Questions regarding bill of lading and other transport documents

QUESTION

Hello Mr. Old Man,

First let me thank you for your website.

Here are some questions that have been bothering me for a while:

1) The bill of lading can be “an order” or “named”, for what reason, is it endorsed when it is “an order” while it is not endorsed in the case of a nominative bill of lading?

2) Why is the bill of lading the only transport document that can be “an order ”, therefore, endorsable, while other transport documents (air, road … etc) are still nominative?

Thank you

Best regards

Riad
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ANSWER

Hi,

1) According to common law, a bill of lading is a document of title to the goods shipped on board the vessel. Where it is made out to order, it can be transferred by endorsement to enable the lawful holder to take delivery of the goods. However, where it is consigned to a named party it is called a straight bill of lading or a nominative bill of lading which cannot be transferred to another party by endorsement. Only the consignee named in the bill of lading can take delivery of the goods.

2) Air waybill, Sea waybill, Rail waybill or Road way bill serves as a receipt of goods and an evidence of carriage contract, but it is not a document of title. It cannot be issued to order but consigned to a named party. Therefore, it cannot be transferred to another party by endorsement. Only the consignee named in the bill of lading can take delivery of the goods.

The rules/laws so state and we sometimes should not ask why a bill of lading is a document of tile while other transport documents are not.

Kind regards,
Mr. Old Man