What is a Bill of Lading?

A Bill of Lading, quite literally a 'list of cargo,' functions as a receipt for the goods transferred from the exporter to the carrier. It establishes a contract between the shipper and the carrier, particularly when there's no separate contract in place. The carrier issues the BOL, acknowledging the receipt of the goods in good condition.

Mobile number

We don't spam

Functions of the Bill of Lading:

Evidence of Contract: It serves as evidence of the agreement between the shipper and the carrier, providing a legal basis for the transaction.
Receipt of Goods: The ship's master or captain typically verifies the receipt of goods and forwards this confirmation to the seller's agent.
Document of Title: The Bill of Lading represents the title of the goods. Buyers can claim the goods by presenting this document at the destination port, which can also be used to secure advances or loans from financial institutions.
Unique Identifier: Each Master Bill of Lading carries a unique number that helps the shipping company identify the shipment. This number is used for tracking the container's journey during shipment.
Purpose and Importance in Exports: After the goods are shipped, possession shifts from the exporter to the carrier, even if payment has not been received by the exporter. This makes the Bill of Lading a critical component of the transaction. It allows the exporter to relinquish control of the packages to the carrier while retaining indirect control over the goods during transport.

Additionally, the information contained in the BOL influences various activities, including shipment destination, package count, billing details, payment instructions, and handling instructions at docks or trailers.

Issuers of the Bill of Lading

In a typical trade transaction, two types of Bills of Lading are issued:

House Bill of Lading (HBL): Issued by the CHA (Customs House Agent), freight forwarder, or NVOCC (Non-Vessel Operating Common Carrier). While linked to the Master Bill of Lading, the HBL is not legally enforceable.
Master Bill of Lading (MBL): Issued by the shipping company (Vessel Operating Common Carrier) to the seller or their nominee, depending on the incoterms of the export. Responsibilities, including duties and insurance, vary based on incoterms.

Learn more about Marine Insurance

Annual open Policy

Read More

Single Transit Policy

Read More

Sales turn over Policy

Read More

Transit Insurance

Read More

Marine Insurance

Read More

Cargo Insurance

Read More

Read More

Negotiable and Non-negotiable BL:

Negotiable BL: This type is transferable to a third party and instructs the carrier to deliver goods to the holder of the original endorsed BOL. Lack of the original document prevents cargo release from the port.
Non-negotiable BL: Designed for specific buyers, consignees, receivers, or agents, this type must be accompanied by other documentation to authenticate the transaction.

Cost of a Bill of Lading

The cost of a Bill of Lading, typically ranging from USD 5 to 20 dollars, is charged by the cargo carrier. These charges are payable at the time of releasing the BOL and cover all associated documentation expenses.

Varieties of Bills of Lading (BL)

Bills of Lading (BL) come in various types, tailored to specific terms, conditions, and circumstantial requirements. Here's an overview of 15 distinct types of Bills of Lading:

Clean Bill of Lading: Issued by the shipper or its agents, it carries no indication of defective goods on board.
Claused Bill of Lading: This type highlights damage to the consignment or missing parts of it.
Switch Bill Of Lading: Employed when the seller wishes to withhold supplier information from the buyer.
Received for Shipment Bill of Lading: An acknowledgment from the carrier before vessel loading, confirming receipt of goods for shipping.
Through Bill of Lading: Permits the carrier to transport a shipment via multiple modes or distribution centers, including Ocean and Inland Bill of Lading.
Master Bill of Lading: Issued by carriers for their shipping companies, outlining transportation terms, shipper and consignor details, consignee, and possessor of the goods.
House Bill of Lading: Generated by non-vessel operating companies or ocean transportation intermediary freight forwarders, affirming the receipt of shipped goods. Also known as Forwarder's Bill of Lading, it's issued to suppliers upon receipt of the shipment.
Short Form/Blank Back Bill of Lading: Necessary when shipping contract terms are absent in the original Bill of Lading.
Straight Bill of Lading: This type confers no greater rights to the endorsee than to the endorser, often viewed as risky from a banking perspective.
Order Bill of Lading: Delivery aligns with further orders from the consignee.
Charter Party Bill of Lading: Represents an agreement between a vessel owner and charterer for the shipment of goods.
Multimodal Transport Document (Combined Transport Document): A form of Through Bill of Lading involving both land and ocean transportation.
Stale Bill of Lading: Provided 21 days after the shipment date (or other specified dates) for negotiation.
Surrender Bill of Lading: Terms require the negotiating bank's receipt to be presented to release documents.
Bearer Bill of Lading: Allows delivery to the holder of the bill, facilitating negotiation by physically delivering the goods.

