B/L Preparation: Standard Method for Filling Out Ocean Bill of Lading

L/C Stipulations on Bills of Lading and the Principle of "Consistency between Documents and Credit"

Usually, the stipulations of a letter of credit regarding the bill of lading are as follows:

Example 1. Full set of clean on board ocean bill of lading made out to order (of…) blank endorsed marked“Freight prepaid” notifying applicant. Example 2. 2/3 set of clean on board marine B/L consigned to accounted, endorsed to the order of ABC Co. Marked“Freight collect” and notify party as Hg Co. Example 3. A complete set of clean multi-modal transport document made out to our order endorsed to ABC Co. Marked“Freight payable at destination” notifying the applicant. An ocean bill of lading generally refers to a port-to-port shipped on board marine bill of lading, customarily abbreviated as "ocean bill of lading". Each shipping company has its own format for ocean bills of lading, but the columns and contents are basically the same. The basic requirement for exporters in preparing bills of lading and for banks in examining them is "consistency between documents and the credit". The following introduces points to note in the preparation and examination of ocean bills of lading.

1. Parties Section (Shipper, Consignee, and Notify Party)

1. Shipper, the consignor. The shipper, also known as the consignor, refers to the party that entrusts transportation. Unless otherwise specified in the letter of credit, the beneficiary shall be the shipper. If the beneficiary is a middleman and the goods are shipped directly from the place of origin, the actual seller may also be the consignor, because under UCP600, unless otherwise specified in the letter of credit, banks will accept a bill of lading naming a third party as the consignor. However, at this time it is necessary to consider whether it is feasible in all respects. Case example: In a certain year, Import and Export Company A received a letter of credit opened from abroad stipulating: "…Hongkong Shun Tai Feeds Development Co.as shipper on Bill of Lading." (...with Hong Kong Shun Tai Feeds Development Co. as the shipper on the bill of lading). Import and Export Company A, when shipping, followed the above provision of the letter of credit and named the re-exporter Hong Kong Shun Tai Feeds Development Co. as the shipper on the bill of lading. However, when presenting the documents to the bank, the documentation staff discovered that the bill of lading was made out to order and required endorsement by the shipper. Since the bill of lading named Hong Kong Shun Tai Feeds Development Co. as the shipper, it should have been endorsed with that company's seal. But that company had no representative locally; in the end, after back-and-forth contact, it took three weeks for Hong Kong to send someone to endorse it. Subsequently, because the letter of credit expired and could not be negotiated, a loss was incurred.

2. Consignee, consignee. This is the heading of the bill of lading and a key item for bank review. It should be exactly the same as the "consignee" filled in the shipping note and comply with the letter of credit requirements.

Example 1. The credit requires Full set of B/L Consigned to ABC Co., then fill in "Consigned to ABC Co." in the consignee column of the bill of lading.

Example 2. The L/C requires B/L issued to order of Applicant. If it is found that the Applicant is Big A Co., then fill in "to order of Big A Co." in the consignee column of the B/L.

Example 3. The letter of credit requires a full set of B/L made out to our order. Check that the issuing bank is Small B Bank, then fill in the consignee column of the bill of lading with "to order of Small B Bank" or "to Small B Bank's order".

The consignee field must be filled in exactly in accordance with the L/C requirements. Any careless or shortcut filling may constitute a documentary discrepancy. Example of discrepancy: B/L issued to the order of ABC Co. Ltd. Whereas L/C required "to ABC Co. Ltd." (The bill of lading was issued to the order of ABC Co. Ltd., while the L/C required "to ABC Co. Ltd."). A bill of lading made out to a specific company is completely different from one made out to the order of that company. In the former case, only that specific company can take delivery of the goods, and the bill of lading is not transferable; in the latter case, the bill of lading can be transferred after endorsement by that company. As another example, if the place name specified in the L/C is an abbreviation while the bill of lading states the full name, that is also a discrepancy.

