This content was reviewed for accuracy on 11/08/2023
Bill Of Lading (B/L or BOL)
The Bill of Lading (some suppliers may refer to this as the bill of laden) is the legal document that contains details about the shipment and its location can represent ownership of the goods. Once ‘released’ this transfers the ownership from the seller to the buyer. This happens once the supplier is happy that you have paid for the goods in full and the shipping agent has received payment from the supplier for the local fees.
The details on the Bill of Lading are confirmed by the Supplier (the Shipper). The shipping agent sends them a draft copy that they can check with you (or the buyer so the goods are consigned to the correct person/company). Once the supplier has confirmed that the details are correct the shipping agent finalises the document. Once the buyer has paid the supplier for the goods, it’s time to transfer ownership to the buyer. Here’s how that can be done…
What is the difference between ‘Telex’, ‘Original’ & ‘Surrendered’?
The difference is where the Bill of Lading is held until the payments are all received. The supplier will either receive the original document or leave this with the shipping agent who produces it.
What is the process for having the B/L ‘Telex’ Released?
When the Bill of Lading is Telex Released, the original document stays with the shipping agent. To have this released, the supplier will send a signed/stamped guarantee letter to the agent to confirm that the goods have been paid for by the buyer – once the supplier has paid the agent for the local fees they will then show the document as ‘Telex released’.
What is the process for having the B/L ‘Surrendered’?
Surrendered is another way to release the B/L, and ownership of the goods to the buyer. The supplier will receive the original document which they can hold onto until the payment for the goods has been received. Once payment for the goods has been received, in a similar way to “Telex” releasing a B/L, the supplier will then send a letter of guarantee to the shipping agent.
Once the payment for the goods has been received, the supplier will physically send back the document to the agent which is stamped, showing the document as ‘surrendered’.
What is the process for releasing the ‘Original’ B/L?
The process for the original is similar to surrendered. The supplier will receive the original document which they can hold onto until the payment for the goods has been received.
The only difference is that the supplier will send the stamped document to you (the buyer), as opposed to returning it to the shipping agent. You will receive 3 copies – one will need to be sent to the clearing agent as proof that you own the goods, and you’ll keep the others for your records.
The reason a supplier may do this as opposed to having the document surrendered at its origin is due to it costing around $20 less to send the document to the UK as opposed to surrendering the document… however, it is much preferred that the original is not in circulation as it will cost a lot more than the $20 if lost or damaged!
Common Terms Used When Talking About The B/L
What is a Consignee?
You! If you’re buying goods from China then your (company) details will be on the Bill of Lading as the Consignee. You should use your company name and billing address on this document.
We arrange the delivery separately based on your instructions and won’t use any details from the Bill of Lading for your delivery.
What is a Notify Party?
In most cases, this can state ‘Same as Consignee’ this shows who is responsible for the goods arriving in the UK. It is generally who is contacted for delivery – however, we already have your details so will arrange this direct with you.
What will the destination port (POD) be?
This depends on the schedule your goods have been arranged on, your supplier can confirm this with our agent however, this will usually be either Felixstowe or Southampton which are the container ports most commonly used by Shippo in the UK.
Preferred Type Of Bill Of Lading
The preferred option is telex release as this is the fastest way of having the goods released and the agent doesn’t need to worry about the physical document getting lost in transit back to them. However, there is usually a small administrative cost (usually $30-40) for arranging this.
Original Bills Of Lading physically sent from one side of the world to another are least preferred as customers don’t always appreciate the importance of this document. They can be easily mislaid or lost/damaged in transit (we have seen them sent back slightly worse for wear!) – it can also take time for the document to reach the customer and then be forwarded on so can delay the release and delivery process.
What happens if the B/L isn’t released?
The Bill of Lading is a legally binding document so it is important that this document is not lost or damaged.
Legally, we cannot deliver your goods without the release of this document, therefore it’s important to ensure payment has been made to your supplier in time to release the document to us. We may ask you to give them a nudge to pay our agent for the local fees to ensure this document can be released in good time.
With ‘Original’ and ‘Surrendered’ Bill of Lading’s your supplier will have to pay the shipping agent for the local fees (if on FOB terms) before they are issued with the document therefore, telex is the way to go if the shipment is time crucial.
Contact Shippo
We hope this post was helpful! If you have any more bill of lading questions, please don’t hesitate to contact us. Our friendly team are always on hand to help with any shipping questions.
I’ve found Shippo and their staff to be friendly, helpful, and communicative at every step of the shipping process. From liaising with my supplier, to helping navigate HMRC, keeping me informed, and organising delivery, they’ve exceeded my expectations at every turn. 10/10!Leo Bellis-Jones