Order Bill of Lading
What’s An Order Bill of Lading?
An order Bill of Lading is one of the many other forms of a Bill of Lading. It covers various aspects that are unique to it. It's one of the two negotiable bills of ladings. It declares 'to order' or 'to order of' in the consignee box. Either of these indicates the name of the party. Under this bill of lading, the legal title to the shipment is transferable to the third party from the original bill of lading holder by bill endorsements. For instance, the shipper is considered the endorser when the words 'to order' aren't preceded by the consignee's name in the consignee box. Contrary, when the words 'to order' are followed by the consignee's name, the order bill of lading is considered to be endorsed by the consignee.
Who Needs an Order Bill of Lading
Endorsing in an order bill of lading means the shipper signs the back of the bill while adding the name of the party the bill is transferrable. It's done on behalf of the named consignee. There is a large opening for endorsements if the endorsing party adds the words 'or order' after the transferee's name when they endorse the bill. Additionally, the new party can't endorse the bill again when the word 'order' is not added to the bill with a new party's name. The new party is referred to as the endorsee. The endorsee in such a scenario is required to take the cargo delivery.