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Contents
Bill Of Lading ................................................................................................................................................. 3 Example ................................................................................................................................................. 3 Inland Bill................................................................................................................................................... 3 Ocean Bill Of Lading .................................................................................................................................. 3 NEGOTIABLE: ......................................................................................................................................... 3 EXPRESS:................................................................................................................................................ 4 Through Bill Of Lading ............................................................................................................................... 4 Air Waybill ................................................................................................................................................. 4 Types Of Bill Of Lading .................................................................................................................................. 5 Clean Bill Of Lading ................................................................................................................................... 5 Claused Bill Of Lading ................................................................................................................................ 5 Charter Party Bill of Lading ....................................................................................................................... 5 Time Charter Party ................................................................................................................................ 6 Voyage Charter Party ............................................................................................................................ 6 Booking Note......................................................................................................................................... 6 House/Groupage Bill of Lading/Forwarding Agents Bill of Lading ............................................................ 7 Master Bill Of Lading ................................................................................................................................. 7 Negotiable/Non Negotiable Bill of Lading ................................................................................................ 8 ENDORSEMENT OF BILL OF LADING ..................................................................................................... 8 SOME SHIPPING COMPANIES STATES ON THE B/L ............................................................................... 9 To order bill of lading .............................................................................................................................. 10 Freight Paid/Collect Bill of Lading ........................................................................................................... 10 Direct Bill of Lading ................................................................................................................................. 10 Through Bill of Lading ............................................................................................................................. 10 Stale Bill of Lading ................................................................................................................................... 10 Steamship Bill of Lading .......................................................................................................................... 11 Container Bill of Lading ........................................................................................................................... 11 Custody & Port Bill of Lading .................................................................................................................. 11 On Deck Bill of Lading ............................................................................................................................. 11 Ocean Liner Bill of Lading ........................................................................................................................ 11 Third Party Bill of Lading ......................................................................................................................... 11 Ships Bag Bill of Lading............................................................................................................................ 12 Shipped (On Board) & Received Bill of Lading (Alongside B/L) ............................................................... 12

2 Short Form Bill of Lading ......................................................................................................................... 12 Combined Bill of Lading .......................................................................................................................... 12 A Clause Bill of Lading ............................................................................................................................. 12 State Bill of Lading................................................................................................................................... 12 Uniform Bill Of Lading ............................................................................................................................. 13 Various types of Bill of Lading which are not acceptable under L/C unless specifically permitted........ 13 Full container load (FCL) ............................................................................................................................. 14 Shipping Procedures: Full Container Load (FCL) ..................................................................................... 14 Less-than container load (LCL) .................................................................................................................... 15 CONTENTS OF A BILL OF LADING ................................................................................................................ 16 Shipping Process Diagram ........................................................................................................................... 17 Bill Of Lading Samples ................................................................................................................................. 17 Refrences .................................................................................................................................................... 17

Bill Of Lading
A bill of lading is a type of document that is used to acknowledge the receipt of a shipment of goods. A transportation company or carrier typically issues this document to a shipper. In addition to acknowledging the receipt of goods, the document indicates the particular vessel on which the goods have been placed, their intended destination and the terms for transporting the shipment to its final destination. It also includes a description of the goods that are being shipped, their weight and the other shipping details. Example Suppose that a logistics company must transport gasoline from a plant in Texas to a gas station in Arizona via heavy truck. A plant representative and the driver would sign the bill of lading after the gas is loaded onto the truck. Once the gasoline is delivered to the gas station in Arizona, the truck driver must have the clerk at the station sign the document as well. Inland, ocean, through and air waybill are the names given to bills of lading.

Inland Bill
An inland bill of lading is a document that establishes an agreement between a shipper and a transportation company for the transportation of goods over land.

Ocean Bill Of Lading

Ocean bills of lading specify the terms between exporters and international carriers for the shipment of goods to overseas locations. There are two types of Ocean Bills of Lading; Negotiable and Express, and it is important to understand the difference. Bills of Lading are issued when the vessel sails and all copies, regardless of type, are given to the shipper at origin. NEGOTIABLE: One Original, endorsed Negotiable Bill of Lading must be surrendered to the issuer or his agent before you can take physical custody of the cargo. Because these documents are so valuable, multiple Originals are always issued. Be sure you obtain them from the shipper as soon as possible. If, for any reason, you are not able to obtain an Original Bill of Lading, you will have to contact the shipper and have them request a "telex release" from the steamship line or forwarder at origin. This can be very time consuming and result in unwelcome storage charges.

