What is a Bill of Lading? How constitutes a Bill of Lading?

A bill of lading, also described as a transport document, is a document issued acknowledging that a cargo has been loaded onto any vessel. It contains the first name and last name details of both the shipper and the recipient. Being a legal document, the bill of lading is usually sent before the delivery of the goods to the recipient. If this document is not in the hands of the recipient, the delivery of the goods cannot take place.

What is a Bill of Lading?

In brief, a bill of lading can be described as a document showing the recipient's ownership of the goods during transportation processes. Known as a bill of lading, it is a highly important document for maritime transport. Since it acts as a legally binding document, it minimizes the risk of any problems arising during transport.

The bill of lading also holds an important place in air transport. This document must absolutely be prepared during cargo operations carried out via airway. It is not possible to carry out transport legally without an airway bill of lading. By examining the details of maritime and airway bills of lading, you can gain more detailed information.

What is a Maritime Bill of Lading?

A maritime bill of lading is a document issued to record transports made by sea. It contains specific terms regarding the transport of goods carried out between the port of loading and the port of discharge. Both the delivering party and the receiving party must comply with the terms stated in the document.

In maritime transport, products loaded onto a vessel must be transported within the framework of a specific route. Otherwise, various legal problems will occur. The bill of lading provides trust between corporations and transport companies. In case of any issues, both parties have the opportunity to seek their legal rights.

What is an Airway Bill of Lading?

It is a type of document showing that airline companies have received any product to carry. The bill of lading document does not grant the airline company the right to dispose of the goods. Following the completion of customs procedures at the airport located on the arrival route, the products are delivered to the recipient named in the document.

Three original bill of lading documents are prepared to be given to the airline company, the recipient, and the shipper. Additionally, 9 copies of the document are also taken. The document must absolutely include the date of the flight, the type and quantity of the product. Additionally, the stamp and signature of the airline company receiving the products must also be on the document.

When is a Bill of Lading Issued?

A bill of lading is generally issued when the products to be transported are delivered to the carrier. If the loading is to take place later or if the loading process takes a very long time, a received-for-shipment bill of lading is issued first. Afterwards, the shipped bill of lading is prepared.

What Information is Found on a Bill of Lading?

Information regarding the company and the products to be transported must absolutely be included on the bill of lading. The information that must absolutely be present on the document is as follows:

• Signatures of the relevant persons

• Date of issue of the document

• Name and address of the importer and exporter company

• Freight payment information

• Date of loading

• Number and content of products

• Financial value of the sent products

• Information on the loading and destination ports

In addition to these, details of both the shipping agency and the transport company must be on the bill of lading template.

What are the Methods of Issuing a Bill of Lading?

The methods of issuing a bill of lading are divided into three: straight bill of lading, to order, and to bearer. You can also get an idea about these methods by continuing to scroll the page and reviewing them.

Straight Bill of Lading

A straight bill of lading, which is a document issued in transport processes, is a bill of lading where only the title or name of the company or person is located in the consignee field, without any order notation.

Order Bill of Lading

In an order bill of lading, only the phrase "to order" is located in the consignee field. It can only be transferred commercially via endorsement. Order bills of lading are issued to the order of the shipper.

Bearer Bill of Lading

In a bearer bill of lading, there is no real person or company name. It must be prepared by writing "to bearer". The person holding this bill of lading has the right to request the delivery of the cargo. Nowadays, bearer bills of lading are not used very much.

Who Prepares the Bill of Lading?

The shipping agency, as the carrying party, is responsible for issuing the bill of lading. A captain or shipowner within the agency is designated as authorized by the shipping agency. The person designated as authorized can also issue a bill of lading. The operator of the vessel also has the authority to issue it.

How to Prepare a Bill of Lading?

Types of bills of lading, which are in the nature of valuable documents, must be prepared by authorized persons. Furthermore, one of the important points to consider when preparing the document is that the information on the document is written completely and accurately. Also, the bill of lading number must be visible on the document.

The bill of lading number is a specific number assigned to provide details such as arrival, voyage, and creditor request present in the transport document issued by the carrier. Shipping agencies and transport companies have bill of lading templates on their own websites. If you wish, you can also take the sample documents as reference.

