Sea way bill is a type of Bill of Lading which is non-negotiable and allows quick (express) release of consignment to the receiver named on the document. The ownership of the goods cannot be transferred by endorsing the sea way bill. It is a simple receipt of the cargo, incorporating the terms and conditions of the transport contract between the carrier and its customer. The drafting of a waybill is similar to the one of a bill of lading. Only one (1) original is issued, copies may be obtained but photocopies have the same value.
For a shipment covered by a waybill, the receiver can take delivery of the cargo by justifying his identity, original document is not required. A waybill is issued upon request of the shipper.This document is more relevant for non commercial transactions, inter company stock transfers or where the letter of credits are not involved . If a documentary credit (L/C) is used for the commercial transaction, a negotiable bill of lading must be used.
Waybills could be used for
- shipment between mother and sister companies
- Shipments of MNCs
- buyer and seller are working in current account and payment of goods is not again documents
- short transit time
- buyer and seller are entertaining good relationship and thus not using any documentary credit
- for personal effects
Also please make a note that in some countries ( Latin America, Afganistan, Iraq,Iran, Lybia etc) sea way bills are not allowed.
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