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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