Related Glossary
What is an HBL (House Bill of Lading)?
A House Bill of Lading (HBL) is a transport document issued by a freight forwarder or NVOCC (Non-Vessel Operating Common Carrier) to the shipper (exporter). It serves as proof of receipt of goods, outlines the terms of carriage, and can also be used as a negotiable document for transferring ownership of the cargo.
Unlike the Master Bill of Lading (MBL), which is issued by the shipping line to the forwarder/NVOCC, the HBL is issued by the forwarder/NVOCC to their customer.
Key points
Issued by Freight Forwarder/NVOCC – Not by the shipping line directly.
Acts as a contract – Defines the terms and conditions under which the forwarder arranges transport.
Contains detailed information – Shipper, consignee, notify party, cargo details, container numbers, ports of loading and discharge, etc.
Can be negotiable or non-negotiable – Depending on how it’s consigned (“To Order” vs. direct to a consignee).
Closely tied to MBL – Each HBL usually corresponds to an MBL that the shipping line issues to the forwarder.
Important for banking and trade – Frequently required in Letter of Credit (LC) transactions.
Example scenario
Suppose ABC Exports in India books cargo to the USA through a freight forwarder called Global Logistics Pvt. Ltd.
Global Logistics, acting as an NVOCC, issues an HBL to ABC Exports.
This HBL shows ABC Exports as the shipper and the US buyer, XYZ Imports, as the consignee.
Meanwhile, the actual shipping line issues an MBL to Global Logistics, showing Global Logistics as the shipper and its US counterpart (or agent) as the consignee.
So, the exporter deals with the HBL, while the shipping line only deals with the MBL.
Frequently Asked Questions (FAQs)
1. How is HBL different from MBL?
HBL is issued by a freight forwarder/NVOCC to the shipper, while MBL is issued by the carrier (shipping line) to the forwarder/NVOCC.
2. Can HBL be used for customs clearance?
Yes, in most countries, customs accept HBL for clearance, but in some regions like certain African ports, only MBL is accepted.
3. Is HBL a legal document?
Yes. It is legally binding document between the shipper and the forwarder/NVOCC.
4. Who pays the freight charges on HBL?
The terms (Prepaid or Collect) are clearly mentioned on the HBL and must align with the agreement between the shipper and consignee.
5. Can there be multiple HBLs under one MBL?
Yes. A single MBL from the carrier may cover multiple HBLs from the forwarder for different shippers/consignees consolidated into one container.
Additional Insights
HBL is critical in LCL (Less than Container Load) shipments, where a forwarder consolidates cargo from multiple shippers into one container.
Always check that the details on HBL and MBL match (container numbers, vessel/voyage, ports, etc.) to avoid customs or delivery issues.
In trade finance, banks often require an HBL if the transaction is routed through a forwarder.
Related terms: MBL (Master Bill of Lading), Telex Release, Surrendered BL, Sea Waybill.