Definition of Order Bill of Lading and Endorsement

The definition and functions of the bill of lading can be found in What is an ocean bill of lading? Detailed explanation of core functions; the types of bills of lading are covered in Types of ocean bills of lading: straight, order, and bearer bills of lading; more types of endorsements are covered in Types of bill of lading endorsements and their intrinsic meanings; for usage and loss handling, see Use of ocean bills of lading.

An Order Bill of Lading is a commonly used type of bill of lading in international trade and cargo transportation, playing an important role in international sea freight, air freight, and other modes of transport. As a document of title to the goods, the bill of lading serves as proof of the contract of carriage between the carrier and the shipper. The Order Bill of Lading, with its unique flexibility and security, is widely adopted in international trade practice.

Basic Concept

The main feature of an Order Bill of Lading is that the consignee field does not directly state a specific consignee's name but is usually marked with words such as "To Order," "To Order of..." or "To Bearer." This means the delivery of the goods under the bill of lading must be carried out based on further instructions from the shipper or a specific party designated by the order.

Types and Transfer

Order bills of lading can be classified into the following types based on the endorsement method:

1. Blank Endorsed Order Bill of Lading: When the back of the bill of lading is signed only by the shipper without specifying a specific consignee, it is called a blank endorsement. The holder of this bill of lading is deemed the lawful party entitled to take delivery of the goods.
2. Special Endorsed Order Bill of Lading: The shipper explicitly specifies a particular company or individual as the consignee on the back of the bill of lading. After this endorsement, only the designated entity can take delivery of the goods.
3. Directional Endorsed Order Bill of Lading: The shipper endorses the bill of lading to a bank or other specific entity, requesting them to act according to further instructions, thereby increasing the security and flexibility of the transaction.

Functions and Advantages

1. Flexibility: Order bills of lading allow for changing the consignee during the cargo transportation process, facilitating resale and financing arrangements in trade.
2. Security Control: Transfer through endorsement ensures the lawful transfer of title to the goods, preventing unauthorized third parties from taking delivery of the cargo.
3. Financing Convenience: Financial institutions such as banks often require using an Order Bill of Lading as collateral in letter of credit transactions, facilitating financing and credit assurance.
4. Suitability for International Trade: Meets the complex and changing needs of international trade, especially in cases involving intermediary transactions.

Notes

• Legal Compliance: When using Order Bills of Lading, it is necessary to comply with relevant national laws and regulations and international trade conventions (such as the Hague Rules, Hamburg Rules, etc.).
• Risk Prevention: Although it provides flexibility and security, there are risks such as loss or forged endorsements. Bills of lading must be properly kept and necessary anti-counterfeiting measures taken.
• Clear Instructions: To avoid delivery delays, the shipper should provide delivery instructions promptly and accurately, especially in multi-link transactions.

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Bill of Lading Endorsement FAQs

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

A: A blank endorsement is only signed by the endorser without specifying a particular consignee; possession of the document is deemed to grant the right to take delivery of the goods. A special endorsement explicitly names a specific consignee on the back, and only the named party may take delivery against the document.

Q: Why are order bills of lading the most commonly used in international trade?

A: Because order bills of lading can be flexibly transferred through endorsement, facilitating resale by intermediaries and bank financing. At the same time, the endorsement process allows control over the transfer of title to the goods, provides better security, and best complies with letter of credit settlement requirements.

Disclaimer: This article was compiled by the Bofeng Logistics team and verified as of August 2026. Bill of lading formats, clauses and practices may change with carrier practice, regulations and international conventions; always refer to the document as issued for your shipment.