What is Bill of Lading?

What is Bill of Lading?

A bill of lading (BL or BoL) is a legal document issued by a carrier (transportation business) to a shipper describing the kind, amount, and destination of the goods being transported. A bill of lading also functions as a shipping receipt when the products are delivered to a predefined location. This document must accompany all mailed products, whatever the mode of delivery, and must be approved by a designated representative of the carrier, shipper, and receiver. The Bill of Lading also specifies the carrier used to convey the goods to their destination, as well as the conditions under which the consignment must be transported. Bills of lading can be transported by land, ocean, or air....

Bill of Lading Example

Suppose Aman operate a firm that manufactures machinery components. The company’s purchasing manager creates an order for iron sheets. The vendor receives the order in accordance with the purchase order (PO), gathers the needed amount, and prepares it for shipment. When the conveyance comes, the steel sheets are placed onto the carrier, and the vendor signs the bill of lading....

Types of Bills of Lading

1. Straight Bill of Lading (Non-Negotiable): It is sometimes referred to as a non-negotiable BOL. This form of bill of lading indicates that the items are only to be delivered to the stated consignee and cannot be negotiated or transferred to another party. This procedure is utilized when the shipper does not want the products to be easily shifted or when confidential commodities are transported. For example, it is an excellent alternative for transporting military and defense equipment....

Importance of Bill of Lading

1. Contract: The BOL is an agreement between the shipper, the seller or exporter of the goods, and the shipping carrier. It specifies the terms and conditions of the shipping. It specifies the nature and amount of the commodities being carried. It also covers the agreed-upon location, the agreed-upon freight rate or costs, and the obligations and duties of both parties....

Purpose of Bill of Lading

1. Transportation Paperwork: A bill of lading is essentially transportation paperwork that cannot be disputed. A bill of lading also allows for the division of responsibilities, which is a critical component of a company’s internal control system for avoiding theft....

Contents of Bill of Lading

1. Names and Addresses: In this part, include the full names and addresses of both the shipper and the receiver so that the document may be easily located....

Who Issues Bill of Lading?

A bill of lading is a receipt provided by the shipping company or its representatives for commodities placed on board the vessel, signed by the carrier, and granted for transporting the cargo from the port of receipt to the port of discharge. The bill might be issued on a freight-to-collect or prepaid basis. Aside from that, the Bill of Lading can be supplied by freight forwarders and banks that consider it a transport or negotiation document under Article 30 of the UCPDC. When the Letter of Credit specifies so, the original Ocean Bill of Lading must be 3/3. All three bills of lading must be marked original, with the second and third not designated as duplicate or triplicate....

Who Receives Bill of Lading?

Bills of lading are often issued to:...

Bill of Lading vs. Invoice

Basis Bill of Lading Invoice Purpose A legal document governing the transit of commodities A commercial document detailing the items or services offered to a consumer. Issuer Carrier Seller Contents Description of goods, quantity of goods, destination, and any special instructions. Type of product, price per unit, number of units, total amount, taxes, and buyer contact information. People Involved Shipper, carrier, and consignee Seller and purchaser...

Bill of Lading – FAQs

How many bill of lading can be issued?...