Original BL and Seaway BL: Understanding the Difference in International ShippingInternational trade involves many documents, and one of the most important is the Bill of Lading (BL). Two types often mentioned in shipping are the Original BL and Seaway BL. Understanding the difference between them is crucial for importers, exporters, and logistics professionals. Both documents serve as proof of shipment, but they come with different levels of security, processes, and uses. This topic will explain what each one is, their functions, key differences, and when to use them.
What Is an Original BL?
Definition of Original BL
An Original BL (Original Bill of Lading) is a legal document issued by the shipping line that acts as proof of ownership of the goods being transported. It is a negotiable document, meaning that whoever holds the original document has the right to claim the goods. The original BL is usually issued in three originals and a few copies.
Purpose of Original BL
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Acts as a receipt for goods from the shipping company
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Serves as a document of title to the goods
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Needed to release the goods at the destination port
Important Features
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Physical document
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Requires endorsement and surrender of the original at the destination
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Ensures control of the cargo, providing security to the seller or shipper
What Is a Seaway BL?
Definition of Seaway BL
A Seaway BL (Seaway Bill of Lading) is a non-negotiable document. Unlike the Original BL, the Seaway BL is an electronic or paper document that does not require the surrender of the original copy for cargo release. It identifies the consignee directly and allows faster and simpler release of goods.
Purpose of Seaway BL
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Confirms that goods are onboard the vessel
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Serves as evidence of the contract of carriage
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Allows automatic release of cargo without presenting the original document
Important Features
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Non-negotiable
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Can be used for trusted business transactions
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Often used when there is no need to transfer ownership during transit
Key Differences Between Original BL and Seaway BL
1. Negotiability
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Original BL is negotiable, meaning it can be transferred to another party by endorsement.
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Seaway BL is non-negotiable, and only the consignee named can collect the cargo.
2. Document Handling
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Original BL requires physical handling and surrender at the destination.
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Seaway BL can be used without physical surrender, often issued electronically.
3. Speed of Cargo Release
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Original BL may cause delays if the document does not arrive on time.
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Seaway BL allows immediate cargo release, reducing waiting times.
4. Security
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Original BL offers more security because only the holder of the original document can claim goods.
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Seaway BL is less secure for certain transactions but ideal for shipments between trusted parties.
5. Cost
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Original BL often incurs courier costs and additional paperwork.
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Seaway BL reduces costs related to document handling.
When to Use Original BL
1. High-Value Cargo
If the cargo is valuable and ownership might change during transit, an Original BL is preferred for security reasons.
2. Letter of Credit Transactions
Banks typically require an Original BL as part of trade finance agreements, especially under letters of credit.
3. New Trade Relationships
In new or less-trusted business transactions, Original BL helps secure payment and cargo control.
4. Cargo Re-Sale During Transit
If the seller plans to sell the cargo while it’s still in transit, Original BL allows transfer of ownership by endorsement.
When to Use Seaway BL
1. Established Business Relationships
When buyers and sellers have a long-standing, trusted relationship, the Seaway BL makes the process faster and smoother.
2. Quick Turnaround Shipments
For short voyages or urgent deliveries, Seaway BL avoids delays caused by document handling.
3. No Need for Cargo Resale
If ownership does not need to change during transit, a Seaway BL is the more efficient choice.
4. Cost Savings
Seaway BL is often used when reducing courier and documentation costs is a priority.
Risks of Original BL
1. Document Loss
Losing the Original BL can create serious complications and delays in releasing cargo.
2. Delayed Deliveries
Cargo may arrive at the destination before the original documents, causing unnecessary storage and demurrage charges.
3. Fraud
If stolen or mishandled, an Original BL could potentially allow an unauthorized person to claim the cargo.
Risks of Seaway BL
1. Limited Security
Because the Seaway BL is non-negotiable, there is less control in preventing unauthorized release if incorrect information is entered.
2. Not Suitable for All Transactions
High-value or complex transactions should avoid Seaway BL due to reduced protection.
Impact on International Shipping
1. Efficiency vs. Security
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The Original BL offers higher security but may slow down the release process.
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The Seaway BL increases efficiency but reduces certain legal protections.
2. Choice Based on Risk
Shippers and consignees must weigh speed and convenience against risk and security when choosing between these two types of BL.
3. Global Shipping Trends
In recent years, more companies are moving toward Seaway BL due to digitalization and the need for faster supply chains. However, the Original BL remains irreplaceable in complex international trade.
Choose Wisely Based on Your Business Needs
Both Original BL and Seaway BL play crucial roles in international trade. The Original BL is best for transactions that require tight security, protection under letters of credit, or transfer of cargo ownership during transit. On the other hand, the Seaway BL provides a faster, simpler solution for trusted trade partners, reducing documentation costs and speeding up cargo release.
When deciding between the two, consider factors like cargo value, the trustworthiness of your trade partner, shipping distance, and whether ownership transfer is needed. A good understanding of these documents ensures smoother international trade and fewer shipping complications.