Logistics terms B

B/L (Bill of Lading)

The conditions for the carriage of goods by sea are laid down in a contract of carriage, called a bill of lading or Bill of Lading (B/L). It is the supplier who issues the bill of lading. The bill of lading has three important functions; it is a receipt, evidence of a contract of carriage and sometimes also a document of title.

There are many different types of B/L:

Amended B/L: Provides an update to a Bill of Lading that does not change the financial status.

Cancelled B/L: Used to cancel a processed Bill of Lading, usually by the supplier.

Clean B/L: A receipt for goods issued by a carrier stating that the goods were received in good order and condition, without damage or other irregularities. If no notations or exceptions are stated, the B/L is presumed to be in order.

Combined B/L: Relates to freight transported by several different means of transport.

Consolidated B/L: Two or more combined or consolidated Bills of Lading.

Corrected B/L: a Bill of Lading that indicates an update resulting in monetary or other financially related changes.

Domestic B/L: A non-negotiable Bill of Lading, mainly containing routing details, used by truckers and freight forwarders.

Express B/L: A non-negotiable Bill of Lading when there are no printed copies of the original Bill of Lading.

Freight B/L: A contract of carriage between a supplier and a freight forwarder. It is a non-negotiable document.

Hitchment B/L: This Bill of Lading covers part of a shipment because the entire shipment was loaded at more than one location.

House B/L: This Bill of Lading is issued by a freight forwarder or consolidation organisation for a single shipment, with the names, addresses and specific description of the goods shipped. 

Intermodal/Multimodal/Combined Transport B/L: Covers the cargo transported by various means of transport.

Long B/L: The B/L with the full terms and conditions on the back.

Negotiable B/L: A Bill of Lading whereby the shipper can transfer ownership of the goods to the bank representing the buyer or directly to the buyer of the goods.

Non-Negotiable/Straight Consignment B/L: A non-negotiable Bill of Lading. This B/L is used when goods are shipped directly to a consignee. On-Board B/L: This document is validated at the time of loading for transport. Common in air and sea freight.

Optional Discharge B/L: This is a Bill of Lading whereby the cargo can be discharged at multiple locations.

Order B/L: This Bill of Lading is usually issued by the supplier, whose approval is required to proceed to a negotiation.

Order Notify B/L: This Bill of Lading is usually issued by the supplier with the additional clause that the consignee must be notified on arrival of the goods. Such a notification to the consignee does not yet give the consignee any right to the goods.

Original B/L (OBL): This is an important Bill of Lading. This document is a document of value and indicates that the named party is the owner of the goods. This Bill of Lading is negotiable.

Received-for-Shipment B/L: This Bill of Lading is validated at the time the cargo is received by the shipping company, but before it is validated as 'on board'. Reconciled B/L: A Bill of Lading that reflects the changes between the supplier's instructions and how the shipment was actually received. This produces a very accurate Bill of Lading. 

Short Term/Short Form B/L: A Bill of Lading that does not have the terms and conditions described on the back of the document. Split B/L: A Bill of Lading that has been split off from another B/L.

Through B/L: General documentation when multiple carriers and multiple means of transport are involved in the transport.

Voided B/L: A Bill of Lading taken out of a combined Bill of Lading.

BACAT

The BACAT (Barge Aboard Catamaran) ship has many similarities to the LASH ship. The BACAT ship also carries standardised barges. The major difference, however, lies in the way the barges are loaded and unloaded. Whereas on the LASH ship the barges are loaded or unloaded with a crane, on a BACAT ship they are floated on and off board.

Backletter

In the backletter, the shipper/seller draws up a 'letter of indemnity' for the carrier in exchange for a clean Bill of Lading.

BAF - BUNKER ADJUSTMENT FACTOR

Fuel prices are subject to (large) price fluctuations, which is why the shipping line sometimes charges a bunker surcharge to offset the risks of price fluctuations.

Bale capacity

Bale capacity is the volume of a ship for carrying both dry cargo and bales and pallets.

Barge

A barge, or lighter, is a small vessel into/out of which goods are transhipped from/into a large ship. The large ship usually does not have the ability to reach a river or canal.

Berthing

Berthing is navigating the cargo ship safely to the designated position along the terminal quay, so that the unloading of the cargo can begin.

BESC

A number of countries in Africa require a waiver document for all import cargo. For example, a BESC (Bordereau Electronique de Suivi des Cargaisons) is required for all shipments to Benin, Mali and Cameroon. The authorities in the countries of destination can thus be provided with information about the shipment, the shipper and the consignee as early as the 'pre-arrival phase'. Waivers contain the following information: name of the shipper and consignee, method of shipment, description and value of the goods, name of the vessel and the freight costs. The waivers must be in the hands of the receiving authorities before the ship arrives. Each country has its own regulations regarding waiver documents and often also gives a different name per country. Cotonou is the port in Benin for which a BESC is required. Bamako is the port in Mali for which a BESC is required. Douala is the port in Cameroon for which a BESC is required.

