Bill Of Lading In Shipping Industry


A recent news article published in the Jlks website talks about the importance of Bill of Lading.

Why is a Bill of Lading important?

A Bill of Lading is an important legal document that facilitates the transfer of goods between two parties. It includes details such as the name, quantity, destination, and other pertinent information. This makes it a valuable tool for businesses because it allows them to track the progress of their shipments and avoid any disputes or misunderstandings.

A bill of lading is crucial because it’s a legally binding document that provides the carrier and shipper with all of the necessary details to process a shipment accurately. This implies that it can be used in litigation if the need should arise and that all parties involved will take great pains to ensure the document’s accuracy ( 49 U.S. Code Chapter 801 – BILLS OF LADING ).

What is in a Bill of Lading?

  • Location names and their address

Listed full location names of both shipper and consignee and their address.

  • Purchase order or any other reference numbers

Listed purchase order, Bill of Lading, Delivery, or any other reference numbers, that are necessary for the product to be released for pickup or accepted at the delivery.

  • Instructions

Listed instructions for the carrier that are not extra service requests.

  • Dates

Listed pickup and delivery dates.

  • Item descriptions

Listed information about the product that is being shipped. Weight, dimensions (if necessary), product description, and a number of units/packages/pallets.

  • Packaging type

Listed packaging types such as pallets, cartons, crates, or drums.

  • NMFC freight class

Freight is divided into 18 types of classes, ranging from a low of class 50 to a high of 500 and it identifies the type of freight being shipped.

  • Department of Transportation hazardous material designation

Hazardous shipments must be listed, due to special rules and requirements applied when shipping.

Why Do I Need a Bill of Lading?

A Bill of Lading (BoL) is a document that is used to acknowledge receipt of goods being shipped. It also serves as a contract between the shipper and the carrier. This document is important because it provides evidence of the transaction and outlines the terms of the shipping agreement.

Without this document, the consignee may not know what the motor carrier is bringing to them, which could lead to misunderstandings. Motor Carrier is required to transport the shipment with its correspondent paperwork (BoL) (Federal Regulation Website), also trucking company is at risk of not getting compensation for transporting the products without the documents.

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Source: Jlks