A bill of lading is a key shipping document that records cargo details and transportation terms. This guide explains its types, key fields, and process, with a bill of lading example and bill of lading sample for reference.
What Is LCL Shipping?
Summary
A bill of lading (B/L) is a key transport document issued by the carrier or its authorized agent once cargo is received. It serves three main functions — a cargo receipt, evidence of the contract of carriage, and a document of title — recording how cargo was received and the terms of carriage. Negotiable bills of lading can also transfer the underlying rights through endorsement and delivery.
A bill of lading (B/L) is a key transport document issued by the carrier or its authorized agent once cargo has been handed over. Beyond recording cargo and shipment details, a bill of lading mainly serves three functions:
Cargo Receipt
A bill of lading proves the carrier has received the cargo, recording what was received, how many pieces, the weight, and the apparent condition of the cargo or packaging.
For example, if a shipper delivers 100 cartons and the document records 100 cartons, that confirms the carrier accepted that shipment. If it also notes visible damage to the cargo or packaging, that record can later help confirm the cargo’s condition at the time it was handed to the carrier if a damage dispute comes up.
Contract of Carriage
A bill of lading serves as key evidence of the contract of carriage and its terms, confirming who is carrying the cargo, where it is moving from and to, and which shipping terms apply.
As a result, if a dispute arises between the shipper, carrier, or consignee over carriage responsibility, delivery location, or related terms, this document and the applicable shipping terms can help confirm each party’s rights and obligations.
Document of Title
Some bills of lading also function as a document of title, letting the lawful holder request delivery of the cargo from the carrier. When the document is negotiable, those rights can also be transferred through endorsement and delivery, as applicable.
UNCITRAL’s Model Law on Electronic Transferable Records identifies the bill of lading as a classic example of a transferable document — one that lets the holder assert the rights it represents and transfer those rights by transferring the document itself.
In international trade, for example, a seller can use the bill of lading to control the right to claim the cargo, and the buyer takes delivery only after obtaining a qualifying original bill of lading.
What Are the Different Types of Bill of Lading?
A bill of lading can be classified by who it is issued to, cargo status, whether it is negotiable, and the mode of transport. The same document can fall into more than one category, so it helps to confirm which classification is being used first.
Below are the common types of bill of lading:
By Issuing Party
Based on who issues the document and to whom, it can be classified as a Master Bill of Lading (MBL) or a House Bill of Lading (HBL). The two commonly appear together in international shipments arranged by a freight forwarder or NVOCC.
- MBL: Usually issued by the operating ocean carrier to a freight forwarder or NVOCC, recording the carriage relationship between the carrier and the booking party.
- HBL: Usually issued by a freight forwarder or NVOCC to the actual shipper, recording the exporter, importer, and shipment details for that cargo.
For example, when an exporter hires a freight forwarder to arrange ocean freight, the exporter may receive an HBL while the forwarder receives the MBL issued by the carrier.
By Cargo Status
Based on whether the cargo has been loaded onto the named vessel at the time of issuance, a bill of lading can be a Shipped on Board B/L or a Received for Shipment B/L.
- Received for Shipment B/L: Confirms the carrier has received the cargo, but issuance does not mean the cargo has been loaded yet. Once actually loaded, an On Board notation and loading date can be added as needed.
- Shipped on Board B/L: Confirms the cargo has actually been loaded onto the named vessel, typically showing the loading date. Under a letter of credit transaction, this date is also key information banks review to check compliance with the shipment deadline.
By Transferability
Based on how delivery is recorded and whether the document can be transferred, a bill of lading can be a Straight B/L, Order B/L, or Bearer B/L.
- Straight B/L: Names a specific consignee directly and generally cannot be endorsed and transferred to another party. It suits transactions where the buyer, seller, and final consignee are already fixed.
- Order B/L: The consignee field usually reads “To Order” or “To Order of…,” and the rights it represents can be transferred through endorsement and delivery under the applicable rules. It’s common in transactions that need title control or trade financing.
