House Bill of Lading (HBL) vs Master Bill of Lading (MBL): Understanding the Differences in Maritime Transportation

In sea transportation, a Bill of Lading (BL), is a document issued by the shipping line (Hapag, Evergreen, MSC, etc.) that acts as a contract between the seller and the buyer.

This document lists what the cargo is, its quantity, packaging, weight, the volume in cubic meters, and the destination of the goods.

It is used as a contract between parties for the transportation of the goods, it also works as a receipt for the parties involved in the operation.

Bills of Lading play a crucial role in maritime transportation because they serve as evidence of ownership of the cargo, proof of shipment, and a legal document that can be used in case of disputes or insurance claims.

A BL usually has the format shown below:

Depending on the parties involved, there are two different types of bills of lading: the House Bill of Lading (HBL) and the Master Bill of Lading (MBL).

Master Bill of Lading (MBL)

Freight forwarders exist to facilitate transportation operations by being the link, and intermediary between shippers and carriers.

In this context, Freight Forwarders are listed as the shipper and consignee on the MBL, even though they are not the actual owners of the cargo.

This allows freight forwarders to have the power over the cargo and acts as insurance so the customer actually pays for the service to later be allowed to receive the goods.

House Bill of Lading (HBL)

In the HBL, the actual exporter and importer will be listed as the shipper and consignee.

This document is issued by the freight forwarder to the customer, so they can now have control of the goods. This is NEEDED to release the cargo, and proceed to the delivery.

HBLs are used in cases where the freight forwarder is acting as a middleman between the shipper and the consignee and is responsible for arranging the entire transportation process.

The Recap

Both HBL and MBL list the cargo details, and the destination of the goods. The difference remains on who is listed as the consignee and the shipper.

As the forwarder is listed as the consignee/shipper in the MBL, they are allowed to give instructions, and coordinate the operation accordingly with the shipping line directly.

While the HBL is issued by the forwarder to the customer so the cargo is released and delivered to the place it is intended to be at.

These documents distribute the responsibilities of the operation through the parties and minimizes the risk of disputes and legal issues.