In freight transportation, the Bill of Lading (B/L) and other logistics documents are essential. This article compares the B/L with other key documents, highlighting their differences in function, issuance, and role in the transportation chain. Keep reading to clear up any doubts about the B/L once and for all.
What is the Bill of Lading?
The Bill of Lading, also known as the B/L, is a document used in international trade. Specifically, it is required for maritime transport when a shipping contract is signed for goods on a regular line vessel. The Bill of Lading stands out among other documents used in the transportation chain due to its importance.
Broadly, the B/L is a document issued by the carrier (shipping lines, shipowners, or shipping agents), the ship’s captain, or an agent, at the request of exporters or their customs agents. It serves as a receipt for the shipment of goods and certifies their condition, among other functions.
The B/L is also a negotiable instrument, similar to a bearer check, allowing the holder to claim the goods. Therefore, it can be issued to the bearer, be nominative, or transferable, which facilitates the transfer of ownership of the goods.
The following details typically appear in this document:
- Name
- Voyage number of the vessel
- Port of loading and unloading numbers
- Name of the sender and consignee
- Detailed description of the goods, including the number of items, weight, number of packages, and their apparent condition.
- Freight amount, surcharges, currency used, and whether the freight has been paid at origin or will be at destination.
Who Issues a Bill of Lading?
The document is issued by carriers (shipping lines, shipowners, or shipping agents) or the ship’s captain or a designated agent, at the request of the exporters (or their customs agents). Three originals and several non-negotiable copies are typically issued. To retrieve the goods, one of the originals must be presented.
The applicable legislation for this document stems from the 1924 Brussels Convention, modified by the 1968 Hague-Visby Rules and the 1978 Hamburg Rules, drafted by the United Nations Commission on International Trade Law (UNCITRAL).
What Other Documents are Required for Freight Transport?
As you can see, the B/L plays a crucial role in freight transport. However, it is not the only required document. Here’s a breakdown of the other essential documentation:
Waybill
The waybill serves as proof of the transport contract between the sender, carrier, and recipient. It is essential in all international transport operations and must include product details, party information, and logistical conditions.
Delivery Note
Issued by the recipient, who signs the document upon receiving the goods, it confirms delivery. This document validates the delivery and serves as proof that the product has been delivered in the agreed-upon conditions.
Freight Insurance Certificate
This document provides proof of insurance coverage for the transported goods, protecting both the carrier and the customer in the event of damage or loss during transit.
Commercial Invoice
The commercial invoice details the value of the goods transported and is especially necessary for international transactions. It must include precise information about the transaction to facilitate customs and financial processes.
Customs Documentation
This includes all documents needed for importing and exporting goods, such as the Single Administrative Document (SAD). This documentation is essential to meet customs regulations and avoid delays or fines.
Specific Documentation Depending on the Type of Goods
- Dangerous Goods: For transporting dangerous goods, the ADR (European Agreement concerning the International Carriage of Dangerous Goods by Road) is required, which regulates the packaging, labeling, and safe handling of these goods.
- Perishable Goods: For perishable goods, a phytosanitary certificate may be necessary to ensure that products meet sanitary and food safety standards.
Bill of Lading vs Other Documents: How Do They Differ?
The distinction between the B/L and some necessary documents for freight transport is clear. However, some other documents may cause confusion. Here is a comparison between the Bill of Lading and those that may have a similar use:
Bill of Lading vs Waybill
The Bill of Lading and the waybill are essential logistics documents but differ significantly in terms of functions and issuance. While the B/L is issued by the maritime carrier, the waybill is used in various transport modes (road, rail, or air) and is generally issued by the land carrier or freight agent.
The main difference is that the B/L is a negotiable instrument, meaning it allows for the transfer of ownership of the goods, making it a transferable document. In contrast, the waybill simply serves as proof of the transport contract, confirming the shipping details between the sender, carrier, and recipient but does not grant ownership rights. In summary, the B/L is primarily used in maritime transport, while the waybill is more common in land and air transport.
Bill of Lading vs Delivery Note
The delivery note and the Bill of Lading serve different purposes. The B/L is issued at the start of transport, documenting the shipment and establishing ownership of the goods during the journey. In contrast, the delivery note is issued by the final recipient, who signs it upon receiving the goods to confirm they arrived in the agreed-upon conditions.
The B/L acts as a receipt and contract document in international trade, while the delivery note simply confirms the successful delivery of the goods without impacting ownership or transport conditions.
Bill of Lading vs SAD
The Single Administrative Document (SAD) is essential for customs to document the import and export of goods. Unlike the B/L, which covers transport and ownership, the SAD is purely a customs document issued by the relevant authority, required for clearing goods at borders.
The B/L is issued by the maritime carrier and is negotiable, while the SAD is regulatory and non-transferable. Both documents are essential but at different stages: the B/L during loading and transit, and the SAD at the point of entry or exit from the country.
Bill of Lading vs Dangerous Goods Document
The Dangerous Goods Document ensures that hazardous goods comply with safety regulations. Unlike the B/L, which addresses ownership and the transport contract, the dangerous goods document, regulated by agreements such as ADR, focuses on safety.
Issued by the carrier, the B/L serves as proof of shipment, while the dangerous goods document is issued by the shipper and ensures proper handling, packaging, and labeling of hazardous goods during transit.
Bill of Lading vs Perishable Goods Document
For perishable goods, specific documents, like the phytosanitary certificate, verify that the goods comply with health and food safety regulations. This document is essential for the safe transport of food and is mainly issued by control authorities or health services.
While the B/L establishes ownership and allows the transfer of goods in maritime transport, the phytosanitary certificate ensures that the goods are safe for consumption and is not negotiable. Both documents are essential, but the B/L covers transport and ownership, while the certificate ensures the safety of the contents.
If you still have questions about the B/L or other essential freight transport documents, Partida Logistics is here to help. Contact us to receive the advice you need.
