Sea Freight Bill of Lading in International Cargo Transportation

A Bill of Lading is the Title for International Shipping from the USA

The Ocean freight Bill of Lading (BOL, B/L or consignment ) is the mandatory document for international cargo transportation from the USA by sea. The document is prepared and issued by sea carriers. Issuing of the document means that a load has been received on board as cargo for conveyance to a named place for delivery to the consignee.

Besides other points, the Ocean BOL serves the following purposes:

1. It is evidence of a contract of carriage between a carrier and the shipper.

2. It is a receipt for goods shipping from the USA.

3. It is a title document for an imported commodity.

There are different types of bills of BOL cargo transportation for exporting goods from the U.S. Here are two of the most commonly used types of NON-NEGOTIABLE ocean B/Ls:

• Express release BOL = Telex release = Surrender and;

• Release endorsed upon a set of original BOL. 

NON-NEGOTIABLE international Bill of Lading: The document does NOT give the title to the commodity. The consignee (cargo recipient) named in the BOL must identify himself to claim the goods. Vs. NEGOTIABLE BOL issued "to the order of" is the title of the goods. I.e., a NEGOTIABLE Bill of Lading can be bought, sold, or traded while in transit.

International EXPRESS RELEASE Bill of Lading means you do not have to provide the originals to claim your goods at the destination. Shipments on express release should be discharged at the destination upon surrendering a copy of the B/L. It should state: "ZERO (0) – NO ORIGINALS REQUIRED FOR RELEASE".

The statement "SET OF ORIGINAL REQUIRED" means that goods CANNOT be discharged to the consignee unless the consignee has surrendered a set of originals.

In our practice, all ocean freight carriers' Bill of Ladings are NON-NEGOTIABLE and ON EXPRESS RELEASES without prior agreement. We email copies of the express release B/L as PDF files.  

Unless a set of originals is requested in advance, upon payment toward our invoices, we email carriers' BOLs to the parties paid for international shipping on or within a few days after the Estimated Date of Departure (ETD) of cargo from the USA. Sometimes, we invoice our customers based on the rated proofs of carriers' B/L. Refer to this step-by-step guide, step 5.

Upon receipt of a copy of the non-negotiable express release BOL, print it and keep it on record. Use it when you recover your shipping from the USA goods at the destination.

Please note that several countries worldwide, particularly Argentina, Brazil, Ecuador, and certain African countries, DO NOT accept express release B/L. Sea carriers should specify it when issuing the B/L. It should appear on a B/L like this: "ORIGINALS RELEASED AT DESTINATION." In such cases, the original BOL will be generated at the destinations. I.e., issuing an original BOL during international transportation is unnecessary. If generating originals at designations is impossible, we will mail you a set of originals. USPS First Class Mail within the USA is free. Expedited or international mail must be prepaid.

If a customer requires a set of Original B/L for shipments to a country that accepts express release, a $50 fee will be added to the carrier's freight cost. Postage must be prepaid. Issuing such sets of originals does not mean that the originals are required to discharge imported goods at the destination.

Letter of Indemnity in Shipping International Freight by Sea

If an original sea freight BOL is required for international shipping from the U.S. but needs to be amended or lost, the carrier may request a LETTER OF INDEMNITY. Here is a link to a sample of the LETTER OF INDEMNITY for international cargo transportation from the USA.

Additional Notes on Sea Freight Bill of Lading

Types of Consignments

There are three main types of ocean BOLs, each serving a different purpose:

• Straight Consignment – Non-negotiable. It names a specific consignee, and only that party can take delivery of the goods. Typically used for prepaid shipments.

• Order Consignment – Negotiable. The consignee can endorse the document to another party, allowing transfer of ownership. Commonly used in trade finance or when goods are sold in transit.

• Seaway Bill – Non-negotiable and used only when no transfer of ownership is required. It speeds up cargo clearance because no original paperwork is needed.

The type of B/L used determines how the load will be discharged at the destination and whether ownership can be transferred while the shipment is en route.

Document of Title

Beyond being a contract of carriage and receipt of goods, the BOL also serves as a document of title. This means the original document holder legally controls the right to claim the commodity. This function is critical in global transactions when the cargo is financed under a letter of credit.

Telex Release vs. Original Consignment

In modern logistics, many ocean carriers offer a Telex Release (also known as an Express Release), which allows cargo to be discharged without surrendering an original document. This is especially useful when time is short or the original documents are not physically available at the destination.

However, if a shipment is under a negotiable BOL, an original document must be presented before the freight can be released.

Accuracy and Legal Implications

A B/L must be consistent with the shipper’s commercial invoice, packing list, and booking information. If these documents don’t match, customs may hold the cargo, incur penalties, or refuse it to the consignee.

Moreover, the document is critical in legal disputes involving loss or damage. It serves as evidence of the condition and quantity of the cargo at the time of loading.