EXPRESS: Sometimes also referred to as a SEAWAYBILL, this is a non-negotiable Bill of Lading that is not required to be surrendered. Use of Express or Seawaybills continues to grow as they make the burden of the cargo custody process easier for all parties involved.

Through Bill Of Lading

Tthrough bill of lading is a contract that covers the specific terms agreed to by a shipper and carrier when more than one type of transportation is being used. This document can cover the domestic and international transportation of export merchandise. It provides the details of the agreed-upon modes of transportation between specific locations for a set monetary amount.

Air Waybill
An air waybill is a bill of lading that establishes the terms of flights for the transportation of goods. The goods could be transported either domestically or internationally. This document also serves as a receipt for the shipper, proving the carrier's acceptance of the shipper's goods and the agreement to carry those goods to a specific airport. Essentially, an air waybill is a type of through bill of lading. This is because air waybills might cover both international and domestic transportation of goods. By contrast, many ocean shipments require both inland and ocean bills of lading. Inland bills of lading are necessary for the domestic transportation of goods, and ocean bills of lading are necessary for the overseascarriage of goods. Inland and ocean bills of lading might be negotiable or non-negotiable. If the bill of lading is non-negotiable, the transportation carrier is required to provide delivery only to the consigneenamed in the document. If the bill of lading is negotiable, the person who has ownership of thebill of lading has the right of ownership of the goods and the right to re-route the shipment. This is sometimes called a bearer bill of lading.

Types Of Bill Of Lading

Clean Bill Of Lading
A bill of lading issued by a carrier declaring that the goods have been received in an appropriate condition, without the presence of defects. The product carrier will issue a clean bill after thoroughly inspecting the packages for any damage, missing quantities or deviations in quality. Often, a clean bill of lading must be issued to fulfill the requirements set forth in letters of credit. Many purchasers rely on letters of credit to pay for imports and banks may refuse to supply the funds if a claused bill of lading is presented. A claused or foul bill is issued when the received product is damaged or does not meet specifications.

Claused Bill Of Lading

A bill of lading that shows a shortfall or damage in the delivered goods. Typically, if the shipped products deviate from the delivery specifications or expected quality, the receiver may declare a claused bill of lading. Also known as a "dirty bill of lading" or "foul bill of lading." Being issued a claused bill of lading can be troublesome for most exporters. If the goods are deemed damaged or some quantity is missing, the exporter may have difficulty receiving payment. Because most banks will refuse to accept any claused bills of lading, purchasers relying on letters of credit to pay for the goods will be unable to receive funds if the bill is foul.

Charter Party Bill of Lading

B/L issued by the hirer (charterer), and not by the owner, of the ship (vessel) transporting the shipment. Since the owners of the vessel often have the right to lay claim to the cargo aboard the ship (in case of a dispute with the chartrer) banks generally refuse to accept such B/Ls as collateral forloans, or for payment under a letter of credit. The shipper of the goods and the ship owner conclude a contract, which refers only to the means of transport. Loading and transport are the duty of the shipper and take place at his own risk. Charter Parties can be classed as one of the following:

Time Charter Party Voyage Charter Party

Booking Note

Time Charter Party A Time Charter Party typically has the following key characteristics:

The shipowner is responsible for providing a seaworthy ship with valid classification, and a master and crew, so that the ship can be sailed safely to its final destination. The charterer is responsible for loading, stowing, and discharging cargo safely. The charterer is responsible for giving the master effective orders and instructions with regard to when and where the cargo should be shipped. The charterer is responsible for providing fuel for the vessel.

Voyage Charter Party Voyage Charter Parties generally contain the following key agreements:

The type of cargo to be carried is agreed in advance. The ports to be visited are agreed in advance. It is the responsibility of the shipowner, not the charterer, to give instructions to the master. If liner terms (e.g., an inclusive freight rate) have been agreed, it is the shipowner who takes responsibility for the loading, stowage and discharge of cargo. If FIOS terms have been agreed, it is the charterer who takes responsibility for the loading, stowage and discharge of cargo.

