Non-Negotiable Sea Waybill DEFINITION
A non-negotiable sea waybill is a transport document covering port-to-port shipments. It is not a title document, is not negotiable, and cannot be endorsed. ✔KEY ELEMENTS
The non-negotiable sea waybill contains the following elements: 1. Name of carrier with a signature identified as that of the carrier, ship’s master, or agent for the carrier or ship’s master 2. An indication or notation that the goods have been loaded “on board” or shipped on a named vessel. Also, the date of issuance or date of loading 3. An indication of the port of loading and the port of discharge 4. A sole original, or if issued in multiple originals, the full set of originals 5. The terms and conditions of carriage or a reference to the terms and conditions of carriage in another source or document 6. No indication that the document is subject to a charter party and no indication that the named vessel is propelled by sail only 7. Meets any other stipulations of the letter of credit (when applicable)
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& NOTES Most notes relate to rules concerning bills of lading in transactions involving a letter of credit payment. V E S S E L N A M E If the document includes the notation “intended vessel,” it must also contain an “on board” notation of a named vessel along with the date of loading, even if the named vessel is the same as the intended vessel. P O R T O F L O A D I N G If the document indicates a place where the goods were received by the carrier different from the port of loading, the document must also contain an “on-board” notation indicating the port of loading as named in the letter of credit and the named vessel, along with the date. T R A N S P O R T D O C U M E N T S If the letter of credit calls for a port-to-port shipment but does not call specifically for a marine bill of lading, the banks will accept a transport document, however named, that contains the above information. Banks will normally accept the following documents under this title: ocean bill of lading, combined transport bill of lading, short form bill of lading, or received for shipment bill of lading, provided it carries the notation “on board.” W A Y B I L L S Because they are not title documents, sea waybills eliminate many of the inconveniences of a bill of lading and offer advantages in situations where the rigid security of a bill of lading is not required. Waybills reduce the opportunity for fraud and they remove the problems of goods arriving ahead of documents.
CAUTIONS
Sea waybills are appropriate for shipments between associated companies, for shipments to an agent for sale at destination on an open account basis, and for shipments between companies that have established mutual trust.