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Showing posts from November 17, 2016

House Bill of Lading (HBL)

Introduction to House Bill of Lading The House Bill of Lading (HBL) is issued by a NVOCC (non-vessel operating common carrier). You may wonder if it is not a complicated situation, having a NVOCC involved as a middle man instead of just dealing directly with the ocean carrier. In particular small and middle-sized companies often do not have enough shipments (cargo volume) to negotiate good rates and conditions with the carrier directly. They therefore use a NVOCC who has a large number of customers and therefore can negotiate good freight rates with the ocean carrier (shipping line). Although the NVOCC may add a margin to the freight rate, the customer still obtains a better deal. It becomes a win-win situation. When a House Bill of Lading (HBL) is issued (a document of title), the NVOCC will only release the goods at destination to the party who can present an original House Bill of Lading that covers the goods. The Bill of Lading (B/L) becomes the ‘key to the cargo’. W