Bill of Lading (BOL)

A bill of lading is a legal document between a shipper and carrier that details the type, quantity, and destination of the goods being transported.

Examples: A BOL issued for 22 pallets of electronics being shipped from Los Angeles to Chicago via truck.

Advantages: Serves as a receipt, a contract of carriage, and a document of title that can transfer ownership.

Challenges: Errors or missing information can cause shipment delays, fines, or disputes.

Real-world example: Ocean carriers issue different types of bills of lading, such as straight BOLs (non-transferable) and negotiable BOLs used in trade finance.

Explain like I’m five: A BOL is like a permission slip for your shipment, showing what’s inside and where it’s going.

FAQ: Is a bill of lading required for every shipment? Yes, in nearly all commercial transport modes.

Bottom line: The bill of lading is the backbone of freight shipping, serving as proof, protection, and paperwork in one.