A Dual Named Bill of Lading is a bill of lading that shows two companies as the shipper on its title.
Simple Example
A Chinese exporter (Company A) signs a sales contract with a U.S. trader (Company B). The goods are shipped directly from China to Africa.
To meet customs clearance or payment requirements, Company B requests the shipper on the bill of lading to be shown as:
A O/B B (A Company on behalf of B Company).
This is the most common form of a dual named bill of lading.
Legal & Title Risks
Under standard documentation rules, the title to goods should belong to Company B.
However, since a dual named bill of lading is not a standard official form, strict legal ownership of the goods may be disputed, which involves certain legal risks.
It is highly recommended that both parties sign a separate agreement in advance to clarify ownership of the goods.
Telex Release Requirements
If telex release is required, policies vary by shipping line:
- Some carriers require stamps/signatures from both A and B
- Others only require a stamp/signature from B
These requirements must be confirmed in advance.
Conclusion
While a dual named bill of lading offers certain convenience, it also carries potential risks.
Traders are advised to use this arrangement with caution.
