Document type
What is an order bill of lading?
An order bill of lading is negotiable. It is made out "to the order of" a party rather than to a named consignee, and it can be transferred by endorsement, like a cheque. Whoever holds the properly endorsed original controls the goods, and the carrier releases against the document.
Why it matters
It lets goods be sold or financed while they are still moving. That is why it is standard in international trade and in documentary-credit transactions where a bank wants control until it is paid.
The mistake that costs money
Treating it like a straight BOL and releasing freight without collecting the original. Once the carrier delivers against anything other than the endorsed original, the party who actually holds that original still has a claim.
Worth knowing
- Negotiable and transferable by endorsement.
- Usually issued as a set of originals; the carrier releases against a surrendered original.
- Common in ocean freight and letters of credit, rare in domestic US trucking.
- This generator produces a straight, non-negotiable BOL — not an order BOL.