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What is a multimodal bill of lading?
A multimodal bill of lading is used when there is more than one type of transportation involved in the shipment process. Learn more about its process and an example in this blog.
A Bill of Lading is an important document in the export shipping process. It works as proof of shipment. It states what products are being shipped, where the shipment is from (origin country) and what is the destination of the shipment (destination country). There are many types of bills of lading and each one is designed for a specific purpose.
What is a multimodal bill of lading?
A multimodal bill of lading, also known as MTD Bill of Lading or Multimodal BOL, is used when there is more than one type of transportation involved in the shipment process. For instance, if the goods are to be shipped via road, ocean and air – a Multimodal Bill of Lading is required. It is practically not possible for exporters to have their warehouses or homes situated close to a port – ocean or air. So, any shipment starts from the tier-2 city or wherever the manufacturing unit is located. Post that, the carrier uses sea or air to take the goods to their final destination.
How does a multimodal bill of lading work?
A multimodal bill of lading is issued by the carrier, which is responsible for handling the export logistics process – from origin to destination. Since it involves the use of more than one mode of transport, the carrier usually ensures door-to-door delivery of the shipment to the importer or the importer’s carrier in this case.
What is the need for a multimodal bill of lading?
In a scenario where two or more modes of transport are being used for shipping goods from exporter to an importer, a Multimodal Bill of Lading is issued by the carrier. This BOL helps combine the movement of shipment without breaking the unit load with two different bills.
Features, format and example of multimodal bill of lading
The key features of a multimodal bill of lading include the combination of various modes of transport into one comprehensive document rather than opting for separate Bills of Lading for each part of the export logistics process. A Multimodal Bill of Lading is usually issued in case of door-to-door shipment.
Some of the details included in the format of a Multimodal Bill of Lading are:
• Carrier details
• Shipper details
• Shipment details like quantity, weight, dimensions, etc.
• Origin and destination of the shipment
• Terms and conditions
MTD Bill of Lading is a single document that can handle multiple modes of transport from origin to destination.
Some of the details included in the format of a Multimodal Bill of Lading are:
• Carrier details
• Shipper details
• Shipment details like quantity, weight, dimensions, etc.
• Origin and destination of the shipment
• Terms and conditions
MTD Bill of Lading is a single document that can handle multiple modes of transport from origin to destination.
Difference between multimodal and through bill of lading
Multimodal bill of lading and through bill of lading are similar to each other with one major difference. A Multimodal BOL requires the use of more than two modes of transport, while a Through Bill of Lading involves only the use of one transportation mode – ocean. A Multimodal Bill of Lading is issued by the multimodal transport operator (MTO) which is responsible for the entire period of transport. On the other hand, a Through Bill of Lading is issued by the sea carrier responsible for the sea passage carriage.
A Multimodal Bill of Lading is one of the most commonly used types of Bills of Lading in the business ecosystem. As a single document is created for shipping goods from origin to the final destination, it is easier for all the involved parties – exporter, carrier and importer. As a result, a Multimodal Bill of Lading is a preferred type of Bill of Lading when it is necessary.
A Multimodal Bill of Lading is one of the most commonly used types of Bills of Lading in the business ecosystem. As a single document is created for shipping goods from origin to the final destination, it is easier for all the involved parties – exporter, carrier and importer. As a result, a Multimodal Bill of Lading is a preferred type of Bill of Lading when it is necessary.
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More blogs on bills of lading
Frequently Asked Questions
What is the full form of MMBL and MMTD?
MMBL stands for Multimodal Bill of Lading and MMTD stands for Multimodal Transport Document. These are two commonly used abbreviations for a Multimodal Bill of Lading.
What is the difference between a Bill of Lading and a Multimodal Transport Document?
A Bill of Lading is used in case of port-to-port shipment while a Multimodal Transport Document or Multimodal Bill of Lading is used in case of door-to-door shipment using more than one mode of transport.
Published on October 29, 2022.
Sources:
1. https://www.globalnegotiator.com/en/multimodal-bill-of-lading-fbl
2. http://usbc.com.ua/public/MULTIDOC_95.pdf
3. https://www.dgshipping.gov.in/Content/PageUrl.aspx?page_name=ShipManualChap23
4. https://www.letterofcredit.biz/index.php/2018/03/13/multimodal-bill-of-lading/
5. https://efinancemanagement.com/international-financial-management/multimodal-bill-of-lading
6. https://www.advancedontrade.com/2016/09/differences-between-billoflading-and-multimodalbilloflading.html
Sources:
1. https://www.globalnegotiator.com/en/multimodal-bill-of-lading-fbl
2. http://usbc.com.ua/public/MULTIDOC_95.pdf
3. https://www.dgshipping.gov.in/Content/PageUrl.aspx?page_name=ShipManualChap23
4. https://www.letterofcredit.biz/index.php/2018/03/13/multimodal-bill-of-lading/
5. https://efinancemanagement.com/international-financial-management/multimodal-bill-of-lading
6. https://www.advancedontrade.com/2016/09/differences-between-billoflading-and-multimodalbilloflading.html
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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
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