Difference between Ocean, Sea waybill and Memo Bill of Lading

Are there any differences between these types of bills of lading..??

A Bill of Lading has 3 basic purposes or roles

Evidence of Contract of Carriage
Receipt of Goods and
Document of Title to the goods

There are also different types of bill of lading all of which perform 1 or 2 or 3 of the above roles..

Ocean Bill of Lading : is a bill of lading issued by the carrier to their customer after the payment of all charges and submission of all customs/port documents relevant to that country..

An Ocean Bill of Lading is a Negotiable document which serves also as an Evidence of Contract of Carriage, Receipt of Goods and Document of Title..

Usually issued as 3 originals (signed and stamped and negotiable) + 6 non-negotiable copies..

Using an Ocean Bill of Lading, shipper has the option to consign the shipment to either

To a direct customer (in this case the bill of lading becomes a Straight Bill of Lading and is no longer Negotiable although it still retains the other two characteristics of a Receipt of Goods and Evidence of Contract of Carriage)
To Order of a customer
To Order of a Bank
To Order of Shipper (To Order)

This bill of lading when consigned to either of the last three mentioned parties, allows the goods to be endorsed to another party in case the original buyer decides to resell the cargo..

If it is a Straight Bill of Lading, cargo can be delivered to the nominated consignee but ONLY after the bill of lading is presented to the discharge port agents..

Sea Waybill

A Sea Waybill is a transport document that can be used as an alternative to the bill of lading.. Just like a bill of lading, a Sea Waybill is issued by the carrier to their customer after the payment of all charges and submission of all customs/port documents relevant to that country..

A Sea Waybill is NOT a Negotiable document and there is NO ORIGINAL ISSUED.. It is also NOT a Document of Title..

A Sea Waybill serves as Evidence of a Contract of Carriage and Receipt of Goods.. This document is more relevant for non-commercial transactions, inter-company sales, or where there is no involvement of any documentary credits..

A Sea Waybill CANNOT BE CONSIGNED TO ORDER of someone else.. It has to be consigned to a direct customer only.. Delivery of cargo covered under a Sea Waybill can be made ONLY to the consignee on the bill of lading or their authorised representative..

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A Consignee thus properly identified, is not required to present any transport document at the port of discharge..

A Sea Waybill is usually issued :

when the shipper and consignee are part of the same business group and there are no negotiations required between the two either directly or via bank for release of the cargo
the shipment doesn’t involve any bank and the shipper doesn’t really need to submit an original bill of lading to secure their payment
when the shipper doesn’t have the time to print the original bills and courier the same to the consignee
the shipper is a freight forwarder and wants to issue a house bill of lading to the customers

When the cargo covered under a Sea Waybill is released, the release may be termed as Express Release..

Memo Bill of Lading : Short for Memorandum bill of lading, it is basically a non-negotiable, non-transferable, unfreighted bill of lading that is only used as a receipt of goods and DOES NOT classify as a Document of Title..

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Trust this assists in clarifying the difference between Ocean Bill of Lading, Sea Waybill, Memo Bill of Lading..

20 COMMENTS

Kejo April 23, 2019 At 6:46 PM

Can the customer demand to be listed as “the shipper” on the SWB? (even though incoterms are CIF). Will they then become liable for the container during transport? We have this strange request from one of our customers.. Thanks to clarify

Hussain November 19, 2017 At 5:26 PM

Hi, need to know ocean freight payer instruction

Olivier LECROQ September 7, 2017 At 7:13 PM

Hello
Whose instructions/authorisation do I need to change the Consignee on of Seawaybill issud (cargo not delivered yet) ? IS carrier liable to the consignee or only to the shipper ?

- Hariesh Manaadiar September 8, 2017 At 8:19 AM
  
  Hi Olivier, it depends on how the bill of lading has been consigned and who has the actual original bill of lading now..
mustafa August 8, 2017 At 8:53 AM

Very useful! thank you sir

Htet Ko Zin January 5, 2017 At 9:53 AM

Thanks a lot, sir

Bakri Sammani November 13, 2016 At 2:49 PM

Very clear and useful thanks

yen October 20, 2016 At 4:04 AM

if the original BL consign to “TO ORDER”, what is the correct procedure in submitting the original BL for exchanging the D/O

- Hariesh Manaadiar October 20, 2016 At 7:22 AM
  
  Hello Yen, please read this article which will help.. https://www.shippingandfreightresource.com/who-should-endorse-a-bill-of-lading-for-cargo-release/
hassan June 18, 2016 At 8:50 PM

Dear Mr Hariesh

i still misunderstanding the memo bill of lading , is it similar to seaway bill

what do u mean with unfreighted bill of lading ? that is mean that client doesn’t pay the freight to shipping line

Thanks

Hassan

- SACHIN PATIL September 7, 2017 At 2:49 PM
  
  Assume 1 BILL of LADING having 4 containers and 1 container is unavailable during loading on respective vessel due to non-clearance of the container or missed container in terminal. In this case all 3 containers loaded on nominated vessel but not that 4th container. Then to load that 4th container on next available vessel Memo bill ( to show proof that container is loading on vessel ) is generated which shows all details of current vessel with information of actual bill of lading i.e. shipper/consignee, loading/discharge port etc. except the freight details as its already shown on actual bill of lading. It’s also mentioned on memo B/L that container delivered upon showing actual bill of lading at discharge port.
chahat thakkar May 13, 2015 At 7:40 AM

Thanks for the article. As a buyer, We differentiate between Ocean Bill of Lading and Seaway Bill of Lading as Original B/L and Express B/L respectively. It is good to know the trade names. I landed on this article through your recent article on impact of type of B/L on insurance.

- Hariesh Manaadiar May 14, 2015 At 10:39 PM
  
  Hi Chahat, glad to be assistance..
mandeep singh July 10, 2013 At 9:28 AM

the best thing is its easy to understand

Mohd Anis May 30, 2013 At 4:27 AM

i think this is a very useful information and it was delivered in a simple manner plus very easy to understand. Appreciates the effort.

sarnai June 14, 2012 At 9:14 AM

hello! this is very helpful blog. I am new here thank u very much for all the information. I ll ask u many question later 🙂

Manaadiar March 29, 2012 At 9:52 PM

There is no difference between To Order and To the Order.. However, if there is something else after the Order, then its meaning changes.. Pls read my article on this https://www.shippingandfreightresource.com/2008/11/17/duly-discharged-bills-of-lading-the-great-debate/

Susmita Golam March 18, 2012 At 11:47 AM

Dear Rose,

I am new in this blog. If you have got the answer please send me.

Thanks
Susmita

Rose November 16, 2011 At 7:01 AM

pls can you advice if there is any Difference between TO order & To The order –or its the same

- mohamed January 18, 2016 At 6:26 PM
  
  to order only in this case b/l free to sold any company but to the order of (like bank ) in this case the bank must be endorsement to new company