A Sea Waybill is used in lieu of a Bill of Lading for straight consignments whenever a letter of credit or similar banking arrangement is not involved in the sale of goods. The Sea Waybill is suitable for regular shipments between related companies which do not require settlements through banks or third parties.
You can use a Sea Waybill when:
- The recipient of the cargo is known, for example with shipments between related companies.
- Cargo will not be traded/sold during transport.
- Payment of goods is made under an open account or there is a high degree of trust between the importer and exporter and where a negotiable transport document is not required under a letter of credit.
You are required to use the Bill of Lading when:
- The goods are being traded/sold in transit.
- The letter of credit terms require that a negotiable document to be used.
- The laws and regulations of a country demand the production of a paper Bill of Lading.