The bill of lading (abbreviated B/L or BL, called a cognossement or kognossement in Dutch, and written bills of lading in the plural) is the central document of a sea shipment. It's three things at once: the transport contract, the receipt that the goods were taken on board, and, when negotiable, the document of title to the goods. Handle the mechanics carelessly and the cargo sits at the terminal waiting for a piece of paper. Nexport Logistics handles your B/L in the Nexportal portal alongside Customs and delivery. It's part of the wider set of Shipping Documents.
Negotiable or not: the consignee field
How the consignee is filled in decides whether the B/L controls ownership:
- A straight (non-negotiable) B/L names the consignee. Only that party can take the goods; the document doesn't transfer title by endorsement.
- A "to order" B/L has "To Order" in the consignee field (often "to order of shipper" or of a bank). This is a negotiable document: title passes by endorsing and handing over the original. It's the norm in letter-of-credit trade.
Endorsement (endossement) is how that transfer is actually done. It's not the carrier's signature that issues the B/L; that's issuance. Endorsement is what the current holder of an original "to order" B/L does to pass it on: sign the back of the original and hand it over. A blank endorsement is just the signature, and the B/L then works like a bearer document: whoever holds it can claim the goods. A named endorsement adds "deliver to [party]" so title goes to that named party. A straight (named-consignee) B/L is not negotiable, so it cannot be transferred this way.
Release types
Original B/L (full set). Originals are usually issued in a set of three ("3/3", the full set). To release the cargo, the originals must be surrendered to the carrier or its agent. With a "to order" B/L the originals control title. For release at destination the practical rule is: one duly endorsed original is enough (the standard B/L clause reads "one of which being accomplished, the others to stand void"), or, if the originals are not endorsed, the full set of three. The full set (3/3) is also what's surrendered at origin for a telex release or a switch.
Telex release. Once the full set of three originals is surrendered at origin, the carrier can wire a telex release to the destination office, so no originals are needed at the port of discharge. It's rarely used in the Netherlands but still common in some other countries, and it still requires those three originals to be handed in first.
Express release. With an express release (express B/L, sometimes a sea waybill) no original is printed at all; release is to the named consignee on identification. Because there is no document of title to surrender, the consignee must be known and named, and it may not be a negotiable "to order" B/L.
The dating rule: no antedating
The B/L (specifically the "shipped on board" date) must carry the date the vessel actually sailed or loaded. Dating it earlier than the real departure, antedating (backdating), is forbidden: it's typically done to slip inside a letter-of-credit shipment deadline and counts as document fraud. The date on the B/L and the sailing date have to match.
How Nexport Logistics handles it
As a freight forwarder working under the FENEX conditions, Nexport Logistics issues and checks the B/L, manages the original, telex or express release with the carrier, watches the consignee and "to order" set-up against your Incoterm and payment terms, and lines it up with the Customs clearance, all tracked in the Nexportal portal. Question about a B/L or a release? Email info@nexportlogistics.nl.
Related: Sea Freight · Shipping Documents · Incoterms · Customs