- Bearer B/L: Does not name a specific consignee, and the right to take delivery is closely tied to physical possession of the document. Because loss or unauthorized possession carries higher risk, this form is relatively uncommon in practice.
The difference between a Straight B/L and an Order B/L matters in particular. If a transaction involves a letter of credit, bank negotiation, or a transfer of title, the consignee wording and endorsement requirements on the document should be confirmed in advance.
By Mode of Transport
Based on the scope of carriage the carrier is responsible for and the transport modes involved, a bill of lading can be an Ocean B/L, Through B/L, or Multimodal / Combined Transport B/L.
- Multimodal / Combined Transport B/L: Covers at least two different transport modes, such as “truck plus ocean” or “ocean plus rail,” with the contracting carrier responsible for the agreed scope of carriage under the transport contract.
- Ocean B/L: Mainly covers port-to-port ocean transport — for example, cargo loaded at the Port of Kaohsiung and discharged at the Port of Los Angeles.
- Through B/L: A single document covers continuous carriage from origin to destination, even when it involves different carriage legs, so the shipper does not need a separate document for each leg.
When reviewing this type of document, check the Place of Receipt, Port of Loading, Port of Discharge, and Place of Delivery fields to confirm whether the carrier’s responsibility is limited to port-to-port transport or also covers inland transport at the origin and destination.
What Are the Different Types of Bill of Lading?
Formats can vary between carriers and bill of lading types, so field names and layout are not always identical.
The following 27 common fields will help you quickly understand what each one covers and what information to check:
- Shipper / Exporter: The party responsible for handing the cargo over to the carrier, including company name, address, and contact details.
- Consignee / Receiver: The party named to receive the cargo. For a negotiable bill of lading, this field may read “To Order” instead of naming the final consignee directly.
- Notify Party: The contact the carrier or its agent sends the Arrival Notice to once cargo reaches the destination port — often the buyer, customs broker, or another designated agent.
- Carrier: The ocean carrier or other carrier responsible for cargo transport under the contract of carriage.
- Forwarder / Shipping Agent: Helps arrange booking, documentation, and related transport tasks; the exact role and responsibility vary by bill of lading type and shipment arrangement.
- Delivery Agent: Handles destination-port tasks such as contacting the consignee, arranging document exchange, obtaining the D/O, and helping release the cargo.
- Bill of Lading Number: A unique reference number used to identify and track the bill of lading and related shipping documents.
- Booking Number: The booking reference number the shipper receives after booking with the carrier or forwarder.
- Export References: May include the PO number, commercial invoice number, or other transaction references to help identify and reconcile documents.
- Place of Receipt: Where the carrier takes receipt of cargo under the contract of carriage, common in combined transport that includes inland carriage.
- Pre-carriage by: The carrier or transport mode used to move cargo to the main loading port — for example, truck, rail, or feeder vessel.
- Port of Loading (POL): The port where cargo is loaded onto the main ocean vessel.
- Vessel / Voyage No.: The name of the vessel and voyage number for the main ocean leg.
- Port of Discharge (POD): The port where cargo is discharged from the main ocean vessel.
- Place of Delivery: The final destination the carrier delivers cargo to under the contract of carriage, which may differ from the port of discharge in combined transport.
- Routing / CFS / CY: Routing records the shipping route; CFS (Container Freight Station) and CY (Container Yard) refer to where LCL cargo is handled and where containers are exchanged, respectively.
- Service Type: Records arrangements such as FCL, LCL, Door to Door, or Port to Port.
- Description of Goods: The product name, description, Marks & Numbers, and other information needed to identify the cargo.
- Package Breakdown: The type and quantity of packaging — for example, 5 pallets and 2 crates.
- Total Number of Packages: The total package count for the shipment.
- Weight and Measurement: The cargo’s gross weight and measurement (CBM) for shipping purposes.
