B/L

The Bill of Lading is three documents in one:

1. Receipt, the carrier acknowledges that they have received the cargo from the shipper, in apparent good condition (or with exceptions noted).
2. Contract of carriage, the carrier agrees to transport the cargo from the load port to the discharge port under the terms printed on the B/L.
3. Document of title, whoever holds the original B/L is entitled to take delivery of the cargo at the destination port.

The third function is what makes the B/L the central instrument of international trade. Whoever holds the original controls the cargo. This is the lever that makes T/T at 30/70 work, the factory holds the original B/L until the buyer pays the balance, then releases the original so the buyer can clear the cargo at the destination.

Original B/L vs telex release vs sea waybill

Original B/L is the paper document, issued in three originals (each marked 1/3, 2/3, 3/3). Any one of the three can be used to claim the cargo. The factory holds them until balance payment is received, then couriers them to the buyer (typically by DHL or FedEx, USD 30 to 80 per courier).

Telex release is an electronic instruction from the factory to the carrier saying “release this cargo to the named consignee without requiring the original B/L.” It eliminates the courier delay. Used routinely for short routes (China to Japan, China to Korea) where transit time is shorter than courier time, and for repeat customers where the factory trusts the buyer’s payment.

Sea waybill is a non-negotiable transport document that names the consignee directly and requires no document presentation at destination. Faster than original B/L, no courier needed, but eliminates the factory’s leverage on balance payment because the cargo can be released by the carrier without the factory’s instruction. Typically used only for repeat customers with established T/T payment performance.

The consignee field trap

The consignee field on the B/L names the party entitled to take delivery at the destination. Three options:

1. Direct named consignee. Buyer’s company name on the B/L. Simple, but if the buyer wants to resell the cargo before arrival, they cannot, the consignee is fixed.
2. “To order” or “To order of buyer’s bank.” Negotiable B/L. Cargo can be transferred by endorsement of the B/L. Used in trading scenarios where the cargo may change hands during transit.
3. “To order of [issuing bank].” Used under L/C terms, the L/C-issuing bank controls the cargo title until the L/C is settled.

For routine direct-from-factory chemical imports, option 1 is standard. For trading houses or buyers who may resell, option 2. Under L/C, option 3.

Switch B/L

A “switch B/L” is a second B/L issued at the destination region (or a transit hub like Singapore) that replaces the original B/L. Used in scenarios where the buyer wants to hide the original Chinese supplier from a downstream customer, or where the cargo is being reconsigned during transit. Some carriers do this routinely; others require a fee and notarised authorisation. Switch B/L can be a tool for legitimate trading or a flag for someone trying to obscure origin, destination customs sometimes look harder at switch B/L cargo.

Surrender of original B/L

When the original B/L arrives at the destination port and the consignee presents it to the carrier’s local agent, the carrier surrenders the cargo by issuing the delivery order. If the original B/L has not arrived (courier delay), the consignee has two options: pay demurrage at the port until the original arrives, or post a Letter of Indemnity (LOI) with the carrier, typically requires bank backing and a fee, to release the cargo without the original. Most carriers will accept an LOI but it is not free and not fast.

Practical sourcing notes

For our standard 30/70 T/T workflow, the factory issues an original B/L (3 originals), holds them until the buyer’s balance payment is confirmed, then DHLs the original to the buyer for arrival ahead of the cargo. We track the courier and the vessel together, the original B/L should reach the buyer 2 to 5 days before the vessel berths so cargo clearance is not blocked by document delay.

Related terms

FOB and CIF determine who is responsible for arranging the carrier and obtaining the B/L. T/T timing depends on the B/L copy and the original. L/C document set always includes the B/L as the primary shipping document.