Order B/L refers to a bill of lading in which the consignee column contains the words "To Order" or "To Order of...". It is a negotiable bill of lading, and the transfer of title to the goods can be effected through endorsement. Use cases: It is commonly used in letter of credit settlements or intermediary trade, making it convenient for the seller to resell the goods during transportation or obtain financing from a bank. Precautions: An order bill of lading must be endorsed before the goods can be collected. Endorsement is divided into blank endorsement and special endorsement; if the letter of credit requires "To Order of Shipper" or "To Order of Issuing Bank," it must be handled strictly in accordance with the credit. Differences from other bills of lading: A straight bill of lading is non-negotiable, and a bearer bill of lading requires no endorsement but carries high risk, whereas an order bill of lading combines security and negotiability and is the most commonly used type of bill of lading in international trade.
📝 Examples
1. Under the letter of credit payment method, the seller usually requires the shipping company to issue an "To Order of Shipper" order bill of lading, so that the title to the goods can be transferred to the bank or the buyer through endorsement. (Note: The seller controls the title to the goods through the order bill of lading until the buyer makes payment or the bank negotiates.)
2. After purchasing goods from a supplier, the middleman requires the consignee column of the bill of lading to be filled in as "To Order of Middleman," and then transfers the bill of lading to the final buyer through endorsement, thereby completing the resale without directly handling the goods. (Note: The order bill of lading facilitates the middleman's transfer of the title to the goods and enables transit trade.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
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