What happens to the original bill of lading after a shipment has been completed..??

This is a question one of the regular readers of the blog posed to me the other day..

As you might have read in my previous post https://www.shippingandfreightresource.com/2008/10/13/article-2-the-documents/ there are many types of bills of lading one would encounter.. While each of the bills have a different ending point, the general ending point would be as explained below..

Generally, when an Original Bill of Lading is issued to the shipper they take 3 Originals.. One might be used for the bank, one might be used to send to the consignee, one might be kept with the shipper.. Whichever way it happens, once ONE of the Originals are surrendered to the shipping line/agent at destination for the release of the cargo, the other two Originals are deemed null and void and are rendered worthless..

It is the responsibility of the shipping line/agent at destination to ensure that the Original bill of lading received is duly discharged.. (please see https://www.shippingandfreightresource.com/2008/11/17/duly-discharged-bills-of-lading-the-great-debate/)..

What happens to the one duly discharged Original (or could be all 3) that is collected by the shipping line/agent..?? Those Original(s) are generally cancelled by drawing red lines across the area where it has been signed and the words CANCELLED or DISCHARGED is written so that there will be no further misuse or claims of these bills.. The bill is now deemed to be duly discharged..

43 COMMENTS

soufiene December 30, 2022 At 10:38 AM

We have an Member’s vessel scheduled to arrive/discharge grain cargo over the coming weekend. Freight and loadport demurrage were to be paid within three days. Freight was paid (albeit late) but the loadport demurrage has not been paid and charterers suggesting it will be paid sometime next week (after the vessel arrives at the discharge port).

Can you please advise

1. Whether holding onto the Bills of Lading assists in asserting rights there; İf we do not release original bl it will keep us strong position against to receivers’ / charterers’ further action or not?

- Hariesh Manaadiar December 30, 2022 At 6:58 PM
  
  Hi Maroueni, who are you in the equation..??
Samuel September 7, 2021 At 2:10 PM

Good day, thank you for this article.

Can a Bill of Lading be recalled even after shipment has begun in order to protect the interests of the consignor?

I sent some goods to another country, however, I included the details of the consignee whereas I’m yet to receive payment.

I have a feeling the consignee might abscond with the goods and not pay, hence why I’m asking if the bill of lading can be recalled.

Thank you.

IQBAL SHAIKH July 7, 2021 At 7:39 AM

I am an importer, I got about 72 shipments by Alibaba trade assurance from china
Last shipment from old supplier since 2018 to now, we place order 0ctber 29-2020 with 30% deposit, with the balance paid against telex release bill of lading. supplier agreement after receiving deposit 20 days to ship goods.with CIF TORONTO CANADA
the supplier sent less quantity, but invoice full quantity, when he responded April 16-2021, an adjusted invoice with actual quantity shipped, final payment full we paid to the supplier on April 2021, he told us he will release bill of lading asap, because of he is our old supplier after he didn’t send telex bill of lading, shipping company not releasing goods without original bill of lading surrender by a supplier, I saw shipping company full payment, but they say supplier didn’t pay CIF fright to the shipping company, so they holding my containers almost 2 months now shipping company release containers, but asking me to pay CN storage and pick up mounting about $ 30,000 USD

I paid on time, this is not my fault, this is a CIF shipment so anything happed I should be covered

please reply to me asap

1 647 990 6370 _IQBAL SHAIKH mobile/wechat/telegram

iqbalwholesale1994@gmail.com

http://www.iqbalwholesaledistributor.com

Eric Addico September 12, 2020 At 9:31 AM

Please how long does it take for the shippers/carriers to hand the bill of laden to the agent. I am the consignee and my agent keeps telling me he has shipped the car but waiting for the BL to send to me but I don’t know when that will be. Can you help

- Hariesh Manaadiar September 12, 2020 At 8:36 PM
  
  Hi Eric, generally a bill of lading can be issued within 2 working days of vsl sailing.. It depends on when the agent is submitting all the required documents to the shipping line and making freight payments if any etc..
Ragothaman Raghavan July 29, 2020 At 3:35 PM

Hi Sir,
I lost the Original BL. Still I have the scanned copies of all the shipping documents including BL. Can I get them endorsed to clear the cargo?

