Why is a Bill of Lading Needed?
Why is a Bill of Lading Needed?
This article explores questions such as what a bill of lading is in logistics, who issues the document, in what types of transportation it is used, its validity period, and other related topics.
What is a Bill of Lading Used For?
This is a document primarily used in international cargo transportation by sea. However, recently, it has also been used for domestic transportation by other modes of transport.
It is a document, a security. Essentially, a bill of lading is a receipt for receiving cargo and a guarantee of its safe delivery. It confirms ownership of the cargo and is transferred to the cargo owners after delivery.
Who Issues the Bill of Lading?
The document is issued by a shipping company or any logistics company. Sometimes, the ship's captain or the carrier's agent acts on their behalf.
The cargo owner receives the original document along with the goods.
When drafting the document, several factors are taken into account: the recipient, the scheme and type of cargo transportation, and the timelines. Based on this, several types of bills of lading are distinguished:
- Order bill of lading: Without a specific recipient;
- Straight bill of lading: Named to a specific recipient;
- Bearer bill of lading: To the bearer;
- Liner bill of lading: For scheduled shipping lines;
- Negotiable/non-negotiable bill of lading: Transferable or non-transferable;
- House bill of lading: Issued by a freight forwarder;
- Direct bill of lading: For direct shipments, and others.
Functions of a Bill of Lading
In general, a bill of lading replaces several documents:
- Proof of cargo ownership;
- A waybill describing the carrier's obligations;
- A document for dispute resolution;
- Proof of delivery.
The document must include the full details of the shipper, the place of unloading, the full details of the consignee, a complete description of the cargo with all its characteristics, as well as the place, date of issuance of the document, and the number of its originals.
Validity Period of a Bill of Lading
If the document has multiple originals, the first one presented invalidates the others.
