Ocean Bill of Lading, Seaway Bill of Lading & Memo Bill of Lading - ever got confused with these three and what each of them does..??
Ocean Bill of Lading : is a bill of lading issued by the shipping line to their customer after the payment of all charges and submission of all customs/port documents relevant to that country.. An Ocean Bill of Lading is a Negotiable document which serves also as an Evidence of Contract of Carriage, Receipt of Goods and Document of Title.. Usually issued as 3 originals (signed and stamped and negotiable) + 6 non-negotiable copies..
Using an Ocean Bill of Lading, shipper has the option to consign the shipment to either
- To a direct customer (in this case the bill of lading becomes a Straight Bill of Lading and is no longer Negotiable although it still retains the other two characteristics of a Receipt of Goods and Evidence of Contract of Carriage)
- To Order of a customer
- To Order of a Bank
- To Order of Shipper (To Order)
This bill of lading when consigned to either of the last three mentioned parties, allows the goods to be resold to another party in case the original buyer decides to resell the cargo..
If it is a Straight Bill of Lading, cargo can be delivered to the nominated consignee ONLY after the bill of lading is presented to the discharge port agents..
Seaway Bill of Lading : is a bill of lading issued by the shipping line to their customer after the payment of all charges and submission of all customs/port documents relevant to that country.. An Seaway Bill of Lading is NOT a Negotiable document as there is NO ORIGINAL ISSUED.. It is also NOT a Document of Title.. A Seaway Bill of Lading serves as an Evidence of Contract of Carriage and Receipt of Goods.. This document is more relevant for non-commercial transactions, inter company sale or where there is no involvement of any documentary credits..
A Seaway Bill of Lading CANNOT BE CONSIGNED TO ORDER of someone else.. It has to be consigned to a direct customer only.. Delivery of cargo covered under a Seaway Bill of Lading can be made ONLY to the consignee on the bill of lading or his authorised representative.. A Consignee thus properly identified, is not required to present any transport document at the port of discharge..
Memo Bill of Lading : Short for Memorandum bill of lading, it is basically a non-negotiable, non-transferable, unfreighted bill of lading that is only used as a receipt of goods and DOES NOT classify as a Document of Title..