\u00a0 However, some shippers may not understand the bill of lading meaning or the types of bill of lading that are issued along the supply chain.\u00a0 So, in this article we give insight into the bill of lading and the different types of bill of lading used in International trade.<\/p>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<p>A Bill of Lading (B\/L or BoL) document is an extremely important document involved in the shipping and logistics industry.\u00a0 A Bill of Lading is a document that the Carrier of goods issues to the \u201cShipper\u201d of the goods.<\/p>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<p>It\u2019s a document to provide evidence or proof of shipment.\u00a0 This is extremely important in International Trade as it provides \u2018title\u2019 as to who legally owns the cargo.\u00a0 Moreover, the Bill of Lading acts as evidence of Contract of Carriage, receipt of goods and document of Title to the goods.<\/p>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<p>Also, the owner of the cargo (the holder of the B\/L) has the legal rights to claim the goods or arrange transfer ownership of the cargo to another party in the supply chain.<\/p>\n<p>\n\n\n<\/p>\n<p>https:\/\/youtu.be\/Tg-a4VNouBs<br \/>\n<ins\n     style=\"display:block; text-align:center;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-7627881462259742\"\n     data-ad-slot=\"8982116996\"><\/ins><\/p>\n<p>\n\n\n<\/p>\n<h3>How to use a Bill of Lading between the Parties involved in Global Trade<\/h3>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<p>The Bill of Lading is important in International Trade when it comes to the <a href=\"https:\/\/incodocs.com\/blog\/incoterms-2020-explained-the-complete-guide\/\" target=\"_blank\" rel=\"noopener noreferrer\">Incoterms\u00ae<\/a> that the goods are sold on and the payment terms agreed between buyer and seller.&nbsp; In alot of cases, buyers and sellers will agree to pay a deposit to the supplier then arrange the balance payment \u2018upon receipt of Bill of Lading\u2019.<\/p>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<p>This means that when the goods have been shipped and the shipper receives the B\/L from the carrier (shipping line). The shipper will use this document as security and will only email a \u2018copy\u2019 of the Bill of Lading and <a href=\"https:\/\/incodocs.com\/blog\/shipping-document-process-overview-export-import\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"This means that when the goods have been shipped and the shipper receives the Bill of Lading from the carrier (shipping line), the shipper will use this document as security and will only email a \u2018copy\u2019 of the Bill of Lading and other shipping documents to the buyer to prove that the goods have been shipped and to request the balance payment.&nbsp; The shipper will hold title to the original Bill of Lading (originals) and therefore legally retain ownership of the cargo.&nbsp; The shipper will use this as security to ensure that they receive the balance payment for the goods. (opens in a new tab)\">other shipping documents<\/a> to the buyer to prove that the goods have been shipped and to request the balance payment.&nbsp; The shipper will hold title to the original Bill of Lading (originals) and therefore legally retain ownership of the cargo.&nbsp; The shipper will use this as security to ensure that they receive the balance payment for the goods.<\/p>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<p>A B\/L is also used when shippers and consignees arrange Letter\u2019s of Credit (L\/Cs) with both party&#8217;s banks.&nbsp; Letters of Credit are contracts written between the shipper\u2019s bank and the consignee\u2019s bank that will guarantee payment of goods \u2018upon Bill of Lading\u2019.<\/p>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/incodocs.com\/blog\/wp-content\/uploads\/2018\/09\/Bill-Of-Lading-Shipping-Global-Trade-Import-Export.png\" alt=\"The transfer of Bill of Lading document from carrier to shipper of goods for import export.\"><\/figure>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<p>Once the buyer has made the balance payment the shipper will \u2018surrender\u2019 the B\/L and tell the shipping company to issue an \u2018Express Release\u2019 or &#8216;Telex Release&#8217; Bill of Lading.<\/p>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<p>This Express Release B\/L will allow the title of goods to be transferred to the buyer without the buyer having to actually receive the original B\/L documents in the mail.&nbsp; The buyer will use this Express Release B\/L to arrange customs clearance and release of their cargo at the port of destination.<\/p>\n<p><\/p>\n<p>\n\n\n<\/p>\n<p>\n\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<h4 class=\"wp-block-heading\">Types of Bill of Lading<\/h4>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<p>There are many types of <a href=\"https:\/\/incodocs.com\/template\/bill_of_lading\">Bill of Lading documents and formats<\/a> that carriers can issue along the supply chain.&nbsp; Below are a few examples of B\/L types:<\/p>\n<p>\n\n\n<\/p>\n<p>\n\n\n<\/p>\n<ul>\n<li>House Bill of Lading<\/li>\n<li>\n\nSurrender Bill of Lading<\/li>\n<li>Straight Bill of Lading<\/li>\n<li>Master Bill of Lading<\/li>\n<li>Blank Bill of Lading<\/li>\n<\/ul>\n<h4 class=\"wp-block-heading\">What is the difference between Freight Collect and Freight Pre-Paid?<\/h4>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<p>The B\/L will state that the shipment has been sent on \u2018Freight Collect\u2019 or \u2018Freight Pre-Paid\u2019 terms.&nbsp; These terms relate to which party will be paying for the International Freight costs.<\/p>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<p>If the shipment is sent Freight Collect \u2013 the freight charges will be \u2018collected\u2019 by the Consignee.&nbsp; If the shipment has been sent on Freight Pre-Paid terms, the shipper will be billed for the freight charges.