Ocean bill of lading

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Ocean bill of lading is a document used for transport of goods overseas. It describes both the exporter and the importer, as well as the description of the goods, instructions on the route of transport and the method of receipt of the goods It can have three functions:

  • carrier's receipt,
  • collection document,
  • invoice.

Types of Ocean bill of lading

  • Straight bill of lading - not trasferable document. Then mostly used when the exporter knows that he will receive payment from the importer after receiving the goods. Only the person whose name appears on the list can report the load.
  • Shipper's order bill of lading - negotiable document. the exporter's consignment note contains conditions that must be met at delivery. Conditions may include the letters of the conditions before receiving the goods.
  • Clean bill of lading - the recipient receives the goods without any damage, defects or shortages. if the product contains defects, the clean bill of lading will not be issued.
  • On board bill of lading - Only the ship's captain can sign such a bill of lading. Is issued only if the goods are loaded abroad, on the ship.

It is important, that if mixed methods of transportation are in use, the other document - inland bill of lading - will be necessary to transfer goods from the shore to the destination.

Shipper's orders bill of landing authorizes the escort bank to seize goods if they are late with payment. The bank does not release the title of the goods until it receives the payment. The bank will also not release the goods to the exporter until it meets all the conditions laid down in the contract (Treitel, G., 2011, p. 10-20).

Purposes of a Ocean bill of lading

Ocean bill of lading is a contract. Contains detailed information about the transport contract between the carrier and the sender. it also plays the role of a receipt or invoice. The carrier agreed to accept goods on board and deliver them to a specific place. Bill of lading is evidence of the facts stated in it, so that shipped bill is evidence that the goods described in it have been shipped and that the date of shipment is as stated in the bill. Ocean bill of lading showing that the goods have been loaded on board. The exporter is aware that his goods are exactly on the given ship (Gaskel, N., 2000, p. 12-15).

Serves as evidence of the contract, acceptance and transport of goods. Is issued as 3 originals, which must be sealed and signed, and non-transferable 6 copies.

Using the ocean bill of lading, the sender has the option of sending a parcel to each of them:

  • Direct customer
  • At the customer's request
  • At the bank's request

If it is a Straight bill of lading, the load can be delivered to the designated recipient, but after the ocean bill is presented to the forwarding port agents. The carrier is responsible for the goods from the moment they are loaded in the port. His liability ends when the goods are delivered to the destination or indicated delivery port. The cean bill of lading should not be information about the place of origin or destination of the commodity, because it moves only from one port to another. The port in this case is the midpoint between the starting point and the end point (Yiannopoulos, A.N., 1995, p. 19).

Examples of Ocean bill of lading

  • The classic ocean bill of lading is a document used for the international shipment of goods by sea. It is drawn up by the shipper or consignor, and contains the details of the cargo, the carrier, the shipper, the consignee, the ports of departure and destination, and the terms of the carriage. It acts as a receipt of the goods, and acts as evidence of the contract of carriage.
  • A telex release ocean bill of lading is a document used when a shipment is released without the original bill of lading being presented. In this case, the shipper must provide a telex release, which is a document issued by the shipping carrier that authorizes the release of the goods. The telex release must also contain the details of the cargo, the carrier, the shipper, the consignee, the ports of departure and destination, and the terms of the carriage.
  • An express release ocean bill of lading is a document used when an express release is requested by the shipper. In this case, the shipper must provide an express release, which is a document issued by the shipping carrier that authorizes the release of the goods. The express release must also contain the details of the cargo, the carrier, the shipper, the consignee, the ports of departure and destination, and the terms of the carriage.

Advantages of Ocean bill of lading

One of the main advantages of using an Ocean bill of lading is that it provides a secure and efficient method for transporting goods overseas. Here are some other advantages of using an ocean bill of lading:

  • It helps to protect the interests of both the exporter and importer by providing evidence of the goods and their origin.
  • It serves as a receipt of goods and payment, providing proof of the goods being shipped and received.
  • It allows for goods to be tracked along their route of transport, providing visibility and security of the goods while they are in transit.
  • It provides a legal document that can be used in the event of a dispute, providing evidence of the goods and their route of transport.
  • It clearly defines the conditions of delivery, such as payment terms, and the obligations of both parties involved in the shipment.

Limitations of Ocean bill of lading

Ocean bill of lading has several limitations, including:

  • The document is only valid for sea transportation of goods and cannot be used for other modes of transport.
  • It does not provide any legal protection for the seller or the buyer, and it is possible for the seller to make changes to the terms and conditions listed in the document.
  • The document does not guarantee that the goods will be delivered on time, as schedule delays are often unavoidable.
  • The document does not provide insurance for the goods, and the buyer is responsible for any losses or damages incurred during transit.
  • The document cannot be transferred or assigned to another party without the consent of both the seller and the buyer.
  • The document is not valid unless it is signed by both the seller and the buyer.

Other approaches related to Ocean bill of lading

An Ocean bill of lading is a document used for shipping goods overseas. Other approaches related to this document include:

  • Shipping documents, such as packing lists and invoices - These documents provide information regarding the content of the shipment, such as the number of items, weight and dimensions of each item, and names of the sender and receiver.
  • Insurance documents - These documents provide coverage for the goods during transit, including any losses or damages.
  • Customs documents - These documents provide information on the value of the goods and the taxes and fees associated with the shipment.
  • Port documents - These documents provide information on the ports of origin and destination, as well as the vessel carrying the goods.

In summary, other approaches related to an Ocean bill of lading include shipping documents, insurance documents, customs documents, and port documents. These documents provide all of the necessary information for international shipping of goods, including the content of the shipment, insurance coverage, taxes, fees, and the ports of origin and destination.


Ocean bill of lading — recommended articles
Bill of lading — Master bill of lading — Waybill — Free carrier (FCA) — Sea waybill — Acknowledgement of receipt — Contract of affreightment — Shipping note — Dispatch note

References

Author: Beata Kocyłowska

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