Non-Negotiable Sea Waybill

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A non-negotiable sea waybill is a transport document covering port-to-port shipments. It is not a title document, is not negotiable and cannot be endorsed.

A complete non-negotiable sea waybill contains the following elements:
  1. Name of the carrier with a signature identified as that of carrier, or ship's master, or agent or on behalf of either the carrier or the ship's master
  2. An indication or notation that the goods have been loaded on board or shipped on a named vessel. also, the date of issuance or date of loading
  3. An indication of the port of loading and the port of discharge as specified in the original sales contract or documentary credit
  4. A sole original or if issued in multiple originals, the full set of originals
  5. The terms and conditions of carriage or a reference to the terms and conditions of carriage in another source or document
  6. In a documentary letter of credit, no indication that the document is subject to a charter party and/or an indication that the named vessel is propelled by sail only
  7. Meets any other stipulation of the sales contract or documentary credit
Cautions and Notes for Documentary Letters of Credit

If the document includes the notation "intended vessel", it must also contain an "on board" notation of a named vessel along with the date of loading, even if the named vessel is the same as the intended vessel.

If the document indicates a place where the goods were received by the carrier different from the port of loading, the document must also contain an "on board" notation indicating the port of loading as named in the documentary letter of credit and the named vessel along with the date.

If the documentary credit calls for a port-to-port shipment but does not call specifically for a marine bill of lading, the banks will accept a transport document, however named, that contains the above information. Banks will normally accept the following the following documents under this title: ocean bill of lading, combined transport bill of lading, short form bill of lading or received for shipment bill of lading, provided that it carries the notation "on board" in it.

Because they are not title documents, sea waybills eliminate many  of the inconveniences of a bill of lading and offer advantages in situations where the rigid security of a bill of lading is not required. Waybills reduce the opportunity for fraud, although they do not by any means eliminate it and they remove the problems of goods arriving ahead of documents (because they travel with the goods).

Sea waybills are appropriate for shipments between associated companies, for shipments to an agent for sale at destination on an open account basis and for shipments between companies that have established mutual trust.

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