Sea waybill

A sea waybill is a non-negotiable transport document for goods carried by sea: a receipt and evidence of the contract that names who the goods are delivered to. The consignee collects them by proving its identity — no original document has to travel. Because it is not a document of title, it does not suit a letter of credit sale.

What the law says

UK law defines it as any document that is not a bill of lading but is a receipt for goods containing or evidencing a contract of carriage by sea, and identifies the person to whom delivery is to be made (Carriage of Goods by Sea Act 1992, s.1(3)); the named consignee gets all rights of suit under the contract. In US terms, a bill is nonnegotiable if it states the goods are to be delivered to a consignee (49 U.S.C. § 80103).

How delivery works

• The carrier delivers the goods to the consignee upon production of proper identification (CMI Uniform Rules for Sea Waybills, rule 7).
• It is not liable for a wrong delivery if it took reasonable care to check that the party claiming to be the consignee is that party.
• The shipper may change the consignee at any time until the consignee claims delivery — unless it has transferred that right of control to the consignee.

Worked example: choosing the document

Which liability rules apply

In the UK the Hague-Visby Rules apply to a sea waybill only if the contract expressly provides that they govern (Carriage of Goods by Sea Act 1971, s.1(6)(b)). Check the carrier's waybill terms for the clause that applies them.

The mistake people make

Using a waybill when the seller still needs leverage. Once the ship arrives, the named consignee can collect on identification alone; a seller that has not been paid has given away its hold on the goods. If payment is still open, use a bill of lading.