Negotiable Bill of Lading

Negotiable Bill of Lading (B/L) in International Trade

Meaning of Negotiable Bill of Lading (B/L), according to the Dictionary of International Trade (Global Negotiator): A marine transport document showing that the shipment has been made with a designated carrier that includes the word “order” in the consignee field. Once signed by the carrier and endorsed by the shipper or whoever's name follows the word “order” a negotiable B/L becomes a bearer instrument of title to the shipped gods. A second feature of negotiable B/Ls is that they permit goods to be sold and resold while in transit by the simple expedient of endorsing and passing on the original B/L to the new owner. For these reasons, the carrier will insist upon surrender of the original negotiable B/L prior to releasing the goods. Marine B/Ls are frequently issued in sets of three originals claused “one original being accomplished, the others are void” (or similar terminology). As any one of the originals serves to release the goods, unpaid sellers should carefully control the accessibility of all three originals. Also called order B/L. See bill of lading.