If it is a bill of lading under collection, this column may generally be filled in with "To order" or "To order of shipper", and then endorsed by the shipper. It cannot be made out to the consignee's order, because in that case neither the collecting bank nor the shipper can control the goods; nor can it be made out to the collecting bank's order without the collecting bank's consent, because Article 10 of URC522 stipulates that, without prior consent of the bank, goods should not be consigned directly to the bank or made out in the bank's name or to the bank's order.

3. Notify party, the notified party. That is the buyer's agent, who is notified by the carrier to handle procedures such as customs declaration and delivery when the goods arrive at the destination port.

(1) If the letter of credit contains requirements, they should be strictly followed, such as detailed address, telephone, telex, fax numbers, etc., so that the notification goes smoothly.

(2) If the letter of credit does not specifically state the notify party, then the name and address of the applicant for the credit should be filled in this column on the copy of the bill of lading, while this column on the original may be left blank or filled with the buyer. The copy bill of lading must have the notify party filled in to facilitate the agent at the port of destination in notifying and contacting the consignee to take delivery of the goods. (3) If the letter of credit stipulates "Notify...only", meaning to notify only so-and-so, then the word "Only" must not be omitted.

(4) If the letter of credit does not specify the address of the notify party, and the shipper adds a detailed address after the notify party on the bill of lading, the bank may accept it but need not examine it.

2. Transport Section (Transshipment, Vessel Name, and Port of Loading)

4. Pre-carriage by: pre-carriage; Port of transhipment: transshipment port; if the goods need to be transshipped, fill in the vessel name of the first leg and the name of the transshipment port in these two columns respectively.

5. Vessel: if the goods need to be transshipped, fill in the vessel name of the second leg in this column; if the goods do not need to be transshipped, fill in the vessel name of the first leg in this column. Whether to fill in the second-leg vessel name is mainly based on the requirements of the letter of credit. If the letter of credit does not require it, even if transshipment is needed, there is no need to fill in the second-leg vessel name. If the credit states, "In case transshipment is effected. Name and sailing date of 2ND ocean vessel calling Rotterdam must be shown on B/L" (if transshipment, the name and sailing date of the second-leg vessel to Rotterdam must be indicated on the bill of lading), only under such a clause or similar explicit provisions specifying the second-leg vessel name should the second-leg vessel name be filled in.

6. Port of Lading: port of loading.

(1) It should be filled in strictly in accordance with the letter of credit. If there is an administrative district before or after the port of loading, such as Xingang/Tianjin, it should be added as is.

(2) Some letters of credit issued by foreign banks generally stipulate the port of loading, merely specifying "Chinese ports" (Chinese ports, Shipment from China to...). Such a provision is relatively flexible for the beneficiary. If shipment needs to be made from another nearby port, the beneficiary may choose on its own. When making out the documents, the specific port name should be filled in according to the actual situation. If the letter of credit stipulates "Your port", the beneficiary can only ship from the port of its own city; if there is no port in the city, the applicant must be consulted in advance to amend the credit.

(3) If the letter of credit lists several ports (places) of loading at the same time, the bill of lading should only fill in the name of the port actually used for shipment.

(4) For a bill of lading under collection, this column may be filled in according to the buyer's name in the contract.

III. Port of Discharge and Final Destination

7. Port of Discharge, port of discharge (destination port).

8. Final destination: the ultimate destination. If the cargo's destination is the port of destination, leave this column blank. When filling in the port of destination or the destination, pay attention to the following issues:

(1) Except for FOB price terms, the port of destination cannot be a vague name such as "European main port"; a specific port name must be listed. If there are ports with the same name internationally, the country name should also be added. There are more than 170 ports with the same name in the world. For example, there are five ports named "Newport": one each in Ireland and the UK, two in the US, and one in the Netherlands Antilles; there are also five ports named "Portsmouth": one in the UK and four in the US; there are seven ports named "Santa Cruz": two in the Canary Islands, two in the Azores Islands, and the other three in Argentina, the Philippines, and the US respectively; and there are eight ports named "Victoria": in Brazil, Canada, Guinea, Cameroon, Australia, Seychelles, Malaysia, and Grenada.

