What is a bill of lading? Explain the difference between a straight bill of lading and an order bill of lading

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A bill of lading is a contract issued to an exporter of goods by the shipping company (also called a common carrier) that will transport the goods to their destination. The bill of lading serves several purposes, but most importantly, it documents that the exporter's goods have been received by the carrier.
The bill of lading contains the contractual terms between the carrier and the shipper (exporter). It describes the kind and quantity of goods being shipped, who the shipper (also called the consignor) is, who the importer (also called the consignee) is, the ports of loading and discharge, the carrying vessel, and the cost of the shipping. A negotiable bill of lading is the most common form. It can be used to transfer title or ownership of goods between different parties.
A straight bill of lading states that a carrier has received merchandise from a shipper and will deliver the merchandise to a designated party. A straight bill of lading is not title to the goods and is consequently not required for the consignee to obtain delivery of the merchandise. Because it is not a title to the merchandise, a straight bill of lading is not negotiable and cannot be used to transfer title of the goods to a third party. Consequently, it cannot serve as collateral with a commercial bank and is used only when no export or import financing is desired. A straight bill of lading is used when goods have been paid for in advance, when the exporter is financing the shipment and retaining title to the goods, or when the shipment is between affiliated parties of the same corporation.
If the transfer of title to goods is desired, or if some form of third-party financing is desired, an order bill of lading is used. Because most export transactions do involve financing, the order bill of lading is the most common form of bill of lading. An order bill of lading consigns the goods to a party named in the contract. This is usually the exporter because the exporter wants to retain title to the goods until payment from the importer has been received. The exporter can endorse the order bill of lading on the reverse side to transfer title of the goods to a specific party designated in the endorsement. At the destination, the carrier of the goods delivers the goods only to the party bearing the endorsed order bill of lading, who surrenders it to the carrier.
Having an order bill of lading is tantamount to having the title to the goods. This means that the goods can be used as collateral for bank loans. Banks are willing to lend to the party bearing an endorsed order bill of lading. In addition, the goods are usually fully insured. An order bill of lading is also required with a documentary credit or for discounting drafts.