Master Bill of Lading

A master bill of lading (MBL) is the contract and receipt issued by an ocean carrier (shipping line) directly to a freight forwarder or NVOCC. It covers an entire container that may contain multiple shippers’ cargo consolidated under separate house bills of lading.

Master B/L in Consolidation

The Hierarchy

Ocean Carrier
     │
     └── Issues MASTER B/L to Forwarder
              │
              └── Forwarder issues HOUSE B/Ls to Shippers
                       │
                       ├── House B/L 1 (Shipper A)
                       ├── House B/L 2 (Shipper B)
                       └── House B/L 3 (Shipper C)

Example

One 40’ container with:

• MBL: Freight forwarder as shipper, destination agent as consignee
• HBL 1: Company A’s 10 pallets
• HBL 2: Company B’s 5 pallets
• HBL 3: Company C’s 8 pallets

MBL vs. HBL Comparison

Information on Master B/L

Parties Listed

• Shipper: Freight forwarder (origin)
• Consignee: Freight forwarder’s agent (destination)
• Notify: May be agent or actual parties

Cargo Description

• Total container count
• “Said to contain” or “STC”
• Seal numbers
• Container numbers
• Gross weight of consolidation

Example MBL Description

1 X 40' HC CONTAINER
CONTAINER #: MSCU1234567
SEAL #: ABC12345
SAID TO CONTAIN: CONSOLIDATED CARGO
GROSS WEIGHT: 18,500 KGS

Why Use Master/House B/L Structure

Benefits for Forwarders

• Control over cargo release
• Consolidation efficiency
• Margin on shipping
• Service differentiation

Benefits for Shippers

• Access to consolidation rates
• Single point of contact
• Combined origin services
• Simpler documentation

How Pricing Works

Carrier charges forwarder: $2,000 (full container)
Forwarder charges shippers:
  - Shipper A: $800
  - Shipper B: $600
  - Shipper C: $700
  - Total: $2,100
  - Forwarder margin: $100

Document Flow

At Origin

1. Shippers book with forwarder
2. Cargo delivered to CFS (Container Freight Station)
3. Forwarder consolidates into container
4. Forwarder books with shipping line
5. Shipping line issues MBL
6. Forwarder issues HBLs to each shipper

At Destination

1. Container arrives
2. Destination agent presents MBL to carrier
3. Carrier releases container
4. Container deconsolidated at CFS
5. Agent releases cargo against HBLs
6. Individual shipments cleared and delivered

Tracking with MBL

Carrier Tracking

• Use MBL number on shipping line website
• Shows container movement
• Vessel schedules and arrivals
• Port operations status

Limitations

• Doesn’t show individual HBL shipments
• Forwarder tracks HBL level
• Ask forwarder for detailed updates
• Use forwarder’s tracking portal

MBL Release Process

Standard Process

1. Shipper pays forwarder
2. Forwarder instructs origin office
3. Origin office arranges MBL release
4. Destination agent claims container
5. HBL cargo released individually

Telex Release

• MBL surrendered at origin
• Electronic release to destination
• Faster than sending paper
• Most common for consolidations

Common Issues

MBL/HBL Mismatch

• Container numbers don’t match
• Weight discrepancies
• Piece counts differ
• Causes customs delays

Release Timing

• MBL released but HBL held (shipper payment)
• Container stuck at port
• Storage charges accumulate
• Communication critical

Liability Questions

• Carrier liable under MBL terms
• Forwarder liable to shipper under HBL
• Back-to-back liability structure
• Claims flow through forwarder