(2) If the letter of credit has "In transit to…" after the port of destination, under CIF or C&F price terms, this cannot be added directly; it can only be noted in other blank spaces or in the shipping marks to indicate that the cost of onward inland transport is to be borne by the buyer.

(3) Some letters of credit in the United States stipulate the term OCP after the port of destination, which should be added accordingly. OCP stands for Overland Common Points, generally called the "inland transit area," including all states eastward from North Dakota, South Dakota, Nebraska, Colorado, and New Mexico as being within the OCP area. For example, San Francisco OCP means that after the goods arrive at the port of San Francisco, they are then transported inland. San Francisco OCP Coos Bay means that after the goods arrive at the port of San Francisco, they are then transported to Coos Bay. Some letters of credit from Singapore stipulate "Singapore PSA," where PSA means Port of Singapore Authority, which requires unloading at the Singapore Authority's wharf. That wharf has low charges, but it is congested with vessels and generally ships are unwilling to berth there unless the carrier agrees.

(4) Some letters of credit stipulate that "Free port" or "Free zone" may be added after the port of destination, and the bill of lading may also be marked accordingly. For example, after Aden, Aqaba, Colon, Beirut, and Port Said, the words "Free Zone" should be added, so that the buyer can enjoy preferential tariff reductions or exemptions.

(5) If the letter of credit stipulates the port of destination as Kobe/Nagoya/Yokohama, this indicates the seller's option of port, and the bill of lading only needs to indicate one. If the letter of credit stipulates "Option Kobe/Nagoya/Yokohama", this indicates the buyer's option of port, and the bill of lading should list all of them in order.

(6) If the letter of credit specifies a port and also specifies a particular discharging berth, the bill of lading should be issued accordingly. For example, for the destination port of Penang, there are three expressions: "Penang", "Penang/Butterworth", and "Penang/Georgetown". The latter two expressions are not optional ports; Butterworth and Georgetown are both specific discharging berths within Penang port. If the letter of credit specifies a specific discharging berth, the bill of lading should be filled in accordingly.

Case: An L/C stipulated a marine bill of lading, with goods shipped from Shanghai to Aarhus, Denmark. Our export company filled in the loading/discharging fields on the bill of lading as follows: Port of Lading: SHANGHAI; Port of Discharge: (blank); Final destination: AARFUS. When the documents were sent to the foreign bank, the issuing bank refused payment on the grounds that AARFUS should be the port of discharge, not the destination. The L/C stipulated sea transport, which is port-to-port transportation. AARFUS is a port, not an inland city; therefore, it can only be the port of discharge, not the final destination. If the mode of transport were multimodal transport, with the goods loaded in Shanghai onto a ship and carried to a European port, then transported by land to AARFUS, then AARFUS could serve as the final destination, while the port of discharge would be the European port.

4. Number of Original Bills of Lading and Presentation of Documents

9. No. of Original B/L, the number of original bills of lading. Only original bills of lading can be negotiable, presented, or negotiated; copies cannot. UCP600 Article 20 states that a bill of lading may be a single original document, but if more than one original is issued to the shipper, the full set of originals should be included. The exporter should require the carrier to issue the number of original and copy bills of lading as stipulated in the letter of credit. When presenting documents for negotiation, the number of copies required by the letter of credit should be submitted. It is a discrepancy if the number of originals is omitted on the document or if a bill of lading does not bear the word "Original". Various expressions of quantity in letters of credit:

Example 1. Full set of B/L, meaning the full set of bills of lading, which by custom is interpreted as two originals.

