A bill of lading also known as a BL is a document issued by a carrier to a shipper, acknowledging that non specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified. A bill of lading involves the use of at least two different modes of transport from road, rail, air, and sea. The term derives from the verb "to lade" which means to load a cargo onto a ship or other form of transportation.
A bill of lading can be used as a traded object. The standard short form bill of lading is evidence of the contract of carriage of goods and it serves a number of purposes.
It can be evidence that a valid contract of carriage, or a chartering contract exists, and it may incorporate the full terms of the contract between the consignor and the carrier by reference i.e. The short form simply refers to the main contract as an existing document. Whereas the long form of a bill of lading issued by the carrier sets out all the terms of the contract of carriage.
It could be a receipt signed by the carrier confirming whether goods matching the contract description have been received in good condition. A bill will be described as clean if the goods have been received on board in apparent good condition and stowed ready for transport.
It is also a document of transfer, being freely transferable but not a negotiable instrument in the legal sense, i.e. It governs all the legal aspects of physical carriage. Like a check or other negotiable instrument, it may be endorsed affecting ownership of the goods actually being carried. This matches everyday experience in that the contract a person might make with a commercial carrier like FedEx for mostly airway parcels, is separate from any contract for the sale of the goods to be carried. However, it binds the carrier to its terms, regardless of who the actual holder of the B/L, and owner of the goods, may be at a specific moment.
The BL must contain the following information: Name of the shipping company; Flag of nationality; Shipper's name; Order and notify party; Description of goods; Gross/net/tare weight; and freight rate/measurements and weighing of goods or total freight.
However a switch BL also known as the trader's second set and is intended to replace the first set of bills of lading issued. It is used when the seller or trader wants to keep the name of his supplier confidential from the buyer.
A bill of lading can be used as a traded object. The standard short form bill of lading is evidence of the contract of carriage of goods and it serves a number of purposes.
It can be evidence that a valid contract of carriage, or a chartering contract exists, and it may incorporate the full terms of the contract between the consignor and the carrier by reference i.e. The short form simply refers to the main contract as an existing document. Whereas the long form of a bill of lading issued by the carrier sets out all the terms of the contract of carriage.
It could be a receipt signed by the carrier confirming whether goods matching the contract description have been received in good condition. A bill will be described as clean if the goods have been received on board in apparent good condition and stowed ready for transport.
It is also a document of transfer, being freely transferable but not a negotiable instrument in the legal sense, i.e. It governs all the legal aspects of physical carriage. Like a check or other negotiable instrument, it may be endorsed affecting ownership of the goods actually being carried. This matches everyday experience in that the contract a person might make with a commercial carrier like FedEx for mostly airway parcels, is separate from any contract for the sale of the goods to be carried. However, it binds the carrier to its terms, regardless of who the actual holder of the B/L, and owner of the goods, may be at a specific moment.
The BL must contain the following information: Name of the shipping company; Flag of nationality; Shipper's name; Order and notify party; Description of goods; Gross/net/tare weight; and freight rate/measurements and weighing of goods or total freight.
However a switch BL also known as the trader's second set and is intended to replace the first set of bills of lading issued. It is used when the seller or trader wants to keep the name of his supplier confidential from the buyer.
