Bill of Lading Key Terms

What you need to know to understand the waybill on your desk

By Lisa Maloney

While the concepts behind shipping are relatively simple, there's more to the bill of lading or waybill on your desk than might first appear. In order to understand the information contained in this complex document, you need to have a basic understanding of some key terms.

Exactly what sort of waybill you find yourself faced with depends on what's being shipped, its origin, its destination and its mode of transport. The following vocabulary will help you to make sense of the complicated world of freight shipping:

Waybill

A waybill is another word for bill of lading, the document that travels with a shipment of goods. The waybill identifies, among other things, who the shipment came from, who it's being shipped to, the goods included, how much they weigh, how they're packaged and how they're being shipped.
Try: BusinessDictionary.com offers a detailed explanation of the various types of waybills or bills of lading you're likely to encounter, as well as what a waybill does and does not specify.

Consignor

The consignor, also spelled as consigner, is the party providing goods to the consignee. While this is often the seller, it also may be the party or person who last had possession of the goods before they were shipped, or who initiated the shipment. The consignor is responsible for making sure the right consignment has been shipped according to the consignee's instructions.
Try: MoveTransport.com offers a detailed list of which parties may be considered a consignor and what the consignor's duties are.

Consignee

The consignee is the party who is to receive the goods in question, almost always the buyer.
Try: The 'Lectric Law Library details not just what a consignee is, but what responsibilities and liabilities the consignee enters into as soon as the goods in question have been paid for and shipped according to his or her request.

Certificate of value

The certificate of value is a document, separate from a waybill, that is often required to accompany goods being exported to a foreign country. The certificate of value is essentially an affidavit by the shipper certifying the correct value of the shipment and amount paid by the importer, to prevent the importer from under-declaring the value of the property to customs in the receiving country and thus avoid duties or taxes on the shipment.
Try: MalaysiaExports.com describes how certificates of value help prevent double invoicing, and when a certificate of value may not be needed.

Negotiable bill of lading

A negotiable bill of lading differs from other types of waybills primarily because it functions as a title for the goods being transported, so that ownership of the consignment can be transferred to a third party by transferring the negotiable bill of lading. A negotiable bill of lading may be signed over, and must be made up to order or to the consignee of the shipment.
Try: MaritimeKnowHow provides details about the requirements for a negotiable bill of lading and explains the difference between negotiable and non-negotiable waybills.

Intermodal transport

Intermodal transport is defined as the transport of a consignment by two or more methods that may include air, water, rail or truck services. Intermodal consignments are typically packaged in specialized intermodal containers that can be transferred from one transport method to another, such as from a train to a cargo ship, so that the goods do not have to be repackaged or handled in transit.
Try: Hofstra University offers a detailed explanation of general intermodal transport and its methods, as well as its advantages and disadvantages.