A bill of lading is the document that proves the contract of carriage and controls the release of the cargo. On a container shipment there are usually two: the master bill issued by the carrier and the house bill issued by the forwarder. Cargo can be released against original bills, by telex release or against a seaway bill, and the choice decides how much control the shipper keeps until payment is settled.
Master bill and house bill
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| Master bill (MBL) | House bill (HBL) | |
|---|---|---|
| Issued by | The carrier | The forwarder |
| Shipper shown | Usually the forwarder | The actual shipper |
| Consignee deals with | Carrier or its destination agent | The forwarder and its destination agent |
| Used when | Cargo booked directly with the carrier, or one forwarder end to end | LCL consolidation, or several shippers under one container |
| Charges on it | Ocean freight and carrier charges | The commercial terms agreed with the shipper |
Three ways to release the cargo
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| Release method | How it works | Control for the shipper | Speed at destination |
|---|---|---|---|
| Original bill of lading | Paper originals are couriered; the consignee surrenders them to collect the cargo | Highest — cargo cannot be released without the paper in hand | Slower, because the documents have to travel |
| Telex release | Originals are surrendered at origin and the cargo is released electronically | Good — release is instructed from origin, normally after payment | Fast, once the instruction is given |
| Seaway bill | No original is issued; cargo is released to the named consignee against identification | Lowest — the cargo cannot be stopped at destination | Fastest, and usual between parties with an open account |
Not sure which release method to use?
Tell us the payment terms and the consignee, and we will say which method fits and what it costs to amend later.