Booking Note A Booking Note is a contract that has been drawn up between either a CIF seller or an FOB buyer and a shipping company for the carriage of cargo. A Booking Note differs from other forms of contract in that, once the cargo is shipped, its terms and conditions are superseded by those in the Bill of Lading. The standard model used for drawing up Booking Notes is the CONLINEBOOKING Liner Booking Note. This is typically used in conjunction with the CONLINE Liner Bill of Lading. What types of Charter Contracts exist? Full Charter: the shipper charters the whole ship. Split Charter: unspecified loading space on the ship is chartered. Space Charter: the shipper uses particular cargo hold, refrigerating hold for example. Time Charter: the shipping company makes the whole ship available for a determined time period.

Bare Boat Charter: the shipper has solely the ship at his disposal but without crew, provisions or fuel. What advantages does the Charter Party offer? A charter party can be advantageous for the exporter, if for example several shippers wish to transport the same goods by sea freight to the same destination and the overall volume of these goods constitute the full ships loading capacity. This often makes the pro rata freight costs more economical in comparison to a normal freight contract particularly, as the shippers can divide the risk of loading and transportation among themselves. There are also cost benefits for the importer if, for example, he receives goods for a project from several different suppliers which can all be transported on the same ship. The importer collects on the one ship he has chartered the goods from various shippers. The conclusion of a single charter party contract is often cheaper for the importer than several individual liner shipping contracts, and the calculation of freight costs is also easier for him. Is a Charter Party Bill of Lading acceptable under a Letter of Credit? Generally, a charter party bill of lading is only acceptable under a letter of credit if its conditions expressly permit this. And for good reason: this kind of transport document is based on quite individual charter contracts which cannot be viewed by third parties and may contain clauses which are not acceptable to the importer of the goods or any other purchaser of the bill of lading.

House/Groupage Bill of Lading/Forwarding Agents Bill of Lading

B/L issued by a freight forwarder to a shipper as a receipt for the goods being shipped with other cargo as one consignment (usually as a full container load). The shipping company's (carrier's) B/L shows the forwarder as the consignor, and the name of forwarder's agent at the port of destination as the consignee. Although it is not a complete document of title, a house B/L has a legal standing similar to that of a normal (carrier's) B/L. If not specifically prohibited, it is capable of being negotiated and of acceptance by the importer's bank for payment under a letter of credit. Also called forwarder's bill of lading.

Master Bill Of Lading

A schedule of costs for services rendered issued by a ship's master or another carrier official, and which documents that certain products were received on board as cargo for shipment to a particular place and to be delivered to the stated receiver. A master bill of lading might be used by a business that produces items overseas.

Negotiable/Non Negotiable Bill of Lading

Negotiable Bill of Lading: B/L that can be transferred by its consignee to a third party by signing (endorsing) and delivering it to another party (the new consignee). The new consignee can then transfer it to another party ... and so on. To be negotiable a B/L must be written (drawn) 'To Order' of the consignee and must be clean. Any B/L that does not fulfill these two conditions is termed non-negotiable. Negotiable bills of lading are bills of lading which ca be transferred to a third party by endorsement. Therefore, the bill of lading must meet the following two conditions: it must be drawn up to order or to bearer; it has to be clean. It follows that bills of lading to a named person and bills of lading with restrictive clauses (with regard to the quantity and the condition of the goods) are not negotiable. In case of a bill of lading to a named person, only the consignee on who's name the bill of lading was made out, has the right to receive the goods Non-negotiable bills of lading are bills of lading that, due to their nature, cannot be transferred to a third party. However, there a number of documents which are used as a replacement of the bill of lading and which, naturally, are never negotiable such as: the Sea Waybill, the Data Freight Receipt and the House Bill of Lading. These non-negotiable documents came into being, out of necessity to create a document that didn't have to be presented to the master at destination. The goods are delivered to the named consignee in the document who only has to prove his identity. ENDORSEMENT OF BILL OF LADING The consignee as mentioned in the Bill of Lading and the actual receiver of the goods may vary under the conditions in which the Bill of Lading has been or intended to be, negotiated. Thus the goods contained in the Bill of Lading may be consigned to: (i) A named person or firm. (ii) A named person or firm or to an order or assign. (iii) To Bearer. In condition (i), "A named person or firm" the goods are delivered to the named person on presentation of the Bill of Lading at the port of discharge.

