What is the bill of lading: The Ultimate Guide (2020 updated)

A Bill of Lading is a very important piece of Paper in the shipping industry.

If you want to ship your products then check what you need to know about the Bill of Lading for shipping.

What’s the Most Applicable Bill Of Lading types?

Two types of Bills are practically used for shipping Sea bill of lading and the airway bill of lading.

If you want to transfer your products in short transit time and you have a rigid deadline then choose airway Bill of Lading.

Airway BOL is a little bit expensive but meets your deadline.

Another option is Sea/Ocean Bill Of Lading.

Sea BOL is a cost-effective and secure way of shipping.

Ocean Bill of loading is issued exactly at the time of loading products in the ship and right after signature done by the shipmaster.

Keep one thing in mind, Bill Of Lading delivered when payment released under the conditions on the letter of credit.

This type of ocean bill of lading is delivering when payment is conditional on a letter of credit.

What is a notify party on Bill of Lading?

Name and address of a specific person are notified who should be updated with the arrival of freight on destination.

When am I tracking my cargo, why Bill Of Lading not found?

There could be some reasons

Maybe you have not enteredBill of Lading Number

If you are using public access tracking service then verify your account number is correct or not.

What is the difference between Bill Of Lading and Seaway Bill?

Both are ownership documents for the shipping by the ocean, but never think BOL and Seaway Bill have the same functionality.

A Seaway Bill is the confirmation proof of shipping products and receipt of transferred goods.

In another side, BOL is ownership document, contract of shipping while also used as a document of title.

1. The meaning of the bill of lading

What is the bill of lading?

The short name is B/L when you start shipping your products transport department give a certificate to the consigner.

The interesting thing is, the word “lading” comes from the word “loading”

In foreign trade, the piece of document (certificate) is called Bill of Lading.

Another name certificate of ownership of the freight which allows shipping of your products.

The person has the bill of lading allowed to receive & exchange goods.

Bill of lading is the contract which allows the carrier to transfer goods from the loading port to the destination port.

Most important and worthy document in the shipping journey but also the most misused document.

• The contract of carriage
• Receipt of loading products
• Title of goods

The contract of carriage

To transfer freight required details about loading port, destination port, and regulations mentioned in this paper.

The Bill of lading is a simple contract between buyer and seller.

BOL is a negotiable instrument and can be endorsed to the third party without any restriction.

Receipt of carriage

Details, number of loaded products & cost on freight services.

Title of goods

Required names for receiving party mentioned on the bill of lading.

This allows the holder to further transfer the products to someone else.

Who issues a bill of lading?

The bill of lading issued by the freight forwarder or shipping agent after properly acknowledging the freight receipt.

Carrier or agent is responsible for the loss & profit during cargo transfer & consignee is the other party mentioned on air waybill for which shipment is committed.

But keep one thing in mind authorization of carrier or shipping agent must be crystal clear.

When is a Bill Of Lading issued?

Bill of lading is issued at loading time. In case of ocean freight, BOL issued when ocean container loaded.

But there’s another case at the time of rail freight multimodal Bill of Lading issued by the freight forwarder.

2. The contents and filling of the bill of lading

1. The Bill of Lading NO
2. Shipper
3. Consignee
4. Notify party
5. Name of vessel or container
6. Place of receipt
7. Port of loading
8. Port of Discharge
9. Place of Delivery
10. Description of goods
11. Number and kind of package
12. Shipping marks
13. Gross weight
14. Freight & Charges Detail
15. Temperature Control
16. Freight forwarder or agent signature
17. Terms and conditions of

The Bill of Lading Number

Check the upper right corner of BOL.

When consigner starts shipping process he should provide ship name & Bill of Lading number to the consignee.

Shipper

Shipper name and address is recommended to fill out in BOL, the code is also necessary.

Shipper detail is mandatory to proceed the process.

Consignee

All the information relevant to consignee is mandatory to fill.

Credentials required to contact the consignee phone number, fax number, and address.

Notify Party

This is about the receiving end, shipping company notify after reaching the destination port.

