What is true about a negotiable Bill of Lading?

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

Answer: (A)

A negotiable Bill of Lading serves as proof of title to the goods, not just a receipt. Because it is negotiable, the holder can endorse the document to another party, transferring ownership of the goods. Once endorsed and delivered, the new holder gains the right to claim the cargo from the carrier at destination and can further transfer those rights by additional endorsements. This makes the document a powerful tool in trade finance and title transfer, allowing the seller to get paid and the buyer or bank to control the goods through the document.

It’s not just a receipt, because alongside acknowledging shipment, it also governs the carriage contract and, crucially, the transfer of title. And it’s used in sea shipments; air shipments rely on an Air Waybill, which is not negotiable in the same way a Bill of Lading is.