Types and Implied Meanings of Bill of Lading Endorsement

A straight bill of lading cannot be transferred by endorsement; see Characteristics and risk control of straight bills of lading; for endorsement of order bills of lading, see Definition of order bill of lading and methods of endorsement; for the classification system of bills of lading, see Types of ocean bills of lading; for bill of lading terms, see Explanation of various bill of lading terms.

Overview of Bill of Lading Endorsement

Endorsement of a bill of lading is a transfer act that applies only to order bills of lading (ORDER B/L); straight bills of lading (STRAIGHT B/L) and bearer bills of lading (BEARER B/L) do not require endorsement. Mastering the types of endorsement and key operational points is a fundamental skill in foreign trade documentation.

Three Forms of Order Bills of Lading

In an order bill of lading, the consignee column does not list a specific consignee; it is transferred by endorsement, which facilitates capital turnover and is relatively common in international trade. According to the different ways the order party is indicated, it is divided into the following three types:

1. Shipper's order bill of lading: The consignee column only states "TO ORDER", and it is transferred after endorsement by the shipper, also known as a blank-endorsed bill of lading. Until the shipper designates a consignee or transferee, the ownership of the goods remains with the seller; under a documentary letter of credit, the shipper names the negotiating bank or consignee as the transferee and obtains the negotiated payment by transferring the bill of lading. This type of bill of lading can be transferred with blank endorsement by the shipper and has the greatest negotiability.
2. Named order bill of lading: The consignee column states "TO ORDER OF ...", and according to the order party, it may be made out to the order of the shipper, the order of the consignee, or the order of the importer's bank, and it can be transferred or the goods delivered only after endorsement by the shipper, consignee, or importer's bank, respectively. It is also known as an order bill of lading made out to a named party.
3. Optional order bill of lading: The consignee column states "So-and-so or order", where the "So-and-so" part is equivalent to a named order bill of lading, and the "or order" part is equivalent to a shipper's order bill of lading.

Endorsement Methods: Blank Endorsement and Special Endorsement

An order bill of lading is transferable upon endorsement. Endorsement means that the endorser confirms the transfer of ownership of the goods stated in the bill of lading to the endorsee. There are two methods of endorsement:

• Blank Endorsement: The transferor signs the endorser's organization name and the responsible person's signature on the back of the bill of lading, without specifying the endorsee's name. It has strong negotiability and is more commonly used.
• Special Endorsement: In addition to the endorser's signature, the endorsee's name must also be specified; when the endorsee transfers again, an endorsement must be added. For example, in letter of credit export business, the exporter, as the consignor, makes a special endorsement to the issuing bank; the negotiating bank makes a special endorsement to the issuing bank before forwarding the documents; and when the importer pays for the documents, the issuing bank endorses them to the importer.

Three Combinations of Endorsed Bills of Lading

1. Blank-endorsed order bill of lading to a named party (TO ORDER OF ..., without indicating the endorsee): The shipper, consignee, or the importer's bank acts as the first endorser, transferring the ownership of the bill of lading to unspecified other parties.
2. Blank-endorsed order bill of lading to order (TO ORDER, without indicating the endorsee): The shipper acts as the first endorser, transferring the ownership of the bill of lading to unspecified other parties.
3. Specially endorsed order bill of lading to a named party (TO ORDER OF ..., with the endorsee indicated): The shipper, consignee, or the importer's bank acts as the first endorser, transferring the ownership of the bill of lading to specified other parties.

Endorsement Requirements in Import Business

In import operations, a straight bill of lading must be endorsed with the original company seal matching the consignee named on the bill before the goods can be released; an order bill of lading must be endorsed with the original company seal of the holder of the bill before the goods can be released.

Bill of Lading Endorsement FAQs

Q: What is the difference between blank endorsement and special endorsement?

A: A blank endorsement is signed or sealed by the endorser without specifying the endorsee, and can be transferred by mere delivery, offering strong negotiability; a special endorsement must specify the endorsee's name, and the endorsee must add another endorsement when transferring again, providing stricter control over the goods.

Q: Do all bills of lading require endorsement?

A: No. Endorsement only applies to order bills of lading (ORDER B/L); straight bills of lading (STRAIGHT B/L) do not require endorsement, and the named consignee takes delivery; bearer bills of lading (BEARER B/L) can be transferred by delivery and also do not require endorsement.

Disclaimer: This article was compiled by the Bofeng Logistics team, with content verified in August 2026. Bill of lading formats, terms, and operational practices may change due to adjustments by shipping companies, regulations, and international conventions. Please refer to the actual booking and issuance documents for accurate information.