This section may have the same information Name, detail address, and phone number.

If you provide a wrong address or phone number, then how a company contact consignee to inform about the freight status.

Name of The vessel/Container

Filling the name of shipment, container, and voyage.

Container name is required when the Bill of Lading shipped.

Actual time of loading cargo Fill onto the Bill of Lading.

Place of Receipt

This column is specified for the multimodal transport.

It indicates the location where freight forwarder receives the freight.

Port of Loading

This column should be filled by the name of the port from where cargo is loaded.

Port of Discharge

The column should be filled with the specific name of the destination port.

Port of discharge where all the products unloaded from the container.

You should pay keen attention when you fill this column.

You need to have the exact name of port for smooth shipping process.

Place of Delivery

This column indicates where the freight forwarder delivers the products.

Carrier fills this column under multimodal mode.

The terms of carriage involved are door to door, field-door, and station-door.

Description of Goods

The important thing is the name of products must be the same as the name on the letter or credit.

All the details about products mentioned in the Bill to make shipping process secure.

Gross Weight (Measurement)

If delivery details mentioned in the letter of credit, it should be filled according to rules and regulations.

In another case, weight is mentioned in kilograms & volume in the cubic meter.

 Temperature Control Instructions

If you want to ship a refrigerator, the specific temperature should be mentioned in the column of the temperature control instructions.

Two parts are included in the content of Bill of lading

1. Positive fact record
2. Back bill of B/L

Every shipping company formulated the contents approximately in the same way.

How to fill a Bill Of Lading (BOL)

BOL is the legal document of ownership used by shipping companies.

The main purpose of this document is the shipping companies or freight forwarders has received the products.

You should follow some instructions when you fill a Bill of Lading.

• Put your exact name and location in the appropriate field.
• Mention your purchase order on Bill of Lading.
• Insert the name and address of shipment receiver.
• Include some guidelines for the freight forwarder about the handling of shipment.
• If you already collect the shipping charges then mention.
• Mention the number of packages in the container & specify the type of packages.
• If you want to ship hazardous material then choose a special type of shipment & mention on BOL to avoid any inconvenience.

Check how the BOL filled correctly by an example:

To get the better understanding to follow step by step.

1. Put the exact date
2. If necessary then fill with lading number.
3. Attach barcode to fill this field.
4. Enter pro number of freight forwarder.
5. Insert reference number for official use (optional).
6. 6 Insert Shipper and consignee’s name and proper address. ( Zip code is mandatory to mention)
7. If a third party involved paying for shipment then mention the company name, contact and address.
8. Some of the special notes should be marked on Bill Of Lading

• Special guidelines for delivery status
• Purchase order number
• Account number

9. Indicate the shipment delivery date and time & mark for the proactive notification.
10. If you want your freight is collected by freight forwarder mark the BOL as COD (Collect On Delivery)
11. Insert collect on the delivery amount, this is basically the price of the specific product.
12. Indicate verification of company for COD.
13. Mention number of shipping containers. Sometimes you don’t need to mention the individual number of packages and items in a shipment.
14. Indicate the type of package typically package is boxes, barrels, and skids.
15. Enter the number if you ship individual pieces.
16. Mention unit of measures for weight and volume.
17. If you want to ship chemically hazardous material then first discuss with the freight forwarder.

Special rules applied to such type of products.

Place simply X in this Column to mention products hazardous.

18. Write a proper description of products with the nature of the material. Your freight forwarder helps you to determine the exact specification of your freight.
19. Insert item number of National Motor Freight Classification.
20. Your shipping charges based on the classification of products. Enter correct class specification.
21. Put exact field in this field. If you want to ship different types of products then prepare the list of things.
22. You need to mention the exact height and width of the products. If you want multiple products to ship then list of shipment products required to attach with Bill of Lading.
23. Enter correct contact number in case of the emergency company can contact you.
24. Mention the name of the person or company who is responsible for the payment of shipment charges.
25. Insert the declared price of products.
26. Mention the charges billed to the consignee.
27. Enter the name of Freight Forwarder Company (as the shipper) and sign the bill BOL by the forwarder.
28. An authorized person from freight Forwarder Company sign the Bill of Lading and mention the number of shipping containers.
29. All the details should be mentioned here who loaded the container & counted the shipment packages.

