Test your knowledge – Bill of Lading

As you maybe aware, I write this blog primarily :

  • to explain shipping and freight to the newcomers to the industry in an easy way and make it less scary
  • to share my knowledge and experiences in the industry
  • to provide an online reference guide for the people in the industry
  • to share thoughts, views and opinions with others already in the industry

In order for me to gauge what topics I must write about, I pose questions from time to time on the blog and ask the readers for answers..

If you haven’t done it yet, I would recommend you have a look at the previous questions to test your knowledge and you can also view the test answers..

Since the previous tests were a while ago, I decided to throw out a question about a bill of lading (posed by a reader) as a test..

In my previous article about What is a Bill of Lading, I mentioned that a Bill of Lading has 3 basic purposes or roles..

  1. Evidence of Contract of Carriage
  2. Receipt of Goods and
  3. Document of Title to the goods

Below question is in the context of the 3rd role of the bill of lading..

image for what do you think

Q: In the case of a Straight Bill of Lading, does title to goods pass from Shipper to Consignee upon shipment going on board even if the Shipper retains the OBL with him for payment..

 

Please share your views and opinions on this question by commenting below..

 

Be part of the discussion and share your views about the article here..

15 comments on “Test your knowledge – Bill of Lading

  1. nils says:

    ownership always changes as agreed by both parties.
    if i sell payment 30 days after shipment in combination with CIP i do exactly that. whoever holds the B/L at the moment does not matter

  2. A Straight Bill of Lading is consigned to a name consignee where Cash in advance or open account method of payment are used. The named consignee is the lawful owner of the goods in question and the shipping line has to release the goods to the consignee mention on the bill of lading against the originals. In some cases, the shipping line asks for all the originals. The shipper has control of the goods in practice and has the right to sell the goods to a third party as long as he has the originals in hand.
    Please correct me if I am wrong. Thank you.

  3. Theo says:

    A straight B/L is used where the goods have been paid for or do not require payment, such as donations or gifts.
    Under this B/L, the shipping company will deliver the shipment to its consignee on presentation of an identification.
    Hence, title of property shift to consignee even if shipper retains the OBL

  4. Roch says:

    Yes, The title will transfer straight away.

  5. NAFI SEREZ says:

    Hello,

    In practice Straight Bill of Lading is a document of title. However if shipment destinated to USA for instance, Straight B/L is deemed as Seawaybill according to the applicable law (US Pomerene act). Shipping lines usually refer this act on their terms/conditions with surrender clauses; they aim that their customers be aware about this act and to protect their interests.
    I can easily say that under some circumstances title of goods does pass to consignee even if the shipper retains oBL in his hands. For consignee, It is enough to proof his identity to release his cargo at POD.

    Thanks and greetings from Turkiye
    Nafi

  6. Cyprian says:

    if Cnee presents 1/3 of OBL to carrier, and BL is traight than in my opinion carrier should not even ask for anything more than confirmation of paiment on freight or local charges. Carrier is not involved in paiments for cargo inside (they are interested only in collection of BL and payment for freight.

    How about if Cnee presents 1/3 of order bl?
    Anybody knows?
    And for exhample what happens when order bl is lost?

    1. essam Hamed says:

      Previously the rule was the first one who presents one of the originals can receive the container without any obligation from the shipping line towards any other people who have another OBL. But now most of shipping lines nowadays ask for full set of OBL to avoid problems

  7. jrome dsouza says:

    Title of goods does not pass to the consignee.till he possesses the full set of O B/L which evidence that shipper has handed over the title, unless certain cases the issuing line interfere to stop the transfer of title on the advise of the shipper due to non payment. for his goods.

  8. Allin says:

    Straight bill of lading is not a document of title, the possession of this kind of original b/l does not constitute the title to goods. Order B/L in full set is a document of title.

  9. Essam Hamed says:

    I agree with Delan and adding that shipper can change the name of the consignee as long as he has the full OMBL in his hand, so he can request an amendment from the shipping line but he must return all originals to the shipping line first before amending, and sometimes shipping line ask you to return all originals and non negotiable copies

  10. Aaditya says:

    Nope. Unless OBL is handed over to consignee.
    – Aaditya

  11. James says:

    The Bill is a document of title so if the consignee does not have the original bill he does not have title to the goods

  12. delan premawardena says:

    In the case of a straight BL, the title of goods would only pass to the consignee, no sooner his in possestion of the fullset of BL’s

    1. MAHESH says:

      BL is a main document when the shipper is shipped thier goods to one place to another place i.e one country to another country.This is issued by Shipping line, once shipper stuffed in to the cargo and handed over to line.
      BL is issued on the basis of Mate’s Receipt at port.And BL Contains all details like consignee name,consignor name ,No of package,Description of Goods,Gross Wt ,Net Wt ,POL and POD.

    2. Martin Baez says:

      Actually… if the Consignee has only one of the three Bills of Lading, he can claim for the ownership of the cargo.

      Any shipping company will release a shipment against one of the B/L, the proof of identity of the consignee and payment of all due charges and freight.

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