Bill of Lading Types Explained: Master, House, Telex Release and Seaway Bill

The bill of lading (B/L) is the single most important document in ocean shipping: it determines who can collect the cargo, who is treated as its owner and how payment is protected. Yet terms like master, house, telex release and seaway bill are often confused. This guide explains the main bill of lading types, when each is used and what to check.

What is a bill of lading? Three core functions

A bill of lading is the document issued by the carrier (or someone acting for it) confirming receipt of the cargo and evidencing the sea carriage. It has three core functions:

Receipt for the goods: it proves the carrier received the stated goods in the stated condition.
Evidence of the contract of carriage: the terms are usually printed on the reverse or set out in the carrier's standard conditions.
Document of title: whoever holds a negotiable original B/L is entitled to take delivery. This makes it a powerful tool for securing payment.

The different types of B/L are distinguished by which of these functions they perform, and how far.

Master B/L and house B/L

When you ship through a forwarder, two bills are often issued:

Master B/L (MBL): issued by the actual ocean carrier (the shipping line). The shipper is usually the forwarder at origin and the consignee its office or agent at destination.
House B/L (HBL): issued by the forwarder or NVOCC (non-vessel operating common carrier) in its own name to the actual shipper. Here the real exporter is the shipper and the real importer the consignee.

House bills are almost always used for LCL because of consolidation: one container holds goods from several shippers, so the line issues a single master B/L and the forwarder issues a separate house B/L to each customer. For FCL, both structures are possible. What matters is knowing which document you hold and who can release the cargo. Under a house B/L, the cargo is usually released at destination by the forwarder's office or agent, and the consignee must obtain release from that party before the line issues a delivery order. This is why the destination contact details on the bill must be correct. For the differences between LCL and FCL, read FCL or LCL?.

Types by consignee

Straight B/L: made out to a named consignee and generally not transferable by endorsement.
To order B/L: made out "to order" or "to order of [a bank or the shipper]" and transferable by endorsement. Common under letters of credit.
Bearer B/L: whoever holds it can take delivery. Rarely used because of the risk of loss and misuse.

Original B/L, telex release and seaway bill

How the cargo is released at destination is where the commercial differences really show.

Original bill of lading

The carrier usually issues several originals, most often a set of three (the "full set"). To take delivery, at least one original must be surrendered to the carrier or its agent at destination; once delivery is made against one, the others become void. Originals travel by courier, which takes time and tracking.

When to use it: letters of credit, documentary collections and any deal where the seller wants to keep control of the goods until paid.

Telex release (surrendered B/L)

Originals are issued, but the shipper surrenders the full set to the carrier at the port of loading. The carrier then instructs its destination office to release the cargo without originals. The name comes from old telex messages; today it is done electronically.

Advantage: fast release with no courier delay.
Watch out for: once the originals are surrendered, the seller effectively loses control over the cargo, so it is typically used after payment or between trusted partners.

Seaway bill

A sea waybill is a non-negotiable transport document that is not a document of title. The consignee collects the cargo by proving its identity, without presenting any original.

Advantage: no risk of lost documents and quick release.
Watch out for: the seller does not get the control an original B/L provides. It suits intra-group shipments and prepaid deals. Whether it can be used under a letter of credit depends on the credit's terms.

Shipped on board vs received for shipment

Received for shipment B/L: confirms the carrier has received the goods for shipment, not that they have been loaded.
Shipped on board B/L: confirms the goods have actually been loaded on a named vessel. The same effect can be achieved by adding an on board notation, with the loading date and vessel name, to a received for shipment B/L.

Under letters of credit, banks usually require evidence of shipment on board, and the on board date is checked against the latest shipment date in the credit.

Clean vs claused B/L

Clean B/L: carries no clause declaring a defective condition of the goods or packaging.
Claused (foul) B/L: carries remarks such as "packaging damaged" or "pallets wet". Banks generally require a clean B/L under a letter of credit, so a claused bill can block payment.

The wording "shipper's load, stow and count" (STC, "said to contain") commonly used by carriers states that an FCL container was packed and counted by the shipper; on its own it does not make the B/L claused.

Electronic bills of lading (eBL)

Some carriers now issue electronic bills of lading (eBL) through digital platforms instead of paper originals. An eBL removes courier time and the risk of lost documents, and endorsement and transfer happen on the platform. Acceptance, however, varies by carrier, platform, bank and the laws of the countries involved. If you plan to use an eBL under a letter of credit, confirm in advance that your bank and buyer accept it.

Bill of lading checklist

Do shipper, consignee and notify party match the sales contract and the letter of credit exactly?
Are the ports of loading and discharge correct? Check codes on our port codes page.
Are the description, package count, weight and measurements consistent with the invoice and packing list?
Is freight marked "prepaid" or "collect", and does that match your chosen Incoterms rule?
Are the container and seal numbers correct?

Always check the draft B/L before approval; amendments after the originals are issued can cost money and time.

Frequently asked questions

What happens if I lose an original bill of lading?

The carrier will usually release the cargo only against a letter of indemnity, often backed by a bank guarantee. The process can be slow and costly, so always send originals by tracked courier.

Does a house B/L work under a letter of credit?

That depends on the credit's terms. Agree with your bank and forwarder which transport documents will be accepted before the credit is opened.

What is the difference between a telex release and a seaway bill?

With a telex release, originals are issued and then surrendered at origin; with a seaway bill, a non-negotiable document that is not a document of title is used from the start. In both cases the consignee collects the cargo without presenting an original.

On your sea freight shipments, Medius helps you choose the right B/L type for your payment terms and follows the process from draft check to delivery. Request a quote through our form.