An Ocean Bill of Lading (OBL) is a bill of lading issued for waterborne international shipment. In its traditional negotiable form, it is issued as a set of three originals — surrender of any one original at destination authorizes release of the cargo, and the other two become void.
OBLs are governed by the Carriage of Goods by Sea Act (COGSA, 1936) in the United States and by the Hague-Visby Rules in most other major jurisdictions. Both regimes limit carrier liability ($500 per package under COGSA) unless a higher value is declared and a higher freight rate is paid.
OBLs come in two key flavors:
- "To order" of shipper (or a named bank) — negotiable. Title transfers by endorsement. This is the form required for letter-of-credit transactions, because the bank holds the originals until the buyer pays.
- Straight to a named consignee — non-negotiable. Goods are released only to the consignee named on the document.
When originals are slow to move through the banking chain or are unnecessary (e.g., open-account trade with a trusted counterparty), shippers use a Telex Release or a Sea Waybill instead.
The OBL is the document the customs broker uses to file the entry summary and the data the carrier reports in AMS under the 24-Hour Rule.