Whereas in condition (ii) " A named person or firm or to an order or assign," the simple endorsement on Bill of Lading or fixing their signature/name on the back of the Bill of Lading, the goods consigned become deliverable to the bearer of the Bill of Lading document. This form of endorsement is called " endorsement in blank", and can convert an "Order- Bill of Lading" into a "Bearer" Bill, for the delivery of the property contained in such a bill. If the named person or firm wishes the goods to be delivered to a certain firm, he may restrict the transferability of the Bill by inscribing "Deliver to XYZ" followed by his signature. This endorsement is known as either a "special endorsement" or an "endorsement in full." In case the original consignee adds the words " or to order" to his inscription " Delivery to XYZ " it leaves the direction clear for "XYZ" so desire, into a bearer instrument by simply endorsing his name and fixing his signature on the back of the Bill of Lading document. SOME SHIPPING COMPANIES STATES ON THE B/L "In witness whereof one(1 ) original Bill of lading has been signed, if not other-wise stated below, the same being accomplished the other(s), if any, to be void." The additional bill of lading (not included in the set) marked "NOT Negotiable, Master's copy," is retained by the Master of the ship. When the carrying vessel arrives at the port of destination with the cargo, it is the duty of the Master for shipping company or their agents to compare the bill of lading presented to them by the consignee's copy of B/L with the " Not Negotiable Master, copy" and if satisfied, to sign and date the consignee's copy of bill of lading, thus releasing the cargo from his charge and custody. This procedure is known as "Sighting of Bill." It is the responsibility of the Master to deliver the cargo mentioned in the bill of lading to the consignor, upon payment of freight and production of the bill of lading, or to the holder of the bill of lading, properly endorsed and assigned. There is no justifications for the Master to deliver cargo without production of the bill of lading. The practice and the legal position on the issue of the delivery order against the presentation of B/L is as follows: (1) In the event of several parts of the bill getting into different hands, the first transferee for value is entitle to the goods. (2) If the Master delivers the goods to a holder of a bill of lading, and acts bonafide and without notice of any conflicting claims, then no claim for damages can rise against him, or the shipowner, if it is subsequently known that delivery has been made to a person not entitled to the cargo.

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To order bill of lading

It means that B/L can be endorsed by the shippers or his bank or by another specified party in the favour of other person. So that goods are delivered on the transfer of B/L. Some times the endorsement can be in blank i.e. transferee name is not mentioned.

Freight Paid/Collect Bill of Lading

Freight paid bill of Lading is issued when goods are exported on CIF basis and freight is paid by the exporter. Freight collect bill of Lading is issued when goods are exported on FOB basis and freight is not paid.

Direct Bill of Lading

This bill of Lading is issued when the initial vessel takes the consignment from the port of shipment to the port of discharge. It is issued when cargo/goods are carried in same vessel up to the port of destination.

Through Bill of Lading

When a cargo has to be shipped in a vessel, that will take it to the port of destination then through B/L is issued. This means that cargo is shipped in a vessel that will not carry it to the port of destination. Rather cargo will be shipped into another vessel that will take it to the port of destination.

Stale Bill of Lading

A B/L is said to be stale B/L if it is presented to the bank after withholding it for some time & then it may not reach the overseas buyer before the ship's arrival.

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Steamship Bill of Lading

When the goods are shipped in a vessel that will carry cargo for other exporter also then steamship B/L is issued. It means that the exporter himself does not hire the whole vessel or a substantial part of vessel.

Container Bill of Lading

When the cargo is transported from an inland place of the shipper to final placer of its arrival then container shipping lines issue the container bill of Lading.

Custody & Port Bill of Lading

Custody B/L is issued when the goods are received by the shipping company for the (shipment by vessel). Port B/L in issued when the vessel has arrived but still the goods an not taken on the board of vessel. (These are used for the export of cotton in America).

On Deck Bill of Lading

It states that the goods have been loaded for storage on deck.

Ocean Liner Bill of Lading

When goods are exported through sea, under the terms of L/C then ocean liner bill of lading is issued.

Third Party Bill of Lading

When the goods are shipped by the person other than the sailor than third party B/L is issued. This third person should endorse it in the favour of exporter.

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Ships Bag Bill of Lading

Ships bill of Lading is issued which is to be sent in ships bag with the same cargo so that it is immediately available when the ship arrives at the port of destination. By doing so a B/L is made available to the importer of goods as soon as vessel reaches his port.

Shipped (On Board) & Received Bill of Lading (Alongside B/L)

When the goods are loaded on board of the ship the shipped bill of Lading is issued. Where the goods are received by shipping company for storing or for any other purpose then received bill of Lading is issued. It certifies only receipt of goods.

