Differences between Straight Bill of Lading and Order Bill of Lading
The main difference between a straight bill of lading and an order bill of lading is that a straight bill of lading is non-negotiable and can only be released to the named consignee whereas an order bill of lading is negotiable and can be transferred to a third party.
Before we move to more differences, let’s first understand Straight Bill of Lading and Order Bill of Lading:
- Straight Bill of Lading: A straight bill of lading is a type of bill of lading that specifies that the goods being transported are to be delivered to a specific person or company at a specific location.
- Order Bill of Lading: An order bill of lading is a type of bill of lading that allows for the goods to be delivered to the named consignee or to their order, which means that the goods can be transferred to a third party.
Now, let’s get to Straight Bill of Lading vs Order Bill of Lading:
Major differences between Straight Bill of Lading and Order Bill of Lading
Straight Bill of Lading | Order Bill of Lading |
---|---|
A straight bill of lading is used when the shipper has already received payment for the goods and does not require further financing. | An order bill of lading is used when the shipper requires financing or negotiation and may need to transfer ownership of the goods during transit. |
A straight bill of lading is often used for shipments where the goods are not intended to be resold. | An order bill of lading is often used for shipments where the goods will be sold or traded multiple times during transit. |
A straight bill of lading is typically used for domestic shipments within a single country. | An order bill of lading is often used for international shipments where multiple parties may be involved in the transaction. |
A straight bill of lading can provide more control over the shipment for the shipper. | An order bill of lading provides more flexibility for the consignee and allows for the goods to be resold or transferred to other parties during transit. |
A straight bill of lading is a type of bill of lading that specifies that the goods are to be delivered to a specific person or company at a specific location. | An order bill of lading allows for the goods to be delivered to the named consignee or to their order. |
So, these are the main differences between the entities.
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