πŸ“„ STRAIGHT OR NON-NEGOTIABLE

📄 STRAIGHT OR NON-NEGOTIABLE

US Capital Private Bank Knowledge Base


📖 What is a Straight or Non-Negotiable Bill of Lading?

A Straight or Non-Negotiable bill of lading is a shipping document where the merchandise is consigned directly to a designated party, usually the buyer, but not to their “order.”


⚙️ How Does It Work?

  • The consignee named on the bill is the only party authorized to receive the goods.

  • The title to the goods is not transferable by endorsement.

  • Delivery is made only to the named consignee, typically without requiring the surrender of the bill of lading.

  • This means the document is non-negotiable — ownership cannot be transferred while goods are in transit.


💡 Why Use a Straight or Non-Negotiable Bill of Lading?

  • Provides direct delivery to a specific party, simplifying the process.

  • Useful when goods are sold directly to a known buyer without plans for transfer during shipment.

  • Reduces risk of unauthorized transfer or diversion of goods.

  • Often used for shipments where title transfer is not required during transit.


⚠️ Important Considerations

  • Cannot be used as a negotiable instrument to transfer ownership.

  • The named consignee must take delivery; no one else can claim the goods.

  • Less flexible for financing or trading compared to negotiable bills of lading.


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