Bill of Lading (B/L)

Types of Bills of Lading

In ocean freight, several types of bills of lading exist, each serving different purposes depending on the shipping arrangement and the parties involved.

• Ocean Bill of Lading (OBL): Issued directly by the ocean carrier (shipping line) to the shipper. This is the primary transport document for a containerized ocean shipment and is used for container tracking purposes. The OBL number is typically the reference used to track containers through carrier systems and port terminals.
• Master Bill of Lading (MBL): Issued by the ocean carrier to a freight forwarder or NVOCC (Non-Vessel Operating Common Carrier). The MBL covers the entire container and is the carrier's contract with the forwarder, not directly with the end shipper. This is often the document used for container tracking via carrier websites and APIs.
• House Bill of Lading (HBL): Issued by a freight forwarder or NVOCC to the actual shipper. When a forwarder consolidates cargo from multiple shippers into a single container, each shipper receives an HBL, while the forwarder holds the MBL with the carrier. The HBL is not directly trackable through carrier systems.
• Straight Bill of Lading: A non-negotiable bill that consigns goods directly to a named party. The goods can only be released to the specified consignee, and the document cannot be transferred by endorsement.
• Negotiable (Order) Bill of Lading: Made out "to order" or "to order of" a named party. This type functions as a document of title and can be transferred through endorsement, which is important in letter-of-credit transactions and commodity trading.

Three Functions of a Bill of Lading

The bill of lading is one of the few commercial documents that serves multiple legal functions simultaneously. Understanding these functions is essential for anyone managing international freight.

• Receipt of Goods: The B/L confirms that the carrier has received the described cargo in the stated condition and quantity. A "clean" bill of lading indicates no damage or discrepancies were noted at the time of loading. A "claused" or "dirty" bill notes exceptions such as damaged packaging or quantity shortages.
• Contract of Carriage: The B/L contains or evidences the terms under which the carrier agrees to transport the goods from the port of loading to the port of discharge. These terms include the carrier's liability, freight charges, and the conditions of transit.
• Document of Title: For negotiable bills, the B/L represents ownership of the goods. Whoever holds the original bill (or is named on a straight bill) has the right to claim the goods at the port of destination. This function is critical for trade finance, where banks may hold the original B/L as security until payment is made.

Bill of Lading and Container Tracking

For importers tracking inbound ocean shipments, the bill of lading number is one of the primary reference keys. Ocean carriers and terminal operators use the B/L number (specifically the MBL number) to associate container movements, vessel assignments, and port events.

When you enter a B/L number into a carrier's tracking system or a carrier tracking API, you receive updates on all containers associated with that shipment -- including current location, vessel details, estimated arrival dates, and last free day information.

InboundShipments captures the bill of lading number on every shipment record and uses it to power automated container tracking. Changes in vessel schedule, port of discharge, or estimated time of arrival flow directly into the shipment record, giving logistics teams up-to-date visibility without manual lookups.

Key Information on a Bill of Lading

• Shipper (exporter) name and address
• Consignee (importer) name and address
• Notify party details
• Vessel name and voyage number
• Port of loading and port of discharge
• Container number(s) and seal number(s)
• Description of goods, gross weight, and measurement
• Number of original bills issued
• Freight terms (prepaid or collect)
• Date of issue and place of issue