3 advantages and 3 disadvantages of the Seaway Bill

What is the Seaway Bill?

A Seaway Bill, also known as an Express Release Bill of Lading, is an electronic transport document that functions as a bill of lading. Unlike a traditional Bill of Lading, it is not issued in paper form, meaning it does not need to be physically sent or deposited with the carrier at the destination port. The costs associated with issuing a Seaway Bill are the same as those for a traditional Bill of Lading.

When Should You Choose a Seaway Bill?

This type of bill of lading is most commonly chosen in the following situations:

• Regular shipments of goods, where both parties trust each other as business partners.
• When our clients need to quickly transfer a container to the recipient, and there is limited time to print and send original documents.
• When the sender and recipient belong to the same corporate group, there are no financial obligations between them, no bank acting as an intermediary, and the bill of lading does not serve as security for payment.

Advantages of a Seaway Bill

1. Time savings: The recipient does not need to wait for the delivery of a paper bill of lading or visit the carrier to secure the release of the goods.
2. Cost savings: The sender saves on mailing or courier costs since the bill of lading can be sent electronically, such as via email or fax.
3. Immediate release of goods: Once the carrier is notified of the use of this type of bill of lading, the information is immediately transmitted to the destination port, allowing the recipient to quickly collect the container with the goods.

Disadvantages of a Seaway Bill

1. Difficulty in holding the goods: If the recipient has not settled all dues and the goods have already arrived at the destination port, it may be challenging to hold the goods there.
2. Higher risk of fraud: Due to the lack of a paper document, the goods may be more vulnerable to fraudulent attempts.
3. Non-transferability: The Seaway Bill is non-transferable and serves only for the collection of goods.