Example 2. Full set (3/3) plus 2 N/N copies of original forwarded through bills of lading, this credit requires the submission of all three originals issued. Here (3/3) means: the numerator indicates the number of copies to be presented to the bank, and the denominator indicates the number to be issued. N/N (Non-Negotiation) means non-negotiable, i.e., copies.

Example 3. Full set less one copy on board marine bills of lading, meaning that an on board marine bill of lading should be presented to the negotiating bank, being a full set of originals (at least one original).

Example 4. 2/3 original clean on board ocean bills of lading, meaning that three original bills of lading are to be issued, of which two are to be presented to the negotiating bank.

5. Cargo Description Column (Shipping Marks, Number of Packages, Product Name, Gross Weight, and Dimensions)

10. Mark & No., marks and numbers. Commonly known as shipping marks. Shipping marks are shipment markings printed on the outer packaging for easy identification during loading, unloading, transportation, and storage. They are an important item in the bill of lading, the main link between the bill of lading and the goods, and an important basis for the consignee to take delivery of the goods. The shipping marks on the bill of lading should be consistent with those on the invoice and other documents as well as the actual goods; otherwise, it will cause difficulties in taking delivery and settlement.

(1) If the letter of credit contains specific provisions, the shipping marks shall be prepared in accordance with the marks stipulated in the letter of credit. If the letter of credit does not specify them, the contract shall prevail. If the contract also does not specify them, the plan privately agreed upon by the buyer and seller or determined by the beneficiary may be used.

(2) Each letter, number, graphic, arrangement position, etc. in the shipping mark must be exactly identical to the stipulations of the letter of credit, maintaining the original shape, and must not be randomly misplaced, added, or reduced.

(3) Bulk cargo has no marks, which can be indicated as “No mark” or “N/M”. Nude cargo is usually distinguished by different colors; for example, steel, steel bars, etc. are painted with red marks, which can be indicated as “Red stripe” on the bill of lading.

11. Number and kind of packages, number of packages and kind of packaging. Fill in the quantity and packaging unit in this column. If bulk cargo has no number of packages, it may be indicated as "In bulk" (bulk). The kind of packaging must be consistent with the letter of credit.

In a case, Company A exported a shipment of soybeans. The contract stipulated that the goods were to be packed in used and repaired gunny bags. However, the letter of credit specified the packing condition as: "Packed in gunny bags." Company A packed the goods in used and repaired gunny bags in accordance with the contract, and the bill of lading was issued as "Packed in gunny bags" in accordance with the letter of credit. When the carrier issued the bill of lading, he found that the goods were packed in old and repaired bags and required that a remark be added to the bill of lading. Company A considered that adding a remark would result in an unclean bill of lading and make negotiation impossible. Believing that the contract allowed the use of used and repaired gunny bags and that the buyer would not object, the company instead changed the documents to state that the goods were packed in used and repaired gunny bags. When the documents were presented to the negotiating bank for negotiation, the negotiating bank also neglected to notice the problem. When the documents reached the issuing bank, however, payment was refused on the grounds that the letter of credit specified "Packed in gunny bags," while the invoice and bill of lading indicated "Packed in used and repaired gunny bags," thus constituting a discrepancy. After several rounds of negotiation with no result, Company A finally settled the matter through a price reduction.

12. Description of goods, commodity name. The commodity name should be filled in according to the product name specified in the letter of credit and other documents such as the invoice name. Unnecessary descriptions should be avoided, and no superfluous content should be added. For example, if the goods under the letter of credit are Shoes, it must not be arbitrarily detailed as Men’s canvas shoes or Ladies’ casual shoes. If there are many and complex product names, the bank accepts a general term for the product name description, provided it does not conflict with the description of the goods in the letter of credit. If the letter of credit stipulates that the product name be indicated in French or another language, it should also be indicated in that language.

