A bill of lading is the most important document in a sea shipment from China. It proves the goods were loaded, sets out the transport contract and, in its original form, decides who can collect the cargo at the destination port. This guide explains what a bill of lading is, what each field means, the difference between an original bill of lading, a telex release and a sea waybill, house vs master bills of lading, and how the B/L ties in with paying your supplier.
Key points
• A bill of lading (B/L) is issued by the carrier or a forwarder when the goods are loaded. It is a receipt for the goods, evidence of the transport contract and, as an original, a document of title.
• There are three common ways to release the goods: original bills of lading, a telex release (surrendered B/L) and a sea waybill (sometimes called a seaway bill).
• With a telex release or a sea waybill, no paper originals need to travel, so the goods are released faster.
• For LCL and most forwarder shipments there are two B/Ls: the forwarder’s house B/L for you and the shipping line’s master B/L.
• Many importers pay the supplier’s balance against a copy of the B/L, then the supplier releases it.
What Is a Bill of Lading?
A bill of lading is the document issued for goods shipped by sea once they are loaded on the vessel (or received for shipment). It does three jobs:
- Receipt for the goods. It records what was loaded: the number of packages, the weight, the container and seal numbers.
- Evidence of the contract of carriage. It shows the terms the goods are carried on, from the port of loading to the port of discharge.
- Document of title. An original “to order” or named B/L controls who can take the goods at destination. Whoever holds the original, correctly endorsed, can collect the cargo.
That third point is why the bill of lading matters to importers: until the B/L is released, the goods are still under the supplier’s control, even if they are already on the ship.
What a Bill of Lading Shows
Example: the main fields on a sea bill of lading
The seller, e.g. a supplier in Dongguan
Used to track the shipment and release the goods
The buyer, or “to order” for an L/C
Who is told when the ship arrives, often the buyer or its customs broker
The ship the goods are on
Port of loading (e.g. Yantian) and port of discharge
For FCL; LCL shows the cargo inside a shared container
Should match the commercial invoice and packing list
As loaded
Paid at origin or at destination, depending on the Incoterm
Usually a full set of three, or “0” for a sea waybill
The date the goods were loaded
Layouts differ between carriers and forwarders, but these fields appear on almost every sea B/L.
Check the draft B/L before it is issued. The consignee, the description and the number of packages should match your commercial invoice and packing list, because customs and your bank compare them. See how to find the HS code for the goods description.
Other Types of Bill of Lading
You may also see these terms on a B/L or in a contract:
| Type | What it means |
|---|---|
| Straight (named) B/L | Made out to a named consignee; the goods can only be released to that party |
| Order B/L (“to order”) | Can be transferred by endorsement; common with letters of credit |
| Clean B/L | No remarks about damage or shortage when the goods were loaded |
| Claused (foul) B/L | Has remarks such as “cartons wet” or “packaging damaged”; banks often reject it under an L/C |
| Shipped on board B/L | Confirms the goods are on the vessel, with an on-board date |
| Received for shipment B/L | Issued when the goods are received, before loading; later stamped on board |
| Through B/L | Covers more than one mode or carrier, for example sea plus rail to an inland city |
| Switch B/L | A new set issued to replace the original, for example to change the shipper name; ask your forwarder before relying on it |
Original Bill of Lading vs Telex Release vs Sea Waybill
| Original B/L | Telex release | Sea waybill | |
|---|---|---|---|
| Paper originals | Yes, usually three | Issued, then handed back at origin | None |
| How the goods are released | Consignee hands in an original at destination | Carrier’s office at origin tells the destination office to release | Released to the named consignee |
| Document of title | Yes | No longer, once surrendered | No |
| Speed | Slowest: originals must be couriered | Fast | Fast |
| Typical use | Letters of credit, goods sold on during transit | Most T/T payments to Chinese suppliers | Trusted, long-term suppliers or shipments within one company |
Original bills of lading give the seller (or the bank) the most control, but the paper has to reach the consignee before the ship arrives. On short routes, or if the courier is late, the container can sit at the port and run up storage and demurrage. That is why most importers buying from China on bank transfer use a telex release.
What Is a Telex Release?
A telex release (also called a surrendered bill of lading or express release) means the original B/L is issued and then handed back to the carrier or forwarder at the port of loading. The origin office sends a release message to its office at destination, and the goods can be collected without any paper originals. The B/L copy is usually stamped “Surrendered” or “Telex released”.
A typical flow when buying from a Chinese supplier:
- The goods are loaded and the B/L is issued to the supplier.
- The supplier sends you a copy of the B/L as proof of shipment.
- You pay the balance.
- The supplier surrenders the originals and asks for the telex release.
- The release reaches the destination office, and your forwarder or customs broker collects the goods after customs clearance.
Ask for the telex release as soon as you pay. If it is late, the goods cannot be released even when customs clearance is done.
House Bill of Lading vs Master Bill of Lading
When you ship through a freight forwarder, there are usually two bills of lading for the same cargo:
- Master B/L (MBL): issued by the shipping line to the forwarder. The forwarder or its agent is the shipper and consignee.
- House B/L (HBL): issued by the forwarder to the actual shipper, with you or your company as consignee. This is the B/L you normally see.