What are the Characteristics of a Bill of Lading?

The characteristics of a bill of lading can generally be listed as follows:

• It is issued unilaterally by the carrier.

• It is a document that only places liability on the carrier.

• It has the character of a valuable paper.

Following the delivery of the cargo, the carrying party has no further responsibility. However, the carrier person or company is responsible for the products until the time of delivery.

What are the Types of Bills of Lading?

Generally, there are 9 types of bills of lading. We can briefly list them as follows:

Short Form Bill of Lading

The characteristic of short form bills of lading is that the transport terms are briefly shown only on the front side of the document. Another characteristic is that the clauses forming the text of the transport contract are not located on the back of the bill of lading. This is why this bill of lading is called "blank back".

Container Bill of Lading

It is the bill of lading used for goods transported by container, issued by shipping lines or agencies. The Container Bill of Lading is issued upon the declaration of the shipper. Therefore, the carrier has no control responsibility.

Liner Bill of Lading

The Liner Bill of Lading type is issued by ships carrying out scheduled and continuous voyages on the same route. International carriers performing voyages on the same route form an alliance among themselves to determine a common tariff on subjects such as loading, unloading, freight, stowage, etc. These types of bills of lading cannot be endorsed.

Through Bill of Lading

It is the bill of lading prepared to cover the transshipments to be made during the transportation of goods. In order to issue a Through Bill of Lading, a sea route must absolutely be used.

Charter Party Bill of Lading

Charter Party bills of lading are used in bulk sea transport and large-scale shipments. They are contracts prepared by BIMCO, from which bankers generally stay away.

In Charter Party Bills of Lading, the shipowner leases his ship with his rights protected. Afterwards, claiming that the rent has not been paid, he may request that the transport fee be transferred directly to themselves. Therefore, both by rules and for the purpose of making a profit, shipowners prefer Charter Party contracts.

Non-Negotiable Bill of Lading

Regular sea bills of lading have the characteristic of changing hands by being endorsed as a result of being negotiable documents. Therefore, the arrival of the goods to the final end-receiver may be delayed. This situation sometimes leads to the recipient incurring additional costs. To prevent this, non-negotiable sea waybills which can move faster are also used in practice.

Combined-Transport Bill of Lading

It is a transport bill of lading carried out with more than one transport vehicle and which does not require a sea route in the transport process. It is issued by operators called freight forwarders. In regular maritime bills of lading, loading and unloading belong to the ports, but there is no such case in this document. Because by the nature of the transport, these places do not need to be ports.

Tanker Bill of Lading

These are bills of lading issued for tankers used in the transport of crude oil, liquid fuel, and chemical substances. Due to the transport of bulk/liquid cargo, it bears special clauses and conditions according to the requirements of the job.

Mate’s Receipt

It is the document indicating that the cargo to be loaded onto the ship by the company officials performing the loading operation has entered the ship's holds. It also states that it has been received by the ship. In a sense, it has the nature of a "receipt of delivery".

1. The Mate’s Receipt is signed by the chief mate. Before signing, the quantity of the cargo and whether it is dry or not are confirmed. Points such as whether there is any defect or damage in its packaging must also be checked and signed by the chief mate.

Otherwise, the ship or shipowner becomes automatically responsible for that state of the cargo. In future compensation claims to be filed against the ship, the ship may automatically have to compensate for the damage.

What is the Legal Nature of a Bill of Lading?

The commitment to deliver the cargo to be transported with the bill of lading to the legally authorized holder is also declared. With the issuance of the document, a personal debt (and thus a right of claim) regarding the delivery of the cargo at the end of the voyage arises. In order to request the delivery of written goods, presenting the bill of lading is absolutely necessary.

In order for this right to be transferred, the document must absolutely be delivered. In exchange for the presentation and delivery of the Bill of Lading, the carrier or his legal representative—the captain or agent—is obliged to deliver the goods declared in the document.

What are the Differences Between a Bill of Lading and a Delivery Order?

The difference between a delivery order and a bill of lading is that the delivery order is an instruction to withdraw the product in exchange for the bill of lading. During the foreign trade transaction process, the trading person issues a delivery order from the carrying company in exchange for the cargo bill of lading to receive their product.