Contents of a Bill of Lading (BL):

The precise content of a Bill of Lading varies depending on its type, shipping terms, and business arrangements. However, a typical BOL generally includes the following information:

Name and particulars of the shipping line.
Shipping bill number and date.
Name, address, and contact details of the shipper and receiver, along with the shipment date for tracking.
Purchase order number or a similar reference number, facilitating cross-referencing of agreed terms and conditions (e.g., delivery terms and expense incidence).
Special instructions section, encompassing extra service requests, terms, conditions, and reminders for carriers.
Description of the goods, providing details on units, dimensions, weight, and content specifics.
Packaging details, disclosing information about cartons, crates, pallets, drums, or other shipping containers used.
Freight classification, determining the shipment's cost.
Indication of hazardous shipment, if applicable.
Signatures and initials of the relevant officers involved in the shipping process.

Conclusion

Understanding the different types of Bills of Lading and their content is crucial for seamless international trade and shipping operations. Also, covering the voyage with marine insurance against unforeseen incidents is crucial.

View More

Marine Insurance Premium Calculator

Select Commodity

Select Mode of Transport

Cover Amount Required

Calculate

Why Buy From Policybazaar

Marine Insurance Companies

Reliance Marine

View more insurers

Disclaimer: Above mentioned insurers are arranged in alphabetical order. Policybazaar.com does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

Commercial Insurance Products

Group Health Insurance

Marine Insurance

Cargo Insurance

Workmen Compensation Insurance

Professional Indemnity

Fire Insurance

Shop Insurance

Comprehensive Liability Insurance

Construction All Risk

Erection All Risk

Cyber Insurance

Directors & Officers Insurance

Contractor's Plant & Machinery

Office Package Policy

Group Personal Accident Insurance

Group Life Term Insurance

Drone Insurance

We don't spam

View plans

By clicking on " Check Your Premium Now " you agree to our Privacy Policy and Terms Of Use

Marine Insurance Articles

Popular Articles
Recent Articles

Why Is Insuring Your Household Articles Important During Transit?

Why Is Insuring Your Household Articles Important During Transit?

When moving to a new home, safeguarding your household articles during transit is crucial. Transit insurance...Read more

27 Oct 2020 by Policybazaar 14404 Views

Warranties in Marine Insurance

Warranties in Marine Insurance

Warranties in marine insurance are referred to as assurance of coverage provided by the insurer. It outlines the...Read more

20 Jul 2023 by Policybazaar 7415 Views

Documents Required for Import-Export Customs Clearance

Documents Required for Import-Export Customs Clearance

Any shipment moving from one country to another requires customs clearance. Apart from international laws and...Read more

22 Nov 2022 by Policybazaar 8100 Views

Difference between Marine Open Cover & Marine Open Policy

Difference between Marine Open Cover & Marine Open Policy

Marine insurance and its advantages cannot be ignored if you are in a shipping business or your business needs...Read more

19 Aug 2022 by Policybazaar 9134 Views

Insurance for Transporting Goods in India

Insurance for Transporting Goods in India

In the intricate web of India's transport industry, the movement of goods plays a vital role in driving the...Read more

03 Nov 2023 by Policybazaar 3669 Views

Types of Marine Losses

Types of Marine Losses

In the shipping business, different types of losses can happen. Marine insurance helps manage these risks by...Read more

23 Nov 2022 by Policybazaar 11556 Views

What is Carrier Legal Liability Insurance?

What is Carrier Legal Liability Insurance?

Within the transportation industry, where goods traverse vast distances across different modes of transport,...Read more

29 Apr 2024 by Policybazaar 3123 Views

International Cargo Clauses & Inland Transit Clauses in Marine...

International Cargo Clauses & Inland Transit Clauses in Marine...

