Onboard Bill of Lading
What’s An Onboard Bill of Lading?
An onboard Bill of Lading suggests that the intended goods have been placed on the cargo ship. Onboard Bill of Lading is served to the exporter by the shipper accounting for the received goods. They serve various purposes, such as acting as a document title, authorizing the specific party to deliver the goods, keeping track of the grounds the shipment was agreed upon, and serving as proof of payment. There are different onboard bills of lading, a clean bill of lading, and a claused bill of lading. The process involved in arriving at either of the two involves the seller shipping process to the carrier, assessing the quality of goods, and then classification.
Importance of an Onboard Bill of Lading
A clean onboard bill of lading is the ideal result as it ascertains the quality of goods. It's relevant not only to the receiver of the goods since it passes the responsibility of maintenance to the carrier but to the seller as the letter of credit is issued. The bank also requires it as a pre-requisite to seal the deal. On the other hand, a claused onboard bill of lading is often leverage for the carrier against the clients' claims of mishandling. It also accounts for the specific defects detected on the goods after the involved parties have agreed upon the document.