Bill of lading: Difference between revisions
John Shandy` (talk | contribs) Wrote new separate article for bill of lading. It's a stub for now, but it is still more desirable than being a section of securities market where it doesn't belong. |
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[[Category:International trade]] |
[[Category:International trade]] |
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[[he:שטר מטען]] |
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Revision as of 05:47, 4 July 2012
A bill of lading (sometimes abbreviated as B/L) is a document issued by a carrier which details a shipment of merchandise and gives title of that shipment to a specified party.[1] Bills of lading are one of three important documents used in international trade to help guarantee that exporters receive payment and importers receive merchandise. A straight bill of lading is used when payment has been made in advance of shipment and requires a carrier to deliver the merchandise to the appropriate party. An order bill of lading is used when shipping merchandise prior to payment, requiring a carrier to deliver the merchandise to the importer, and at the endorsement of the exporter the carrier may transfer title to the importer. Endorsed order bills of lading can be traded as a security or serve as collateral against debt obligations.[2]
Bills of lading have a number of additional attributes, such as on-board, received-for-shipment, clean, and foul. An on-board bill of lading denotes that merchandise has been physically loaded onto a shipping vessel, such as a freighter or cargo plane. A received-for-shipment bill of lading denotes that merchandise has been received, but is not guaranteed to have already been loaded onto a shipping vessel. Such bills can be converted upon being loaded. A clean bill of lading denotes that merchandise is in good condition upon being received by the shipping carrier, while a foul bill of lading denotes that merchandise has incurred damage prior to being received by the shipping carrier. Letters of credit usually will not allow for foul bills of lading.[2]
See also
References
- ^ Levi, Maurice D. (2005). International Finance, 4th Edition. New York, NY: Routledge. ISBN 978-0-41-530900-4.
- ^ a b Buckley, Adrian (2004). Multinational Finance. Harlow, UK: Pearson Education Limited. ISBN 978-0-27-368209-7.
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