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Shipping · 05

Bill of lading (BL)

The sea-freight receipt and contract of carriage. An original ‘to order’ BL is also the title to the goods.

BLSample — made-up names and figures
BL no.
XYZL0000000001
Shipper
Sharma Agro Exports, Indore
Consignee
To order of Example Bank PJSC, Dubai
Notify
Al Noor Foodstuff LLC, Dubai
Vessel / voyage
MV Example Star / 001E
Port of loading
Nhava Sheva, India
Port of discharge
Jebel Ali, UAE
Shipped on board
08 Jan 2099
Freight
Prepaid
Issued by
The shipping line or its agent, or a freight forwarder (house BL)
Used in
Exports and imports

Why it matters

Whoever holds the original negotiable BL can take the goods at the destination. That is why you release it only after payment, or through the bank under DP or LC.

What goes on it

  • Shipper, consignee (or ‘to order’) and notify party
  • Vessel, voyage, port of loading and discharge
  • Container and seal numbers, packages, weight
  • ‘Shipped on board’ date, freight prepaid or collect
  • Number of originals issued (usually three)

Avoid these mistakes

  • Check the draft BL before it is issued. Corrections after issue cost money and time.
  • A telex release or seaway bill lets the buyer take goods without an original — agree it only once you are paid.
  • Under an LC, the BL date must fall within the latest shipment date in the LC.
Sources (1)
  1. DGFT — Beginners guide to Trade Finance