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Update : Jan 05 , 2023
If we look up the definition of “bill,” it states that it is a document stating the cost for goods or services received. The term “lade” means to load cargo onto a ship or other carrier.
There are three types of transport that use lading bills: land, oceanic, and air. Lading bills for goods transported over land work in a similar way to those carried by railways or waterways; they both document the traded goods taken on board. This agreement between the shipper and the transportation company is essential for accurate shipping records. The carrier will issue these records to the shipper.
The logistics industry has a lot of customs and jargon that can be confusing, especially if you're new to it, especially the term "bill of lading." Finding the right shipping documents can be difficult when you're first getting started in international trade. The Bill of Lading is one of many important documents you'll need to ensure the smooth transport of your cargo around the globe.
Although some mistake the bill of lading for Proof of Delivery, they are two separate documents. In a contract between the owner of goods and freight carrier, the former states that once delivered, the responsibility falls on the carrier. The latter is simply evidence that delivery has been made to its intended destination.
Let’s understand the term further.
A bill of lading is a document that details the type, quantity, and destination of goods being shipped. The bill of lading also serves as a receipt of shipment once the goods have been loaded onto the vessel.
Bills of lading come in two forms- Master and House Bills. A bill of lading for oceanic transport typically outlines a single carrier's responsibility to see the goods through to their final destination, as well as any conditions that may arise during transport.
For these reasons, it's essential that you understand how to fill out a bill of lading correctly and completely. Keep reading to learn more about this critical logistics document.
Now that we've answered the question "what is a bill of lading?" let's take a closer look at what information you need to include in this document.
The first thing you'll need to do is provide some basic information about the shipment, such as:
Next, you'll need to provide a description of the goods being shipped, including:
After you've provided basic information about the shipment and the goods being shipped, you'll need to include shipping terms and conditions. These will outline:
Once you've included all of the required information, you'll need to sign and date the bill of lading. This will serve as your acknowledgment that the information included in the document is accurate and complete.
Now that we've answered the question "what is a bill of lading?" let's take a look at the different types of this document.
A straight bill of lading is the most basic type of this document. It simply outlines the terms and conditions of shipping and serves as evidence that goods have been received for transport.
An order bill of lading is similar to a straight bill of lading, but it also includes instructions from the shipper regarding the delivery of the goods. For example, an order bill of lading may include instructions to deliver the goods to a specific address or person.
A negotiable bill of lading is a bill of lading that can be transferred from one party to another. This type of bill of lading is often used when financing shipments because it can be used as collateral for a loan.
A clean bill of lading is a bill of lading that indicates that the goods being shipped are in the same condition as when they were received by the carrier. A clean bill of lading is often required by insurers and banks.
A claused bill of lading is a bill of lading that includes one or more clauses detailing the damage to or discrepancies with the goods being shipped. This type of bill of lading is often used when goods are shipped on a freight collection basis.
A combined bill of lading is a bill of lading that includes two or more types of shipments, such as air and ocean shipments. This type of bill of lading is often used when goods are shipped via multiple modes of transportation.
A container bill of lading is a bill of lading that lists the contents of a shipping container. This type of bill of lading is often used for shipments that are transported via container ship.
A liner bill of lading is a bill of lading that lists the contents of a shipping container. This type of bill of lading is often used for shipments that are transported via container ship.
A multi-modal bill of lading is a bill of lading that covers multiple types of transportation, such as air, ocean, and truck. This type of bill of lading is often used for shipments that are transported via multiple modes of transportation.
A non-negotiable bill of lading is a bill of lading that cannot be transferred from one party to another. This type of bill of lading is often used when shipping high-value goods or dangerous goods.
While there are many different types of bills of lading, the most important thing to remember is that this document is a legal contract between the shipper and the carrier. As such, it's important to make sure that all of the information included in the bill of lading is accurate and complete.
Hopefully, this article has helped you to better understand the answer to the question "what is a bill of lading?" If you're planning on shipping goods, it's important to make sure that you have a bill of lading in place. This document will serve as proof that goods have been received for transport and will outline the terms and conditions of shipping.
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