13. Gross Weight (kgs), gross weight (kg). The gross weight should be consistent with the invoice or packing list. If the goods are nude cargo with no gross weight but only net weight, first add "Net weight" or "N.W.", then state the specific net weight quantity.

14. Measurement, size. That is, the volume of the goods. The unit of measurement is cubic meters, with three decimal places. Under FOB price terms, the size can be left blank.

6. Freight Clause and Special Clause

15. Freight clause: The freight clause shall be indicated according to the letter of credit terms. If the letter of credit is not explicit, it can be annotated based on whether the price terms include freight. There are mainly the following situations:

(1) If the price terms are CIF, CFR, etc., and freight is paid before the bill of lading is issued, the bill of lading shall indicate "Freight paid" or "Freight prepaid".

(2) If the price terms are FOB, FAS, etc., and freight is paid at the destination port, the bill of lading shall indicate "Freight collect", "Freight to collect", "Freight to be collected" (freight collect or freight to be collected), or "Freight payable at destination" (freight payable at the destination port).

(3) If the letter of credit stipulates that "Charter party B/L acceptable" (charter party bill of lading acceptable), the bill of lading may indicate "Freight as per charter party", meaning freight is payable in accordance with the charter party.

(4) If the seller knows the freight amount, or the shipping company is unwilling to disclose the freight rate, the bill of lading may indicate "Freight paid as arranged" (freight paid as arranged), or if freight is paid according to an agreed time or method, the bill of lading may indicate "Freight as arranged" or "Freight payable as per arrangement".

(5) Regarding the burden of loading and unloading charges for goods, the shipping company often requires the bill of lading to indicate relevant clauses, such as "F.I." (Free In): the carrier does not bear loading charges; "F.O." (Free Out): the carrier does not bear unloading charges; "F.I.O." (Free In and Out): the carrier does not bear loading and unloading charges; "F.I.O.S." (Free In, Out and Stowed): the carrier does not bear loading, unloading, and stowage charges; "F.I.O.S.T." (Free In, Out, Stowed and Trimmed): the carrier does not bear loading, unloading, and stowage charges;

16. Special condition in B/L: Examples of special clauses are as follows:

Example 1. Bill of lading must specifically state that the merchandise has been shipped or loaded on board a named vessel and /or bill of lading must evidence that merchandise has been shipped or loaded on board a named vessel in the on-board notation indicating the date of shipment.

Further reading: Types of Bills of Lading: Classification of Various Ocean Bills of Lading organized by six major dimensions; Contents of a Bill of Lading: Requirements for Filling in Ocean Bill of Lading Columns to see the composition of front and back clauses; Concept and Differences of Sea Waybill compare non-negotiable documents.

Bill of Lading Preparation FAQ

Q: What does "documents comply with the L/C" mean? What is the easiest thing to get wrong when preparing a bill of lading?

A: Documents comply with the L/C means the contents of the documents must be fully consistent with the letter of credit terms — the consignee, port of loading, shipping marks, description of goods, freight terms and other fields must all be checked item by item against the L/C wording. The most common errors are in the consignee and freight remarks: for example, if the L/C requires "to ABC Co." but the bill of lading is made out to "to order of ABC Co.", or if a CIF price is wrongly marked as "Freight collect", these constitute discrepancies and affect negotiation.

Q: What if the number of original bills of lading does not meet the L/C requirement?

A: Only original bills of lading can be negotiable, presented for documents, and negotiated; copies cannot. If the L/C requires a full set (normally two originals) or an explicit number such as 3/3 or 2/3, the corresponding number of originals must be issued and presented as required. If the number of originals is omitted, or any copy does not bear the word "Original", these are discrepancies. Check each one before presentation.

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Disclaimer: This article was compiled by the Bofeng Logistics team and verified as of August 2026. Bill of lading field requirements, documentation practices and applicable law may change with international conventions (e.g. UCP600) and current carrier requirements; actual documentation requirements are subject to the letter of credit, trade contract and the carrier's current terms.