Bill of Lading
Definition
A bill of lading is the legal document issued by a carrier that serves as a receipt for goods, evidence of the transport contract, and in ocean shipping, a document of title to the cargo. It travels with, and controls, the shipment.
In Practice
The bill of lading (BOL) records what was tendered: shipper, consignee, piece counts, weights, freight class or commodity description, and any special instructions. When the driver signs it, the carrier accepts responsibility for the freight as described. In ocean trade, an original negotiable bill of lading can also control ownership, since the carrier releases cargo only against its surrender.
Day to day, the BOL is a planner's protection. Accurate weights and descriptions prevent reweigh and reclass charges; a clean signature at pickup versus notated damage at delivery determines who pays a freight claim. Discrepancies between the BOL and what arrives are the starting point of every overage, shortage, and damage investigation.
For example, when a pallet arrives crushed, the receiver notes the damage on the delivery receipt against the original BOL, creating the evidence needed to file a claim with the carrier.
Related Terms
The shipper is the party that tenders goods to a carrier for transport, typically the seller or origin facility named on the bill of lading. In freight contracts, the shipper is the carrier's customer.
ConsigneeThe consignee is the party to whom a shipment is addressed and delivered, named on the bill of lading as the receiver of the goods. The consignee is usually, but not always, the buyer.
CarrierA carrier is a company that physically transports freight, such as a trucking company, ocean line, airline, or railroad. Carriers contrast with intermediaries like brokers and forwarders, who arrange transport but do not operate the equipment.
Proof of DeliveryProof of delivery (POD) is the documentation confirming a shipment was received at destination, traditionally a signed delivery receipt and increasingly an electronic signature, photo, or GPS-stamped scan. It establishes when, where, and in what condition goods were delivered.