A Bill of Lading (BoL) is considered one of the legitimate
and vital documents in the world of trade and logistics issued by a carrier to
the company or person responsible for shipping the goods.
Details provided to the shipper mentioned in the bill of
lading generally include its type, quantity, and the destination to which the
goods are being carried. The statement of lading often serves the purpose of
shipment receipt.
You can commonly find such documents on purchasing any
overseas product. In this guide, we will further discuss the BoL, the types
of bill of lading, and the exact purpose and importance of the BoL in
the world of trade and logistics.
What Is A Bill Of
Lading (BoL)?
Bill of Lading (BoL) is a document that legalizes the state of agreement
between the carrier and the shipper. The BoL also governs the relationship of a
carrier and shipper when the goods are transported to their destination.
As mentioned before, the BoL often serves as a shipment receipt, so it
clarifies the cargo's ownership and confirms whether the products received
matches as described in the BoL.
It also serves as shipment proof to the predestined destination and is
issued once the cargo is set on board and ready to be transported.
What Is The
Purpose Of A Bill Of Lading?
The BoL mainly has three purposes:
- It is a document of the
title containing the description of the goods in the BoL.
- It serves as a shipping
receipt.
- Most importantly, it
represents the terms and conditions as agreed following which the
transportation of goods takes place.
The BoL is proof regarding a business's existence between
the career, shipper, and the end customer.
What Are The
Types Of A Bill Of Lading?
The Bill of Lading
and its types can be categorized into:
- Negotiable Bill of Lading.
- Non-Negotiable Bill of
Lading.
1.
Negotiable Bill Of Lading
A Negotiable BoL is a transferable Contract of Carriage. A third party
can also use it through the means of consignment, and this act is a vital
distinction.
The consignor must sign and stamp the bill to transfer the Negotiable
BoL.
The new consignee may choose to move it to the new third party and so on.
For a negotiable bill of lading, it must have clarity and be drawn to the
consignee's order.
The cargo is released to the party that correctly presents the endorsed
bill of lading. They have to show it to the carrier with proof that they are
the actual endorsee.
Before releasing any cargo, it is necessary to check the bill's
originality and the holder's authority as an endorsee.
2.
Non- Negotiable Bill Of Lading
Non-Negotiable or Straight Bill of Lading is another one of
the types of Bill of Lading where
the owner cannot be transferred from one party to any other third-party.
This type has one particular consignee, receiver, and buyer
to whom the goods must be shipped. There are many Non-Negotiable Bill of Lading
including:
● House Bill of Lading
● Order Bill of Lading
● Combined Bill of Lading
Things To
Remember When Working With BoL
The importance of the Bill of Lading and
its types have been discussed briefly throughout the guide. The BoL
legalises the business relationship between the career, shipper, and the end
customer.
Thus, it is a very important and powerful legal document.
While working with the BoL, one must be careful and not hand any such blank
document of title to any unauthorized personnel or unknown party as this may
lead to unforeseen circumstances.
One should adequately instruct the releasing agent's name and the carrier to avoid problems later on.
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