What a bill of lading actually does
One document with three jobs, and why getting it wrong can leave cargo stuck at the port.
Three jobs in one document
A bill of lading is a receipt showing the carrier took your goods on board. It is evidence of the contract of carriage. And in its negotiable form, it is a document of title, meaning whoever properly holds it can claim the cargo.
Original, telex release or sea waybill
An original bill must be physically presented to collect the cargo, often after passing through banks. A telex release lets the shipper surrender the original at origin so the consignee can collect without it.
A sea waybill is not a document of title. The named consignee simply collects, which is quick and suits trade between parties who trust each other.
Check it before it is issued
Errors in the consignee name, weights or cargo description can cause customs problems and fees for amendment. If you are paying by letter of credit, the bill must match the credit terms exactly.
Review the draft bill line by line before it is finalised.
