Last updated: 10 November 2026
What is a bill of lading? In short, it is the ocean transport document issued by a shipping line or carrier. It serves as a receipt for the goods, evidence of the contract of carriage, and the document used to collect the goods at destination. This article explains the types of B/L, the fields to check, and the problems that delay collection or add costs.
Quick summary: the B/L
- It has 3 functions: receipt for the goods, evidence of the contract of carriage, and document of title (the holder of the original is entitled to the goods).
- Original B/L: at destination, an original must be surrendered to collect the goods. Usually issued as a set of 3.
- Telex Release: the shipper surrenders the full set of originals at origin, and the shipping line tells its destination office to release the goods without an original.
- Sea Waybill: not a document of title. The named consignee can collect the goods without any original.
- Always check the draft B/L before it is issued: a wrong consignee name or late originals can leave goods stuck at the port and incur container charges.
What is a bill of lading and what does it do?
A Bill of Lading, or B/L, called ใบตราส่ง in Thai, is a document the carrier issues to the shipper after receiving goods for carriage by sea. It generally has 3 main functions:
| Function | Meaning | Why it matters |
|---|---|---|
| Receipt for the goods | Confirms the carrier received the goods in the quantity, weight and condition stated | Serves as evidence if goods are short or damaged |
| Evidence of the contract of carriage | Shows the terms of carriage between shipper and carrier | Defines the carrier’s liability |
| Document of title | The lawful holder of the original can demand delivery of the goods | Used to control the goods until payment is received, and can be transferred |
A B/L is usually issued after the goods are loaded on board. One stating that the goods have been loaded is called a Shipped on Board B/L, which banks usually require for payment by Letter of Credit (L/C). For an explanation of the B/L’s functions, see this Maersk article.
In Thailand, bills of lading are covered by the Carriage of Goods by Sea Act B.E. 2534 (1991). It requires the carrier to issue a bill of lading at the shipper’s request, and once one original is surrendered to collect the goods, the other originals in the same set become void.
Original B/L, Telex Release and Sea Waybill: what is the difference?
These three differ in how the goods are released at destination, which directly affects payment risk.
| Type | How the goods are collected at destination | Suitable for |
|---|---|---|
| Original B/L | An original must be surrendered to the shipping line or its agent | Payment by L/C, or when the seller wants to keep title to the goods until paid |
| Telex Release | The full set of originals has been surrendered at origin, so the goods can be collected without an original | The seller has been paid and does not want to courier original documents abroad |
| Sea Waybill | The named consignee can collect the goods directly, with no original to surrender | Trusted trading partners, group companies, or shipments already paid in advance |
A Telex Release is not another type of B/L
A Telex Release is a way of releasing goods, available only when an original B/L has been issued. The shipper must return the full set of originals to the shipping line at origin, and the line then sends a message to its destination office to release the goods. The document is usually stamped “Surrendered” or “Telex Release”.
Note: a Telex Release and a Sea Waybill are not the same thing, and some countries or transactions do not accept Telex Releases. For notes on the risks, see this TT Club article.
Which should a seller choose?
The simple rule is: if you have not been paid, do not give up title to the goods. Choose an Original B/L and send the originals to the buyer or bank after payment, or request a Telex Release once you have been paid. With a Sea Waybill, the consignee can collect the goods immediately, so the seller cannot control them.
Master B/L vs House B/L: what is the difference?
- Master B/L (MBL): issued by the shipping line to the party that books space directly with it. When you book through a freight forwarder, the forwarder is usually the shipper on the MBL.
- House B/L (HBL): issued by a freight forwarder or a carrier that does not operate its own ships (NVOCC) to each customer, naming the actual shipper and consignee.
In less than container load (LCL) shipments, one container has a single MBL but several HBLs, one for each customer in the container. At destination, the consignee surrenders or confirms the HBL with the forwarder’s agent to obtain the Delivery Order (D/O).
The terms of an HBL may differ from those of the MBL. Buyers paying by L/C should agree with their bank in advance which type of B/L it accepts. For more on consolidation, see FCL vs LCL.
How can the consignee be named?
- Named consignee (Straight B/L): the consignee company is named directly. Used when title to the goods will not be transferred to anyone else, and suitable when the buyer has already paid or the parties trust each other.
- To order (Order B/L): the consignee box reads “To Order” or “To Order of” a bank or the shipper. Title is transferred by endorsement. Common with payment by L/C.
The Notify Party is not entitled to the goods. It is only the party the shipping line notifies when the vessel arrives, usually the buyer or the customs broker at destination.
What should you check on a draft B/L?
