For some time, it has been the case that the cargo may arrive at the destination before the bill of lading; and a practice has arisen for the shipper having sent the bill of lading to the banks for checking to send to the consignee a letter of indemnity LOI which can be presented to the carrier in exchange for the cargo.
However, it is preferred to have less BLs; as the increased number creates a higher chance of releasing goods to the wrong party and fraud. A "combined bill of lading" may be issued by a carrier who, say, collects goods from a factory for subsequent delivery to a ship via multi-modal transport.
The buyer's bank is entitled to reject a dirty bill of lading, but will often accept it after an agreed reduction in price.
When the buyer is entitled to received goods from the carrier, bill of lading in this case performs as document of title for the goods. What's in a freight bill of lading?
The original copy of the bill of lading is provided to the carrier, and a copy of the same should also be ascribed to the packaged freight. It means any endorsee acquires no better rights than those held by the endorser.
Bill of lading as Contract Of Carriage: The contract between the carrier and the shipper is already created before issuing the bill of lading when the cargo is loaded on the ship. Updated Apr 12, What Is a Bill of Lading A bill of lading BL or BoL is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried.
It may be the case that payment is only made when the original or copy bills of lading are received by the end buyer or lender They are used as a receipt of the shipment, confirmation of the underlying goods and to show the passing of title.