What is a Bill of Lading?

A Bill of Lading is one of the most important documents in the shipping industry. It is the receipt for the goods carried on ship. It is an evidence of contract between the shipper and the carrier. In other words, it is a legally binding document providing the driver and the carrier all the details needed to process the freight shipment and invoice it correctly. It is a documented title for the goods, signifying that the holder of the Bill of Lading is the legal owner of the goods it states.

Why is it important?

The bill of lading is important because it serves as a receipt the goods describing their apparent condition, quantity and any other distinctive numbers or marks, it is also a document of title to the goods and is generally transferable by endorsement, and it contains some of the terms and conditions of carriage and hence in most of the cases it is the only evidence of a contract of carriage.

Who signs it?

It should be noted that the bill of lading is always issued by the carrier (who is the person or company that undertakes the professional conveyance of goods or people. That is the ship or the owner of the ship) based on the goods that are received from the shipper (who is the owner of the cargo being transported from one place to another through a carrier). The Master of the ship or the carrier company’s agent signs the B/L on behalf of the carrier.

Precautions or things to note before signing the bill of lading.