Bill of Lading (B/L) Types & Handling Guide: MBL/HBL, Telex Release, Seaway Bill

1. The three roles of a B/L

1. Document of title: whoever holds the original B/L holds the right to take delivery. Originals can be endorsed and transferred — the closest thing to "paper money" in international trade.
2. Contract of carriage: the small print on the reverse (typically Hague / Hague-Visby / Rotterdam Rules, plus carrier-specific terms) sets liabilities, limits, and dispute resolution.
3. Receipt of goods: the carrier acknowledges receipt and notes the apparent condition of the goods (clean or with remarks).

These three roles are independent yet interlocked. Seaway Bills strip the title role but keep the other two; telex release keeps the title role but simplifies the handover. Understanding this is the master key to every B/L variant.

2. MBL vs HBL: who issues to whom

Aspect	MBL (Master B/L)	HBL (House B/L)
Issued by	Ocean carrier (actual carrier)	Freight forwarder / NVOCC
Letterhead	Carrier logo	Forwarder logo
Shipper	Forwarder or its overseas agent	Actual shipper (factory / trader)
Consignee	Forwarder or its overseas agent	Actual consignee (buyer)
Carrier liability	Ocean carrier	Forwarder
Typical scenario	Direct booking	Booking via NVOCC
Per container	1 issued	1 (FCL) or many (LCL)

End-to-end flow: shipper → China forwarder issues HBL → forwarder books with carrier and gets MBL → vessel reaches destination → destination agent uses MBL to take the container from the carrier → destination agent uses HBL to release goods to the actual consignee. Two B/Ls, one above one below, both indispensable.

3. By consignee format

Type	Consignee field	Transfer method	Risk profile
Straight B/L	Named consignee (e.g., ABC Inc., New York)	Non-transferable; only the named party can collect	Cannot be resold in transit; safest for the named consignee
Order B/L	"To Order", "To Order of Shipper", "To Order of XXX Bank"	Requires endorsement (blank / named)	Most common for L/C; transferable in transit
Bearer B/L	"To Bearer" or blank Consignee	Whoever holds it collects; no endorsement needed	Highest risk; loss = loss of cargo; rare today

3.1 Endorsement in practice

Order B/Ls need a reverse-side endorsement to transfer. Common forms:

• Blank endorsement: shipper signs + stamps without naming a new consignee — effectively turns the B/L into a Bearer B/L. Most common, most dangerous.
• Named endorsement: shipper writes "Deliver to [new consignee]" + signs + stamps. Safer but each transfer needs a fresh endorsement.
• Restricted endorsement: "Not Negotiable" — to a named consignee only, no further transfer.

4. By handover method: Original / Telex Release / SWB / eBL

Method	Document of title	Transferable	Handover process	Typical use
Original B/L	Yes (3 originals)	Yes	Couriered to consignee → consignee presents original to collect	L/C, first-time deals, in-transit resale needed
Telex Release	Yes (originals already surrendered)	No (already released)	Shipper surrenders 3 originals at load port → carrier wires destination agent to release	T/T paid, intercompany, trusted buyer
Seaway Bill (SWB)	No	No	No originals issued; only contract + receipt; consignee shows ID	Intercompany, FTZ moves, SPV internal transfers
eBL (electronic)	Yes	Yes (on-chain transfer)	Blockchain platforms (WaveBL, essDOCS, IMO FAL 2025 roadmap)	Bulk energy, ores, accelerating adoption

* Telex release fee is typically USD 30-50 per shipment — vastly better than the USD 60-150 + 3-5 days of couriering originals plus the risk of release-without-original. But once telex released, the shipper has lost title control: ensure full payment is received first.

5. The 14 critical B/L fields

An example for a US East Coast service, top to bottom on the B/L:

Field	What to put / common mistakes
1. Shipper	Actual shipper full name + address + phone; must match invoice / packing list
2. Consignee	L/C: "To Order of XXX Bank"; T/T: named consignee or "To Order"
3. Notify Party	Who is notified on arrival — usually consignee or its customs broker
4. Vessel / Voyage	Assigned by carrier, e.g., "OOCL TOKYO V.123E"
5. Port of Loading	UN/LOCODE format, e.g., "Qingdao, China"
6. Port of Discharge	Per L/C; may differ from final destination
7. Place of Delivery	DOOR or CY — affects liability division
8. B/L Number	Carrier-issued, globally unique
9. Container No. / Seal No.	Must match the load-list; a single-digit error triggers customs hold
10. Marks & Numbers	Buyer-specified case markings
11. Description of Goods	Concise English description, consistent with the invoice
12. Gross Weight / Measurement	Must match VGM; mismatch attracts carrier penalty
13. Freight & Charges	"Freight Prepaid" (CIF/CFR) or "Freight Collect" (FOB)
14. Place & Date of Issue	Issue date = loading date; forward / back dating may be deemed fraudulent

6. Clean B/L vs Foul B/L

Clean B/L: no remarks about goods condition or packaging.

