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The nature and function of the ocean bill of lading

Ocean Bill of Lading from Basenton Logistics

(1) Definition of ocean bill of lading
Bill of Lading (B/L for short) is a written document issued by the shipping company or its agent to prove that the goods have been received and that the goods are transported to the designated port of destination and delivered to the consignee in good condition . A bill of lading is a kind of securities that can be freely bought and sold in the market, or mortgaged to a bank, and has a wide circulation role.
The parties and related persons of the ocean bill of lading
Parties: Carrier and Shipper
Related parties: the consignee, the holder of the bill of lading, the transferee and the owner of the goods issuing the bill of lading
The carrier and its agent, the master and its agent, the owner and its agent; the original bill of lading is generally issued in duplicate or triplicate.

China freight forwarder
China freight forwarder

(2) The nature and function of the ocean bill of lading
1. The bill of lading is the receipt for the Goods.
2. The bill of lading is the document of title of the goods contained in it.
3. The bill of lading is the proof of the contract of carriage between the carrier and the shipper (Evidence of Contract), and it is also the basis for the rights and obligations of the carrier and the shipper.

(3) Classification of ocean bills of lading
1. According to whether the goods have been shipped
(1) On Board or Shipped B/L
It refers to the bill of lading issued by the carrier to the shipper according to the chief mate’s receipt after the entire cargo has been fully loaded into the cabin or on the deck. Usually the name of the ship on which the cargo is loaded and the date of loading must be indicated.
(2) Received for Shipment B/L
Also known as the standby bill of lading, it is a bill of lading issued to the shipper after the shipper has handed over the goods to the carrier and the carrier has taken over the goods waiting to be loaded on board.

2. According to the header of the consignee of the bill of lading
(1) Named Bill of Lading (Straight B/L)
It refers to the bill of lading with the name of the consignee specified in the consignee column on the bill of lading.
There are several ways of naming:
Signed to A Co. Ltd.
Deliver to A Co. Ltd.
Onto A Co. Ltd.
The named bill of lading can only be picked up by the designated consignee, and the bill of lading cannot be transferred. It can avoid possible risks in the transfer process, and is generally used for the transportation of valuable commodities, exhibits and foreign aid materials.

(2) Bearer B/L (Open B/L or Blank B/L or Bearer B/L)
A bill of lading that does not specify any consignee in the consignee column on the bill of lading, but indicates the word “Bearer” or leaves this column blank and does not fill in the name of any person.
This kind of bill of lading does not require any endorsement formalities to transfer, or to pick up the goods, which is extremely simple.

(3) Instruction Bill of Lading (Order B/L)
In the “Consignee” column of the bill of lading, only fill in the words “To order” or “To Order of…”. There are four headers for an instruction bill of lading:
  ①According to the bank’s instructions To the Order of xx Bank
  ②According to the instructions of the consignee To the Order of xx Co.Ltd
  ③To the Order of Shipper
  ④Anonymous instruction: In the item of the consignee, it is not indicated whose instruction to deliver the goods, but only the words “To the Order”.

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