A sea waybill is a non-negotiable ocean transport document that identifies the shipper, consignee and cargo without functioning as a document of title. Delivery generally does not require presentation of an original paper document.
When is a sea waybill used?
It is useful when the parties trust one another, the goods are not being sold in transit and fast release is more important than documentary control.
Sea waybill vs. original bill of lading
An original negotiable bill of lading can control delivery through possession and endorsement. A sea waybill names the consignee and allows release under carrier procedures without surrender of an original.
What information does it contain?
- Shipper, consignee and notify party
- Vessel and voyage
- Ports of loading and discharge
- Cargo description, quantity and marks
- Freight and handling information
- Carrier terms and references
What are the risks?
Because the document does not provide the same control over title, it may be unsuitable when payment security depends on documentary possession or when goods may be traded during transit.
What should parties confirm?
Agree the transport document before shipment, verify consignee details and ensure the payment and trade-finance arrangements accept a sea waybill.
