BILL OF LADING
BILL OF LADING (B/L)
A B/L is one of the key documents in international trade and mostly in the shipping industry. It is document issued by the agent of a carrier to a shipper, signed by the owner of the vessel to provide proof that the goods have been received. In a nutshell the B/L is a contract between the person shipping the goods, the carrier and the receiver of the goods. The B/L is a legal document that must be thorough, accurate and complete.
For example, suppose that a logistics company must transport gasoline from a plant in Texas to a gas station in Arizona via heavy truck. A plant representative and the driver would sign the bill of lading after the gas is loaded onto the truck. Once the gasoline is delivered to the gas station in Arizona, the truck driver must have the clerk at the station sign the document as well. (Investopedia)
Below is an image of a B/L:
Figure 1
Figure 1 shows an example of a simple B/L. It contains information like the names of both the consignor and consignee, the origin and destination points, the number and description of the goods, their code, their respective weight and also information about the payment.
There are two types of B/L:
1. Straight (uniform) B/L: it consigns the merchandise to a specific person or company only. It is known to be non-negotiable as the goods are sent to the person signed as consignee only.
2. Order B/L: this document can be used as a proof of title to transfer title from one person to another. That is the document can be sold to a buyer and the latter may legally claim the goods. It is also known as a negotiable B/L.
The importance of the B/L lies in its functions.
The B/L is used as a receipt issued by a carrier to a shipper for goods which s/he received to be transported. It contains information like the place and date for shipment, description of the goods, weight, values and amongst others. It is also used as a contract between the parties involved. In the contract (B/L) there are also
A B/L is one of the key documents in international trade and mostly in the shipping industry. It is document issued by the agent of a carrier to a shipper, signed by the owner of the vessel to provide proof that the goods have been received. In a nutshell the B/L is a contract between the person shipping the goods, the carrier and the receiver of the goods. The B/L is a legal document that must be thorough, accurate and complete.
For example, suppose that a logistics company must transport gasoline from a plant in Texas to a gas station in Arizona via heavy truck. A plant representative and the driver would sign the bill of lading after the gas is loaded onto the truck. Once the gasoline is delivered to the gas station in Arizona, the truck driver must have the clerk at the station sign the document as well. (Investopedia)
Below is an image of a B/L:
Figure 1
Figure 1 shows an example of a simple B/L. It contains information like the names of both the consignor and consignee, the origin and destination points, the number and description of the goods, their code, their respective weight and also information about the payment.
There are two types of B/L:
1. Straight (uniform) B/L: it consigns the merchandise to a specific person or company only. It is known to be non-negotiable as the goods are sent to the person signed as consignee only.
2. Order B/L: this document can be used as a proof of title to transfer title from one person to another. That is the document can be sold to a buyer and the latter may legally claim the goods. It is also known as a negotiable B/L.
The importance of the B/L lies in its functions.
The B/L is used as a receipt issued by a carrier to a shipper for goods which s/he received to be transported. It contains information like the place and date for shipment, description of the goods, weight, values and amongst others. It is also used as a contract between the parties involved. In the contract (B/L) there are also