Negotiable bill of lading

A negotiable, or order, bill of lading is a document of title made out to order and transferable by endorsement and delivery, so possession of the original controls delivery of the goods. It serves three functions at once: receipt for the cargo, evidence of the carriage contract, and document of title that banks rely on under documentary credits. A straight or sea waybill, by contrast, is non-negotiable and names a fixed consignee, which speeds release but removes the title-transfer function.