What distinguishes a Bill of Lading from a Sea Waybill?

• A. A Bill of Lading is a document of title; a Sea Waybill is not and cannot normally transfer title.
• B. A Sea Waybill is a document of title; a Bill of Lading is not.
• C. Sea Waybill is used for inland shipments only.
• D. A Bill of Lading is always an insurance document.

Answer: (A)

The key idea here is whether the document can transfer ownership of the goods. A Bill of Lading acts as a document of title, meaning the holder can claim the goods and, if suitable, transfer ownership by endorsing and delivering the document while the cargo is in transit. This negotiable quality is what allows a B/L to be used as collateral or as a means of passing title to another party.

A Sea Waybill does not convey title. It serves as a receipt and evidence of the contract of carriage, and it is generally non-negotiable, so ownership does not pass simply by presenting the document. Release of the goods is based on identity and entitlement rather than documentary title transfer. This is why the Bill of Lading is the instrument that can transfer title in transit, while the Sea Waybill cannot. The Sea Waybill is not restricted to inland shipments, and either document is separate from insurance, which is a separate policy.