- Container No. / Seal No.: The Container No. identifies the specific container, while the Seal No. is used to verify the container seal and confirm it stayed intact during transport.
- Country of Origin: The country where the cargo was produced or manufactured, useful for trade, tariff, or customs documentation — though not every bill of lading includes this field.
- Freight Terms: Typically shows Freight Prepaid or Freight Collect, indicating whether freight is paid in advance or on arrival.
- Freight & Charges: May list ocean freight and related charges depending on the bill of lading format and transaction; not every bill of lading discloses all charges.
- Freight Payable At: The location where freight is payable under the contract of carriage.
- Signatures: Signed or issued by the carrier, the Master, or an authorized agent to confirm the bill of lading’s validity.
Need a Bill of Lading Sample? Let JUSDA Help!
This document involves cargo details, shipping route, consignee information, and freight terms, among other details. Errors in any of these fields can affect downstream document processing, customs clearance, and cargo pickup.
JUSDA brings cross-border logistics and supply chain service experience to help handle the transport documentation your shipment needs. If you need a sample for reference, or aren’t sure how to verify the information on a bill of lading, contact JUSDA for help!
What Should You Check on a Bill of Lading?
Before confirming or submitting a bill of lading, check the document type, cargo details, signing validity, and dates. If the transaction uses a letter of credit, also confirm the document meets the letter of credit requirements to avoid delays in negotiation, payment, or pickup caused by discrepant documents.
Bill of Lading Type
Confirm which type of document you have and whether it meets the transaction requirements. For example, if the deal requires a Shipped on Board B/L, confirm the document shows the cargo has been loaded onto the named vessel along with the relevant shipping details.
For letter of credit transactions, also confirm the required bill of lading form and number of copies per the letter of credit terms. If multiple originals were issued and the letter of credit calls for a full set, submit the complete set of originals shown on the bill of lading.
Whether the Content Is Accurate
Check the Shipper, Consignee, Notify Party, cargo description, piece count, weight, container number, port of loading, and port of discharge against the actual shipment and related trade documents.
If you find errors in spelling, quantity, ports, or other data, request a correction before the bill of lading is formally issued. If the original has already been issued, contact the issuing party immediately to confirm the correction procedure and avoid the error carrying through to customs clearance, payment, or pickup.
Validity of the Bill of Lading
Confirm that the document was issued and signed by an authorized party.
For an ocean bill of lading under a letter of credit, UCP 600 requires the bill of lading to show the carrier’s name and be signed by the carrier, the Master, or a named agent on behalf of the carrier or Master. If signed by an agent, the agency capacity must be clearly indicated.
Whether the Date Falls Within the Deadline
The loading date on the bill of lading is used to confirm whether cargo shipped within the agreed timeframe. If the document also carries an On Board notation and date, that date may serve as the actual loading date and should be checked against the latest shipment date agreed in the transaction.
Bill of Lading Process: 7 Key Steps
Summary
The bill of lading process generally covers seven steps: booking, cargo delivery and loading, confirming the draft bill of lading, issuing the bill of lading, sending the documents, exchanging for the delivery order, and customs clearance and pickup. At each stage, the shipper and consignee need to verify cargo, bill of lading, and customs details to complete loading, release, and pickup smoothly.
This process starts with booking and continues through destination customs clearance and pickup. The following sections outline the seven main steps in a typical ocean shipment, along with what the shipper needs to handle at each stage:
Booking
Once the shipper confirms shipping needs, they submit a booking to the carrier or freight forwarder, providing the origin, destination, cargo type, piece count, weight, measurement, and expected shipping date.
After the booking is confirmed, the shipper receives the Booking Number, sailing schedule, and warehouse or port delivery information. At this point, confirm the vessel name, voyage number, cutoff times for cargo and documents, and prepare the cargo and follow-up documents accordingly.
Cargo Delivery and Loading
The shipper delivers cargo to the designated location per the booking arrangement. For FCL, the container is usually loaded and then sent to the terminal. For LCL, cargo first goes to a designated warehouse for consolidation with other shipments before export.