<\/p>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<p>It\u2019s important to note that the carrier must receive payment of the shipping charges (by either party) BEFORE they will release the cargo to the Consignee.<\/p>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<ul class=\"wp-block-list\">\n<li>\n<p>Freight Collect Incoterms\u00ae include \u2013 <a href=\"https:\/\/incodocs.com\/blog\/incoterms-2020-explained-the-complete-guide\/\" target=\"_blank\" rel=\"noopener noreferrer\">EXW, FCA, FAS, FOB<\/a><\/p>\n<\/li>\n<li>\n<p>Freight Pre-Paid Incoterms\u00ae include \u2013 <a href=\"https:\/\/incodocs.com\/blog\/incoterms-2020-explained-the-complete-guide\/\" target=\"_blank\" rel=\"noopener noreferrer\">CFR, CIF, CPT, CIP, DAP, DPU, DDP<\/a><\/p>\n<\/li>\n<\/ul>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\t\t\n<ins\n     style=\"display:block; text-align:center;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-7627881462259742\"\n     data-ad-slot=\"8982116996\"><\/ins>\n\t\t<p>\n\n<\/p>\n<h3>What information is on a Bill of Lading format?<\/h3>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<h5 class=\"wp-block-heading\">See below Bill of Lading example format.<\/h5>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<ul class=\"wp-block-list\">\n<li>Shipper\u2019s details including company name, address and contact details<\/li>\n<li>Consignee\u2019s details including company name, address and contact details<\/li>\n<li>Notify Party (if different to the Consignee).\u00a0 In most cases the Notify Party will be the same as the Consignee, so the Notify party will be marked as \u2018same as consignee\u2019.\u00a0 This notify party can be used to notify any 3<sup>rd<\/sup>\u00a0parties that need to be made aware of the shipment updates, progress and delivery.<\/li>\n<li>Carrier\u2019s details, including company name, logo, address, contact details and their Terms and Conditions of carriage.<\/li>\n<li>B\/L Number \u2013 the unique B\/L number issued by the Shipping Company or Freight Forwarder that is arranging the carriage of the cargo.<\/li>\n<li>Vessel Name and Voyage number<\/li>\n<li>Place of Receipt, Port of Loading, Port of Discharge, Place of delivery, Final destination<\/li>\n<li>Container Number, Seal Number, Shipping Marks &amp; Numbers, Description of goods, Gross Weight, Cubic Measurement (m3), Special Instructions<\/li>\n<li>Freight Prepaid or Freight Collect<\/li>\n<li>Place and Date of Issue, Signature<\/li>\n<li>Terms and Conditions of Carriage (usually on next pages)<\/li>\n<\/ul>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<figure><a href=\"https:\/\/incodocs.com\/template\/bill_of_lading\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/incodocs.com\/blog\/wp-content\/uploads\/2022\/07\/Bill-of-Lading-Template-Format-Document.png\" alt=\"Bill of Lading sample\" width=\"641\" height=\"799\" \/><\/a><\/figure>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\n<p>\n\n<\/p>\t\t\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/incodocs.com\/template-gallery\" target=\"_blank\" rel=\"noopener noreferrer\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"314\" src=\"https:\/\/incodocs.com\/blog\/wp-content\/uploads\/2021\/11\/blog-banner__templateGallerydesktop-1024x402.jpg\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/incodocs.com\/blog\/wp-content\/uploads\/2021\/11\/blog-banner__templateGallerydesktop-1024x402.jpg 1024w, https:\/\/incodocs.com\/blog\/wp-content\/uploads\/2021\/11\/blog-banner__templateGallerydesktop-300x118.jpg 300w, https:\/\/incodocs.com\/blog\/wp-content\/uploads\/2021\/11\/blog-banner__templateGallerydesktop-768x302.jpg 768w, https:\/\/incodocs.com\/blog\/wp-content\/uploads\/2021\/11\/blog-banner__templateGallerydesktop.jpg 1145w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/incodocs.com\/template-gallery\" target=\"_blank\" rel=\"noopener noreferrer\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"480\" height=\"600\" src=\"https:\/\/incodocs.com\/blog\/wp-content\/uploads\/2021\/11\/blog-banner__templateGallerymobile.jpg\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/incodocs.com\/blog\/wp-content\/uploads\/2021\/11\/blog-banner__templateGallerymobile.jpg 480w, https:\/\/incodocs.com\/blog\/wp-content\/uploads\/2021\/11\/blog-banner__templateGallerymobile-240x300.jpg 240w\" sizes=\"(max-width: 480px) 100vw, 480px\" \/>\t\t\t\t\t\t\t\t<\/a>\n","protected":false},"excerpt":{"rendered":"<p>First, a Bill of Lading is a the most important shipping document involved in the import export process.  However, some shippers may not understand the bill of lading meaning or the types of bill of lading that are issued along the supply chain.  So, in this article we give insight into the bill of lading and the different types of bill of lading used in International trade.<\/p>\n","protected":false},"author":2,"featured_media":6882,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3109],"tags":[3114,3113],"class_list":["post-62","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-shipping-documentation","tag-for-exporters","tag-for-importers"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.0 (Yoast SEO v23.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bill of Lading | Meaning and Types Used in Global Trade | IncoDocs<\/title>\n<meta name=\"description\" content=\"Learn how a Bill of Lading document works in the Import \/ Export process. The carrier will issue a BoL to the shipper of goods to provide &#039;title&#039; to cargo.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/incodocs.com\/blog\/bill-of-lading-in-international-trade-shipments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bill of Lading meaning and types used in Global Trade\" \/>\n<meta property=\"og:description\" content=\"Learn how a Bill of Lading document works in the Import \/ Export process. 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