Original Bill of Lading (OBL)

Definition

An Original Bill of Lading (OBL) is the principal contract of carriage between the shipper and the carrier. It officially confirms the carrier’s receipt of the goods and, most critically, serves as the definitive title document for the cargo.

The Core Function

The OBL is typically issued in a set of three identical, negotiable original copies. All three originals are issued together and constitute a single contract of carriage. Due to its function as a title document, physical possession of at least one original is mandatory for the authorized party to claim the shipment.

Cargo Release Protocol

Before the logistics provider can complete the final delivery of the cargo, the shipment must be formally released by the carrier. When cargo is issued under an OBL, the release process requires one of two specific actions:

• Endorsed Original Bill of Lading: The importer must physically possess and properly endorse at least one of the three original OBLs, submitting it to the carrier or agent at the destination port.

• Telex Release: This electronic method is used when the physical transmission of the original document is impractical or too slow. The shipper surrenders all three original OBLs to the carrier at the origin, who then electronically notifies the destination agent that the cargo can be released without the physical OBL.

Expert Advice

The type of bill of lading and the chosen release mechanism must be predetermined and agreed upon between you and your supplier. Because the bill of lading is a fundamental agreement governing the security and transfer of the goods, discussing your preferred OBL handling—whether physical endorsement or telex release—is crucial for smooth transit and timely delivery.