enrique March 1, 2020 At 7:17 AM

A question:
the consignor sent to us (the consignee) a bill of lading by Courier, but it was lost by the courier. Then the consignor started the process of declaring BL lost, signing letter of indemnity, publising the lost in newspaper, etc.. But suddenly the original bill of lading was found by Courier and delivered to us. The question is: can we use this original bill of lading to claim the cargo? even if the lost BL process is almost complete?
thanks for your help

- Hariesh Manaadiar March 1, 2020 At 3:45 PM
  
  Hi Enrique, the process of lost OBL will not be complete until there is a bank guarantee and another set of bill is issued based on this guarantee and indemnity etc.. So if the OBL has been found and the 2nd set has not been issued, then yes the first set can be used..
shakil ahmed December 11, 2018 At 1:06 PM

hello hariesh sir please give answer of this question, in case when goods delivered on one original bill of lading what will be the validity of the other two bill of lading?

- Hariesh Manaadiar December 11, 2018 At 1:53 PM
  
  Hi Shakil, there is no such thing as a “validity” on a bill of lading.. If you read above article it says “once ONE of the Originals are surrendered to the shipping line/agent at destination for the release of the cargo, the other two Originals are deemed null and void and are rendered worthless..”..
Grace Ozumba December 5, 2017 At 1:45 PM

Please advise me on what to do l have paid my shipper,and my container have arrived at the destination . I still have not getting the bill g of lading from the shipper ,because he have some debit with measke line so the can’t issue billing of lading until he pays of his debit .my container is at the sea port building up duemorage.

Fred October 30, 2017 At 4:38 PM

Hello, maybe you can help me. We do buy products in India by container and import them in the UK. We pay our manufacturer once the cargo has been loaded on the ship in India. Our Indian manufacturer send us the BL once he has been paid and we use the BL to get the container released in the UK. This is easy, our manufacturer is the Shipper and we are Consignee. But sometimes it gets a bit more complicated. I am currently dealing with a situation where a buying agent (based in Denmark) has purchased a container from us for one of his clients in Saudi. The question now is who should be the Consignee on the original BL. Can I be Consignee with a UK company even the goods are going to Saudi ? According to some information I have received having the final Saudi buyer as Consignee might be problematic for Indian customs purposes because the invoice they receive is between the Shipper/Manufacturer and ourselves. Also I don’t necessarily want the Saudi buyer to know who is the manufacturer and I have heard of Switching BL for that purposes. Your insight would be very valuable. Thank you

Fatima August 23, 2017 At 11:18 AM

Hello i have a question , once the shipment has taken place , the shipping agent issue a draft bill of lading right , my question is to whom the original bill of lading should be sent first is it the consignee or to the seller in my case we are the shipper ?

Many thanks in advance .

Salim Benhima May 16, 2017 At 5:32 PM

hi Hariesh,

Is a ship agent entitled to hand Deilvery order to Consignee, agaisnt presentation of full set of Original B/Ls ( 3/3) made out to
“To Order” but not endorsed /stamped by Shipper

thank you for your advice
salim

Htet Ko Zin December 27, 2016 At 10:44 AM

Thanks a lot, sir

wawang November 18, 2015 At 10:31 AM

Indonesian Bank would not negotiate the LC with clause ” two original BLs for bank negotiation, and 1 original BL send directly to Consignee”. The Bank needs ” Full set of Original BLs for bank negotiation”
thank you

george August 12, 2015 At 2:24 PM

Thank you for this post. Could you please advise who keeps the BLs after they have been marked null and void? Does it make sense if a shipping company requires the BLs to be handed over to the company after the completion of the shipment?

Boon August 6, 2014 At 1:41 PM

Why master issue 3 original? Could master issued 1 or 2 or 4? Is 3 original BL to be issued a tradition passed down?

- Hariesh Manaadiar August 6, 2014 At 1:59 PM
  
  Hello Boon, technically any number of original bills of lading maybe issued for any shipment (whether Master or House).. There is no specific or legal limitation for this.. The linked article gives some explanation the reasons for number of OBsL..
Yin Nwe January 29, 2014 At 9:37 AM

I would to know that how to I check that BL is correct or not ?

- Hariesh Manaadiar January 30, 2014 At 12:07 AM
  
  Hi Yin, presume you mean after you submit the bill of lading details you want to check if the bill of lading is correct or not..?? You can ask the shipping line to send you a draft copy which you can check and advise the line if it is correct or if you need to make any amendments.. Once you advise everything is correct, then the shipping line will issue the final bill of lading..
Pamela September 6, 2013 At 10:10 PM

You are saving my life y more probably my job!!!!

jassi April 18, 2012 At 11:43 AM

I would like to know the differences and the documents required between forwarding and direct client.

