In international trade, a Bill of Lading (abbreviated B/L) as one of the important proofs of a transport contract proves not only the shipment of the goods, but also the ownership of the goods. Understanding the difference between a Master Bill of Lading (MB/L) and a House Bill of Lading (HB/L) is crucial to ensure that the goods are delivered safely and accurately to the destination.

Basic Definition and Function of Shipyard and Freight Shipyard

Proof of Owner (MB/L)
A shipowner’s certificate is an official document issued by the ship company or its authorized agent based on the actual shipment of the goods. Such a certificate represents that the goods have been loaded on a designated ship and that the shipowner is committed to transporting the goods safely to the destination. A shipowner’s certificate has legal effect and can be used as a basis for the transfer of goods, sale of goods or financing.
Delivery of goods (HB / L)
The freight certificate is issued by the freight agent upon receipt of the goods, in accordance with the shipping agreement with the sender or freightholder. Although functionally similar to the shipowner, it is mainly used to record the shipping agreement between the freight agent and the customer and can not be used directly for legal transactions with the shipowner.

Risk Comparison and Practical Application

List of Shipowners
(1) Low risk due to its legal relationship established directly with the shipowner, universally recognized worldwide, and applicable to most international trade and financial occasions.
(2) If problems arise during the transport of the goods, the party holding the certificate may communicate directly with the owner of the ship and make a claim.

List of goods
(1) The risk is higher because it is valid only between the cargo and the customer and does not directly indicate the responsibilities and commitments of the shipowner.
(2) If an international claim for goods is required, the holding of a freight receipt may face problems of ineffectiveness.

Practical application

Applicable scenes
(a) Proposal of the shipowner:It is suitable for transportation that requires strict control of goods rights and high-risk goods, such as valuable goods, commodities, etc.
(b) The delivery of goods:Suitable for handling simpler and less risky transportation of goods, especially when the goods need to be disassembled in multiple destinations.

Selection based
(a) Where a trade contract or credit document requires the submission of a proposal by the shipowner, it shall be strictly complied with in order to avoid legal and financial risks.
(b) Goods can be used for internal control and for smaller scale trade activities involving multiple transfer of goods.

Risk management and recommendations

In order to effectively manage the risks associated with the offer, exporters and importers shall:

(1) Specify the specific requirements of the contract for the offer, including the type of offer and specific information for the requested offer.
(2) When choosing goods, ensure their good reputation and have the ability to deal with relevant legal and transportation issues.
(3) Establish clear communication channels with shipping companies or freight forwarders to ensure that any issues in the process of freight transport can be addressed in a timely manner.
(4) In the transport of goods involving high value or high risk, the owner of the ship shall have priority in order to increase legal protection.

Through the above analysis, it can be seen that the applicable scenarios and risks of the shipowner’s and the freight’s withdrawals are different.The reasonable selection and use of both withdrawals can not only avoid potential legal risks, but also maintain competitiveness in complex international markets.