The straight bill of lading is a non-negotiable bill of lading. It is used where the goods have been paid for or do not require payment such as donations or gifts. Under this bill of lading, the shipping company will deliver the shipment to its consignee on the presentation of identification. It is also called the consignment bill of lading.
The bill of lading states that the goods are consigned to a specified person and it is not negotiable.The straight bill of lading is a document in which a seller agrees to use specific transportation to ship vehicles/goods to a certain location, and the bill is assigned to a specific party. The straight bill of lading document details the type, quality, and quantity of the vehicle/good. It also assists as the receipt upon arrival at the destination. Because it is assigned to a specific party, it is not negotiable and may not be re-assigned to another party.

How Does Straight Bill of Lading Work?
This bill of lading is a document in which a seller agrees to use a specific transport option to ship vehicle/goods to a certain location. And the bill is then assigned to a specific party. Due to its non-negotiable nature, it cannot be assigned to anyone but that party. This helps in the correct delivery of the vehicle/goods. The straight bill of lading details the type, quality, and quantity of the vehicle/goods as well for clarity.
Once the party presents proper identification, which is usually agreed upon in advance, the shipping company hands over the vehicle/goods. This bill of Lading document is also known as a Consignment Bill of Lading or a Sea Waybill.
What are the Risks of Using a Straight Bill of Lading?
- The original bill of lading is not required to be presented by the buyer or the carrier to get the vehicle/goods. This may run risks for the payment under the letter of credit and cash against documents payment methods.
- Issuing banks may be left vulnerable to various fraud risks especially under a letter of credit payments as they can lose control of the vehicle/goods by using this Bill of Lading.
What are the Benefits of Using a Straight Bill of Lading?
The original bill of lading need not be presented by the buyer or the importer. They can get the vehicle/goods from the carrier directly, which may eliminate demurrage and detention charges. This may be very beneficial to exporters and importers where the payment is not an issue among the parties and the transit time is very short between the port of loading and port of discharge.
When to Use this Bill of Lading?
The straight bill of lading document is commonly used to ship to customers for vehicle/goods that have already been paid for. Similarly, in case of gifts or donations or any items that do not require payment. Like exchanges or returns. This bill of lading document is easier to use.
