Bill of lading vs sea waybill – which to choose in maritime transport? 

In maritime transport, the bill of lading and the sea waybill are the most important documents that confirm the conclusion of the goods transport contract and their takeover by the carrier. Although they serve similar functions, they differ significantly, which is important in everyday transport management. The choice of the appropriate document affects transport processes, insurance, and the future of digitization in the industry. Let’s check the details. 

Basic differences between the bill of lading and sea waybill 

The first significant difference to note is the issue of the transferability of both documents. The bill of lading is a transferable document, meaning that the holder of the bill of lading can sell or transfer the right to the goods to another party during transport. The sea waybill does not grant such a right. 

The bill of lading also serves as a title to the cargo – the owner has the right to receive the goods and can also use it to secure a debt, such as a form of credit collateral. In the case of the sea waybill, such an option does not exist. 

Practical consequences of choosing the document 

Depending on the nature of the transport, the choice between the bill of lading and the sea waybill can be very important. The waybill is particularly beneficial when the consignor and consignee have a long-term and trusted business relationship. In such situations, where neither party expects a change in the ownership of the goods during transport, this document simplifies the process of releasing the goods at the destination port. The consignee can receive the goods based on the data in the document, without the need to present the original SWB. 

On the other hand, the bill of lading is more suitable when there is a need to transfer ownership of the goods during transport, for example, when the goods are used in trade or need to be secured on behalf of a bank or another entity. In such cases, the bill of lading serves as a negotiable instrument, providing greater flexibility in managing the transport. 

Practical use of the sea waybill 

As mentioned, the sea waybill is particularly applicable in relationships where the consignor and consignee trust each other and prefer a simplified transport procedure. An example could be transactions between companies that regularly cooperate and do not anticipate any changes in the ownership of the goods during transport. In such a case, the SWB allows for the quick and efficient release of the goods, without the need to wait for the original documents to be sent. 

The sea waybill is also advantageous when the consignee has paid the freight in advance. Since there is no need to present the original document, the entire transport process becomes more flexible and less burdened with formalities. 

Impact of transport documents on cargo insurance 

The choice between the bill of lading and the sea waybill also affects insurance procedures. The bill of lading, being the title to the goods, is necessary when the goods are insured and when it is necessary to transfer the rights to the cargo during transport. In this case, the owner of the bill of lading can claim compensation in the event of damage or loss of goods, having full rights to the claim. 

In the case of the sea waybill, the consignee does not have the title to the cargo, so they cannot sell it or secure it under credit. Therefore, insurance claims may be more complicated, especially when it comes to transferring ownership rights to the goods. 

The future of transport documents – digitization 

The increasing digitization of maritime transport is leading to the potential integration of documents such as the bill of lading and sea waybill with blockchain technology, which will significantly enhance the security of their circulation. Such solutions will allow for faster and safer document transfers, eliminating the risk of their loss, and making supply chain management easier. 

Summary 

The choice between the bill of lading and the sea waybill depends on the nature of the transport and the needs related to transferring ownership rights to the goods. The bill of lading is more appropriate in the transport of goods where the transfer of ownership during transport is required. Meanwhile, the sea waybill works best when the transport is based on trust between the consignor and the consignee and there is no need to transfer ownership rights to the cargo. Understanding these differences allows for selecting the most suitable solution, minimizing risks and simplifying the entire logistical process.