I received below questions relating to Received for Shipment notation from a reader.. Please be aware that although it is used colloquially worldwide, technically there is no bill of lading called “Received for Shipment” B/L..
There is only a notation on a bill of lading known as Received for Shipment which means that the carrier has “received” the cargo at the port facility for loading onto a specific vessel or voyage.. This DOES NOT mean that the cargo has been shipped on board..
Q1) Will a bank accept a bill of lading with a Received for Shipment notation or does a bill of lading have to be reissued with a Shipped on Board notation..
A1) The purpose of notations like “Received for shipment”, “Shipped on Board” and “Clean on Board” on a bill of lading is to satisfy either the buyer or a bank that the cargo covered in the bill of lading has indeed been received or shipped..
Generally if a bank is involved, there might also be a Letter of Credit involved and the shipper of the cargo and the nominating bank will have to follow the instructions on the Letter of Credit and see what notation is required on the bill of lading..