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Home » SMALL BUSINESS » 13 Types of Bill of Lading

13 Types of Bill of Lading

January 27, 2019 By Hitesh Bhasin Tagged With: Small business articles

What is Bill of Lading?

In simple words, Bill of Lading is nothing but a receipt. The word Lading means loading which is read from old English thus the name. The document contains information about the shipment and confirms that the receiver has received the shipment from the sender. Waybill a commonly used alternative term for the Bill of Lading.

Bill of Lading is one of the three crucial documents which is used excessively in international trade to ensure the exporters receive their payment and respective importers receive their merchandise. The other two important documents in international trade would be the policy of insurance and an invoice.

Page Contents

  • What is Bill of Lading?
  • 13 Types of Bill of Lading
    • 1) To order Bill of Lading
    • 2) Straight Bill of Lading
    • 3) Inland Bill of Lading
    • 4) Clean Bill of Lading
    • 5) Through Bill of Lading
    • 6) Ocean Bill of Lading
    • 7) Direct Bill of Lading
    • 8)  Combined Transport Bill of Lading
    • 9) Shipped Onboard Bill of Lading
    • 10) Stale Bill of Lading
    • 11) Claused Bill of Lading
    • 12) Received Bill of Lading
    • 13) Electronic Bill of Lading
  • Role of Bill of Lading

13 Types of Bill of Lading

Bill of Lading - 1

Following are types of Bill of Lading along with their usage as to when and under what conditions are, they used.

1) To order Bill of Lading

This Bill of Lading is used when shipments payment is not done in advance. Shipping to one of your customers on distributors on terms is another form of to order Bill of Lading. Since the customers do not pay in advance it is named as ‘To order’ Bill of Lading because it is generated only after the order is placed.

2) Straight Bill of Lading

Unlike To order Bill of Lading, here the payment has already been done, and this kind of business specifically used only for shipping to customers and not any other dealers are vendors or distributors. This is one of the most common Types of Bill of Lading used when the payment has been done in advance by a company.

3) Inland Bill of Lading

Whenever the shipping is carried out within the country by the mode of road cargo or rail, it is called Inland Bill of Lading. Shipping is never done overseas with Inland Bill of Lading.

4) Clean Bill of Lading

The Bill of Lading that the shipping carrier has to sign off saying that packages were in good condition when they were loaded is called a clean Bill of Lading. If the packages are damaged due to any causes all the cargo is damaged, they will need to issue a ‘foul Bill of Lading’ or ‘Soiled Bill of Lading.’

5) Through Bill of Lading

This Bill is a little more complex than all other Types of Bill of Lading. This bill allows the transporter to ship his career through different modes of transportation. This bill can also allow the transporter to ship his carrier through different distributions enters along with different modes of transportation. However, this busy needs to include an Inland Bill of Lading and or ocean Bill of Lading depending on its final destination.

6) Ocean Bill of Lading

This Bill of Lading allows the transporter to ship his cargo internationally or nationally thus the name Ocean Bill of Lading.

7) Direct Bill of Lading

In cases where the same vessel has picked up the cargo and the same message will deliver to its final destination a direct Bill of Lading is used.

8)  Combined Transport Bill of Lading

When a minimum of two different modes of transportation or land erosion are involved combined transport Bill of Lading is to be used. The transportation modes may involve anything from Boat to air. Combined transport Bill of Lading is also known as multimodal Bill of Lading.

9) Shipped Onboard Bill of Lading

This bill is issued when cargo arrives unexpected and good condition at the port from the shipping center. This can also be used for goods to be loaded on next cargo ship for transportation overseas if applicable, hence the name shipped on board Bill of Lading.

10) Stale Bill of Lading

In cases when overseas cargo transportation arrives on the port prior to the arrival of the Bill of Lading, in that case, the Bill of Lading that arrives is known as stale Bill of Lading.

11) Claused Bill of Lading

A claused Bill of Lading is issued in cases if there is a damage to cargo or if there are any missing quantities in the cargo.

12) Received Bill of Lading

When the cargo has arrived on the port and is cleared for loading on the ship a simple Bill of lading is to be should which is called as received Bill of Lading. This does not mean that it is necessary loaded but it is cleared for loading. This is mostly used as a temporary Bill of Lading whenever a ship is late. This will then be replaced by ways of Lading on board when the ship arrives and the loading of the cargo is done.

13) Electronic Bill of Lading

The traditional method of Bill of Lading involves the use of paper bills. Thus, an electronic Bill of Lading is an equivalent, legally and functionally, for paper Bill of Lading. The electronic bill ensures replication of core functions of a Bill of Lading. As of now no separate format for Electronic Bill of Lading is not issued. The primary purpose of issuing Electronic bill is to encourage to people to move from paper transactions.

Above were all the different Types of Bill of Lading.

Role of Bill of Lading

  1. The principal use of visibility English as a cargo receipt. Once the goods have been loaded into the vessel it is issued as a cargo receipt. This receipt can be used as a proof for insurance as well as per customs purposes.
  2. The Bill of Lading is used as evidence of the contract of carriage with the help of the fact that the career has received all the goods and after receipt, the career is then going to deliver the goods. In this case, the Bill of Lading would also be used as a contract of carriage. Since the cargo space may have been booked previously, the Bill of Lading will rarely be a contract in itself. The preliminary contract is to be acknowledged by both carrier and shipper to incorporate the standard terms of business.
  3. The Bill of Lading can also be used as a document of title particularly when it is related to the case of the buyer. Whenever the buyer is bound to receive goods from the career the rose of a document of title can be performed by Bill of Lading for the goods. Prima facie is conferred by Bill of Lading over the goods to the consignee that is named and is termed as a lawful holder.

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About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. You can follow me on Facebook. Let's stay in touch :)

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