GlossaryEN1 min readUpdated: Jun 22, 2026
Bill of lading
Three functions in a single document make the bill of lading indispensable in ocean freight: it serves as the carrier's receipt for goods taken on board, as evidence of the contract of carriage, and – when issued to order – as a negotiable document of title.
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Source: https://www.iccwbo.org
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Logistics Concept
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Definition & Explanation
Three functions in a single document make the bill of lading indispensable in ocean freight: it serves as the carrier's receipt for goods taken on board, as evidence of the contract of carriage, and – when issued to order – as a negotiable document of title. The holder of the original is entitled to take delivery at the port of destination, and ownership can change hands mid-voyage simply by endorsing the paper. This negotiability makes the bill of lading the cornerstone of documentary credit transactions: banks require a correctly completed original before releasing payment to the exporter. The sea waybill is a widely used alternative, but it names a fixed consignee, cannot be traded, and therefore does not qualify as a document of title.
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