Marine insurance coverage is divided into two types. One is International Cargo Clause (ICC) and the second is the...Read more

13 Aug 2022 by Policybazaar 11160 Views

6 Not to Forget Principles of Marine Insurance

6 Not to Forget Principles of Marine Insurance

The principles of marine insurance are essential for maintaining fairness and consistency in the delivery of...Read more

10 Feb 2020 by Policybazaar 15159 Views

Inland Transit vs Marine Cargo insurance

Inland Transit vs Marine Cargo insurance

If your business involves the transportation of finished or unfinished goods or raw materials, you probably need a...Read more

15 Nov 2022 by Policybazaar 6270 Views

Transit Insurance for Delivery Business

Transit Insurance for Delivery Business

Whenever goods and commodities are on the move, they are at risk of damage. A logistics company's reputation can...Read more

28 Feb 2024 by Policybazaar 2331 Views

What is Freight Insurance?

What is Freight Insurance?

In addition to the basic carrier policy, a Freight insurance policy will provide additional protection for your...Read more

18 Mar 2019 by Policybazaar 24985 Views

Incoterms Explained Marine Insurance

Incoterms Explained Marine Insurance

Incoterms or International commercial terms are some standard terms published by the ICC (International Chamber of...Read more

10 Aug 2023 by Policybazaar 4481 Views

What is Multimodal Transport Operator Insurance?

What is Multimodal Transport Operator Insurance?

Multimodal Transport Operator Insurance provides crucial financial protection to Multimodal Transport Operators...Read more

20 Mar 2024 by Policybazaar 2143 Views

Documents to Submit Along with Claim Form in Marine Insurance

Documents to Submit Along with Claim Form in Marine Insurance

The marine policy covers several kinds of risks faced by ship or cargo owners. It is an essential insurance policy...Read more

25 May 2023 by Policybazaar 4947 Views

12 Documents Required for Exporting Goods from India

12 Documents Required for Exporting Goods from India

In foreign trade, the significance of proper documentation...Read more

09 Jun 2025 by Policybazaar 200 Views

What is Export?

What is Export?

Export is the sale of goods and services manufactured in a...Read more

30 Apr 2025 by Policybazaar 329 Views

Types of Shipping Containers with Size & Dimensions

Types of Shipping Containers with Size & Dimensions

Shipping containers have evolved over the years. Now, businesses...Read more

25 Apr 2025 by Policybazaar 342 Views

How to Choose the Right Shipping Line in 2025: Top 5 Key Factors

How to Choose the Right Shipping Line in 2025: Top 5 Key Factors

Selecting the right shipping line is crucial for Indian...Read more

07 Apr 2025 by Policybazaar 498 Views

How to Create a Freight Forwarding RFP for Shipping?

How to Create a Freight Forwarding RFP for Shipping?

RFP, or Request for Proposal in freight forwarding, is a formal...Read more

03 Apr 2025 by Policybazaar 472 Views

What is Pallet Shipping?

What is Pallet Shipping?

Pallet shipping is a mode of transporting goods using pallets to...Read more

02 Apr 2025 by Policybazaar 470 Views

What are High Cube Containers in Shipping?

What are High Cube Containers in Shipping?

‘High Cube containers’ is a category of shipping containers...Read more

02 Apr 2025 by Policybazaar 485 Views

International Shipping - How to Start Shipping Internationally From...

International Shipping - How to Start Shipping Internationally From...

Expanding your business to international markets can be a...Read more

01 Apr 2025 by Policybazaar 495 Views

Products to Export from India

Products to Export from India

India has largely been an agricultural economy but has turned...Read more

18 Mar 2025 by Policybazaar 845 Views

Modes of Transportation Covered Under Marine Insurance

Modes of Transportation Covered Under Marine Insurance

Marine insurance is essential for protecting goods during...Read more

23 Oct 2024 by Policybazaar 1309 Views

What is Carrier Legal Liability Insurance?

What is Carrier Legal Liability Insurance?

Within the transportation industry, where goods traverse vast...Read more

29 Apr 2024 by Policybazaar 3123 Views

Accumulation Clause in Marine Insurance

Accumulation Clause in Marine Insurance

The accumulation clause in marine insurance is a crucial...Read more

05 Apr 2024 by Policybazaar 2215 Views

What do Perils of the Sea Mean in Marine Insurance?

What do Perils of the Sea Mean in Marine Insurance?

