Negotiable bill of lading: In this type of bill, a clear instruction is provided to make the delivery of the goods to anyone having the possession of the original copy of the bill, which itself signifies the title and control of the freight. In this type of bill, the buyer/ receiver or his/her agent has to acquire and present an original copy of the bill of lading at the discharge port. In the absence of original bill copy, the freight will not be released.
Non-negotiable bill: This type of bill of lading fixes a specific consignee/name of the receiver to whom the freights will be shipped and delivered. It, however, does not itself serve the ownership of the goods. Under this type of bill, the assigned receiver/ buyers can claim the cargo by confirming their identity.
Purpose of Bill of Lading:
The bill of lading document is meant to act as a transport document enacting as the evidence of the contract of carriage of the goods. A negotiable bill of lading has the following legal qualities:
· It acts as a piece of evidence for the carriage contract containing the terms and condition under which the goods transportation will be carried out
· It represents as a receipt which endorses that the carrier has received the cargo as per the contract and the goods are received in good condition.
· It is a document of title, permitting the sale of goods in transit and the raising of financial credit.
· Most of the local and international system does not consider a bill of lading as a document of title. It provides the right for the delivery to be made to the possessor