What is a Bill of Lading?

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A Bill of Lading commonly referred to as BL is a transport document covering port to port shipment.

A Bill of lading is also a document of title.

As per UCP 600 article 20,

  • A bill of lading may be “however named”. This means that a bill of lading need not be necessarily named “bill of lading”.
  • A bill of lading must indicate the name of the carrier.

Who can sign a Bill of Lading?

A Bill of Lading can be signed by any one of the following

  1. The carrier
  2. The master
  3. An agent of the carrier OR an agent of the master

As per UCP 600 article 20,

  • The signature on the bill of lading must be identified, which means if the carrier has signed the bill of lading, the signature must be identified as that of the carrier. If the master has signed the bill of lading, the signature must be identified as that of the master. Similarly, if an agent has signed the bill of lading, the signature must be identified as that of the agent.
  • If an agent has signed a bill of lading, the signature must indicate whether the agent has signed for or on behalf of the carrier or for or on behalf of the master

What is a “Full set” Bill of lading?

“Full set” bill of lading means the complete set of original bills of lading issued.                         

If 3 original BLs are issued, all the 3 originals together will constitute a full set.

If 5 original BLs are issued, all the 5 originals together will constitute a full set.

If only one original BL is issued, it is called a sole original bill of lading.

As per UCP 600 article 20,

  • A bill of lading must be the sole original or be the full set (if issued in more than one originals).

How to determine shipment date in bill of lading

The rule for determining the shipment date in a bill of lading is as follows:

  • If there is no on-board notation in the bill of lading, the date of issuance of the bill of lading will be deemed to be the date of shipment.
  • If there is an on-board notation in the bill of lading, the date stated in the on-board notation will be considered as the date of shipment.

In the second case above, the date stated in the on-board notation will be the date of shipment irrespective of whether this date is before or after the date of issuance of the bill of lading.

Let’s understand this with some examples.

Example 1

Date of issuance of a bill of lading: 20-Jun-2020

Date stated in the on-board notation: 18-Jun-2020 In this case, the date of shipment will be considered as 18-Jun-2020

Example 2

Date of issuance of a bill of lading: 20-Jun-2020

Date stated in the on-board notation: 22-Jun-2020

In this case, the date of shipment will be considered as 22-Jun-2020

What is an on-board notation in bill of lading?

An on board notation is a notation added by the bill of lading issuer confirming that the goods have been loaded on board the vessel (ship).

As per UCP 600, a bill of lading must indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit. This can be indicated either by

  • Pre-printed wording, or
  • An on board notation

If a BL is pre-printed “shipped on board”, an on board notation is not required. The date of issuance of the BL will be deemed to be the date of shipment.

If a BL is pre-printed “received for shipment”, an on board notation is required. In this case, the date stated in the on board notation will be deemed to be the date of shipment.

If the bill of lading contains an indication of “intended vessel” or similar details regarding the name of the vessel, the below is required:

An on board notation indication date of shipment + name of the vessel

If the bill of lading contains an indication of “intended” or similar details regarding the port of loading, the below is required:

An on board notation indication date of shipment + name of the vessel  + port of loading

For further details on “on board notations”, you may refer the below paper published by ICC in 2010

Recommendations of the Banking Commission in respect of the requirements for an On board Notation

What is “short form” or “blank back” bill of lading?

A bill of lading must contain terms or conditions of carriage. Usually these terms and conditions are printed on the back side of the BL. However in some cases, instead of printing the same on the back side, the BL makes reference to another source or link where the terms and conditions can be found. Such BL is called a “short form” or “blank back” bill of lading.

What is transhipment?

In case of a BL, transhipment means unloading of goods from one vessel (ship) and reloading to another vessel during the carriage of goods from the port of loading to the port of discharge stated in the letter of credit.

Suggested Readings

9 thoughts on “What is a Bill of Lading?”

  1. Dear Author,

    I have a doubt regarding agent signing the BL

    “If an agent has signed a bill of lading, the signature must indicate whether the agent has signed for or on behalf of the carrier or for or on behalf of the master”

    In the above sentence it is clear that signature of the agent signed as agent for the carrier or agent for the master holds good.

    Now, my question is, is it required to mention the name of the agent? I have seen many images of Bill of Lading and no where I found naming of the agent in BL. So I’m a bit confused regarding E5c of ISBP.

    E5c of ISBP says the “agent is to be named”.

    can you please explain this article.

    Thanks in Advance.

    Reply

    • Article E5 (c) of ISBP 745 states that “the agent is to be named”

      If you look closely, you will see that it is also mentioned in article 20 a (i) of UCP 600.

      Here it goes –

      a. A bill of lading, however named, must appear to:

      i. indicate the name of the carrier and be signed by:
      – the carrier or a named agent for or on behalf of the carrier, or
      – the master or a named agent for or on behalf of the master.

      Look at the phrase “named agent”. So the requirement that an agent is to be named is in the rules itself.

      Hope this clarifies.

      Please make a note of this thumb rule: “Except the master, everyone is to be named”

      Reply

    • Dear Author,
      I have concern relating to transhipment in article 20c (ii)
      1) If goods are shipped in container, trailer, or Lash barge and Bill og lading indicate ”transhipment will or may take place”.
      –> No discrepancy
      2) If goods are shipped in container, trailer, or Lash barge and Bill og lading indicate ”transhipped via vessel A at Singapore”
      –> in this case, docs are discrepant or not

      Thanks in advance

      Reply

      • Hi
        For your doubt as per point 2), you will get the answer is article 20 c(i)

        A bill of lading may indicate that the goods will or may be transhipped provided that the entire carriage is covered by one and the same bill of lading.

        So even if the BL indicates “transhipped via vessel A at Singapore”, docs will not be discrepant as long as the whole journey is covered by a singe BL.

        Reply

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