Foul (Dirty) B/L: carrier added clauses such as "5 cartons broken", "Wet cargo", or "Used drums". L/Cs require clean — a foul B/L cannot be negotiated.

Letter of Indemnity (LOI) for a clean B/L: in practice, shippers sometimes give carriers an LOI to issue a clean B/L despite minor remarks. This is a commercial custom with legal exposure: if the carrier compensates the consignee later, it can recover from the shipper; LOIs can also be ruled void in court (cf. Article 80 of the PRC Maritime Code and related precedents).

7. Switch B/L

Switch B/L is the operation of withdrawing the original "first set" at the load or transshipment port and reissuing a "second set". Typical reasons:

• Triangular trade: China factory → Hong Kong / Singapore trading company → US/EU end buyer. The trader does not want the end buyer to see the actual factory — Switch B/L re-issues with trader as shipper.
• Compliance: Certificate of origin must align with the B/L; FTZ processing changes country of origin.
• Term changes: change consignee (trader → real buyer) or freight terms (Prepaid → Collect).

A Switch B/L can only be executed if the same forwarder or carrier has presence at both ports. Process: first set surrendered and cancelled → forwarder reviews → re-issues → switch fee USD 50-150 per set + possible D/O fee. Two parallel sets must never co-exist — that constitutes dual-B/L fraud.

8. Lost B/L — what to do

One of the worst headaches in trade. Recovery process:

1. Notify the carrier in writing immediately and request a hold on release at destination.
2. Provide a loss declaration + Letter of Indemnity. The LOI usually requires a bank guarantee at 150-200% of cargo value valid 1-2 years.
3. Publish a loss notice in a designated newspaper. In China, typically International Business Daily for 60 consecutive days; some carriers accept Lloyd's List.
4. After the publication period, with no counter-claim, the carrier reissues a duplicate or arranges telex release.

The whole process: 2-3 months, USD 500-2,000 (bank guarantee + publication). Prevention beats cure:

• Keep a high-resolution scan before sending
• Ship the 3 originals in two separate batches (2 today, 1 next day)
• Use EMS / FedEx / DHL tracked service with cargo insurance
• For L/C deals, bank-to-bank delivery beats commercial courier

9. Release without original B/L — the biggest risk

What is it? The carrier delivers cargo without the consignee surrendering an original B/L. Strictly prohibited under Chinese law, yet frequent in these scenarios:

• Release against copy + LOI when originals haven't arrived
• Premature telex release before payment confirmation
• Port custom: parts of Saudi Arabia, Brazil, India clear cargo before docs catch up
• Collusion: rare cases of agent and consignee colluding to release

Legal exposure: the Supreme People's Court Provisions on the Application of Law for the Trial of Cases of Delivery of Goods without Original B/L (Fa Shi [2009] No. 1) makes it clear:

• Carrier bears breach / tort liability for release without original B/L
• Damages cover cargo value + reasonable related costs
• Carrier cannot rely on "destination port custom" as a defense
• Limitation period: one year

Prevention checklist:

• 100% advance or L/C for new buyers — no telex release
• Choose carriers and forwarders with good reputations
• Avoid open-account terms to high-risk ports (Saudi Arabia, Algeria, Bangladesh, certain African ports)
• Buy export credit insurance (e.g., China Sinosure short-term)
• Contract clause: "no release without explicit Telex Release authorization"
• Tracking discipline: reconfirm payment 1 week before vessel arrival

10. How Mighty International can help

With 26 years at Qingdao port, our documentation team offers:

• Pre-sailing B/L review — every field cross-checked against the L/C to avoid discrepancies
• Telex release / Original / Seaway Bill operations — same-day turnaround
• Switch B/L — Qingdao / Singapore / Hong Kong / Busan network
• Lost-B/L recovery — LOI drafting, publication, carrier liaison end-to-end
• Risk assessment and advisory for high-risk port operations
• Electronic B/L (eBL) via WaveBL / essDOCS integration

Frequently asked questions

References & further reading

• PRC Maritime Code (especially Chapter IV, Contract of Carriage by Sea)
• Supreme People's Court Provisions on Delivery of Goods without Original B/L (Fa Shi [2009] No. 1)
• Hague Rules / Hague-Visby Rules / Rotterdam Rules
• UCP600 — Uniform Customs and Practice for Documentary Credits
• Related guides: DDP Shipping from China, Incoterms 2020 Explained

Disclaimer: General informational content. Specific clauses, liabilities, and risk allocation defer to current law, the carrier's reverse-side terms, and the underlying contract. For disputes, consult qualified maritime counsel.