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Bill of Lading (B/L) – The Holy Grail! 🚢

If you lose the Invoice, you can print another one. If you lose the Bill of Lading, you are DOOMED.

Definition: A document issued by the Shipping Company (Carrier) acknowledging that they have received the goods for shipment.

Three Functions of B/L (The Trinity) 🔱

1. Receipt of Goods"Proof that ship has the cargo"
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2. Contract of Carriage"Agreement to transport A to B"
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3. Document of Title"Whoever holds B/L OWNS the goods!"

1. Receipt 🧾

  • "We have received 100 boxes of Tea from Mr. Raj."

2. Contract 🤝

  • "We agree to carry these boxes to London for $1000 freight."

3. Document of Title (Crucial!) 🔑

  • This is the Key.
  • The Captain of the ship will give the goods only to the person who shows the original Bill of Lading.
  • Transferable: If I sell the goods to you while they are on the ship, I just endorse (sign) the B/L and give it to you. Now YOU own the goods!

Types of Bill of Lading 📜

  1. Clean B/L: "Goods received in good condition." (Banks love this).
  2. Dirty / Claused B/L: "Goods received but 2 boxes broken." (Banks reject this).
  3. Through B/L: Covers the entire journey (Truck -> Ship -> Truck).
  4. Stale B/L: Reached the bank after the ship arrived. (Useless).
Airway Bill (AWB)

For Air transport, we use Airway Bill. Difference: AWB is NOT a document of title. It is just a receipt. You cannot sell goods by transferring the AWB.

Quiz Time! 🎯

Test Your Knowledge

Question 1 of 5

1. Who issues the Bill of Lading?

Exporter
Importer
Shipping Company
Bank

💡 Final Wisdom: "The Bill of Lading is the 'Key' to the floating warehouse (the ship). Guard it with your life!" 🗝️

Next up: Marine Insurance - Because ships sink! 🌊

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