How does a Captain know to whom to deliver the cargo at the port of destination?
-> to someone who is entitled to delivery of the goods at the port of destination! Having an original of bills of lading at hands is the evidence of title.
Yet, as mentioned before, the goods can be traded while being in transit. This means that bill of lading becomes negotiable, i.e. can be transferred from a consignee with the title (mentioned in the bill of lading) to a consignee without the title (not named in the bill of lading).
The so-called order bills of lading, having the words «to order (or assigns)» inserted instead of a named consignee, allow the shipper to transfer the bill of lading to any person. To allow transfer to any person, the shipper or consignee endorses the bill of lading and the bill of lading can now be passed to the named endorsee. Once again. The endorsee can transfer the bill of lading further by adding the words «to order (or assigns)» against the named endorsee. This property of bills of lading is known as transferability!
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