What is a Bill of Lading (B/L)?
A bill of lading is a receipt that is issued when cargo is accepted for transportation. This receipt is issued to the shipper by a carrier or his agent to mark a contract for the carriage of goods. When taking delivery of the cargo at its destination, this document must be presented since it proves the ownership of the cargo.
How does a Bill of Lading Work?
This document can be issued in two forms: negotiable or non-negotiable form. When the bill is issued in a negotiable form, it can be utilized in a letter of credit transaction. It may also be used as security for borrowing money or be traded. When one claims for compensation due to factors such as loss, damage or delay, he must have a bill of lading to prove ownership in the first place. Any dispute regarding the ownership of cargo is usually resolved using a bill of lading. This document also contains the rights, responsibilities, and the liabilities of the carrier and the shipper which are generally governed by either the older Hague rules or the Hague-Visby rules which are more recent. Some of the items contained in a bill of lading include:
- The name of the consignor and consignee
- The vessels name
- Departure and arrival dates
- The names of the ports of departure and destination
- A list of the goods to be transported together with the package numbers and the package method.
- The weight or volume of the cargo
- The rate of freight and the corresponding amount
- The marks or numbers on the packages.