YOU ASK, GREEN ANSWERS
What are the advantages of Straight, Switch, and To Order Bills of Lading?
STRAIGHT BILL OF LADING
A type of non-negotiable bill that specifies the ownership of the freight and requires the goods to be delivered only to the named consignee. The straight bill can sometimes reduce transit times and avoid demurrage and detention fees.
SWITCH BILL OF LADING
Switch Bills of Lading can be used to hide the original source of goods. This is useful to trading companies who resell goods and do not want the final customer to deal with the original supplier directly. However, there is an increased risk of incorrect deliveries and possible decrease in trust in transactions.
TO ORDER BILL OF LADING
A type of negotiable bill of lading. It’s usually consigned “to order” of a party instead of a buyer/owner because there isn’t a final buyer/owner at the time the bill is created. There is a letter of credit owed. Order bills allow ownership to be transferred.
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