Usage of Ocean Bill of Lading: Issuance, Transfer

For the definition of a bill of lading, see What is a Bill of Lading? Detailed Explanation of Core Functions; for format and clauses, see Format and Main Clauses of a Bill of Lading; for types, see Types of Bills of Lading: Named, Order, and Bearer Bills of Lading; for endorsement of order bills of lading, see Definition of Order Bill of Lading and Endorsement Methods; for remedies for loss of a bill of lading, see How to Remedy the Loss of a Bill of Lading.

Usage of Bill of Lading (B/L)

We take a CFR sale settled by letter of credit (L/C) as an example to illustrate the circulation process of the bill of lading.

1. The exporter and importer sign a sales contract, stipulating the CFR trade term and settlement by L/C.
2. According to the contract, the exporter charters a ship or books space and concludes a transport contract with the carrier.
3. The shipper delivers the goods at the time and place specified in the contract. After paying port charges and completing customs clearance procedures, the carrier arranges for the goods to be loaded. The chief mate inspects the goods and issues a mate's receipt. The shipper exchanges this receipt with the shipmaster or carrier for a shipped on board bill of lading and notifies the buyer to arrange insurance.
4. The shipper presents the documents required by the L/C (such as commercial invoice) together with the shipped on board B/L to the negotiating bank for negotiation and receives payment. The negotiating bank sends the B/L and relevant documents to the issuing bank, claiming reimbursement for the advance payment.
5. The issuing bank checks the documents and makes payment, then notifies the importer. The importer receives the B/L after making payment.
6. Upon arrival of the goods at the discharge port, the carrier or its agent issues a notice of arrival to the importer.
7. The importer takes delivery of the goods at the designated place and time against the original B/L. The original B/L is taken back by the carrier.

Precautions for Using the Bill of Lading

When using a B/L, please note: verify that the B/L information matches the L/C requirements. Confirm the method of issuance and number of copies of the B/L. Original B/Ls can be sent via international courier or an electronic B/L can be used. If the B/L is lost, promptly notify the shipping company and go through the procedures for reporting the loss in a newspaper. After the goods arrive at the destination port, take delivery against the original B/L.

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Procedure After Loss of Bill of Lading

After a B/L is lost, immediately notify the carrier and the destination agent, requesting a suspension of cargo release. Apply to the court for a public summons procedure. Publish notice of the lost B/L in designated newspapers. After providing a bank guarantee or security deposit, the carrier may issue a new B/L or release the cargo based on the court's ruling. The entire process takes about 1-3 months.

In conclusion, proper use of the bill of lading is crucial for ensuring trade security and smooth settlement. Bofeng Logistics can provide professional documentation consultation services.

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FAQ for Bill of Lading Usage

Q: How to remedy after losing an original bill of lading?

A: Immediately notify the carrier and the destination port agent to suspend cargo release, apply to the court for public summons, report the loss in the newspaper, provide a bank guarantee or deposit, and then issue a new bill of lading or release cargo based on the court ruling. The entire process takes about 1–3 months.

Q: What is the difference between a telex release bill of lading and an original bill of lading?

A: A telex release bill of lading does not issue an original; cargo is released upon the carrier's electronic confirmation, suitable for parties with mutual trust or for fast pickup on short-sea routes. An original bill of lading requires the original document to be sent or delivered, and cargo is picked up with the original upon arrival. Which one to use depends on the trade terms and the agreement between both parties.

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.