Before issuing the final B/L, the shipping line or freight forwarder sends a Draft B/L for checking. Most of the information comes from the Shipping Instruction provided by the shipper. Check it against the Commercial Invoice, Packing List and any L/C terms.
- Shipper, consignee and Notify Party: names, addresses and tax ID numbers if the destination requires them.
- Vessel name, voyage, port of loading and port of discharge: plus the place of receipt and place of delivery, if any.
- Container and seal numbers: must match the actual container.
- Cargo details: description of goods, shipping marks, number of packages, gross weight and volume.
- Freight: paid at origin (Freight Prepaid) or at destination (Freight Collect), in line with the delivery terms. See Incoterms 2020.
- Number of originals, date of issue and shipped on board date: critical when using an L/C.
- Remarks on the condition of the goods: a B/L with no remarks that the goods or packaging are damaged is called a Clean B/L. Banks usually do not accept a B/L with such remarks.
Common problems and how to prevent them
Wrong consignee name or cargo details
If the error is found after the B/L is issued or after the vessel sails, you must request an amendment from the shipping line, and the cargo manifest filed with customs at destination may also need correcting. This usually involves fees and takes time, and in some cases the importer cannot clear customs until it is fixed. The best prevention is to check the draft carefully before you confirm it.
Originals arrive later than the goods
This is common on short routes, such as from China or ASEAN countries, where the vessel arrives before the original documents. The importer cannot obtain the Delivery Order, the container sits at the port beyond the free time, and Demurrage and port Storage charges build up.
Prevention: agree with the seller to send the originals by express courier as soon as payment is received, or use a Telex Release or Sea Waybill once payment is complete.
Lost originals
Shipping lines usually will not release goods without an original, because of the risk of delivering to the wrong party. Generally you must provide a Letter of Indemnity, and many shipping lines require a bank to countersign it. This takes time and costs money, so send documents with a trackable service.
Fake Telex Release emails
Fraudsters may impersonate a shipping line or seller by email to trick you into releasing goods or paying into a different account. Confirm release status with the shipping line or its agent through contact details you already know, not by replying to the email you received.
B/L vs Air Waybill: what is the difference?
An Air Waybill (AWB) is a receipt for the goods and evidence of the contract of carriage, just like a B/L, but it is not a document of title and cannot be transferred. The airline delivers the goods to the consignee named on it.
| Topic | Bill of Lading | Air Waybill |
|---|---|---|
| Used for | Sea freight | Air freight |
| Document of title | Yes (original only) | No |
| Transferable by endorsement | Yes, if made out to order | No |
| Original needed to collect goods | Yes, except with Telex Release or Sea Waybill | No, the named consignee can collect |
| Master and house versions | Master B/L and House B/L | Master AWB and House AWB |
The Montreal Convention 1999 makes the AWB prima facie evidence of the contract, the receipt of the goods and the conditions of carriage. See the full text of the Montreal Convention. Today most airlines use electronic air waybills (e-AWB). Read more about our air freight service.
What does an importer use the B/L for?
- Receiving the Arrival Notice: the shipping line or its agent tells the Notify Party that the vessel is about to arrive.
- Exchanging it for the Delivery Order (D/O): surrender the original B/L, or confirm that a Telex Release or Sea Waybill is in place, then pay the destination charges.
- Clearing customs: the B/L number and details are used in the import declaration, together with the Commercial Invoice and Packing List.
- Collecting the goods from the port or warehouse: take out the container or goods within the free time.
For the steps at the port, see collecting import containers at Laem Chabang Port, or let our team handle everything from documents to collection with our import service.
Frequently asked questions
How many original B/Ls are there, and do I need all of them?
Usually a set of 3, and the actual number is stated on the B/L. To collect the goods, surrendering one is enough, but a Telex Release or payment by L/C usually requires the full set.
Who issues the B/L?
The shipping line issues the Master B/L, while a freight forwarder or NVOCC issues the House B/L to its customers.
What is the difference between a Telex Release and a Sea Waybill?
A Telex Release means the original B/L is surrendered at origin so the goods can be released at destination. A Sea Waybill has no original and is not a document of title in the first place.
Can a B/L be amended after it is issued?
Usually yes, but you must request it from the issuer, there is often a fee, and if originals have been issued the full set must be returned first. Amending after the vessel reaches destination is much harder.
Does holding a B/L mean you own the goods?
Not always. An original B/L gives the right to demand the goods from the carrier, while ownership depends on the sales contract between buyer and seller.
Questions about a B/L or collecting imported goods?
Talk to KTC Global Logistics about checking draft B/Ls, choosing a release method and import clearance. Call +66 2 286 1967 or LINE: @ktclogistics.