For LCL there is always a house B/L, because many shippers share one container under one master B/L. For FCL you can have either a house B/L or the shipping line’s B/L directly, depending on how the shipment is booked. For shipments to the USA, the company issuing a house B/L should be an NVOCC licensed or registered with the US Federal Maritime Commission; see how to choose a freight forwarder in China.
Bill of Lading and Paying Your Supplier
- Deposit and balance by bank transfer (T/T): the most common way. You pay the balance after seeing the B/L copy, and the supplier then releases the B/L, usually by telex release.
- Letter of credit (L/C): the bank pays the supplier against a set of documents that usually includes the full set of original bills of lading, often made out “to order”. The B/L details must match the L/C exactly.
- Balance before shipment: if you pay everything before loading, ask for a telex release or a sea waybill so the paperwork does not slow down delivery.
Who books the ship also decides who controls the B/L. Under FOB or EXW, your own forwarder issues the house B/L, which gives you more control; under CIF, the supplier’s forwarder does. See Incoterms 2020 explained.
How a Bill of Lading Is Issued, Step by Step
| Step | What happens | When |
|---|---|---|
| 1. Booking | Space is booked on a sailing | 1–3 weeks before departure |
| 2. Shipping instructions | Shipper, consignee, notify party, goods description and marks sent to the carrier or forwarder | Before the document cut-off |
| 3. Draft B/L | A draft is sent for checking | Around loading |
| 4. Corrections | Errors fixed before issue; changes after issue may cost a fee | Before the vessel sails |
| 5. Issue | The B/L is issued once the goods are on board | After departure |
| 6. Release | Originals couriered, telex release sent, or sea waybill used | After payment, before arrival |
Checklist: checking a draft bill of lading
- Shipper and consignee names and addresses are correct.
- Notify party is you or your customs broker, with contact details.
- Port of loading and port of discharge are right.
- Package count, weight and CBM match the packing list.
- Goods description matches the commercial invoice.
- Container and seal numbers are correct (FCL).
- Marks and numbers match the cartons.
- Freight prepaid or collect matches your Incoterm.
- The release type (original, telex release or sea waybill) is what you agreed with the supplier.
Common Bill of Lading Problems
- Wrong consignee or notify party. Amendments after issue take time and can cost a fee. Check the draft carefully.
- Details that do not match the invoice. Different package counts, weights or descriptions can delay customs clearance or cause a bank to reject an L/C.
- Lost original bills of lading. Getting the goods released without them is slow and usually needs a bank guarantee. A telex release avoids the risk.
- Supplier will not release the B/L. This usually means the balance has not arrived or there is a dispute. Agree the payment and release terms in writing before shipment.
- Late telex release. The container waits at the port and storage or demurrage starts once the free time ends.
Bill of Lading vs Air Waybill
Air freight uses an air waybill (AWB) instead of a bill of lading. An air waybill is a receipt and a transport contract, but not a document of title: the goods are released to the consignee named on it. That is one reason air shipments clear faster. See air freight vs sea freight.
How JIEYI Handles Your Bill of Lading
We are a freight forwarder in Dongguan. For sea shipments from China we arrange the bill of lading for you. It is issued by the NVOCC or shipping line we book with; we send you the draft for checking before it is issued, and can arrange a telex release or a sea waybill, so you are not waiting for paper originals. We keep you and your customs broker updated, so the goods can be released as soon as they are cleared.
Send us your shipment details and we will quote door to door, including the paperwork.
New to freight jargon? Our shipping terms glossary explains more than 60 common terms in plain English.
Already shipped? See how to track a shipment from China with the container number or bill of lading number.
The “Marks and Numbers” field on the bill of lading must match the cartons. See our guide to shipping marks for what to print on each carton.
Bill of Lading: FAQ
Who issues the bill of lading?
The shipping line issues the master bill of lading. When you ship through a forwarder, the forwarder (or the NVOCC it works with) issues a house bill of lading to the shipper.
What is the difference between a telex release and a sea waybill?
With a telex release, original bills of lading are issued and then handed back at origin before the goods are released. With a sea waybill, no originals are issued at all, and the goods are released to the named consignee.
How many original bills of lading are there?
Usually a full set of three. Any one of them can be used to collect the goods, so the whole set should be kept together.
Can I get my goods without the original bill of lading?
Only if the B/L has been telex released, a sea waybill was used, or the carrier agrees to release against a bank guarantee. Otherwise the original must be handed in.
When should I pay my supplier the balance?
Many importers pay after receiving a copy of the bill of lading, which proves the goods have been shipped. The supplier then telex releases the B/L. Agree this in your purchase contract.
What is a clean bill of lading?
One with no remarks about damaged or missing goods at loading. A claused (foul) bill has such remarks, and banks often refuse it under a letter of credit.
What does “freight collect” mean on a bill of lading?
The ocean freight is paid at destination by the consignee. “Freight prepaid” means it was paid at origin, as under CIF or CFR.
The bill of lading must match your other documents. See commercial invoice and packing list for what they must include.
Checked on November 4, 2026. Practice can differ between carriers, forwarders and banks; this guide is general information, not legal advice. Ask us about the documents for your next shipment.
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