A sea waybill is a non-negotiable sea transport document that evidences the contract of carriage and receipt of the goods but is not a document of title. The goods are delivered without presentation of the original document to the consignee named on it once the consignee proves its identity. It is therefore faster than a bill of lading; on the other hand, the goods cannot be sold or pledged as security by means of the document.
The key difference from a bill of lading
Under a bill of lading, the carrier delivers the goods only to the lawful holder presenting the document (Turkish Commercial Code, TTK Art. 1228). An order bill of lading changes hands by endorsement and represents the goods. A sea waybill has no such function: the document bears the wording "non-negotiable", the consignee's name is fixed and no original is required at destination. The carrier merely checks the consignee's identity and authority to make sure it delivers the goods to the right party.
The rules between the parties are usually set by reference to the 1990 CMI Uniform Rules for Sea Waybills of the Comité Maritime International (CMI); BIMCO's GENWAYBILL form is an example of such standard documents.
Comparison table
| Feature | Original bill of lading | Telex release | Sea waybill |
|---|---|---|---|
| Document of title? | Yes | An original is issued but surrendered to the carrier at the port of loading | No |
| Transfer by endorsement | Possible (if issued to order) | Not possible after surrender | Not possible |
| Original required at destination | Yes | No | No |
| Who takes delivery? | Lawful holder | Consignee named on the document | Consignee named on the document |
| Risk of loss | High | Ends at origin | None |
With a telex release, an original bill of lading is first issued, then surrendered to the carrier at the port of loading, and a release instruction is sent to the agent at destination. With a sea waybill, there is no original set from the outset. Both methods are explained in detail in the entry on telex release and seaway bill.
When is it preferred?
- Shipments between group companies
- Sales to reliable buyers on prepayment or open account
- Short sea routes on which the goods can arrive before a document sent by courier
- Cargo that is not intended to be sold in transit
It is not suitable, however, where payment is tied to the document: the seller cannot control the goods by holding the document. Under cash against documents, a sea waybill does not protect the seller.
Can it be used under a letter of credit?
It can be used if the letter of credit explicitly permits it. The ICC's UCP 600 rules treat the non-negotiable sea waybill as a separate document type (Art. 21). However, even if the bank holds the document, it gives no control over the goods; banks therefore usually require a full set of order bills of lading. In a sale under a letter of credit, the document type should be agreed with the buyer before the credit is opened.
Who issues it and how is it requested?
The sea waybill is issued by the ocean carrier or its agent on its behalf. The shipper selects "sea waybill" as the document type in the shipping instruction; if no choice is made, lines usually issue an original bill of lading. After the vessel's departure, the document is sent as an electronic copy, and the consignee obtains the delivery order from the agent at destination by proving its identity and authority. The same choice can be made for house documents issued by a forwarder; the master and house documents may be of different types.
The shipper's right of control
Under the CMI rules, the shipper can change the consignee's name by instructing the carrier until the goods are delivered to the consignee. This right can be transferred to the consignee by contract; if a clause to this effect is entered on the document, the shipper can no longer change the consignee later. Buyers seeking payment security request this clause.
Common mistakes
- Shipping with a sea waybill before payment has been received
- Writing the consignee's company name incompletely, so that identity cannot be matched at destination
- Presenting a sea waybill when the letter of credit requires a bill of lading
For container shipments, the choice of document type is specified in the shipping instruction as part of the container transport plan.