What defines a negotiable Bill of Lading?

A negotiable Bill of Lading is a key document in international trade that facilitates the transfer of ownership of the goods being shipped. The correct definition of a negotiable Bill of Lading is that it can be bought, sold, or traded while the goods are still in transit. This characteristic allows it to serve as a form of collateral and provides flexibility and security in trading arrangements.

When the Bill of Lading is made out to the bearer or to a specific person, it enables the holder to claim the goods upon arrival at the destination, effectively enabling ownership transfer without the need for the physical goods to change hands. This is particularly important in global trade, where speed and efficiency can significantly impact business operations.

While a negotiable Bill of Lading can also be used in securing loans and may play roles in customs processes and indicating sale transactions, its primary defining feature is the ability to facilitate the buying, selling, or transferring of the document itself, thus allowing for the continuous trade of assets during transportation.