A bill of lading is a crucial shipping document that lists important information such as details of the goods being transported, the destination, and the parties involved in the shipping process. Its main functions are:

• Evidence of a contract of carriage
• Receipt of goods i.e. an acknowledgement that the carrier has received the freight
• Document of legal title to goods

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A Bill of Lading is the proof of the shipment and that the carrier has received a cargo which will be released only against presentation of the original Bill of lading (B/L).

The shipper uses the Bill of lading as proof for delivering the goods for shipment at the agreed place. It is the Bill of lading which confirms the quantity and apparent condition of the goods stated in the bill. The Bill of lading, therefore, becomes the “key to the cargo” as this is the main document used for claiming property over the goods.

Payment of goods between the shipper and consignee is facilitated by the use and exchange of ownership of the Bill of lading. It is important to note that the shipping line does not take part in the change of ownership of goods as it merely acts as an enabler in the transport of cargo from one location to another.

Read our Logistics Explained article “Bill of Lading – what is it and why is it important?” for more information.