Bill of Lading

See Bill of Lading (B/L). The bill of lading has 3 important functions: it is a receipt, evidence of a contract of carriage and a document of title.

Bill of Lading (BL)

In international transport, there are two main types of Bills of Lading. The Master Bill of Lading and the House Bill of Lading. 

The difference between a Master Bill of Lading (MBL) and a House Bill of Lading (HBL) lies in who issues the documents and their function within the logistics chain.

The MBL governs the relationship between the shipping line and the freight forwarder. The HBL governs the relationship between the freight forwarder and the customer and is usually used for the communication and ownership rights of the goods for the end customer.

1. Master Bill of Lading (MBL)

• Issuer: Issued by the shipping line (carrier) to the freight forwarder
• Function: It is a contract between the shipping line and the freight forwarder for the transport of goods.
• Ownership: The owner of the MBL is usually the freight forwarder
• Tracking: It contains tracking information from the shipping line and is used for high-level transport documentation.
• Purpose: Governs the relationship between the shipping line and the freight forwarder.

2. House Bill of Lading (HBL)

• Issuer: Issued by the freight forwarder to the shipper (seller of the goods).
• Function: It is a contract between the freight forwarder and the customer for the transport of goods.
• Ownership: The owner of the HBL is usually the sender or consignee of the goods (end customer).
• Tracking: Usually tracking information is provided by the freight forwarder, not directly by the shipping line.
• Purpose: Governs the relationship between the freight forwarder and the end customer.

The House Bill of Lading is issued to the Shipper (the seller) after receipt of payment of the documentation costs. As soon as the Shipper wishes to transfer ownership of the goods, the Shipper will either: - send the HBL, signed and provided with the company stamp, in original form to the Consignee (the buyer), or: - request the Freight Forwarder to release the HBL digitally (Telex Release BL / Surrendered BL).

Only when ownership has been transferred will the Freight Forwarder release the Master Bill of Lading with the shipping line. As a rule, the shipping line only releases the Master Bill of Lading once the shipping line costs have also been settled by the freight forwarder.

Sometimes a bank of the seller will have to grant permission for the release. As a rule, this happens when there is a documentary collection or as part of a documentary credit.

Block pallet

A block pallet in most cases has dimensions of 100 x 120 cm. A block pallet is also known as a 4-way pallet. This is because the pallet can be picked up from 4 sides by a forklift truck.

Bolt seals

Since the introduction of the C-TPAT program (Customs Trade Partnership Against Terrorism) and the ISPS code (International Ship & Port Facility Security code), sea containers must be sealed with a High Security Seal immediately after loading. These seals must comply with the required ISO / PAS 17712 certification. These steel pin -bolt seals - seals and cable seals are intended to prevent theft from trucks and to make it more difficult to conceal and illegally transport persons and dangerous prohibited substances in the containers. The seals can be applied easily and quickly by hand. The removal of these 'steel pin' seals can only be done with heavy bolt cutters. In some - extreme - cases, removal is only possible with an angle grinder. The seals are provided with a unique number and/or barcode. If a loaded container is delivered to a terminal for export without being fitted with such a seal, the terminal staff will apply it. However, they may also decide to block the container and inspect the cargo wholly/partly before applying such a seal. The additional costs involved are for the account of the shipper or principal.

Bonded warehouse

A warehouse authorised by customs for the storage of goods, from which the goods may only be transported once the import duties and other customs obligations have been paid.

Booking

Arrangements with a carrier, often a shipping company or airline, for the acceptance and carriage of freight. A space reservation on a ship for the carriage of goods on previously agreed conditions.

Breakbulk

Breakbulk is goods that, due to exceptionally large dimensions or weight, cannot be transported in or on a container by (sea) ship. When the sea transport is nevertheless carried out by container ship, this is referred to as breakbulk shipment. If these goods are transported by a special (read: non-container) ship, we speak of conventional shipment.

Broker

A broker is a party that mediates between a buyer and a seller.

BTI (Binding Tariff Information)

To be completely certain of the customs duties payable on import, a Binding Tariff Information (BTI) can be applied for from customs for a specific product. Such a Binding Tariff Information applies throughout the EU. Such a declaration has a validity of 5 years, allowing the entrepreneur to limit the risk regarding the influence of import duties on his purchase price. However, customs can still decide to classify the goods differently, so that a different import duty applies.

BUC

When fuel prices are subject to large price fluctuations, the shipping line sometimes charges a bunker surcharge or BAF (Bunker Adjustment Factor) or BUC (Bunker Contribution) to offset the risks of price fluctuations.

Bulk carrier

All ships designed for carrying bulk cargo such as grain, fertilisers, ore and oil.

Bunker Adjustment Factor

When fuel prices are subject to large price fluctuations, the shipping line sometimes charges a bunker surcharge or BAF (Bunker Adjustment Factor) or BUC (Bunker Contribution) to offset the risks of price fluctuations.