Short Form Bill of Lading

A short form B/L is one which does not contain whole of the terms & conditions & clauses of the B/L. In this B/L a reference of another document is given from where all the terms/conditions and clauses can be taken.

Combined Bill of Lading

Combined bill is that form of bill of Lading which covers the several modes of transport (viz air, land, sea)

A Clause Bill of Lading

It is that bill of Lading which contains additional clauses limiting the responsibility of the shipping Co. and indicates defective conditions of the goods.

State Bill of Lading

This bill of lading is issued in the name of consignee when consignment of goods is made through confirmed, irrevocable and without recourse letter of credit.

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Uniform Bill Of Lading

An agreement between an exporter and a carrier regarding property to be transported. The uniform bill of lading provides basic information about the shipment such as the shipper and recipients names, and the shipment's origin and destination. In addition, it establishes the terms of the carriers liability, transport time frame, how to file a claim for a lost or damaged shipment, how insurance will be applied in the event of a claim, and how the shipment may be stored or disposed of if the shipment is refused or is not deliverable.

Various types of Bill of Lading which are not acceptable under L/C unless specifically permitted

On deck Bill of Lading Short form Bill of Lading On board Bill of Lading Charter Party Bill of Lading Claused Bill of Lading Forwarding Agent Bill of Lading House Bill of Lading Received B/L

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Full container load (FCL)

A standard (twenty or forty-foot) container that is loaded and unloaded under the risk and account of the shipper or consignee. In general, a full container load attracts lower freight rates than an equivalent weight of loose (break bulk) cargo. Also called full trailer load (FTL).

Shipping Procedures: Full Container Load (FCL)

When shipping goods by ocean freight it is helpful to follow a set of procedures which together help to achieve the best results in the most cost-efficient manner. Following is our recommended process for shipping goods by ocean freight as FCL Full Container Load:

Shipper contacts their agent to move the goods Agent arranges to have a shipping line place an empty container at the shippers premises to be loaded and book space on the next vessel to the destination port Bill of Lading instructions are sent to the shipping line for them to produce the Ocean Bill of Lading. This is the point at which the agent will tell the shipping line what type of Bill of Lading to raise The shipping line will raise an Ocean Bill of Lading with the shipper being the agent at the originating port and the consignee being his agent at the destination port, or The shipping line will raise Ocean Bill of Lading with shipper being the exporter at the originating port and the consignee being the importer at the destination port, and will notify the party being the agent at the destination port If first option is used then the agent will raise a House Bill of Lading with the shipper being his client and the consignee being the importer at the destination port Once the shipment has sailed, the agent will send to his agent at the destination port a pre-alert consisting of: Ocean Bill of Lading, House Bill of Lading, if used, an invoice and any other supporting documents

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The shipping line may send arrival notice to agent or consignee The agent in the port of destination will take control of the shipment and customs clear and arrange for delivery to the importer The agent may use line haulage or merchant haulage to get the container delivered.

Less-than container load (LCL)

Shipping term for cargo that is insufficient either in quantity or in weight to qualify for the freight rates applied to a standard shipping container.

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CONTENTS OF A BILL OF LADING

1 Shipper/Exporters/Consignor- name and address. 2 Consignee - Complete name and address/ Non-negotiable unless consigned to order. 3. Notify party - complete mailing address. 4. Place of receipt. 5. Date Bill of Lading prepared. 6. Date Bill of Lading issued. 7. Place of Bill of Lading issued. 8. Bill of Lading Nos: 9. Number of original Bills of Lading signed. 10. Pre-carriage by- if any. 11. Vessel Voyage (Flag) - Name of ship. 12. Port of loading. 13. Port of Discharge and place of delivery. 14. Booking Nos:, Document Nos:, Export Declaration. 15. Export references. 16. Forwarding Agents references, name & address. 17. Country of origin of the goods. 18. Type of move - containerized or otherwise. 19. Final Destination. 20. Container Nos;, Seal Nos:, Mark Nos: 21. No: of packages or containers - in Nos. & words. 22. Kind of packages, description of goods shipped. 23. Total Gross weight - kg/pounds. 24. Total measurement - cbm/cft. 25. Freight charges, Rate per unit, prepaid or to be collected.

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Shipping Process Diagram

Present in attached files.

Bill Of Lading Samples

Present in attached files.

Refrences
http://www.businessdictionary.com http://www.investopedia.com/ http://www.pakistaneconomist.com/issue2002/issue13/f&m4.htm