Article

Bill of Lading vs. Sea Waybill

5 Min read | April 2, 2025
When it comes to the container shipping industry, documentation is crucial to ensure the smooth transportation of goods. Two shipping documents often encountered are the Bill of Lading (B/L) and the Sea Waybill. While their purposes are similar, the scenarios for their use and their legal implications differ significantly. Here, DCSA will break down their differences and when you might encounter either document.What is a Bill of Lading? A Bill of Lading (B/L) is a trade document issued by the carrier to the shipper, with three main purposes: 
  • Contract of Carriage: evidences an underlying contract and outlines the terms for transporting goods.
  • Receipt of Goods: acknowledges that the goods have been received for carriage by the carrier.
  • Document of Title: provides proof of possessory rights and obligations. 
A B/L can be classed as negotiable or non-negotiable, making it versatile for various shipping scenarios. A negotiable B/L allows title to be transferred via endorsement and delivery, making it an essential tool for transactions where goods may change hands during transit or financed. On the other hand, non-negotiable B/Ls (also referred to as straight Bills of Lading) do not transfer title and the named consignee cannot be changed. What is a Sea Waybill? A Sea Waybill is a transport document that can be used as an alternative to the B/L. Similar to a B/L the Sea Waybill evidences the contract of carriage and receipt of goods. However, unlike a B/L, the Sea Waybill:
  • Is not a document of title.
  • Is non-negotiable and cannot be used to transfer title.
  • Eliminates the need for physical documents for cargo release.
As it does not require the surrender of an original document for the release of goods at destination, the Sea Waybill can facilitate faster transactions. What are the key differences between a Bill of Lading and a Sea Waybill? The key differences between a B/L and a Sea Waybill are the transferability, the security and the negotiability they each offer.
  • A B/L is a more formal and structured business transaction, best suited to newer business relationships and relations where documentary collection or a letter of credit are in place.
  • A Sea Waybill, however, is a document that is more feasible for repetitive transactions. This does make it less secure, and a procedure better suited to parties with long-standing, trusting business relations.

Feature

Bill of Lading

Sea Waybill

Transferability

Negotiable or non-negotiable; title can be transferred.

Non-negotiable; title cannot be transferred. 

Document of Title

Acts as a document of title,
enabling transfer of rights.

Not a document of title;
only confirms receipt. 

Cargo Release

Requires surrender of the original
document for release (in most cases).

No original document needed for cargo release. 

Trust Requirements

Ensures more secure bi-party obligation fulfilment, making it suitable for cash-against-documents transactions,
letter of credit, financing, new- or low-trust business relationships.

Best for high-trust relationships or repeat transactions. 

Administrative Effort

Requires more paperwork and
physical document handling. 

Streamlined process, often managed electronically.

Legal Security

Provides higher legal security for ownership disputes. 

Less secure for ownership disputes.

When to Use a Bill of Lading A B/L is preferred in scenarios where: 
  • Titles to the goods is likely to change during transit. 
  • There is a lack of established trust between the shipper and consignee. 
  • The shipment involves complex financial arrangements, such as letters of credit. 
  • Legal disputes over ownership or condition of goods may arise. 
Additionally, the B/L is commonly required for customs clearance and is often used in insurance claims if cargo is lost or damaged.  When to Use a Sea Waybill A Sea Waybill is appropriate when: 
  • The shipper and consignee have an established, trusting relationship. 
  • There is no intention to transfer title to any third-party. 
  • Faster cargo release is a priority, such as in just-in-time delivery models. 
  • Electronic documentation is preferred to reduce administrative burdens. 
 Choosing the Right Shipping Document Selecting between a Bill of Lading and a Sea Waybill depends on the specific requirements of the shipment. If you need flexibility, security, and legal documentation for title transfer, a Bill of Lading is the better choice. However, for efficiency, simplicity, and trusted partnerships, a Sea Waybill is often more suitable. Both documents play critical roles in global trade and logistics, and understanding their differences ensures a smoother shipping process. Whether you prioritise control or convenience, the right documentation can help safeguard your shipment’s journey from origin to destination.  Learn more about shipping terminology If you’re just starting to get to grips with the language of the shipping industry, or want to promote better industry communications by adopting universal terms, check out our shipping glossary. We’ve strived to provide clarity around day to day terms and processes you’ll encounter in the industry, helping to make communications easier and more efficient. And if you want to learn more about electronic Bill of Lading (eBL) adoption, check out our report on the legal and regulatory barriers to global eBL adoption. In this report we explore the intricacies of national legal and regulatory frameworks, the barriers they pose to achieving 100% eBL adoption by 2030, and the way in which these can be overcome.

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