Bill of Lading: What It Is, Types, Fields and How to Get It Right
The complete exporter's guide to the bill of lading — its three functions, every field and what it must match, the main types, how it compares with a sea waybill and an air waybill, and the discrepancies banks reject most.
Short answer: A bill of lading (B/L) is the document a shipping line or its agent issues to the shipper for sea cargo. It is a receipt for the goods, evidence of the contract of carriage and — when issued 'to order' — a document of title that controls who can collect the cargo. Banks usually require it under a letter of credit.
- Issued by
- Carrier, the master, or their agent (a forwarder/NVOCC issues a house B/L)
- When
- On receipt of cargo, or once it is loaded on board
- Functions
- Receipt · contract of carriage · document of title
- Originals
- Usually a set of three; one surrendered to collect the cargo
- Must match
- Commercial invoice, packing list and the LC
- LC rules
- UCP 600 Articles 20 (B/L), 21 (sea waybill), 27 (clean)
What a bill of lading is
A bill of lading (B/L or BOL) is the transport document a shipping line — or the ship's master or an agent acting for the carrier — issues to the shipper when cargo is received for shipment or loaded on board a vessel. It is the single most important document in sea freight, because whoever holds the original of a negotiable B/L controls the goods.
The exporter does not write the bill of lading. You send the carrier or your freight forwarder shipping instructions (shipper, consignee, notify party, goods description, packages, weights, marks), the carrier prepares a draft B/L from them, you check the draft, and the carrier issues the final document after loading.
The three functions of a bill of lading
Every bill of lading does up to three jobs at once. Knowing which one matters for your shipment tells you which type of B/L to ask for.
- Receipt for the goods — the carrier confirms it received the stated number of packages in apparent good order and condition. A B/L with no clause saying otherwise is a 'clean' B/L.
- Evidence of the contract of carriage — the terms on the back of the B/L (or the carrier's standard terms it refers to) govern the carrier's obligations and liability, typically under the Hague-Visby Rules.
- Document of title — a B/L made out 'to order' can be transferred by endorsement, and the carrier releases the goods only against an original. This is why banks rely on it under a letter of credit: holding the B/L is holding control of the cargo.
Every field on a bill of lading, and what it must match
Layouts differ between carriers, but the content is standard. Use this table when you draft shipping instructions and again when you check the carrier's draft B/L.
| Field | What goes in it | Must match |
|---|---|---|
| Shipper | Exporter's name and address | Commercial invoice seller; LC beneficiary |
| Consignee | A named party, 'To order', or 'To order of [bank]' | LC instructions exactly; decides whether the B/L is negotiable |
| Notify party | Who the carrier informs on arrival — often the buyer or their agent | LC wording, if specified |
| Vessel and voyage no. | Ship and voyage the cargo is loaded on | Booking confirmation |
| Port of loading / port of discharge | Named ports | Commercial invoice, LC |
| Place of receipt / place of delivery | Inland points, for a combined-transport B/L | Booking and Incoterm |
| Marks and numbers | Shipping marks printed on the packages; container and seal numbers | Packing list and the physical cartons |
| Number and kind of packages | e.g. 480 cartons on 20 pallets | Packing list |
| Description of goods | May be in general terms, not conflicting with the invoice (UCP 600 Art. 14(e)) | Commercial invoice, LC |
| Gross weight and measurement | Total gross kg and CBM | Packing list |
| Freight | 'Freight prepaid' or 'freight collect' | Incoterm — prepaid under CFR/CIF, usually collect under FOB |
| Number of originals | e.g. 'THREE (3)' | LC 'full set' requirement |
| Shipped on board date | Date the goods were loaded, by notation or issue date | LC latest shipment date |
| Place and date of issue; signature | Signed by the carrier, master or a named agent (UCP 600 Art. 20(a)(i)) | — |
Types of bill of lading
Most confusion about bills of lading comes from mixing up three different questions: who can collect the goods (straight vs order), who issued the document (master vs house), and how the cargo is released (original vs telex release or sea waybill).
| Type | Negotiable? | When it's used |
|---|---|---|
| Straight (named consignee) | No | Goods go to one named party; common when the buyer has already paid |
| Order ('to order' / 'to order of bank') | Yes, by endorsement | Letters of credit and documentary collections — the bank controls the goods |
| Bearer | Yes, by delivery | Rare; whoever holds it can collect the cargo |
| Master B/L (MBL) | Either | Issued by the shipping line to the forwarder or shipper |
| House B/L (HBL) | Either | Issued by a freight forwarder or NVOCC to the exporter, often for LCL consolidation |
| Received for shipment | Either | Issued when the carrier receives cargo; needs an 'on board' notation for most LCs |
| Shipped on board | Either | Issued after loading — what an LC normally requires |
| Telex release / surrendered B/L | No longer (originals surrendered) | Originals returned at origin; cargo released at destination without paper |
| Switch B/L | Either | A new set replacing the originals, e.g. to change the shipper in merchant trade |
| Sea waybill | No — not a document of title | Trusted buyers, open-account trade, where speed matters |
Other bills of lading you'll hear about
Several names describe where or how a B/L is used, not a separate legal type.
- Line bill of lading: issued by the shipping line itself, as opposed to a house B/L from a forwarder. Some LCs ask for a 'line B/L' to rule out forwarders' documents.
- Inland bill of lading: covers the land leg by truck or rail, for example factory to port, before the ocean B/L takes over.
- VICS bill of lading: a standard US domestic trucking format set by the Voluntary Interindustry Commerce Solutions group and used by large retailers. It's not used for ocean exports.
- Through or combined-transport B/L: one document covering more than one carrier or mode, from place of receipt to place of delivery.
- Charter-party B/L: issued under a vessel charter. It's only acceptable under an LC that allows it (UCP 600 Art. 22).
