In entrepot trade, there are two common ways to issue bills of lading. One is the direct bill of lading, that is, the actual shipper directly signs and issues the bill of lading to the final consignee. This method is simple to operate, but the information of the intermediary is likely to be exposed, and it may affect the intermediary's access to the price difference. The other is the bill of lading. The freight forwarder issues the bill of lading to the intermediary, and then the freight forwarder, according to the instructions of the intermediary, asks the actual carrier to release the goods to the final consignee. This method can protect the commercial information of the intermediary.
In terms of the operating process, if it is a bill of lading, the freight forwarder first confirms the cargo information with the shipper, issues the bill of lading to the intermediary, the intermediary then provides the information of the final consignee to the freight forwarder, and the freight forwarder notifies the actual carrier to release the goods. In terms of risks, the direct bill of lading poses a great risk to the intermediary; if the freight forwarder has a poor reputation in the bill of lading, it may lead to the risk of cargo delivery. Which method to choose needs to comprehensively consider the relationships among all parties in the trade and their risk tolerance.
Professional consultant answers
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In entrepot trade, there are two common ways to issue bills of lading. One is the direct bill of lading, that is, the actual shipper directly signs and issues the bill of lading to the final consignee. This method is simple to operate, but the information of the intermediary is likely to be exposed, and it may affect the intermediary's access to the price difference. The other is the bill of lading. The freight forwarder issues the bill of lading to the intermediary, and then the freight forwarder, according to the instructions of the intermediary, asks the actual carrier to release the goods to the final consignee. This method can protect the commercial information of the intermediary.
In terms of the operating process, if it is a bill of lading, the freight forwarder first confirms the cargo information with the shipper, issues the bill of lading to the intermediary, the intermediary then provides the information of the final consignee to the freight forwarder, and the freight forwarder notifies the actual carrier to release the goods. In terms of risks, the direct bill of lading poses a great risk to the intermediary; if the freight forwarder has a poor reputation in the bill of lading, it may lead to the risk of cargo delivery. Which method to choose needs to comprehensively consider the relationships among all parties in the trade and their risk tolerance.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The bill of lading for entrepot trade can also adopt the combined transport bill of lading. The goods are transshipped from the port of departure to the port of destination. It is issued by the first carrier or its agent and covers the entire transportation. This kind of bill of lading involves multiple transportation stages, and attention should be paid to the connection and liability division of each stage.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
There is also the telex release bill of lading. The shipper submits a letter of guarantee and a telex release application to the carrier, and the carrier notifies the consignee at the port of destination to pick up the goods with an identity certificate. The advantage is that the pickup is fast, which can accelerate the turnover of goods. However, once the telex release is made, the shipper may lose control of the goods, so the risks should be carefully evaluated when using it.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
The advanced bill of lading may also appear in entrepot trade. When the goods have not been fully loaded on board or have not been completely loaded, the shipper requests the carrier to issue an on-board bill of lading in advance. But this is an illegal operation. Once discovered, both the shipper and the carrier have to bear legal responsibilities. It is not recommended to use it under normal circumstances.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The anti-dated bill of lading is similar to the advanced bill of lading. After the goods are loaded on board, the carrier, at the request of the shipper, advances the bill of lading issuance date. This also has legal risks and may face claims from the consignee. Generally, it is not easily adopted unless there are special reasons and the risks are controllable.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
The clean bill of lading is also commonly used in entrepot trade. It indicates that the goods are in good condition on the surface at the time of loading, without any remarks such as cargo damage or poor packaging. This guarantees the consignee's receipt of the goods and is also conducive to the smooth transfer and circulation of the goods.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
The bearer bill of lading is also used in entrepot trade. The consignee column of the bill of lading is left blank and can be transferred without endorsement. However, because of its high risks, once it is lost, the finder can pick up the goods with the bill of lading, so its application scenarios are relatively few.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
The order bill of lading is also common, which is divided into named order and blank order. The named order needs to be endorsed by a specific person to be transferred, and the blank order can be transferred only by endorsement. It has high flexibility, ensures the circulation and safety of the bill of lading, and is widely used in entrepot trade.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
When issuing a bill of lading for entrepot trade, it is also necessary to ensure that the content of the bill of lading is accurate, including information such as the description of the goods, quantity, weight, port of loading and unloading. Otherwise, problems may occur in the subsequent customs clearance and goods pickup links, affecting the trade process.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
In addition, attention should be paid to the consistency between the bill of lading and other trade documents such as trade contracts and letters of credit. If there are discrepancies, it may lead to the risk of exchange collection or trigger trade disputes. Therefore, the documents need to be checked against each other to ensure consistency.