Why Can You Sometimes Pick Up Goods Without a Bill of Lading?

When it comes to international logistics and cargo transportation, the bill of lading is a legal document of ownership of the goods, and the way to fill in the "Consignee" column directly affects the pickup process. Behind this are two main types of bills of lading - bearer bills of lading and named bills of lading. The difference in their processing directly leads to different ways of picking up goods.

What is a bill of lading?

A bill of lading (B/L) is a piece of evidence of a contract for the transportation and receipt of goods. It is usually issued by the shipowner or its agent to confirm that the goods have been received and allowed to be shipped to the destination. The bill of lading also represents the ownership of the goods carried and has the characteristics of a property right.

The bill of lading records information such as the carrier, consignee, and description of the goods. Usually, the bill of lading is a "property certificate", that is, the person holding the original bill of lading can obtain the goods.

What is a sea bill of lading?

A sea bill of lading is a written certificate issued by a carrier (usually a shipping company or freight forwarder) to a shipper (exporter) to prove that the goods have been received and loaded on a designated ship and are ready to be shipped to the destination. It is not only a certificate of title to the goods, but also a certificate of the transportation contract between the carrier and the shipper.

What is the situation where you can pick up goods without a bill of lading?

This usually happens when a straight bill of lading is used. Customs regulations in some countries stipulate that if the consignee can prove his identity, he can pick up the goods even without the original bill of lading.

Release without bill of lading refers to the act of the carrier delivering the goods to a non-original bill of lading holder without receiving the original bill of lading. This may be caused by the carrier's negligence, fraud or legal provisions, which is a huge financial and legal risk for exporters.

Classification of bills of lading

According to the mode of transportation: direct bill of lading, transshipment bill of lading, combined transport bill of lading, etc., corresponding to different transportation routes and modes.

Classified by consignee: named consignee B/L, to order B/L, bearer B/L. A named consignee B/L specifies a specific consignee, and an to order B/L must be transferred according to the instructions. For a bearer B/L, whoever holds it has the right to pick up the goods.

Classified by execution and operation methods: clean B/L, unclean B/L, shipped B/L, received for shipment B/L, etc., reflecting the different states and conditions of cargo shipment.

Difference between bearer B/L and named B/L

Bearer bill of lading

The consignee column on a bearer B/L is blank. This type of B/L is highly flexible and liquid because the consignee is not specifically specified but transferred by endorsement. In this case, the original B/L is a necessary condition for picking up the goods, ensuring the clear transfer of ownership of the goods. Chinadivision strongly recommends the use of this type of B/L in letter of credit transactions to maximize the protection of the rights and interests of both parties. Foreign merchants have no right to pick up the goods if they cannot get the original bill of lading. This type of bill of lading operation is safer.

Nominal bill of lading

The nominal bill of lading directly specifies the company name and address of the consignee, making the consignee the only legal consignee. In some countries, based on laws or industry practices, the consignee of a nominal bill of lading can pick up the goods with only proof of identity, without having to produce the original bill of lading.

Using a nominal bill of lading may result in the loss of control over the goods, because once the designated consignee proves his identity, he can pick up the goods without the original bill of lading. Although it improves the efficiency of picking up the goods, it increases the risk of the goods being picked up before the payment is received.

The difference between a shipped bill of lading and a ready-to-ship bill of lading

Shipped bill of lading

The shipped bill of lading (On Board B/L or Shipped B/L) is a bill of lading issued by the captain or the carrier's agent after the goods are loaded on a designated ship. This bill of lading clearly indicates that the goods have been loaded on board, and usually contains the name of the loading ship and the date of loading. The shipped bill of lading guarantees that the consignee receives the goods on time, so the seller is usually required to provide a shipped bill of lading in international sales contracts.

Received for Shipment B/L

A received for shipment B/L is a bill of lading issued by the carrier or its authorized agent to the shipper after the goods are loaded. Compared with the shipped bill of lading, the received for shipment B/L does not determine the date of shipment of the goods, but only confirms that the goods have been handed over to the carrier for safekeeping and are waiting for shipment. This type of bill of lading is usually used for LCL goods or when internal loading is required at the port of destination.

The difference between a forwarder's bill of lading and a master bill of lading

A forwarder's bill of lading (House Bill of Lading or Forwarder B/L) is a bill of lading issued by a forwarder. Most shipping companies do not accept forwarder's bill of lading to pick up goods directly, so forwarder's bill of lading usually releases goods based on the shipping company's telex release. The difference between a forwarder's bill of lading and a master bill of lading lies in the different qualifications of the issuer. Freight forwarder bills of lading usually show "AS AGENT FOR THE CARRIER", while the original bill of lading shows "AS CARRIER". Freight forwarder bills of lading are suitable for LCL cargo or situations where freight forwarders are needed to assist in controlling the rights of goods.

In some countries, the consignee of a named bill of lading can pick up the goods without the bill of lading, so the bill of lading has actually lost the control of the rights of the goods.

In Anglo-American legal countries, it is easy for people to pick up goods privately under a named bill of lading, but in recent years there have also been cases that have held that a named bill of lading is a certificate of property rights.

Shipowner bill of lading and freight forwarder bill of lading

The shipowner bill of lading is a contract signed with the shipowner and can be picked up directly.

Freight forwarder bills of lading need to be exchanged at the port of destination, but it does not affect the pickup of goods, and can better control the property rights.

Chinadivision's professional advice on coping strategies

Choose the right type of bill of lading

For letter of credit transactions, it is recommended to use an order bill of lading to ensure that the circulation of the bill of lading is synchronized with the payment of the goods. Assess the consignee's reputation and the legal environment of the country where they are located, and use a named bill of lading with caution.

Risk assessment and selection

When choosing to use a named bill of lading, Chinadivision recommends that exporters fully evaluate the reputation of foreign companies and the legal environment of the country where they are located, weigh efficiency and risks, and take payment security measures such as advance payment and letter of credit when necessary.

Clear contract terms

Specify the conditions for picking up goods and the payment process in the trade contract to ensure the rights and interests of both parties. Consider adding a "Telex Release B/L" clause, but use it with caution to avoid losing control of the goods.

Insure logistics insurance

Insure the transportation of goods to reduce economic losses caused by releasing goods without a bill or other unexpected situations.

Professional consultation

Relying on the professional knowledge of third-party logistics service providers such as Chinadivision, customize logistics solutions for specific business scenarios to ensure the safety and efficiency of the logistics process.

Faced with the phenomenon of "picking up goods without a bill of lading", enterprises and e-commerce sellers need to remain highly vigilant, and effectively prevent and control risks by choosing the appropriate bill of lading type and strengthening contract management to ensure the smooth and safe progress of trade.

With its deep industry insight and rich operational experience, Chinadivision provides foreign trade companies with professional guidance and risk prevention strategies on bill of lading operations, helping them to move forward steadily in global trade. If you have any questions or need further consultation, please feel free to contact Chinadivision at any time. We will serve you wholeheartedly.