Bill of lading number format
Each carrier sets its own B/L numbering, but most ocean B/L numbers start with the carrier's prefix, often its four-letter SCAC code, followed by a booking or serial number. That's why you can usually tell the shipping line from the number and track the shipment on its website. A house B/L carries the forwarder's own numbering. Quote the exact B/L number on the shipment advice and in LC presentations, as banks check it against the transport document.
Bill of lading vs sea waybill vs air waybill
A sea waybill and an air waybill are both receipts and evidence of carriage, but neither is a document of title, so the named consignee can collect the goods without presenting an original. That makes them faster, and it means they give the seller or a bank no control over the goods once shipped.
| Bill of lading | Sea waybill | Air waybill (AWB) | |
|---|---|---|---|
| Mode | Sea | Sea | Air |
| Document of title | Yes, if 'to order' | No | No |
| Original needed to collect | Yes (unless telex release) | No | No |
| Issued by | Shipping line, master or agent; NVOCC for house B/L | Shipping line | Airline or IATA cargo agent |
| UCP 600 article | Art. 20 | Art. 21 | Art. 23 |
| Typical payment terms | LC, D/P collection | Advance, open account | LC, advance, open account |
Clean and 'on board': the two words banks look for
A clean bill of lading carries no clause declaring the goods or packaging defective — 'three cartons torn', for example. Under UCP 600 Article 27 a bank accepts only a clean transport document; the word 'clean' does not need to appear, but a clause of that kind makes the B/L unacceptable unless the credit allows it.
Most letters of credit also require a 'shipped on board' bill of lading. If the carrier issues a 'received for shipment' B/L, it needs a dated on-board notation, and that date counts as the shipment date — it must fall on or before the LC's latest shipment date.
Common bill of lading discrepancies (and how to avoid them)
These are the discrepancies that most often delay payment under a letter of credit. Nearly all of them come from shipping instructions that were not checked against the LC and the commercial invoice before the carrier drafted the B/L.
- Late shipment — the on-board date is after the LC's latest shipment date.
- Late presentation — documents presented more than 21 calendar days after shipment, or after the LC expiry (UCP 600 Art. 14(c)).
- Consignee or notify party worded differently from the LC.
- Port of loading or discharge not as stated in the LC.
- Not a full set of originals presented when the LC asks for one.
- Claused (unclean) B/L, or a missing on-board notation.
- Package count, marks or gross weight that disagree with the packing list.
- Goods description that conflicts with the commercial invoice.
- Transhipment shown when the LC prohibits it, or a charter-party B/L the LC does not allow (Art. 22).
How to check a draft bill of lading
Carriers send a draft before issuing the final B/L. Treat it as your last cheap chance to fix an error — amendments after issue cost time and fees, and a reissue may be impossible once originals are released.
- Put the draft next to the LC, the commercial invoice and the packing list.
- Check shipper, consignee and notify party word for word against the LC.
- Check ports, vessel and the freight prepaid / collect wording against the Incoterm.
- Check marks, package count, gross weight and measurement against the packing list.
- Check the goods description does not conflict with the invoice.
- Confirm the number of originals and whether an on-board notation will be added.
How Bilexor helps
Bilexor does not issue bills of lading — the carrier or its agent does. What Bilexor does is keep the details your B/L is built from consistent: consignee, ports, vessel, marks, packages and goods descriptions live on one shipment record, so the commercial invoice and packing list you hand your forwarder agree with each other before the draft B/L is prepared.
Informational only — not legal, banking, or customs advice. Confirm bill of lading requirements with your carrier, bank and buyer before shipment.
Frequently asked questions
Who issues a bill of lading?
The carrier — the shipping line — or the ship's master or an agent signing on the carrier's behalf. A freight forwarder or NVOCC issues its own house bill of lading to the exporter, while the shipping line issues the master bill of lading to the forwarder.
What's the difference between a straight and an order bill of lading?
A straight B/L is non-negotiable and consigned to a named party only. An order B/L is negotiable and transferable by endorsement — the form banks typically expect under a letter of credit.
Is a bill of lading a document of title?
An order or bearer bill of lading is. A straight B/L and a sea waybill are not, and neither is an air waybill.
What is a telex release?
The shipper surrenders the original bills of lading to the carrier at origin, and the carrier instructs its destination office to release the cargo without an original. It's used when originals can't reach the buyer before the vessel arrives.
How many originals does a bill of lading have?
Usually three. They are equivalent — once one is used to collect the goods, the others are void. A letter of credit that asks for a 'full set' means all the originals issued.
Can a bill of lading be corrected after it's issued?
Yes, through the carrier's amendment or reissue process, usually for a fee and only if all originals are returned. Checking the draft B/L carefully is far cheaper.
Is a bill of lading the same as an invoice?
No. The commercial invoice is the seller's bill for the goods. The bill of lading is the carrier's receipt, contract of carriage and, if issued to order, document of title. They must agree on the goods, packages and parties.
Who fills out the bill of lading?
The exporter or forwarder supplies shipping instructions, and the carrier prepares the B/L from them. The exporter checks the draft before the final is issued.
What is a line bill of lading?
A B/L issued by the shipping line itself rather than a house B/L from a forwarder or NVOCC.
What does a bill of lading number look like?
Usually the carrier's prefix, often its SCAC code, followed by a serial number. The format varies by carrier.
Sources
- ICC Uniform Customs and Practice for Documentary Credits (UCP 600)
- ICC International Standard Banking Practice (ISBP 821)
- Hague-Visby Rules (Brussels Convention on bills of lading, as amended)
Informational only — not legal, banking, tax, or customs advice. Always verify document and LC requirements with your bank, CHA / customs broker, and buyer before presentation.