Sea Freight Documents & B/L
Bill of Lading, Letter of Credit, customs documents, pre-carriage paperwork – the complete guide to all sea freight documents.
Document Categories
In sea freight, there are five main categories of documents. Each has a specific function – from transfer of ownership to customs clearance.
Transport Documents
Evidence the conclusion of the sea freight contract and govern the transfer of ownership of goods.
Commercial Documents
Describe the traded goods, their value and packaging – basis for customs and insurance.
Payment Documents
Secure payment in international trade – especially with new trading partners or high-risk markets.
Customs Documents
Mandatory documents for export and import customs clearance in the respective countries and trading regions.
Special Documents
Goods-specific or country-specific special documents – required depending on cargo type and trade agreements.
Bill of Lading (B/L) – The Most Important Document
The Bill of Lading (B/L, Konnossement) is the central document in sea transport. It is simultaneously a freight contract, receipt and – in its negotiable form – a tradable security.
B/L Types Compared
Contents of a Bill of Lading
| Field | Meaning |
|---|---|
| Shipper | The shipper / sender of the goods |
| Consignee | Consignee or "To Order" (for negotiable B/L) |
| Notify Party | Party to be notified upon vessel arrival (usually consignee or forwarder) |
| Port of Loading (POL) | Departure port / loading port |
| Port of Discharge (POD) | Destination port / discharge port |
| Vessel & Voyage | Ship name and voyage number of the carrier |
| Description of Goods | Goods description, HS code, weight, volume, packages |
| Container Number | ISO container number (e.g. MSCU1234567) and seal number |
| Freight Terms | Prepaid (shipper pays) or Collect (consignee pays) |
| Place & Date of Issue | Place and date of B/L issuance |
| Number of Originals | Number of originals issued (usually 3/3 or 1/1) |
| On Board Notation | Confirmation that goods are on board the vessel (important for L/Cs) |
House B/L vs. Master B/L
In groupage (LCL) shipments there are two levels: the freight forwarder issues a House B/L (H-B/L) for each shipper. The carrier issues a Master B/L (M-B/L) to the freight forwarder, documenting the entire container. The shipper usually only knows their H-B/L.
Letter of Credit (L/C) – The Documentary Credit
The Letter of Credit is the safest form of payment in international trade. The buyer's bank guarantees payment once the seller presents the documents required by the L/C – always including an original B/L.
How a Letter of Credit Works
Purchase Contract & L/C Request
Buyer and seller agree in the purchase contract to pay by letter of credit. The buyer instructs his bank to open an L/C and specifies exactly which documents the seller must present.
L/C Opening & Advising
The issuing bank (buyer's bank) issues the letter of credit and transmits it via SWIFT to the advising bank (seller's bank). The advising bank checks the L/C and informs the seller.
Shipment & Document Presentation
The seller ships the goods and compiles the documents required by the L/C (original B/L, commercial invoice, packing list, certificate of origin etc.) and submits them to his bank within the L/C deadline.
Document Examination & Payment
The bank examines the submitted documents for L/C compliance. Upon compliant presentation, the bank pays the seller and sends the documents to the issuing bank. The buyer receives the original B/L against payment and can use it to release the goods from the carrier.
When is a Letter of Credit Advisable?
Customs Documents – Worldwide
Depending on the export country, import country and type of goods, different customs documents are required. The most important mandatory documents for the major trading regions.
| Region / Country | Required Documents |
|---|---|
| EU – Export | EX1 / DAU (ATLAS/AES)EUR.1 / REXT1 (Versandverfahren) |
| EU – Import | ENS (Entry Summary Declaration)Importzollanmeldung IM4T1 (falls nicht direkt verzollt) |
| USA – Import | AMS (Automated Manifest System)ISF / 10+2 (72h vor Verschiffung)CBP Entry (nach Ankunft) |
| USA – Export | EEI – Electronic Export Information (AES)SED (Shipper's Export Declaration) |
| China – Import | China Customs DeclarationCIQ Inspection CertificateGACC Registration (Lebensmittel) |
| Switzerland – Import | eVV (elektronische Verzollungsverfügung)ZAVV (ATLAS-CH)Präferenznachweis Form A / EUR.1 |
| Worldwide | VGM (SOLAS – alle Exportländer)Commercial InvoicePacking List |
VGM – Verified Gross Mass
Since July 2016 (SOLAS amendment), providing the Verified Gross Mass (VGM) for every loaded container before loading is mandatory. The shipper must determine the weight using an approved weighing facility and transmit it to the carrier. Missing VGM = loading refused.
T1 – The EU Transit Document
The T1 (transit procedure) is an EU customs document for goods that have not yet been cleared in the EU customs territory. It is required when imported goods move from a seaport (e.g. Hamburg, Rotterdam) inland or to another EU country without having been cleared through customs. The T1 secures the customs risk.
Pre-Carriage & On-Carriage Documents
Sea freight shipments require additional transport documents besides the B/L for pre- and on-carriage by truck, rail or inland waterway.
CMR – Road Consignment Note
International accompanying document for road transport (Convention on the Contract for the International Carriage of Goods by Road). Applies to pre-carriage to the port and on-carriage from the port to the consignee in all CMR signatory states (Europe, Asia, North Africa).
CIM – Rail Consignment Note
Consignment note for international rail transport. Relevant for rail pre- and on-carriage as well as for rail-sea transport (e.g. new routes along the Silk Road).
Terminal Receipt / EIR
The Equipment Interchange Receipt (EIR) is the terminal's receipt for accepting a container. It documents the condition of the container at handover and is important for damage claims. The truck driver receives the EIR at gate-in at the terminal.
Delivery Order (D/O)
The Delivery Order is the carrier's instruction to the terminal to release the container to a specific consignee. It is issued after the consignee has surrendered the original B/L (or telex release proof) at the carrier agent and paid all outstanding charges.
Documents Checklist
Which documents do you need? Select Export or Import.