Sourcing & Product Marketing
Procurement & Logistics
Bill of Lading
What is a Bill of Lading?
The B/L is the written transportation contract between shipper and carrier (or its agents). It identifies:
Its terms will determine the shippers rights, if anything goes wrong.
The contract used by most carriers was drafted by the industry, but must still contain certain basic information about the shipping.
The bill of lading must contain the following information:
Three important functions of the Bill of Lading:
IMPORTANT:
!!! Once the goods are shipped, the contract is in effect !!!
Different types:
Single Bill of Lading:
A bill of lading that is used for the carriage of goods going to a receiver at one destination in a single shipment (e.g. one truck).
Order Bill of Lading:
A bill of lading which is negotiable, with interest transferred from one party to another (e.g. title of goods from seller to buyer). Its purpose is to enable a shipper to collect for the shipment before it reaches its destination. The shipper sends an original bill of lading and a draft for the charges through a bank. The receiver pays the carrier's agent the amount of the draft and then can receive the goods.
With this method, the shipper customarily consigns the shipment to himself. The person or company to be notified at destination is specified. The shipment may be released to the receiver only upon the order of the shipper. The order bill of lading must be surrendered with delivery of freight. Either straight or order bills of lading may be designated as a "through" bill of lading.
Through Bill of Lading:
A bill of lading for shipments, using more than one transportation company and at a fixed rate for the entire service. More than one type of transportation (such as truck and rail) may be utilized, called Intermodal Transportation.
Clean Bill of Lading:
A bill of lading with indication of any problems with the cargo's condition when it was accepted for carriage. It is a receipt for goods, issued by the carrier, with an indication that the goods were received in apparent good order and condition, without damages or other irregularities.
Foul Bill of Lading:
A receipt for goods issued by a carrier with an indication that the goods were damaged when received.
On Board Bill of Lading:
A bill of lading issued by a steamship company that confirms the receipt of merchandise and its loading on board a vessel.
Released Bill of Lading:
A bill of lading on which no stated value has been indicated, thereby limiting the carrier's liability to statutory amounts or to the specified rate per pound of merchandise shipped.
Short Form Bill of Lading:
A bill of lading, in summary form, that does not spell out all obligations and responsibilities of the parties to the bill. It is not generally used unless the shipper is familiar with a carrier's tariff.
Valued Bill of Lading (Synonym: Ad Valorem Bill of Lading):
A bill of lading issued by the carrier, indicating the amount that the shipper has declared as the value of merchandise. The carrier will be held liable for the amount indicated if the carrier is found responsible for loss or damage to the shipment.
Waybill:
A bill of lading usually issued by airlines and trucking companies, indicating the merchandise to be transported, as well as shipping instructions.
House Waybill:
A waybill issued by a freight forwarder for air or truck shipments.
Air Waybill (Synonym: Air Bill):
A bill of lading issued by an airline, acknowledging receipt of merchandise and indicating conditions for carriage.
It covers both domestic and international flights, transporting goods to a specified destination. Technically, it is a non-negotiable instrument of air transport, which serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed therein and obligates itself to carry the consignment to the airport of destination according to specified conditions.
Affreightment (Synonym: Contract of Carriage):
A charter party or bill of lading, in other words, a contract to transport goods by an ocean vessel.
---
Back to Solutions
Copyright © 2010-11, KL Consultants Ltd, All rights reserved.
