Bill of Lading

Document Description:

A Bill of Lading or BOL or B/L is a legal document used by the shipper of a particular good and a carrier (i.e. the transport provider). This document is issued by the carrier and completed by the shipper. It details the type, quantity and destination of the goods being carried. The bill of lading also serves as a receipt of shipment when the good is delivered to the predetermined destination. This document must accompany the shipped goods, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper and receiver.

For example, ABC Inc. must transport notepads from its plant in New York to a retailer in Chicago via heavy truck. A plant representative and the driver would sign the Bill of Lading after the notebooks are loaded onto the truck. Once the notebooks are delivered to the retailer, the truck driver must have the retailer's representative sign the document as well.

The bill of lading is one of the most important documents in the transportation business, and it is enforceable in a court of law. When shipping, it is in everyone's best interest to have a bill of lading, to read it carefully, and keep it in a safe place. The bill of lading will also be the reference in the event of loss, damage or overcharge claims.

A bill of lading will contain the following information as a minimum requirement (see the Business-in-a-Box sample on the left to see the real template):

- Shipper's name and address
- Receiver's name and address
- Carrier Name
- Description of the items that are being transported
- Gross weight and dimensions of the shipment
- Classification of the commodity being shipped
- Nomination and identification of the party who is paying for the transportation.

This document is also often used for the carrier to accurately bill the shipment; therefore it is quite important that the freight is well described in order to prevent undercharging or overcharging.