Nature of the Document: A bill of lading is a document guaranteeing the carrier's delivery of goods, while an FCR does not have this characteristic. Chinese Maritime Law clearly states that a bill of lading includes terms for delivering goods to the named consignee, according to the instructions of the notifier, or to the holder of the bill. Therefore, if it is a named bill of lading, the carrier must deliver goods to the named consignee; for a negotiable bill, the carrier must deliver to the bill holder. If the carrier fails to deliver the goods based on the bill, they are liable for damages suffered by those entitled to claim the goods. However, Chinese Maritime Law does not recognize FCR or other documents outside of the bill of lading as guarantees for delivery by the carrier, meaning the carrier is not legally bound to deliver goods based on the FCR. FCRs usually state prominently that "goods will be sent directly to the consignee," and once the shipper accepts this document, they are bound by its terms. Consequently, the carrier is not violating the transport contract by delivering directly to the consignee based on the FCR, nor are they liable for any losses incurred by the shipper.
Usage Context: FCRs generally appear under FOB (Free on Board) or EXW (Ex Works) terms, while bills of lading do not have such limitations. In FCR transactions, buyers are often well-known international supermarkets or major construction project purchasers. These orders typically involve large volumes and long cycles, often requiring multiple shipments. To save time and freight costs, buyers frequently demand FOB or EXW terms, as shipping lines offer significantly lower rates to large buyers than to regular clients. Under these terms, the buyer controls the shipment and typically instructs the seller to hand over goods to a freight forwarder, who pre-books containers with the shipping company. The freight forwarder then loads the goods and, upon arrival, manages the delivery to various consignees. This operational process shows that the freight forwarder, not the shipper, signs the maritime transport contract with the shipping company, resulting in the issuance of an FCR rather than a bill of lading, unless the shipper explicitly refuses to use the FCR in the sales contract. In contrast, the issuance of a bill of lading is independent of the pricing terms in the sales contract; as long as the contract stipulates payment against the bill, the carrier must issue a bill after receiving or loading the goods upon the shipper's request.
