Endorsing a bill of lading means that the entitled holder signs and stamps the back of an order bill of lading, thereby transferring the right to take delivery of the goods to another party. The endorsement can be a full endorsement naming a specific person or a blank endorsement consisting of the signature only. In addition to the endorsement, the transfer also requires delivery of the original document; a straight (named) bill of lading cannot be transferred by endorsement.
Why is endorsement necessary?
A bill of lading is a document of title under which the carrier is obliged to deliver the goods only against presentation of the document (Turkish Commercial Code, TTK Art. 1228). Whoever holds the document also controls the goods. If the goods are sold while in transit, if a bank wants to secure payment or if the buyer passes the goods on to someone else, this right is transferred by endorsement. The general structure of the document is explained in the entry on the bill of lading.
Which bills of lading can be endorsed?
Under the Turkish Commercial Code, a bill of lading can be issued as a straight (named), order or bearer document; unless otherwise agreed, it is issued at the shipper's request to the order of the consignee or simply "to order", in which case "to order" means to the order of the shipper (TTK Art. 1228/3).
| Type | Consignee box | Method of transfer |
|---|---|---|
| Order bill | "To order", "To order of shipper", "To order of X Bank" | Endorsement and delivery of the document |
| Straight (named) bill | Consignee's name and address (straight B/L) | Not by endorsement but by a written declaration of transfer (assignment of claim) |
| Bearer bill | "To bearer" | By delivery of the document; no endorsement needed |
The law requires endorsement and transfer of possession for the transfer of order instruments, and a written declaration of transfer for named instruments (TTK Art. 647–648).
Types of endorsement
- Full (special) endorsement: A wording such as "Deliver to the order of ABC Ltd.", the date, company name, signature and stamp. The right passes only to the named party, who may endorse it again.
- Blank endorsement: Only the endorser's signature and stamp. Whoever holds the document is deemed the holder; this is risky, because if the document is lost, the finder can also claim rights. The law defines a blank endorsement as an endorsement consisting solely of the signature; an endorsement to bearer is also treated as a blank endorsement (TTK Art. 682–683).
- Bank endorsement: In a transaction under a letter of credit, the bill of lading is usually issued "to order of [bank]". After payment or acceptance, the bank endorses the document to the buyer.
Endorsement step by step
- Check that the bill of lading is an order bill and to whose order it has been issued.
- The endorsement is written on the back of the document (or on an attached allonge); the company name, authorised signature and stamp are added.
- For a full endorsement, the full company name of the transferee is written.
- All originals of the set ("full set", usually 3/3) are sent to the transferee.
- At the port of destination, the last holder surrenders one original to the carrier or its agent and receives a delivery order.
How to read the chain of endorsements
The holder's right is established by an uninterrupted series of endorsements (TTK Art. 686). Every link – from the shipper to the bank, from the bank to the buyer and from the buyer to the final buyer – must be visible on the document. A break in the chain, e.g. an intermediate endorsement missing a signature, can lead the carrier to refuse delivery. If more than one original has been issued, the carrier may deliver the goods to the lawful holder of a single original (TTK Art. 1230); checking the full set is therefore part of securing payment.
Common mistakes
- Sending a "to order" bill of lading to the buyer without the shipper's endorsement
- Making a partial endorsement; under the law, a partial endorsement is void (TTK Art. 682)
- Endorsement without a stamp or signed by an unauthorised person
- Sending a single original instead of the full set
- Trying to transfer a straight bill of lading by endorsement
For shipments in which the document does not need to circulate, a sea waybill or a telex release may be more practical. For letters of credit and document compliance, support is available through regulatory consulting.