Order bill of lading

An order bill of lading is a negotiable bill consigned to order or to the order of a named party, making it a document of title that can be transferred by endorsement and delivery. The carrier delivers the goods only against surrender of an original, so whoever lawfully holds the endorsed bill controls the cargo. Banks rely on this in documentary credits: a bill made out to order of the issuing bank lets the bank hold security over the goods until the buyer pays. A straight bill, consigned to a named consignee with no order wording, is non-negotiable and is not a document of title.