A Received for Shipment B/L is a bill of lading issued by the carrier to the shipper during the period when the cargo is awaiting loading. Since the cargo has not yet been loaded onto the vessel when the bill is issued, it does not bear a loading date, and in some cases, not even the vessel name. Only after the cargo is loaded will the carrier fill in the vessel name and loading date, at which point the bill becomes a Shipped Bill of Lading. According to the International Chamber of Commerce’s Uniform Customs and Practice for Documentary Credits, banks generally do not negotiate Received for Shipment Bills of Lading. This is because the risk point for three commonly used trade terms is at the ship’s rail; when a Received for Shipment B/L is issued, the risk has not yet transferred and remains with the seller. If the buyer makes payment based on a Received for Shipment B/L and the cargo is subject to risk during loading, the seller may deny liability after receiving payment. Additionally, when the buyer arranges insurance, the uncertainty of the vessel name on the Received for Shipment B/L may render the insurance ineffective. Acting on behalf of the buyer’s interests, banks do not accept Received for Shipment Bills of Lading to prevent such situations, unless otherwise stipulated in the contract. Under the FCA trade term, the shipper may negotiate against a Received for Shipment B/L. In container transport, the carrier issues a dock receipt upon receiving the cargo, which is essentially a type of Received for Shipment B/L.
Comparison of Received for Shipment B/L and Shipped B/L
A Received for Shipment B/L is issued when the cargo has been handed over to the carrier but not yet loaded. A Shipped B/L is issued after the cargo has been physically loaded onto the vessel. In letter of credit transactions, a Shipped B/L is typically required. A Received for Shipment B/L can be converted into a Shipped B/L.
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Operational Points for Received for Shipment B/L
In practice, a Received for Shipment B/L is usually issued after the cargo has entered the port but before it has been loaded. If the letter of credit requires a Shipped B/L, the shipper can request the carrier to add an "On Board" endorsement along with a signature and stamp onto the Received for Shipment B/L after the cargo is loaded, thereby converting it into a Shipped B/L that meets the letter of credit requirements.
