Types of Bill of Lading

1. Bearer Bill of Lading

A bill of lading which does not name the person to whom the goods are to be delivered (i.e. no consignee or order party). The goods are simply delivered to the bearer, i.e. the person in possession of the bill. These are not used very often because of the obvious risks, but section 5(2)(b) of the Carriage of Goods by Sea Act 1992 does make provision for them. When a bill of lading is intended to be transferable, which they usually are, it will normally take the form of an «order bill of lading» as set out in the following paragraph.

2. Order Bill of Lading

This is a transferable bill of lading. There are two types of order bill:

The first is where the bill is made out to a consignee "or to his order or assigns". This kind of bill allows the named consignee to order the goods to be delivered to somebody else. The bill is transferred by delivery and endorsement, usually on the reverse side. For example, if the original bill of lading as issued named ABC & Co as consignee "or to his order or assigns", B will be able to take delivery of the goods if he presents to the carrier one of a set of original bills of lading that appears to have been duly endorsed by ABC & Co in favour of B.

The second kind of order bill does not name a particular consignee but simply makes the goods deliverable "to order or assigns". Under this type of order bill, it is the shipper who has the right to endorse the bill to another party and give orders to the carrier with regard to whom the goods are to be ordered.

Delivery of the goods covered by an order (or bearer) bill must only be made against presentation of an original bill. The carrier is almost strictly liable to the person lawfully in possession of the bill if he wrongly delivers the goods.

3. Straight Bill of Lading

This term is used to describe bills of lading which are neither bearer bills of lading nor order bills of lading, and are consigned to a named consignee. This kind of bill of lading is not transferable by either delivery or by endorsement and delivery. A straight bill is very similar to a waybill (see below), save that delivery still has to be made against presentation of the straight bill of lading. Straight bills are used, for example, for "in house" shipments between divisions of large multinational companies, or when the shipper is absolutely certain that the consignee will not sell the cargo on.In most cases (i.e. unless the consignee named was the same person as the shipper), a consignee under a straight bill was as much a third party as a named consignee under a classic bill. As such, the shipper, his bankers and insurers needed the same protection as the shipper under a classic bill, and the consignee and his insurers would, in turn, need to have rights against the carrier.

4. Shipped Bill of Lading

The above bills are usually shipped bills. Also known as an "on board" bill (particularly in the US), this is a bill of lading which records receipt of the goods by the carrier at the time they are loaded on to the carrying vessel. A "received for shipment bill" (see below) may be converted into a "shipped bill" once the goods are loaded by a dated amendment on the face of the bill. The bill must be signed by the shipowner, or by the master or other authorised agent on the shipowner's behalf. Obviously a buyer will prefer "shipped bill" rather than a "received for shipment bill" as it means that the goods are already in transit and may insist that he be given one by the seller in his contract of sale. Banks view the two documents as significantly different, indeed they will often only accept a "shipped" bill of lading when used with letters of credit.

5. Received for Shipment/Carriage Bill of Lading

A bill of lading containing an acknowledgement by the carrier that the cargo covered has been received by it, but not yet loaded on to the vessel. For example, where the goods are being transported by container and have so far only been delivered to an inland container depot a received for shipment/carriage bill will be issued. These bills should not be confused with the other types of bills mentioned above as they do not perform the same functions.

6. Charterparty Bill of Lading

A bill of lading which usually incorporates the terms of a charterparty (for further details, see Chapter 5 – Bills of Lading Issued Under Charterparties). Frequently, a shipowner will hire out his vessel to a charterer who then prepares the bill and arranges for the master to sign it on the owner's behalf. The owner will then be the contractual carrier on the bill of lading contract in the hands of the subsequent consignee, notwithstanding that the charterer may be the contractual carrier of the shipper.

7. Charterer's Bill of Lading

A bill of lading issued by a charterer rather than a shipowner. The charterer is, therefore, the contractual carrier on the bill of lading contract in the hands of the subsequent consignee.

8. Liner Bill

A bill of lading issued by a particular shipping line that offers scheduled service between two specified ports. It is also often used in lieu of a charterparty bill of lading.

9. Owner's Bill of Lading

A bill of lading by virtue of which the owner of the vessel is the contractual carrier, usually through the agency of the master, even though he may have chartered the vessel to a charterer. (Where the vessel is bareboat chartered, the master will, in fact, be signing on behalf of the charterer, not the owner, as it is the bareboat charterer who employs the master.)

10. Switch Bill of Lading

A replacement bill of lading which is issued by the carrier in exchange for the original bill of lading. They are usually issued at the request of the consignee of the original bill of lading who wishes to sell the goods on without revealing the identity of the original supplier/shipper.

11. Claused Bill of Lading

This can apply in respect of all of the above bills or receipts. It is where the bill of lading contains a positive notation of a defect concerning the apparent order and condition of the goods, or qualification as to the quantity or weight of the goods.

12. Clean Bill of Lading

A bill of lading which contains no clauses notifying defects in the goods. It, therefore, records the loading of the goods in (usually) apparent good order and condition. It should be noted that the master is not expected to open up the cargo or carry out a survey. He is looking for obvious and visible defects.

13. Combined Transport Bill of Lading

Also known as multimodal bills, these cover the transport of the cargo from one inland point to another inland point. They are multimodal in the sense that more than one mode of transport is covered, for example, by road or by rail. The issuer of such a bill of lading generally accepts primary responsibility as a carrier for all stages and forms of carriage.

14. Through Bills of Lading

Similar to combined except that the inland carrier acts as the principal for that inland carriage and the deep-sea carrier simply acts as an agent in arranging for that inland carriage.