<Li> A straight bill of lading is used when payment has been made in advance of shipment and requires a carrier to deliver the merchandise to the appropriate party . </Li> <Li> An order bill of lading is used when shipping merchandise prior to payment, requiring a carrier to deliver the merchandise to the importer, and at the endorsement of the exporter the carrier may transfer title to the importer . Endorsed order bills of lading can be traded as a security or serve as collateral against debt obligations . </Li> <P> A bill of lading that denotes that merchandise is in good condition upon being received by the shipping carrier is referred to as a "clean" bill of lading, while a bill of lading that denotes that merchandise has incurred damage prior to being received by the shipping carrier would be known as a "foul" or "claused" bill of lading . A claused bill of lading will have a statement (clause) written onto the bill of lading noting down any damage or other issues . Letters of credit usually will not allow for foul bills of lading, and the buyer is not obliged to accept any bill of lading that is not clean . </P> <P> A charterparty governs the relationship between the shipowner and the charterer . The bill of lading governs the relationship between the shipper and the carrier (who will be either a shipowner or a demise charterer). If the exporter (the shipper) is shipping a small amount of cargo, he will arrange for a carrier to carry the goods for him, using a bill of lading . If the exporter needs the whole (or a very substantial part) of the ship's cargo capacity, the exporter may need to charter the vessel, and he will enter into a charterparty agreement with the shipowner . </P>

What is meant by shipping order and a shipping bill