Ocean Bill of Lading: All you need to know about its types and format

The shipping company issues the ocean bill of lading document to facilitate the transportation of the consignment from the port of receipt to the port of discharge². It is signed by the carrier. The bill can be issued on a "freight collect" basis, where the receiver or consignee is responsible for the shipping charges, or on a "prepaid basis," where the shipper or consignor covers the shipping charges. Generally, three bills are generated: one for the shipper, one for the consignee, and one for a banker, broker, or third party involved in the transaction. Moreover, it can be issued by freight forwarders and banks, serving as a negotiable instrument in accordance with Article 30 of the Uniform Customs and Practice for Documentary Credits (UCPDC).

Some of the terms and conditions commonly followed when using an ocean bill of lading are³:

• Ocean Bill of Lading (BOL) serves as a comprehensive document outlining various terms and responsibilities in shipping. It provides clear definitions for key entities like the carrier, merchant, subcontractor, goods, container, carriage, and more. Additionally, it details the tariff applicable to the carrier, covering container and vehicle demurrage.
• The document delves into crucial aspects such as warranties, subcontracting processes, and the carrier's responsibilities. Responsibilities related to port-to-port shipments, combined transport scenarios, and general provisions are explicitly outlined.
• Important details concerning package weight, limitations, notices of loss, time bars, shipper-packed containers, carrier's containers, inspection of goods, and goods' descriptions are specified. The Ocean BOL also addresses freight charges, liens, optional stowage, deck cargo, and conditions for methods and routes of transportation.
• Furthermore, the Ocean BOL covers the shipment of dangerous, hazardous, or noxious goods, providing guidance on various scenarios, including temperature-controlled articles, delivery, blame-to-blame collision, war risks, government orders, transshipment bills of lading, variation of contract, validity, law, and jurisdiction.
• To ensure a smooth shipping process, it is strongly recommended to thoroughly review the terms and conditions outlined in the Ocean BOL to avoid any disputes or difficulties.

Let’s consider this example. When an automobile manufacturer from Germany needs to transport vehicles globally to an importer in the USA, it will require an ocean BOL. Thus, a US-based dealership will sign an Ocean Bill of Lading with the manufacturer in Germany for the transport of vehicles to the United States.

An ocean bill of lading is essential for shipping goods across international waters. It acts as a receipt from the carrier to the shipper and also functions as a collection document or an invoice. This document forms a legally binding contract between the shipper and the carrier, outlining the terms of transportation for the shipment³.

On the other hand, a seaway bill is an agreement between a shipper and a carrier (cargo company) for transportation. Unlike a Bill of Lading, which confirms ownership, the Seaway Bill serves as a transport document and a receipt for the shipment. It's provided by an ocean carrier to the shipper (consignor).