B.1.3 Negotiable Bills of Lading types
a) The “Straight” Bill of Lading
A negotiable document made out to a named consignee (= the complete consignee name
and address is shown in the “Consignee” field) with the absence of the term "to order". This consignee named in the Bill of Lading is the owner of the goods.
NOTE:
The consignee can still sell the cargo while in transit to a third party by endorsing the Bill of Lading to this third party and the third party in turn endorses the “Bill of Lading” as well. THEN, the third party becomes the legal owner of the cargo.
Definition Endorsement:
A signature on the back side (“terms and conditions page”) of the B/L deems to legally transfer a negotiable instrument. An endorsement may be made in favor of another individual or legal entity. An endorsement in blank is the writing of only the endorser’s name without designating another person to whom the endorsement is made.
b) The “Order” Bill of Lading
A negotiable document which can more easily be bought, sold or traded while goods are in transit, or used for credit transactions. There are 2 types of "to order" bills:
It may be drawn to the order of a named consignee, enabling him to endorse the “Bill of Lading” over to a third party.
It can be drawn to the order of the shipper and endorsed by him either "in blank" or to a named consignee. The purpose of this type of Bill of Lading is to protect the shipper against the buyer’s obtaining the merchandise before he has paid or accepted the relative bank draft.
B.2 Sea Waybill
A Sea Waybill (also commonly known as „Express Bill of Lading“ or „Express Cargo Bill“) is
a receipt for a shipment. The carrier (“SCHENKERocean Ltd.”) certifies it has received goods for transportation to a specific destination.