What information must be included on the bill of lading?

• Shipper and carrier name and contact credentials.
• The date and port of shipment
• Freight Classification.
• Weight and volume of the shipment
• Types of Bill of Lading
• Description of the products according to the material and nature of goods.
• Special instructions to the freight forwarder.

3. The function of the bill of lading

Read this guide to know the functions of Bill of Lading

• Bill of Lading is the receipt of shipping products or the ownership documents to allow the goods to be loaded into the container.
• The function of Bill of Lading is receiving goods, this is not only for loaded freight carrier has issued the obligation to ship the bill of lading.
• Bill of lading is the proof of loading the cargo in the container, it also indicates the time when products loaded.
• Loading goods mean seller to transfer the products to the buyer and transit time of shipping also means the time of receiving goods.
• Bill Of Lading is the legal ownership of freight to transfer products and carrier has right to receive goods on the destination port.
• If you transfer bill of lading to the third party it means you are transferring the right to transfer goods.
• The freight forwarder is responsible if any product is damaged during shipping.
• After transferring the bill of lading from seller to buyer risk of damage products also transfer to the buyers.
• The document is a legal contract to ship products by sea.

4. Issuance & correction of the bill of lading

A Bill Of Lading is the legal document issued by the carrier for the transfer of goods.

Bill of lading terms & conditions

In the year 0f 2013 The Federal Motor Carrier Safety Administration issues new regulations about

New rules established to eliminate double brokers.

You cannot ship without brokerage license and keep one thing in mind freight breakage and carrier responsibilities are not same.

You must follow the regulations, what is acceptable and unacceptable according to the shipper and carrier.

If carrier finds any type of incongruity then shipper must create a new copy of Bill of Lading.

How Bill of lading works?

Bill of Lading works in a different way like:

• As receipt of products
• As a contract between carrier & shipper
• As a title of goods

Receipt of goods

Bill of Lading is a document issued as receipt of products, this is the evidence carrier receive products in good condition.

As Contract between carrier and shipper

BOL is a contract to transport the freight from seller to buyer.

This contract is an evidence for the ownership of the carriage.

  As the title of the goods

A piece of paper is the legal proof of ownership.

The holder of the BOL has the right to claim the products to transfer to another party.

Consequences of an incorrect bill of lading

There’re different things you have to face by the incorrect filing of BOL

• Freight doesn’t transfer safely to the destination
• Claims
• Loss or protection from the loading port to destination port
• Loss of the right to transfer goods to the third party

Claims and clean bills.

When the cargo transferred by the shipping company according to the specified time the receiver sign a document (Bill Of Lading).

Bill of lading signed if they are delivered in satisfactory condition.

When products delivered without any damage and in a satisfactory condition not even late then it is called “clean bills”.

The other condition is the late delivery of consignment and your product is damaged during the way then customer intends to fill a claim.

You need to mention nature of your claim on the Bill Of Lading before signing them.

What is the difference between a Bill of Lading and Freight Bill?

Both documents are approximately same but freight bill cannot provide evidence for transferring products from one party to the other.

Fright bills is an invoice with 3PLs which helps to improve costs and resolve different problems.

Bill of lading in import

How bill of lading used in international trade shipments?

• Bill of Lading helps to maintain economic, social and political stability.
• Normally shipper support to deliver products and carrier issues the Bill Of Lading.
• It contributes to improving the domestic goods on the national level.

Transferability of Bill of Lading

The Bill of Lading is ownership document of title, having precise attributes which are commercially important.

These attributes help to improve international trading.

5. Endorsement of the bill of lading

Endorsement Charges in shipping

A legal transfer of goods between parties is called the endorsement. It can be the amendment in contract or legal document.

