Types of bill of lading: which B/L you need and why it matters

What a bill of lading does

A bill of lading does three jobs at once. It is a receipt for the goods, showing the number of packages and their apparent condition; a clean B/L carries no remarks about damage. It is evidence of the contract of carriage, whose terms are printed on the back or on the carrier's website. And, when it is negotiable, it is a document of title: whoever lawfully holds an original can claim the goods at destination. Every type of B/L below is a variation on that third job, either keeping control tightly in the paper, or letting it go so the cargo can move faster.

The main types at a glance

Negotiable or not: the control question

A negotiable B/L is made out to order, to order of the shipper or to order of a bank. It passes from hand to hand by endorsement and delivery, which is why banks insist on it under letters of credit and documentary collections: whoever holds the endorsed original controls the cargo. D/P collections under ICC URC 522 must use an original to order B/L, never a telex release or a sea waybill, or the bank has nothing to hold. A bearer B/L also works as title but is rarely used because anyone holding it can claim the goods. A straight B/L names the consignee and cannot be transferred, yet in many jurisdictions, including English-law practice, the carrier may still want an original before releasing. If you are paying against documents, ask for a to order B/L and check the consignee and notify boxes on the draft.

1. Goods are shippedThe carrier issues a shipped on board B/L to order of the issuing bank, usually 1–3 days after sailing.
2. Seller presents documentsThe seller presents the full set and other documents within 21 days of shipment, or less if the L/C says so.
3. Banks checkBanks have up to 5 banking days to examine the documents for discrepancies.
4. Buyer pays the bankThe buyer pays or reimburses its bank under the credit terms.
5. Bank endorses the B/LThe issuing bank endorses the original to the buyer and releases it.
6. Buyer surrenders one originalOne original goes to the carrier or forwarder's agent at destination, with destination charges.
7. Delivery order issuedThe agent issues the D/O and customs clearance can start.

House B/L vs master B/L

Both levels must be released, or surrendered, before you can collect. If your supplier telex releases the house B/L but the forwarder has not settled with the line under the master B/L, the box still waits. In LCL consolidation there is one master B/L for the container and many house B/Ls, one per shipper. Under a house B/L your claim for loss or damage is against the forwarder, on its terms.

Telex release and sea waybill

With a telex release the carrier or forwarder issues originals, the shipper hands them back at origin, and the origin office tells the destination office electronically to release without paper. The copy is stamped SURRENDERED or TELEX RELEASED. This is the usual China to Gulf practice under the common 30% deposit and 70% balance against B/L copy terms: the supplier surrenders once paid. A sea waybill is different: no originals are issued at all, and the named consignee collects after identification. TT Club's standard waybill incorporates the CMI Uniform Rules for Sea Waybills and the club advises against turning a B/L into a waybill by stamping it express. We compare telex release and original B/L in detail in a separate guide on this hub.

Switch B/L: when and how

A switch B/L is a second set issued in place of the first, often at a different place and after loading. Traders who buy in China and sell to a third country use it so that the supplier and the end buyer do not see each other's names. TT Club and the P&I clubs treat it as legitimate in principle but risky in practice. Before a switch, every original of the first set must be returned unendorsed, collected and cancelled, so only one set exists. The issuer needs written instructions from a party entitled to give them. Some details must never change: the date and place of shipment, the number of packages, the weight, any clauses about condition and special instructions such as temperature. If a switch contains false information, the West of England P&I Club warns that cover may be prejudiced and any indemnity may be unenforceable.

Other labels you will see on a B/L

• Shipped on board: confirms loading on a named vessel with a date; most L/Cs require it.
• Received for shipment: goods received but not yet loaded; needs an on board notation.
• Clean vs claused: a claused B/L notes defects such as torn packaging or wet cartons; banks reject it under L/Cs.
• Multimodal or combined transport B/L: covers several modes, for example sea and rail from a Chinese factory to Almaty.
• Electronic B/L (eBL): issued on approved platforms; check that your bank and destination port accept it.

Which B/L should you ask for?

Frequently asked questions

General information checked on the date shown. Rules and rates change: our team confirms the details for your shipment.