Stolen BLs and Blank Endorsements: Can a Thief Really Claim the Goods?

Intro:

In trade finance, order bills of lading blank-endorsed are powerful documents—they can pass title simply by delivery. But what if one is stolen? Could a thief fill in a name above the blank endorsement and walk away with the cargo? This question gets to the heart of document security, carrier responsibility, and the limits of what a thief can (and cannot) do.

QUESTION

Sir,

Is a BL consigned to Order and blank endorsed risky in the sense that, someone stole it before it could reach to the issuing Bank and released the cargo stating Deliver to followed by the name of the person who stole it, above the black endorsement?

Roshani

_______

ANSWER

Hi,

In theory, yes, a blank endorsed order BL can be risky if it falls into the wrong hands.  But let’s be clear:

A person who steals a BL is not a bona fide holder, nor are they the notify party on the BL. The carrier has a duty to check carefully before releasing goods, and if it delivers against a stolen BL, it may be liable for wrongful delivery.

As for the thief: they do not acquire any legal rights through the stolen BL. Their actions may give rise to criminal liability (theft, fraud, forgery) and also civil liability if they took delivery or resold the goods. The rightful BL holder or consignee can still claim damages or recover the goods, and the thief may be prosecuted under criminal law.

Conclusion:

While a stolen BL certainly poses risks, carriers and banks are expected to exercise caution. The thief cannot become a lawful holder, and any attempt to use the stolen BL exposes them to both civil and criminal consequences.

Best regards,

Mr. Old Man