Detailed information about all of the documents discussed on this page can be found on the International Trade OnLine website.
Ocean/Marine Bill of Lading
Receipt
A Bill of Lading is essentially a receipt for the goods, issued by the carrier by the shipper at the time of loading the goods boards the ocean going vessel. This receipt will need to be presented to the carrier or his agent at the port of destination to obtain releaseof goods detailed on the document.
Non Negotiable
A Bill of Lading if drawn showing goods consigned to a specific party is a quasi non negotiable document as the goods will only be released to the named party.
Negotiable
If the Bill of Lading is drawn to ' Order' without naming a consignee, it is regarded as drawn to bearer, the Bill of Lading becomes a true document of title as the holder of the original Bill of Lading can demand delivery of the goods from the carrier.
Drawn to Order
If the Bill of Lading to ' Order of the consignee' it affords the named consignee the opportunity to endorse the Bill of Lading to another party, who inherits the right to claim delivery of the goods from the carrier by virtue of this endorsement.
Indemnity
Should the original Bill of Lading be lost and no other be available, the carrier may release the goods to the consignee against an Indemnity , usually underwritten by a Bank, as protection for him should he inadvertently release the goods to the wrong consignee.
Contract of Carriage
The Bill of Lading provides evidence of a Contract of Carriage between the shipper and the carrier. The terms of the contract will include the terms of the Bill of lading with any other terms agreed between the carrier and the shipper.
Hague/Visby Rules
These Rulesimpose certain responsibilities of the shipper with regard to the marine part of transportation activity, including the carriers liabilities in respect of compensation.
Non Negotiable Sea Waybill
Use of the Sea Waybill
The non negotiable seawaybill allows the consignee to take delivery of goods from the carrier without the need to produce an original non negotiable Bill of Lading, identification of the consignee being the only requirement.
Advantages
The non negotiable Sea Waybill is particularly useful in short sea routes where vessels can arrive before the documents.
Disadvantages
The Non Negotiable Sea Waybill, should only be used when the shipper has no desire to deny the consignee delivery of goods on their arrival at the destination port, pending payment of any due amount.
Delivery
The shipping company will make delivery of the goods to the named consignee, on their providing acceptable identification to the shipping company.
Non Disposal
The shipper may instruct the shipping company to divert delivery to an alternate consignee provided the vessel has not yet arrived at the destination port. The consignee can avoid this situation by insisting that the Sea Waybill contacts a Non Disposal clause thereby preventing the shipper from diverting delivery.
Air Waybill
Non Negotiability
The speed of air transport and lack of demand for 'negotiable' Air Waybills has meant that most Air waybills are classified as ' non negotiable', thereby denying the named consignee the opportunity to pass the air waybill to another party to claim the goods from the carrier on their arrival.
Delivery
Although a consignee will be named on the Air waybill the shipper reserves the right to change the delivery instructions whilst goods are in transit, and may instruct the carrier to make delivery to another party.
Non Disposal
A consignee can protect himself from the risk of goods being diverted for delivery to another party, by insisting that the Airway bill contains a 'non disposal' clause, which will prevent the shipper from taking such action.
Consolidation
Where cargo from several shippers destined for the same destination is loaded into a transport unit, a Freight Forwarder will enter into a contract of carriage with an airline to transport all the goods loaded in the transport unit. Shippers may attracted to this form of transportation by the lower transport cost
House Air Waybill
Where goods are shipped by a Freight Forwarder Consolidation, the airline will issue a Master Air waybill to the Freight Forwarder covering all the goods in the transport unit, the Freight Forwarder will then issue his own House Airway bill to each of the shippers covering the movement of their goods. Delivery is claimed by the consignee from the Freight Forwarder or his agent at the destination airport.
Air Transportation Regimes
There are 3 Regimes governing the movement of goods by air, and contained within the regimes are limitations as to the airlines liabilities and responsibilities during the air transport movement.
