What is a negotiable Bill of Lading?

• A. A Bill of Lading that can be endorsed and transferred to another party to claim goods.
• B. A Bill of Lading that cannot be transferred.
• C. A Bill of Lading that serves only as a receipt.
• D. A Bill of Lading that is used for air shipments.

Answer: (A)

A negotiable Bill of Lading is a document of title that can be transferred by endorsement and delivery, so the person who holds the endorsed document has the right to claim the goods at destination. This transferability is what makes it negotiable: the rights to the goods can pass from seller to buyer, or to a lender or other party, simply by endorsing and delivering the B/L. The B/L thus acts not just as a receipt and evidence of contract of carriage, but also as a transferable instrument of title during transport.

In contrast, a non-negotiable (straight) Bill of Lading cannot be endorsed or transferred; it only serves as a receipt and proof of the contract, without transferring ownership rights. And an airway bill is the document used for air shipments, not a Bill of Lading, which is typically associated with sea freight.