Glossary term
Negotiable
Of a document: transferable by endorsement or delivery, carrying rights to the goods with it.
A document whose rights pass to a transferee by endorsement or delivery. A negotiable bill of lading is a document of title, so transferring it transfers the right to claim the goods - which is what lets banks finance cargo at sea.
A non-negotiable document, such as a sea waybill or an air waybill, releases goods to the named consignee and cannot be traded.