Once cargo is actually loaded, the bill of lading records the shipment details. The shipper should confirm the actual vessel, port of loading, and loading date match the order or letter of credit requirements.
Confirming the Draft Bill of Lading
Before formally issuing the document, the carrier or freight forwarder typically prepares a draft based on the Shipping Instruction and related data, and sends it to the shipper for confirmation.
The shipper should check the Shipper, Consignee, Notify Party, vessel and voyage number, ports, cargo description, piece count, weight, and container number line by line. Any errors should be flagged before formal issuance to reduce the time and cost of correcting documents afterward.
Bill of Lading Issuance
Once cargo is loaded and the document data is confirmed, the carrier, Master, or an authorized agent issues the bill of lading based on the actual arrangement.
The shipper should confirm the form received — Original B/L, Telex Release, or another agreed form — meets the transaction requirements. For letter of credit transactions, also reconfirm that the signature, loading date, and number of originals meet the letter of credit terms.
Sending the Documents
With an Original B/L, the original document may need to be delivered to the consignee by courier, bank, or another agreed method so the consignee can arrange pickup as required. Sending and handling a paper original also adds time and processing cost.
DCSA data shows ocean carriers issued roughly 16 million Original B/Ls in 2021, with paper bills of lading estimated to cost the industry around $11 billion a year, while the electronic bill of lading adoption rate stood at only about 1.2% by the end of that year.
Exchange for the Delivery Order (D/O)
Once cargo arrives at the destination, the consignee needs to arrange release or exchange for a Delivery Order (D/O) as required by the carrier or destination agent before pickup can proceed.
The actual procedure depends on the bill of lading form. An Original B/L typically requires submitting or surrendering the original as required, while a completed Telex Release lets the consignee proceed per the carrier’s release instructions without sending an original to the destination.
Customs Clearance and Pickup
The consignee or their customs broker submits import clearance documents per destination regulations and completes customs review, duty payment, and other required procedures.
Once clearance is complete and the necessary release documents are obtained, cargo can be picked up from the port, container yard, or warehouse as arranged. Consignees should watch free-time, demurrage, and storage deadlines to avoid extra charges from delayed clearance or pickup.
What Is a Telex Release?
A Telex Release lets the destination agent release cargo without needing a paper original bill of lading sent to the destination. It suits shorter voyages where the original documents might arrive after the cargo, or transactions where the buyer and seller already have an established level of trust.
Once the original bill of lading has been issued, the qualifying party typically surrenders the original to the carrier or agent at the origin and submits a telex release request. After the process is complete, the origin notifies the destination agent to release cargo to the named consignee per instructions.
The traditional original B/L process runs “send the original → consignee receives the original → pickup using the original.” A Telex Release instead completes the original surrender and release process at the origin, letting the consignee arrange pickup per the carrier’s instructions without waiting for a paper original to reach the destination.
That said, whether a telex release can be requested, who can request it, whether a full set of originals must be surrendered, and any related fees still depend on the carrier and the actual transaction terms.
It’s worth noting that a Telex Release is not a separate type of bill of lading — it’s a cargo release method, and it differs in nature from a Sea Waybill.
A Telex Release generally involves the release process after an original bill of lading has been issued, while a Sea Waybill is itself a non-negotiable transport document that does not require an original bill of lading to release cargo.
Original B/L vs. Telex Release vs. Sea Waybill
The main differences between an Original B/L, Telex Release, and Sea Waybill come down to how the original bill of lading is used, the release procedure, and control over title. The table below summarizes the key differences:
Comparison | Original B/L | Telex Release | Sea Waybill |
Document nature | Original bill of lading | Release process after an original B/L has been surrendered | Non-negotiable transport document |
Original B/L issued? | Yes | Usually yes, surrendered per instructions to trigger release | No |
Original required for pickup? | Usually | No | No |
Document delivery | Physical original sent by courier | Carrier issues a release instruction to the destination | Electronic or document-based transmission |
Title control / transferability | Transferable when conditions are met | No longer controlled by a physical original once released | Not transferable |
Processing speed | Slower, waits on physical delivery | Faster, no need to wait for an original to arrive | Faster, no original needs to be sent |
Best for | Trade finance, letter of credit deals, or shipments needing title control | Trusted trading partners wanting faster release | Recurring shipments with no need to transfer title |
How Do I Create a Bill of Lading? | Frequently Asked Questions
How Do I Create a Bill of Lading?
