Laden on Board
Laden on Board is a clause used in a Bill of Lading to confirm that cargo has been physically loaded onto the vessel. It indicates that the goods are no longer waiting at the port or terminal and are officially on board the ship. This confirmation is important because it marks a key milestone in the shipping process. It shows that the carrier has taken custody of the cargo for sea transport.
This clause is especially important in trade and banking transactions. Many Letters of Credit require an “on board” notation before payment can be released. The Laden on Board statement gives assurance to buyers, banks, and insurers that the shipment has departed as planned. It also helps establish the point at which certain risks and responsibilities may transfer, depending on the contract terms.
The notation is usually added by the carrier after loading is complete and includes the date of loading. This date becomes the official shipment date used for documentation, insurance coverage, and compliance checks. Without this confirmation, cargo may be considered received but not shipped. That distinction can affect payments and contractual obligations.
Overall, the Laden on Board clause provides clarity, legal certainty, and confidence in international shipping. It confirms that cargo has moved from the terminal to the vessel. It supports financial settlement, risk transfer, and accurate recordkeeping. For global trade, this clause plays a critical role in aligning logistics and documentation.
Frequently Asked Questions about Laden on Board
Clear answers to the most common questions people have when learning about Laden on Board.
It confirms that the cargo has been loaded onto the vessel, which is often required for payment under Letters of Credit and insurance coverage.
No. “Received for Shipment” means the carrier has received the goods, while “Laden on Board” confirms the goods are physically on the vessel.
Yes. The clause usually includes the date of loading, which becomes the official shipment date for documentation and contractual purposes.