A more thorough explanation:

A nonnegotiable bill of lading is a document that acknowledges the receipt of goods by a carrier or shipper's agent and the contract for the transportation of those goods. It specifies a consignee to whom the carrier is contractually obligated to deliver the goods. This type of bill of lading is also known as a straight bill of lading.

For example, if a company ships a product to a specific customer, they would use a nonnegotiable bill of lading to ensure that the carrier delivers the goods to the correct recipient. The carrier is obligated to deliver the goods to the specified consignee and cannot transfer the delivery obligation to anyone else.

Nonnegotiable bills of lading are different from negotiable bills of lading, which allow the holder of the document to transfer ownership of the goods to another party. Nonnegotiable bills of lading are not transferable and can only be used by the specified consignee.