In shipping, there is various transportation mode such as Ocean (sea by ship), Air (by Aeroplane), Land (truck and train). All of these modes have distinct tools of application at different times for different purposes. One such tool is the Bill of Lading.


Some of our clients who have come across a BOL for the first time have asked for clarity. We already have a post you should check if you need to know https://bowagateglobal.com/2019/05/09/need-to-know-about-bill-of-lading/

In today’s post, you’d be acquainted with various transport mode and their respective types of bills.

What Is A Bill Of Lading?
In one word, a Bill of Lading is a ‘receipt’. It is a legal document or contract between the carrier and shipper. It carries details of the type, quantity, and destination of goods being carried….

Bill Of Lading By Transport Mode
We have three (3) major mode of transportation.
• Ocean Transportation
• Air Transportation and
• Land Transportation.

Ocean Transportation

In sea shipping, there are several types of Bill of Lading. An Ocean Bill of Lading is issued whenever a carrier uses sea transportation.

Types Of Ocean Bill Of Lading?
An ocean bill of lading is an agreement between the shipper and the ocean carrier. The document acts as a carrier receipt to the shipper. The bill contains every detail of goods that are being transported……

We limit our findings to 4 major BOL. They are as follows:

i. A Straight Bill of Lading: This type is used for shipping items that have already been paid for. Such shipments may be donations or gifts and don’t require payment It is a non-negotiable form of BOL addressed to the buyer directly. Due to its non-negotiable nature, it cannot be assigned to anyone but that party…..


ii. Shipper’s Order Bill of Lading: Used for shipments ordered but payment not made in advance. This can be shipping to one of your distributors or a customer on terms. In other words, the ‘Order BOL’ is used when the goods are sold on credit, to either a distributor or the customer. It is addressed “to order” or “to order of [a party]” instead of the buyer…….


iii. Clean Bill of Lading: This type of bill is not issued unless the receiver receives the goods in good condition. In order words, if the goods received are confirmed to have been damaged or with flaws, the Clean BOL is never issued.
It is issued to that the shipping carrier signs off to indicate that at the time the packages were loaded they were in good condition. On the contrary, if the products or shipment are flawed, a “Soiled Bill of Lading” or a “Foul Bill of Lading” are issued instead.

iv. On-board Bill of Lading: As the name implies, this is one major Ocean Bill of Lading which is issued when the cargo is placed in a vessel. On this, the master of the vessel signs this bill of lading. In a nutshell, it verifies that goods have been placed on the cargo vessel.

Read Also: Sea Freight Shipping, a cheaper Mode of Transportation https://bowagateglobal.com/2019/09/12/sea-shipping-nigeria/

Air Transportation

In Air shipping https://bowagateglobal.com/air-freight-shipping/, a recognized name for Bill of Lading is Air Way Bill. There is a clear difference between an Air Way Bill and a Bill of Lading https://bowagateglobal.com/2019/05/25/difference-between-air-waybill-and-bill-of-lading/ even though they both serve similar purposes.


An Air Waybills or AWB, as implied is issued when goods are transported by air. This document accompanies goods shipped by an international air courier. It provides detailed information about the shipment and allows it to be tracked.

An Air Waybill is a type of Bill of Lading that serves, also, as a receipt of goods, but by Air (not Sea).
Just like some types of Ocean Bill of Lading, the Air Waybill is non-negotiable.

When Cargoes arrives at the airport of destination, they are immediately handed over to the consignee or some times, the customs clearing agents for customs clearance and final delivery.

Air waybills, therefore, serve only as:
• A cargo receipt whose function is to show that the carrier has received the shipment
• A contract of carriage
• Delivery instructions, if special handling is necessary
However, based on some conditions, the airway bill may be consigned to a bank, if items or goods are shipped under a letter of credit or where the shipper chose to use his bank to collect payment for goods prior to release to the consignee.
In such cases, the consignee must pay the bank, who in turn provides a bank release to the airline to authorizing the carrier to release the goods. This process typically takes several days during which the goods will sit at the airline warehouse and possibly incur demurrage https://bowagateglobal.com/2019/10/24/demurrage-charges-and-its-harmful-effect-on-your-business/.

Read Also: Why Air Freight Shipping is Considered Best Alternative https://bowagateglobal.com/2019/08/22/why-air-freight-shipping-considered/


Follow below link for full details
SOURCE: https://bowagateglobal.com/2019/11/28/mode-of-transportation-different-types-bill-lading/