To create one, the shipper first provides shipment data such as the Shipping Instruction. The carrier or freight forwarder then prepares a draft, and once the shipper confirms the content is accurate, the carrier, Master, or an authorized agent formally issues the document based on the actual arrangement.
What Information Does a Bill of Lading Need?
It needs to record the shipper, consignee, notify party, carrier, B/L number, booking number, place of receipt, port of loading, vessel/voyage number, port of discharge, place of delivery, cargo description, package breakdown, weight and measurement, container/seal number, freight terms, and signatures.
What Are the Key Fields in a Bill of Lading Example?
A bill of lading example typically includes fields such as Shipper / Exporter, Consignee / Receiver, Notify Party, Bill of Lading Number, Port of Loading (POL), Vessel / Voyage No., Port of Discharge (POD), Description of Goods, Total Number of Packages, Weight and Measurement, Container No. / Seal No., Freight Terms, and Signatures. These fields together confirm the cargo, shipping route, and other transport details.
What Should You Look For When Reading a Bill of Lading Sample?
When reading a sample, check the document type, whether the content is accurate, its validity, and whether the date falls within the required timeframe. When you actually receive one, also confirm the Shipper, Consignee, Notify Party, cargo description, piece count, weight, container number, port of loading, and port of discharge match the actual shipment and related trade documents.
Who Issues a Bill of Lading?
It’s issued by the carrier or its authorized agent once cargo has been handed over. When transport is arranged through a freight forwarder or NVOCC, it may also be split into a Master Bill of Lading (MBL) and a House Bill of Lading (HBL).
Who Signs a Bill of Lading?
A bill of lading can be signed or issued by the carrier, the Master, or an authorized agent to confirm its validity. If signed by an agent, the agency capacity must be clearly indicated.
What Should You Do If There’s an Error on a Bill of Lading?
If you find errors in spelling, quantity, ports, or other data, request a correction before the document is formally issued. If the original has already been issued, contact the issuing party immediately to confirm the correction procedure and avoid the error carrying through to customs clearance, payment, or pickup.
Need Help with Your Bill of Lading? Contact JUSDA!
A bill of lading involves cargo information, shipping terms, document issuance, and destination release, among other elements. Handling it correctly helps reduce issues with customs clearance and pickup down the line.
JUSDA brings cross-border logistics and supply chain service experience to help arrange transport and related documentation based on actual shipping needs, making the journey from export to destination delivery smoother.
If you need help with a bill of lading or cross-border logistics services, contact JUSDA to get a logistics plan that fits your actual needs!
JUSDA（Just-da.）is the only authorized supply chain management platform service company of Foxconn Technology Group and has accumulated nearly 20 years of experience in lean supply chain management, focusing on end-to-end supply chain integration in the whole process for manufacturing industry ,upstream from raw material to finished product and downstream from the finished product to the terminal consumer. The deep integration in supply chain with the customers promotes the supply chain to become the real core competitiveness of the enterprise. We work closely with more than 5,000 3C component manufacturers and customers around the world to serve more than 1,000 well-known brand customers and become a leader in the industry with excellent experience in global supply chain management.
- Contact number : 400-189-8868
- Mail : juslink.solution@Jusdascm.com
JUSDA is a global supply chain and logistics provider specializing in sea freight, air freight, warehousing, customs, and cross-border logistics.
Connecting Supply Chains. Delivering Success.
