Shipping documents
How to read a bill of lading, field by field
The bill of lading is the single most important document in a sea shipment: it proves the carrier received the goods, it carries the terms of carriage, and in its negotiable form it controls who may collect the cargo. Here is what each field means and which errors cost money.
What a bill of lading actually does
- A receipt. It states that the carrier received the goods described, in apparent good order, on a given date.
- Evidence of the contract of carriage. The terms on the back, or referred to on the front, govern the carrier's liability.
- A document of title — but only when it is negotiable. Whoever holds an original negotiable bill can claim the cargo, which is why banks take it as security under a letter of credit.
That third function is why originals are couriered, endorsed and guarded. A sea waybill does the first two jobs but not the third.
The fields, one by one
| Field | What it means | What to check |
|---|---|---|
| Shipper | The exporter sending the goods | Must match the invoice and, under a letter of credit, the beneficiary named in the credit |
| Consignee | Who may collect the cargo | “To order” makes the bill negotiable; a named company makes it a straight bill |
| Notify party | Who the carrier tells when the ship arrives | Usually the buyer or its broker. Carries no title — a notify party cannot collect the goods |
| Carrier | The line that undertakes the carriage | The bill must show who the carrier is and be signed as carrier, master or their named agent |
| Vessel and voyage | The ship and its voyage number | Must be a named vessel for an on-board bill |
| Port of loading / discharge | Where the cargo is loaded and unloaded | Must match the ports in the credit or contract exactly |
| Place of receipt / delivery | Inland points, when the carrier takes the cargo before the port or delivers beyond it | If these differ from the ports, a separate dated on-board notation is needed |
| Container and seal numbers | The box carrying the cargo and its seal | Must match the packing list; a broken or different seal at destination is a claim |
| Marks and numbers | Markings on the cartons | Must not conflict with the invoice and packing list |
| Description of goods | What is inside | May be in general terms, but must not conflict with the invoice description |
| Gross weight and measurement | Weight and cubic metres | Must agree with the packing list and the VGM filed with the carrier |
| Freight prepaid / collect | Who pays the ocean freight | Prepaid on CIF and CFR sales, collect on FOB. Must match the Incoterm |
| Number of originals | How many originals were issued, usually three | A credit asking for a full set means all of them |
| Place and date of issue | Where and when the bill was issued | Not the same as the shipment date unless the bill is pre-printed “shipped on board” |
| On-board notation | A dated statement that the goods are loaded on the ship | This date is the shipment date, and it starts the presentation period |
Field names vary between carriers, but every sea bill of lading carries this information somewhere on its face.
Negotiable, straight, or a waybill?
| Type | Consignee shows | Title | Used when |
|---|---|---|---|
| Negotiable (order) B/L | “To order” or “to order of shipper / of the bank” | Yes — endorsed and delivered like a cheque | Letters of credit, or when the goods may be resold in transit |
| Straight B/L | A named consignee | No — only that party can collect | Sales to a trusted buyer already paid for |
| Sea waybill | A named consignee | No, and no originals needed | Group companies, short voyages, open account trade |
An order bill must be endorsed on the back by the shipper before the goods can be released to anyone else.
A negotiable bill is slow: the originals must physically reach the buyer before the cargo can be collected, and on a short voyage the ship often arrives first. That is why telex release or an express release exists — the shipper surrenders the originals at origin and the carrier releases the cargo at destination without them. Never agree to a telex release before you have been paid.
The errors that cost money
- No on-board notation, or the wrong date. The most common reason a bank refuses documents under a letter of credit.
- Ports that do not match the credit. “Any European port” in the credit and “Hamburg” on the bill is fine; the reverse is not.
- Missing endorsement on an order bill, so the cargo cannot legally be released.
- A description that conflicts with the invoice — not merely different, but contradictory.
- Only two of three originals presented when the credit asks for a full set.
- A clause on the face declaring damaged goods or packing — a “claused” or “dirty” bill, which banks will not accept where a clean bill is required.
Before you present documents, check them against the credit with the ISBP 821 document examination guide and the UCP 600 workbench.
Practical habits
- Ask the carrier for a draft bill and check it before it is issued — amending an issued original is slow and chargeable.
- Keep the bill, the invoice, the packing list and the insurance certificate consistent on every shared figure.
- Photograph the seal at stuffing and record its number; it is your evidence in a shortage claim.
- Track the equipment back to its operator with the shipping line directory when a booking has been slot-shared between carriers.
Frequently asked questions
What is a bill of lading?
A document issued by the carrier that acts as a receipt for the goods, as evidence of the contract of carriage, and — when it is negotiable — as a document of title that controls who may collect the cargo.
What is the difference between a straight and an order bill of lading?
A straight bill names the consignee and only that party can collect the goods; it is not negotiable. An order bill is consigned “to order”, can be endorsed and transferred, and whoever holds an original can claim the cargo.
What is a telex release?
The shipper surrenders the original bills to the carrier at origin, and the carrier instructs its destination office to release the cargo without originals. It is faster than couriering originals, but the shipper loses control of the goods, so it should only be used after payment.
Why does the on-board date matter?
It is the shipment date. Under UCP 600 the transport document must normally be presented within 21 calendar days after it, and never after the credit expires, so a wrong or missing on-board notation is a common cause of a refused presentation.
What is a clean bill of lading?
One that carries no clause declaring the goods or their packaging to be defective. The word “clean” does not have to appear; what matters is the absence of such a clause.
What is a sea waybill?
A non-negotiable transport document. It names the consignee, needs no originals to release the cargo, and is not a document of title, so it is faster but gives no security against non-payment.
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About this guide
This is independent reference information for exporters, importers and freight buyers, published by Mada Trade Co. in Alexandria. Figures are typical industry values for planning; confirm the numbers that matter with your carrier, forwarder or customs broker before you commit to a booking or a price.
Last reviewed: September 2026.