Is a bill of lading the same as a contract, and can it be transferred?

A bill of lading serves several functions under maritime and commercial law principles reflected in New Zealand law, including the Carriage of Goods by Sea Act 1994. It acts as a receipt for the goods shipped, evidence of the contract of carriage between the shipper and the carrier, and, in the case of a negotiable or order bill of lading, as a document of title, meaning that possession of the original bill, properly endorsed, can be used to transfer the right to claim delivery of the goods to another party, which is important in international trade where goods are often sold while still in transit. A straight, non-negotiable bill of lading, by contrast, names a specific consignee and generally cannot be transferred in the same way. Whether your particular bill of lading is negotiable depends on its wording. Ensure your sale contracts and letters of credit, if used, are consistent with the type of bill of lading being issued, and seek trade finance advice for complex transactions.