Bills of Lading
A bill of lading is, therefore both a receipt for the merchandise and a contract to deliver it as freight. There are a number of different types of bill of lading a number of issues that relate to them as a group of documents.
Straight Bill of Lading (Non-Negotiable)
A straight bill of lading indicates that the shipper will deliver the goods to the consignee. The document itself does not give title to the goods (making it non-negotiable). The consignee need only to identify himself to claim the goods.
A straight bill of lading is often used when payment for the goods has already been made in advance or in cases where the goods are shipped on open account. A straight bill of lading, therefore, cannot be transfer via endorsement.
Shipper's Order Bill of Lading (Negotiable)
A shipper's order bill of lading is a title document to the goods, issued "to the order of " a party usually the shipper, whose endorsement is required to effect its negotiations. Because it is negotiable, it can be bought, sold or traded while goods are in transit.
These are highly favoured for documentary credit transactions. The buyer usually needs the original copy as proof of ownership to take possession of the goods.
Blank Endorsed Negotiable Bill of Lading
A blank endorsed negotiable bill of lading is one that has been endorsed without naming an endorser. In simple terms, the person in possession of the document may claim possession of the goods.
Air Waybill (AWB)
An air waybill is a form of bill of lading used for the air transport of goods and is not negotiable.
Clean Bill of Lading
A clean bill of lading is one where the carrier has noted that the merchandise has been received in apparent good condition (no apparent damage, loss, etc) and that does not bear such notations as "Shipper's Load and Count", etc.
Most forms of documentary payment require a "clean" bill of lading in order for the seller to obtain payment. There are however, some conditions in some trades in which transport documents with special clause are acceptable.
Clause Bill of Lading
A clause bill of lading is one whic contains notations that specify a shortfall in quantity or deficient condition of the cargo and/or its packaging. This is an opposite of the clean bill of lading.
Original Bill of Lading
Some bills of lading are issued in "sets of originals". In documentary credit transactions, the "full set" of original transport documents (one or more) must usually be presented for payment (especially if they are negotiable documents).
On Board
An "on board" notation on a bill of lading means that the cargo have in fact loaded om board or shipped on a named vessel. This notation may be made by the carrier, his agent, the master (captain) of the ship or his agent.
Unless expressly authorised, the transport document issued by the carrier must reflect that it is "on board" in order for the seller to obtain payment under a documentary credit.
On Deck
An "on deck" notation means that the goods have been secured on the dock of the vessel rather than in its hold and therefore subject to wind and weather.
Such a notation is generally not acceptable in documentary credit transactions unless specifically authorised. If the transport document shows that the cargo are loaded on deck, any accompanying insurance document must show cover against "on deck" risks.
Bear in mind, however, that certain dangerous cargo (including chemicals or live animals) are often carried on deck.