BILL OF LADING

IN THIS LESSON YOU WILL :

WACHT A VIDEO OF BILL OF LADING
KNOW WHY BILL OF LADING IS IMPORTANT
 Why are Bills of Lading important?

• BoLs are vital to the successful transportation of goods. Primarily, the

document serves as a legally-binding agreement which helps the carrier
process the cargo according to the original contract termsset up by the
carrier and shipper or freight owner. This means the BoL can be used in
litigation concerns, and inaccurate BoLs can expose carriers to anything
from claims to criminal prosecution.
• Additionally, since most BoLs are considered a title of goods, these
documents (much like the cargo they list) can be used in negotiations.
Because of this, some types of BoLs can be endorsed and transferred to
third parties while the cargo is in transit, ultimately giving control of the
cargo to different parties along the route. This also means that if a carrier
hasn’t been paid in full for the transportation of the cargo, the carrier can
keep the bill of lading and goods until terms of the sale are finalized.
 What’s on a Bill of Lading?

• Depending on the type of BoL (see below), various

information should be listed on the document, including:
• Carrier name and a signature from the carrier, the ship’s
master, or a legal representative of either of these parties
• Date and indication of goods being loaded onto a vessel
• Notation of the port of loading and the port of
destination
• Terms and conditions of carriage or a reference to these
conditions listed in another document
• Detailed description of the goods being shipped (value,
count, weight, size, markings/numbers, etc.)
• Name of the consignee
• Any special instructions for shipping
• This information is just some of the items which may be
required on a BoL. A marine/ocean shipping BoL, for
example, will also need the name of the ship written on
the document.
7