Transporting goods across the vast expanse of oceans comes with...Read more

05 Apr 2024 by Policybazaar 3629 Views

Shipping Insurance for High-Value Items

Shipping Insurance for High-Value Items

Shipping insurance for high-value items is crucial to mitigate...Read more

03 Apr 2024 by Policybazaar 2490 Views

Intermediate Storage in Marine Insurance

Intermediate Storage in Marine Insurance

Intermediate storage in marine insurance plays a crucial role in...Read more

03 Apr 2024 by Policybazaar 1959 Views

Policybazaar for Business - Marine Insurance - Customer Reviews

View all 114 reviews

View all

4.3

out of 5

Based on 114 reviews

14 users

87 users

13 users

0 users

0 users

3.8 April 20, 2023

Anas

Great Experience

I recently purchased Marine insurance from Policybazaar for my shipping business and I must say I am thoroughly impressed with their service and coverage. From start to finish, the experience has been smooth and hassle-free.Thankyou.

Mizoram

4.3 April 03, 2023

Vaishnav

Provides Comprehensive Protection

When it comes to coverage, Marine insurance that i bought from PolicyBazaar has exceeded my expectations. It provides comprehensive protection for my cargo and vessels during transit, ensuring I can focus on my business operations with peace of mind. Thankyou.

Assam

4.3 March 17, 2023

Umang

Excellent Services

I highly recommend Marine insurance from PolicyBazaar website to anyone in the shipping or logistics industry. Their user-friendly website, comprehensive coverage, and excellent customer service make them stand out from the competition. With Policybazaar, I feel confident in navigating the high seas, knowing that my business is well-protected. Thank you, Policybazaar.

Chennai

4.3 February 28, 2023

Vishal

User Friendly Interface

The website's user-friendly interface made it easy to compare different plans and find the perfect fit for my business needs.Thanks

Gurugram

4.3 February 11, 2023

Parth

Prompt Services

I appreciate the transparency and honesty with which Policybazaar handled my claims. They were prompt in processing my claim and their claim settlement process was hassle-free.Thanks PolicyBazaar.

Noida

3.8 February 10, 2023

Rishabh

Exceeds Expectations

I recently had the pleasure of purchsing marine insurance from Policy bazaar website and I must say it has been an outstnding experience from start to finish. I am thrilled to share my positive customer review, as this truly exceeded my expectations. Thanks PB.

Jamshedpur

3.8 January 31, 2023

Arvind

Easy Navigation

The ease of navigating the Policy bazaar website and finding the right marine insurance policy was impressive. The website's user-friendly interface and intuitive design made it incredibly simple to compare various options, understand the coverage details and make an informed decision. I appreciated the transparency provided throughout the process. Thanks.

Ajmer

3.8 January 21, 2023

Vishal

Excellent Support

The customer service provided by Policy bazaar was decent. Their team was responsive, knowledgeable and went above and beyond to assist me at every step. Their professionalism and commitment to customer satisfaction were truly commendable.Thankyou.

Mumbai

4.3 January 11, 2023

Sanjeev Rathor

Efficient Process

When it came to claims processing, Policy bazaar demonstrated remarkable eficiency and effectivenes. I had an unfortunate incident during the coverage period and filing a claim was a breeze. The entire process was streamlined and their team guided me throuugh every necssary step, making it hassle-free. The promptness with which my claim was setled reflected their commitment to their customers' well-being and peace of mind. Thankyou.

Pune

3.8 January 01, 2023

Kunal

Comprehensive Coverage

I must mention the comprehensive coverage provided by the marine insurance policy I purchasd through Policy bazaar. It offered me the necesary protection and peace of mind. Thankyou PolicyBazaar.

Indore

114 Review Item

Disclaimers⁺
*Savings of 42% are based on the comparison between the highest and lowest premiums for a Rs 50 lakh sum insured under Inland Transit Clause B or Institute Cargo Clause B for single transit cover of auto spare parts with shipment type of Inland(Domestic) and road as mode of transport. Premium varies on the basis of Occupancy, Business Activity & Coverage Type
By clicking on "View Plans" you agree to our Privacy Policy and Terms Of Use and also provide us a formal mandate to represent you to the insurer and communicate to you the grant of a cover.
The details of insurance coverage, inclusions and exclusions are subject to change as per solutions offered by insurance providers. The content has been curated based on the general practices in the industry. Policybazaar is not responsible for the factual correctness of these details.