{"id":12930,"date":"2021-10-14T22:04:50","date_gmt":"2021-10-15T05:04:50","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/?p=12930"},"modified":"2023-08-29T08:32:07","modified_gmt":"2023-08-29T15:32:07","slug":"bill-of-lading","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/bill-of-lading\/","title":{"rendered":"What is a Bill of Lading? Why it is Important in Shipping"},"content":{"rendered":"

What is a bill of lading?<\/span><\/p>\n

A bill of lading (BOL) is a common type of shipping receipt. It is a record of items that are being shipped from a supplier to a receiver through a freight carrier. Just like any other receipt, a BOL is important because it helps ensure that the number and types of items shipped are the same items that arrive at their final destination. It helps track where a shipment is at a given time, especially if it\u2019s LTL freight that is handled by multiple carriers, as well as determine whether any damage happened in transit by cross-referencing the condition of the items when they shipped to how they arrived. A bill of lading is essentially a contract of carriage between the shipper, consignee, and carrier stating the terms and conditions of carriage. A bill of lading also has important ownership and financial implications, as it not only serves as a legal document of title, but also provides the details needed for accurate invoicing. The size, weight, and density of the items ship all go into determining how much the shipment costs to transport.<\/span><\/p>\n

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What Does a Bill of Lading Do?<\/span><\/p>\n

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Provides Proof of the Contract Terms of Carriage<\/span><\/p>\n

The bill of lading will detail what is being shipped including the type of shipment, how much of it there is, and the destination. It will sometimes also mention the condition of the shipment. Note that the bill of lading is not an actual contract in itself \u2013 just documentation that provides evidence of one.<\/span><\/p>\n

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Functions as a Receipt<\/span><\/p>\n

When a bill of lading is issued by the carrier to the shipper, it is confirming that the goods have been loaded onto the transporting vessel. The shipper is usually issued with several original bills of lading, which can be passed to different parties along the route, essentially passing on control of the cargo.<\/span><\/p>\n

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Acts as the Title of Goods (Representing Ownership)<\/span><\/p>\n

The bill of lading usually includes the details of the receiving party (buyer\/consignee) that the carrier is shipping the goods to. Until the bill of lading has been passed to the receiving party, however, ownership hasn\u2019t been transferred. The shipper may forward a copy of the bill of lading to the receiving party as proof of shipping, but whoever holds the original bill of lading retains ownership of the cargo. The bill of lading is normally only surrendered to the receiving party after full payment has been made.<\/span><\/p>\n

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Contents of Bill of Lading<\/span><\/p>\n

The exact contents of a bill of lading will vary on a case-to-case basis, depending on the type of BOL and\/or the shipping and business terms. Some of the data you are likely to find in a typical BOL are:<\/span><\/p>\n