A bill of lading (B/L, Turkish: konişment) is a document of title in sea transport, issued by the carrier or on its behalf by the master or an agent, which shows that the goods have been received or loaded on board, evidences the contract of carriage and ensures that at the port of destination the cargo is delivered only to the party presenting it. It can be issued to order, to a named consignee or to bearer; it is the core transport document banks look for in letter-of-credit sales.
What are the three functions of a bill of lading?
Article 1228 of the Turkish Commercial Code (TTK, Türk Ticaret Kanunu) defines the bill of lading as a document that evidences the conclusion of the contract of carriage, shows that the goods have been received by the carrier or loaded on board, and against the presentation of which alone the carrier is obliged to deliver the goods. This definition brings together the document's three separate jobs:
- Receipt for the goods: The number of packages, gross weight, marks and apparent condition of the goods are recorded. A document without any notation of damage or shortage is called a "clean" bill of lading.
- Evidence of the contract of carriage: The bill of lading is not the freight contract itself but evidence of it. In the relationship between the carrier and the holder of the bill of lading, the entries in the bill of lading prevail (TTK Art. 1237).
- Document representing the goods: Handing the bill of lading over to the entitled person has the effect of transferring possession of the goods (TTK Art. 1234). This allows the cargo to be sold or pledged to a bank while still at sea.
The difference between order, straight and bearer bills of lading
| Type | Consignee field | How is it transferred? | Typical use |
|---|---|---|---|
| Straight (named) | Name of a specific consignee | Cannot be transferred by endorsement | Cash-in-advance sales, intra-group shipments |
| To order | "To order" or "to order of [bank]" | By endorsement and delivery | Letter of credit, documents against payment |
| Bearer | Left blank | By delivery only | Rare; high risk of loss and theft |
Bills are also divided into two by timing. If the goods have been received but not yet loaded on board, a "received for shipment" bill is issued; once loading is complete, a "shipped on board" bill is issued. If the vessel's name and the loading date are noted on a received-for-shipment bill, it takes effect as a shipped bill.
Why is the original copy so important?
A bill of lading is usually printed in three originals, and the number of originals issued is stated on it with a notation such as "3/3". If there are several originals, the goods are delivered to the lawful holder of any single one (TTK Art. 1230); once one original is used, the others become void. That is why banks and buyers ask for the full set. Cargo cannot be collected with copies marked "Copy – non negotiable". In flows where no document needs to be presented, a telex release or sea waybill is used.
Who issues the bill of lading?
Under the TTK, the bill of lading is signed on behalf of the carrier by the master, the carrier or a representative authorised by the master. In practice, the shipping line or its agent prepares a draft according to the shipping instruction sent by the shipper; the shipper approves the draft, and the originals are printed after loading. In consolidated cargo, the forwarder issues a house B/L to its own customer, while the shipping line issues a master B/L to the forwarder. This distinction is explained in detail in the master B/L vs house B/L entry.
How is a bill of lading examined under a letter of credit?
The ICC's UCP 600 rules (Art. 20) require the following in a bill of lading acceptable to a bank: the name of the carrier and the signature of the carrier, master or agent; an "on board" notation with its date showing that the goods have been loaded on a named vessel; the ports of loading and discharge stated in the credit (see POL and POD); a sole original or the full set of the stated number of originals. Under UCP 600 Art. 14(c), the original transport document must be presented no later than 21 calendar days after the date of shipment and before the expiry of the credit.
Common mistakes
- Consignee and notify fields written differently from the letter of credit text
- Description of goods and number of packages not matching the commercial invoice
- Sending the originals piecemeal with different couriers
- Mixing up house and master B/L numbers in LCL shipments
- Not allowing for the extra fees and delays of corrections made after the vessel has sailed
How does Voltim Global support this?
Since 2014, Voltim Global has carried out more than 5,000 shipments, and over 1,500 international trips in the last two years; most shipments on the Russia–Akkuyu line were carried via the Tuapse–Taşucu Ro-Ro line. For sea freight shipments, support for aligning the bill of lading draft with the letter of credit and the invoice is available from the regulatory consulting team.