Benu March 6, 2012 At 8:43 AM

What will happen if the Bill of Lading lost by shipper??

- manaadiar March 6, 2012 At 2:59 PM
  
  Hi Benu, pls read my other article reg lost bills of lading.. https://www.shippingandfreightresource.com/2010/09/17/what-to-do-when-the-original-bill-of-lading-is-lost/..
michal quinn January 30, 2012 At 3:40 PM

After the container entered the port the dock receipt was stamped,the trucker gave it to me but my shipping agent has not come for the stamped dock receipt.Upon checking the container number it says the container is on the high sea to its destination.How wil i know if my agent has paid for the container?

- manaadiar January 30, 2012 At 4:43 PM
  
  Hi Michal, when you say “How wil i know if my agent has paid for the container?” do mean if your agent has paid for the shipping line freight charges or which charges..?? Did you agent make the booking with the line or did you do it..??
helen david January 27, 2012 At 4:55 PM

bill of lading shows port of loading antwerp and at the bottom of the document shows laden on board rotterdam.
what problems should one anticipate and what’s to be done?
thanks

manaadiar January 27, 2012 At 3:43 PM

Hi Helen, can you give an example..?? Which port is it..??

helen david January 27, 2012 At 9:57 AM

hi again,
on a bill of lading, port of loading is shown name a. while under laden on board, it shows name b.
it that a discrepant document? why shipping lines put 2 different ports?
thanks
h.

eleni david January 6, 2012 At 7:41 PM

clear.
from your experience, has there been any fraud or court case for such issues?
thanks once more

- manaadiar January 7, 2012 At 12:19 AM
  
  No, i have not had any personal experience, but there are many cases that you will find at any maritime law firm..
helen david January 5, 2012 At 4:08 PM

thanks a lot, i read the article which is very explanatory. i hope you can help me with the following question :
– bills of lading lost
– a bank guarantee is issued as you say, goods are cleared etc….
– how long the bank guarantee should be valid? because i think, there must be a way that the original bill of lading is somehow voided.
– when a bank guarantee is issued, the bank blocs about 120% of the value. if the bank guarantee is for ever….., then this money stay with the bank for ever and ever….?
i would appreciate your comments…

- manaadiar January 5, 2012 At 9:10 PM
  
  Hi Helen , the bank guarantee is generally valid until the bill of lading is presented, or until the shipping company releases the bank from its liability.. The shipping line normally will release the bank from its liability once all their monies have been recovered at load port and discharge port and the cargo has been released to the correct party and that correct party has cleared the goods through customs and produced proof of such clearance to the line and the line is fully satisfied.. This could vary from country to country and between shipping lines..
helen david January 5, 2012 At 10:27 AM

what happens is 3/3 originals bills of lading are lost?

- manaadiar January 5, 2012 At 10:43 AM
  
  Hi Helen, pls refer to my article reg lost bills of lading – https://www.shippingandfreightresource.com/2010/09/17/what-to-do-when-the-original-bill-of-lading-is-lost/..
Joe Nelson July 28, 2011 At 12:40 PM

If a person asks an agent to ship items on their behalf and the agent refuses to send a copy of the bill of laden to them after all payments are made is the shipping company by law required to send a copy of the bill of laden to the consignee if they are the legal owners of the item?

- manaadiar July 28, 2011 At 12:49 PM
  
  Hi Joe, if you are the legal owner of this cargo and you have proof of this, and this agent is holding back the bill of lading even after you have paid them, then your first recourse would be to go to the police and lodge a complaint against this agent and try to get it sorted that way.. If that doesn’t work, you can try to get a court order to cancel the original bill of lading and get the shipping line to re-issue a new set of originals based on the court order..
Shipping To South Africa August 10, 2010 At 4:14 PM

I am am often asked this question by customers. Surprisingly Upon till that point I have never really thought about it.
Good post !!!

- manaadiar August 10, 2010 At 8:23 PM
  
  Yebo, its all these simple but unexpected questions that make us think.. :o)
Pradeep May 4, 2010 At 3:17 PM

great site. keep it up !!

- owais December 18, 2016 At 3:25 PM
  
  You are a saviour!!!!! thank you so much for this site, newcomers in this industry owe you for this one.