Shipping Guarantee/Bill of Lading Endorsement helps to avoid high charges and fluctuation of price.

It guarantees the products delivers before Bill of Lading arrives.

You can transfer your goods without advance payment first.

Risk of the blank endorsed bill of lading

Blank endorsement means no owner of BOL.

In this case, the carrier becomes the owner of Bill and has the right to claim the products, and responsible for the shipping of freight.

6. Recommendations of Bill of Lading

What is the importance of creating an accurate BOL?

Bill of Lading included a lot of information, don’t you ever think why BOL is so important?

Let’s read this article to know why

Name and address of the shipper and receiver are important.

If contact is not provided accurately your consignment could be delayed by the freight forwarder.

Date & Time of Shipment is important, you can estimate the transit time of your shipping.

The specific date mentioned on BOL help to track the products.

The number of units loaded in the container is mandatory.

This information help to claim the shipping packages in case of any inconvenience.

Freight Classification helps to find out the exact charges.

Different type of products subjected to different charges according to the nature of freight.

Packing type– another factor to estimate freight charges.

This totally depends on the packing of products (cartons, skids, and drums)

Special Instructions helps to handle all shipping activities and processes.

Things to consider before signing the BOL

Some of the points you must keep in your mind before signing the Bill of Lading.

Verify The Shipper’s Identity

Verify all the information provided by the freight forwarder first.

The shipper has to assure the transporter’s service.

So make sure your shipper name, address and contact number should be mentioned on the Bill Of Lading.

Port and Date of Loading

The Date of loading should be mentioned on the Bill of Lading.

Port and date of loading help to calculate customs duty & transit time of shipping.

Port of Discharge

You must know about the port of discharge, it helps to avoid deviation charges.

The condition of the Goods

Confirm the conditions of the products before loading into the container.

Mention the description of the products correctly on Bill of Lading.

After arriving at the destination port you can check the freight condition accordingly.

Commercial Terms

There’s no need to include any type of commercial terms in Bill of Lading.

If you mention these terms in BOL, ideally you should remove from the Bill of Lading.

Proof Reading

Filling the form carefully is an important thing but you need to double check your bill of lading to evaluate the mistakes and missing fields.

You should make sure you fill your loading port and destination port accurately to avoid any type of inconvenience

Checks to be made before signing bills of lading

You must keep some of the points in your mind prior to signing the Bill Of Lading.

Bill Of Lading is the piece of the document approved by the Charterparty.

Put the exact name of the vessel or container.

Provide detail descriptions about products you want to ship, place of loading freight, destination to unload products, cost & transit time for shipping.

Check your Bill Of Lading with the shipping company is it correct to refer to specific places.

7. Common Types of the bill of lading & When to Use Them

Straight Bill of Lading

Normally used when to start shipping to a customer.

Straight Bill of Lading assigned to the specific team and team cannot reassign to any other party.

Straight Bill of lading is for the products that have already paid for & cannot sale again.

Order Bill of Lading

Type of Bill of Lading used for shipping when no advance payment paid.

You can read two important functions of to order Bill of lading

1. To order Bill of lading helps to prevent shipping to undesired people.
2. Consignee can ship the title of products to the third party with the endorsement.

Clean Bill of Lading

This type of Bill of Lading indicates carrier receive all the products in good condition and in proper packaging.

The condition of received goods is the same as on loading time.

Unclean Bill of Lading indicates carrier receive the products with slight damage.

Inland Bill of Lading

When freight is totally transported by road or by land then this type of BOL issued

Rail freight is also included in this type.

Ocean Bill of Landing (Port to Port BOL)

Ocean Bill of Lading is a paper issued when your shipment transfer by sea freight services.

This is the ownership letter for shipper and carrier.

Express bill of lading

Express is the type of bill of lading in which carrier is assigned to deliver products to the specific consignee without original Bill Of Lading.

Work mechanism of Express Bill of Lading is you can ask your freight forwarder for the issuance of “Express Bill Of Lading”.

Just right after the customs clearance process, your customs agent send BOL directions to freight forwarders and after that, you will get a copy of Bill Of Lading to reach on the final destination.

