What are the differences between bills of lading vs. non-negotiable bills of lading?

What are the differences between the bills of lading vs. non-negotiable bills of lading?

Bill of lading is a transport document that is used in international port to port sea shipments. 

This transport document has a long history as it can be accepted as a first transport document used in international shipments.

The traditional bill of lading was developed before the industrial revolution had been taken place. 

At those times vessels were slow and information options were very limited comparing our current technology. 

Bill of lading has been evolved over the years in order to respond to the changing business environment. Non-negotiable bill of lading is one of the end results of this evolution.

The traditional bill of lading is a document of the title so you can transfer the ownership of the goods to another party by means of endorsement or delivery. 

For this reason, buyers have to present at least one original bill of lading to the carrier at the port of discharge. Non-negotiable bill of lading is not a document of title. 

As result buyers do not have to present at least one original bill of lading to the carriers at the port of discharge. 

Also, you cannot transfer the ownership of the goods to another party by means of endorsement or delivery under a non-negotiable bill of lading. 

That is why the non-negotiable bill of lading is called non-negotiable sea waybill. It is not a bill of lading in a traditional sense.

Main Differences :

·   Consignee: Bill of lading can be issued in a negotiable form. Non-negotiable sea waybill cannot be issued in a negotiable form. You should indicate your buyer's name on the non-negotiable sea waybill. 

·   Endorsement: The only bill of lading can be endorsed. Non-negotiable sea waybill cannot be endorsed. 

·   Delivery of Goods: Under the traditional bill of lading, buyers have to present at least one original B/L to the carrier’s agent at the port of discharge. Otherwise, they cannot get the goods unless a letter of indemnity is issued. Under non-negotiable sea waybill, buyers can claim the goods by confirming their identity.