Sea waybill (SWB)

A sea waybill is a receipt for the cargo and evidence of the contract of carriage, but it is not a document of title. The carrier releases the goods to the consignee named on it once that party identifies itself and pays any charges due, so no paper has to travel by courier. It suits shipments between related companies, regular trading partners on open account and any sale where the seller does not need the document to secure payment.

The key difference from a bill of lading is control. With a negotiable B/L, the holder of the original controls the cargo, so a seller can keep it until paid. With a sea waybill, the named consignee can collect regardless of payment, and the document cannot be endorsed to a new buyer. A telex release gives a similar result at destination, but it starts from an original B/L that was issued and then surrendered at origin.

Sea waybills avoid the classic problem of the vessel arriving before the originals, which leads to waiting time, storage and demurrage. Because they give the seller no security once the goods ship, they are rarely chosen for letter-of-credit sales or for cargo sold while in transit. Before issuing one, forwarders confirm that the payment terms allow it and that the consignee's name and details are exactly right, since that name is what the carrier releases against.