Sea Waybill
A sea waybill is a non-negotiable transport document issued by an ocean carrier. It is a receipt for the goods and evidence of the contract of carriage, and it names the consignee, who can take delivery without presenting any original document.
Also called: seaway bill · ocean waybill · non-negotiable sea waybill · express bill of lading
English law gives a clear definition. The Carriage of Goods by Sea Act 1992 treats a sea waybill as a document that is not a bill of lading but is a receipt for goods that contains or evidences a contract for carriage by sea, and identifies the person to whom the carrier is to deliver. The key difference from a bill of lading is that a waybill is not a document of title: it cannot be endorsed to sell the goods in transit, and the carrier delivers to the named consignee on proof of identity.
That makes waybills useful where the parties trust each other or payment is already arranged: shipments between companies in the same group, sales on open account to established buyers, and short sea routes where the vessel would otherwise arrive before the paper. With no original to courier, the cargo is not held up waiting for documents, and there is less need for a letter of indemnity at the discharge port.
The trade-off is control. Because the waybill does not represent the goods, holding it gives a seller or a bank no hold over the cargo. Under a letter of credit or a documentary collection, a bank presented with a waybill holds a receipt, not security. UCP 600 deals with the non-negotiable sea waybill in its own article for this reason.
In practice
A waybill protects the seller only as far as the buyer can be trusted or payment is already secured. If payment depends on the buyer, the goods will be delivered whether or not the buyer has paid.
Example
A German machinery maker ships equipment to its own subsidiary in Brazil under a sea waybill naming the subsidiary as consignee. When the vessel arrives the subsidiary collects the containers on the strength of its identity and the arrival notice. Nothing has to be couriered, and the intercompany invoice is settled on 60-day terms.
Learn more on Money Wiki
This page gives the short answer. Money Wiki has a longer guide to Sea Waybill, with more detail and background.
Commonly confused with
| Term | How it differs |
|---|---|
| Bill of lading | A negotiable bill of lading is a document of title: whoever holds it, properly endorsed, controls the goods. A sea waybill is only a receipt and contract record, and the carrier delivers to the named consignee. |
See also
- Bill of LadingA bill of lading is a transport document issued in connection with the carriage of goods by sea. Depending on its form, it can evidence receipt of the goods, contain the carriage terms and function as a document controlling delivery.
- Document of TitleA document of title is a document whose holder is treated, in law or commercial practice, as entitled to receive and deal with the goods it covers, so that transferring the document transfers control of the goods themselves.
- Electronic Bill of LadingAn electronic bill of lading is a bill of lading created, held and transferred as an electronic record on a system that ensures only one party controls it at a time, so that it can do the job of a paper original, including as a document of title.
- Open-Account TradeOpen-account trade allows the buyer to receive goods or services before payment becomes due. It supports the buyer’s working capital but leaves the supplier exposed to the buyer’s credit and payment risk.
- Letter of CreditA letter of credit is a bank’s conditional undertaking to pay when the seller presents documents that comply with its stated terms. Banks examine documents rather than confirming the physical quality or performance of the goods.