Bill of Lading
A bill of lading (either BOL or B/L) is a legal document issued by a carrier that acts as the contract between the carrier and the shipper, the shipper’s receipt, and the document of title. BOLs are also used to aid in the tracking of shipments to their final destination.
How do Bills of Lading Work?
A BOL accompanies transported cargo throughout its journey and must be signed by the carrier, shipper, and receiver before it can be legally binding. BOLs outline crucial cargo and shipment information, including the weight, value, and classification of cargo; the shipper’s, receiver’s, and carrier’s details; route; transportation methods; and any special instructions. BOLs also include the carrier’s terms and conditions for their services.
Simply put, a BOL provides both the shipper and the carrier with all the necessary information to process the shipment.
As well as serving as a receipt and legal contract, BOLs help reduce theft by providing clear evidence of what a shipment should or should not contain. Because bills of lading are legally binding documents, they can be used in litigation processes, serving as undisputed proof of shipment.
Given their central role in the shipping process, it is important that all parties take care to complete and file these documents accurately.
Different Types of Bills of Lading
There are several different types of BOLs, with some of the most common ones being:
- Inland bill of lading
- Ocean bill of lading
- Through bill of lading
- Negotiable bill of lading
- Nonnegotiable bill of lading
- Claused bill of lading
- Clean bill of lading
- Uniform bill of lading
- Air waybill (AWB)
It’s important to ensure the correct bill of lading is used to avoid unexpected delays in transporting or tracking cargo to the final destination.