Advantages

• Consignee doesn’t require original Bill Of Lading so shipping process is speedy.
• Shipper saves the courier service cost, you can send confirmation by Email.

Disadvantage

• This’s just a receipt of shipping products, it’s not negotiable.
• Without Original Bill Of Ladingshipping isn’t secure.

Through Bill of Lading

Different distributors and mode of transport required some documentation

This type of BOL issued if your shipment transfer by different distributors & mode of transport.

Bill of Lading issued for the ocean as well as land freight.

Multimodal Bill of Lading

As according to the name BOL issued, when your shipment transfer by different modes.

Ocean freight, Rail freight, and Road freight.

Mostly industries used multimodal BOL these days

Direct Bill of Lading

Different types of BOL mentioned here but Direct Bill of Lading is the most recommended type.

Your freight is loaded into the container, the same container will deliver your cargo to the final destination.

Stale Bill Of Lading

Bill of Lading presented to the bank administration or delivered to the carrier after safely reached the destination port.

Received Bill of Lading

A simple form of Bill of Lading presented your freight arrived at the port and safely loaded on the container.

You must use some temporary Bill of Lading if your shipment is delayed.

Clause Bill of Lading

“Bad Bill Of lading” or “foul Bill of Lading” in which delivery of your products is totally opposite to the expectations regarding quality.

Bearer Bill of Lading

In this type, a bearer of the BOL is totally responsible for cargo

Consignee name is not mentioned in the Bill Of Lading.

This is the unique type, but be aware chances of misuse are also high in this kind of BOL.

Switch Bill of Lading

Most convenient option Bill of Lading can be replaced with the new one.

This document is issued at the loading time of shipment.

Seaway Bill of Lading

Seaway bill of lading is a document issued to shipper and carrier.

No original Bill of Lading is required products authentication is automatically processed & send to the destination port.

Seaway bill is also known as express release Bill of Lading.

Original Bill of Lading

A very simple document consists of straight Bill of Lading and in order bill of lading assigned to the shipper and carrier to precede shipment process.

8. Mistakes you need to avoid on BOL

• Description of the freight wrongly
• Be concise to write your product description. Name of freight & details should be mentioned carefully on Bill of Lading.
• Number of freight containers wrongly mentioned
• You should mention the number of containers/ vessels and in some cases a number of products in one container.
• Be sure how many products you order to ship and verify on the destination port.
• No precautionary measures for hazardous material
• If you want to ship dangerous material, you need to take care of safety measures.
• Label the Bill of lading appropriately and learn how to ship your hazardous products safely
• Improper communication with the freight forwarder.
• Make sure you are providing required information to the freight forwarder. If your carrier needs to ask some questions then answer carefully to make your shipment process easy.
• Fill wrong information in the contact section
• Bill of Lading is the document which is the evidence of the carriage. Your freight forwarder may need to contact you in any case of emergency. You must provide the correct contact information to avoid any type of inconvenience.

Missing information in Bill of Lading

Check twice the BOL and make sure all the fields have been properly filled out.

Not Understanding Rules and Regulations on Bill Of Lading.

Understand all the terms and conditions and recognize your responsibilities.

The consequence of Not Used or Inaccurate Bill of Lading

The worst consequence of incorrect filling is you wouldn’t get your shipped products.

But there’re some other consequences which effect badly.

· Exposure to claims

If the products loaded in good condition from loading port but received in damaged condition at the destination port.

Consignee will allow exposing a claim for the damage.

Another example will help you to understand if your shipment consists of 100 boxes but 90 arrived at destination consignee have the right to make claim against the BOL carrier.

· Criminal action

· Loss of the right of protection

Solutions to Ensure Your Bill of Lading is Correct

This’s incredible, shippers and carrier how to deal with risk factors &compete with their opponents.

To ensure your Bill Of Lading correct follows some tips.

Use Standard Bill Of Lading

If you try to find Bill Of Lading form from the internet you can have a varietyof bills