What is a Bill of Lading?

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.

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Related FAQs

What is the importance of bill of lading? What are the two types of bill of lading? What are the four main functions of bill of lading? What two purposes does a bill of lading serve? What information must be included in a bill of lading? What is an example of a bill of lading? What are the risks and liabilities associated with a bill of lading? What are the consequences of lost or damaged bills of lading? What are the terms and conditions of a bill of lading? What is the role of the shipper and the consignee in a bill of lading? What is OBL number? Who creates the bill of lading? Is bill of lading and shipping bill are same? Who needs a bill of lading? Do all shipments have a bill of lading? How a bill of lading is used in the shipping process? What are challenges associated with electronic bills of lading? Why are there 3 original bills of lading?

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