House Bill of Lading (HBL)

The House Bill of Lading (HBL) indicates a contract of carriage and receipt of goods between a shipper (usually a freight forwarder) and a carrier (a shipping line or airline). This document outlines the terms and conditions for the transportation of goods from the origin to the destination. 

Why is House Bill of Lading (HBL) required? 

One use of the HBL is that it serves as proof that the freight forwarder has received goods for shipment. It includes details such as the shipper’s and consignee’s names, the description of goods, the quantity, weight, and any special handling instructions. 

Secondly, the HBL defines the rights, responsibilities, and liabilities of the parties involved. It specifies the terms of payment, insurance coverage, and any special conditions or requirements for the transportation. These details help protect the interests of both the shipper and the carrier and minimize potential disputes or misunderstandings. 

Furthermore, the HBL is transferable as it allows the freight forwarder to issue their own House Bill of Lading to their customer (the “shipper” on the HBL) while using the Master Bill of Lading issued by the carrier. This practice, known as “house-to-house” or “through” transport, enables the freight forwarder to consolidate shipments and offer multimodal transportation services seamlessly.