A Comprehensive Guide On Bill Of Lading

by Alex K. Expert Writers

A Bill of Lading (BoL) is considered one of the legitimate and vital documents in the world of trade and logistics issued by a carrier to the company or person responsible for shipping the goods.

Details provided to the shipper mentioned in the bill of lading generally include its type, quantity, and the destination to which the goods are being carried. The statement of lading often serves the purpose of shipment receipt.

You can commonly find such documents on purchasing any overseas product. In this guide, we will further discuss the BoL, the types of bill of lading, and the exact purpose and importance of the BoL in the world of trade and logistics.

What Is A Bill Of Lading (BoL)?

Bill of Lading (BoL) is a document that legalizes the state of agreement between the carrier and the shipper. The BoL also governs the relationship of a carrier and shipper when the goods are transported to their destination.

As mentioned before, the BoL often serves as a shipment receipt, so it clarifies the cargo's ownership and confirms whether the products received matches as described in the BoL.

It also serves as shipment proof to the predestined destination and is issued once the cargo is set on board and ready to be transported.

What Is The Purpose Of A Bill Of Lading?

The BoL mainly has three purposes:

It is a document of the title containing the description of the goods in the BoL.
It serves as a shipping receipt.
Most importantly, it represents the terms and conditions as agreed following which the transportation of goods takes place.

The BoL is proof regarding a business's existence between the career, shipper, and the end customer.

What Are The Types Of A Bill Of Lading?

The Bill of Lading and its types can be categorized into:

Negotiable Bill of Lading.
Non-Negotiable Bill of Lading.

1. Negotiable Bill Of Lading

A Negotiable BoL is a transferable Contract of Carriage. A third party can also use it through the means of consignment, and this act is a vital distinction.

The consignor must sign and stamp the bill to transfer the Negotiable BoL.

The new consignee may choose to move it to the new third party and so on. For a negotiable bill of lading, it must have clarity and be drawn to the consignee's order.

The cargo is released to the party that correctly presents the endorsed bill of lading. They have to show it to the carrier with proof that they are the actual endorsee.

Before releasing any cargo, it is necessary to check the bill's originality and the holder's authority as an endorsee.

2. Non- Negotiable Bill Of Lading

Non-Negotiable or Straight Bill of Lading is another one of the types of Bill of Lading where the owner cannot be transferred from one party to any other third-party.

This type has one particular consignee, receiver, and buyer to whom the goods must be shipped. There are many Non-Negotiable Bill of Lading including:

● House Bill of Lading

● Order Bill of Lading

● Combined Bill of Lading

Things To Remember When Working With BoL

The importance of the Bill of Lading and its types have been discussed briefly throughout the guide. The BoL legalises the business relationship between the career, shipper, and the end customer.

Thus, it is a very important and powerful legal document. While working with the BoL, one must be careful and not hand any such blank document of title to any unauthorized personnel or unknown party as this may lead to unforeseen circumstances.

One should adequately instruct the releasing agent's name and the carrier to avoid problems later on.