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Master Bill of Lading vs House Bill of Lading: Everything you need to know

In terms of export logistics process, both the Master Bill of Lading and the House Bill of Lading are used. Learn about the key differences between the two types of bills.

A Bill of Lading is an important export document that works as proof of shipment. It states what products are being shipped, where the shipment is from (origin country) and what is the destination of the shipment (destination country). In terms of export logistics process, both the Master Bill of Lading and the House Bill of Lading are used.

What is a Master Bill of Lading?

A Master Bill of Lading is issued by the owner or operator of a ship (carrier). It consists of the transport contract between the shipper (owner of goods in transit) and the carrier (operator of a mode of such transit). The cargo shipper obtains a Master Bill of Lading if they operate directly with a freight forwarder or a mainline carrier. Shipping businesses and carriers prepare a Master Bill of Lading as a transfer receipt with information on the terms necessary for freight transportation and details of the consignor or shipper, consignee and the person in possession of the goods. It is an important document for ocean freight as it is printed and signed by the carrier. After the carrier acknowledges that it has received the cargo, the Master Bill of Lading is delivered to the organisation (shipper) that made the booking.

Purpose of a Master Bill of Lading

A Master Bill of Lading performs many key functions in terms of cargo ownership and purchase agreements. When you engage in an international trade transaction and shipment of goods, it might be difficult to determine when the ownership of the products shifts from the exporter to the importer or other parties involved in the process. A Master Bill of Lading answers these questions and helps define these ownership limits.

What is included in a Master Bill of Lading?

Some of the information included in a Master Bill of Lading are¹:
• Shipper/consignee information, container numbers, seals, item counts and weights. The goods cannot be discharged without a Bill of Lading. Thus, the information on a Bill of Lading must be clear and correct.

How to fill a Master Bill of Lading?

Some of the following details need to be provided while filling a Master Bill of Lading²:

• Details about the shipper or Non-Vessel Owning Common Carrier (NVOCC) such as business name, address and contact information.
• Details about the consignee including business name, address, contact information and any tax ID numbers as required.
• Notify party specifics such as business name, address and contact information.
• If a forwarder is utilized, business name, address, contact information and FMC number need to be added.
• Booking number issued by the carrier and any internal reference numbers for the shipper, consignee, or cargo.
• Name of the vessel and the voyage reference number.
• Loading and discharging ports
• Container and seal numbers
• Piece count, package type, and commodity description are shown next to the container it pertains to.
• Weight and volume adjacent to the container to which it applies
• Total component count, weight, and volume for all containers in the cargo AES/ITN number,
• HS Code, payment terms (Freight Prepaid, Collect, DTHC Prepaid, etc.), BL Release Type (Express, OBLs printed at origin or destination, etc.)

What is a House Bill of Lading?

A House Bill of Lading is a document that is issued by an ocean transport intermediary freight forwarder or non-vessel operating company. It is an acknowledgement of the receipt of goods that are shipped, issued to the suppliers when the cargo is received³.

Master Bill of Lading vs House Bill of Lading

Some of the differences between the House Bill of Lading and the Master Bill of Lading are:

House Bill of Lading

• An NVOCC operator or a freight forwarder issues a House Bill of Lading (HBL).

• In an HBL, the shipper is usually the actual shipper/exporter of the cargo (or as specified by the L/C).

• The consignee will usually be the actual receiver/importer of the cargo (or as dictated by the L/C).

• The notify could be the same as the consignee (or any other party as dictated by the L/C).

Master Bill of Lading

• Shipping line (carrier) issues a Master Bill of Lading (MBL) to the NVOCC operator or freight forwarder.

• In a Master Bill of Lading, the shipper is usually the NVOCC operator, their agent, or the freight forwarder.

• The consignee will usually be the destination agent or counterpart or office of the NVOCC operator or the freight forwarder.

• The notify could be the same as the consignee.

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More blogs on bills of lading

1. What is a surrender bill of lading?

2. What is a multimodal bill of lading?

3. What is an order bill of lading?

4. What is a claused bill of lading: All you need to know about its meaning and format

5. What is a through bill of lading?

6. House bill of lading: All you need to know about its format and benefits

7. Ocean bill of lading: All you need to know about its types and format

8. What is a clean bill of lading: All you need to know about its meaning and format

9. Bill of lading: Everything you need to know

10. Straight bill of lading: Guide to its meaning and format

11. What is a switch bill of lading: Guide to its meaning and uses

12. What is an inland bill of lading?

Frequently Asked Questions

Who will issue the Master Bill of Lading?

The Shipping Line (Carrier) issues a Master Bill of Lading (MBL) to the NVOCC Operator or Freight Forwarder.

What is the MBL used for?

A Master Bill of Lading (MBL) is a document produced by a carrier that is used to reflect the goods' contract of transportation.

What is the difference between a Bill of Lading and a Master Bill of Lading?

An NVOCC operator or a Freight Forwarder will issue a House Bill of Lading (HBL) to their customers, while a Master Bill of Lading (MBL) is provided by the Shipping Line (Carrier) to the NVOCC Operator or Freight Forwarder.

What is the full form of MBL?

The full form of MBL is the Master Bill of Lading.

Published on August 29, 2022.

Sources:
1. https://www.morethanshipping.com/information-include-Master-bill-lading-shipping-instructions/
2. https://www.20cube.com/blog/the-significance-of-two-bills-of-lading-in-freight-forwarding/#:~:text=Master%20Bill%20of%20Lading%20(MBL,document%2C%20mandatory%20for%20sea%20shipments
3. https://www.shippingandfreightresource.com/difference-between-house-bill-of-lading-and-master-bill-of-lading/#:~:text=A%20House%20Bill%20of%20Lading%20(HBL)%20is%20issued%20by%20an,Operator%2C%20or%20Freight%20Forwarder..

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