Shipping Glossary

B / BILL OF LADING

The Bill of Lading (BOL) is an essential document within the shipping and logistics industry, serving as a legal document that outlines the terms and conditions of carriage between the carrier and the shipper. The BOL plays a vital role in the shipping process, performing three critical functions that are fundamental to the successful transportation of goods.

• Firstly, it is a contract that establishes the terms of carriage between the carrier and the shipper. 
• Secondly, it serves as proof of shipment, which verifies that the goods have been received by the carrier and are in transit.
• Finally, the BOL serves as a document of ownership, which proves the transfer of ownership of the goods from the shipper to the receiver

The BOL contains essential information about the shipment that both the carrier and the shipper need to have to ensure a smooth shipping process.

Some of the details that are included in the BOL are 

1. Number of bill of lading
2. Complete name and address of the shipper and the receiver
3. Details of shipping route
4. Freight forwarder details, if any
5. Pick up date
6. Vessel used for transport
7. Information of goods transported
8. Nature of goods
9. Packing material used
10. Specific instructions of the carrier, if any.

Another crucial detail that is included in the BOL is information about the goods being transported. This includes the nature of the goods, the packing material used, and any specific instructions from the carrier. The BOL serves as a record of the goods being transported and their condition at the time of shipment. This information is vital for insurance and legal purposes, as it can be used to verify the condition of the goods if there is any damage or loss during transportation.

Purpose of bill of lading:

There are three primary functions of a Bill of Lading:

• It is a contract by which the carrier and the shipper agree upon the conditions of carriage.
• The contract serves as proof of shipment.
• As such, it serves as a record of ownership.
• Law binds the sending and receiving parties, protecting them against false claims and losses. A lawful statement can be derived from an agreement whose terms all involved parties have agreed to.