How To Read and Understand Your Bill of Lading

The Bill of lading, otherwise known by international shippers and receivers as BoL, is a remarkably important document when it comes to shipping, logistics and even international trade. While most might believe that its only function is to provide a receipt for goods shipped, a bill of lading is much more than just that. It also serves as a contract between the shipper and the carrier and, in some cases, as a document of title. This is why it’s crucial for business owners and even those who are shipping personal belongings to know how to read a bill of lading. That’s why we have created this comprehensive guide for shippers and consignees alike. 

The Bill of Lading: What it is and What it Means

Your bill of lading will have an official look about it. That’s because the BoL is the official shipping document that is issued by the carrier, being the person or company who sends the item or items. When you receive this bill, it is acknowledgement of the transfer of possession. It will specify the contents of the package and it will also outline the terms and conditions of the transport. 

Did you know that there are different “types” of bills of lading? As part of your moving bill of lading guide let’s consider some of the more common types of BoLs.

1. The Straight Bill of Lading is applied when transported goods are assigned to an individual. This is, as the name implies, pretty straightforward. 
2. An Order Bill of Lading, unlike the Straight Bill, is negotiable. This means that the package or goods can be transferred to others by way of a simple endorsement or signature. 
3. A Bearer Bill of Lading is a bit more simplified. It allows for the transfer of possession by the act of the delivery itself. In other words, whomever possesses the bill owns the goods.

There are a number of other types of bills, but this quick sampling will help you to understand the nature of the actual contract that is implied when it comes to the creation and delivery of a bill of lading. 

Your Bill of Lading Explained

No moving bill of lading guide would be complete without a proper explanation as to how the bill breaks down. Let’s consider the actual details of your bill. 

1. The bill of lading should quickly and prominently identify both the shipper and consignee or receiver who will sign for the package. It’s an easy detail but it is the most important part of your bill. If there is an error here, then this could cause considerable delays. It could also result in a mis-delivery or lost shipment. 
2. You will also note details about the carrier and vessel, where applicable. Generally speaking, this part of your bill of lading will identify the shipper by name and address and the means of transport. This is important when it comes to tracking a package as it moves across the state, country or globe. 
3. One of the more relevant factors for the customers is the description of goods. This part of the bill will label or describe the contents of the package while also listing the quantity as well as gross weight and dimensions. It might also include the type of packaging and customs tariff numbers, if applicable. 
4. A bill will also list ports or locations where the package was processed or redirected for delivery. This is more important to those involved with the actual shipping of the goods. Any mismatches here can result in bothersome delays. 
5. Your bill of lading should also outline freight and charges. Is the shipment prepaid? Does a balance remain? These details will be properly highlighted for both carrier and consignee. 
6. The terms and conditions of the sale and then shipment of the goods will also be listed on your bill. This is where you will find any details concerning insurance and liability for loss or damage. This is critical if a dispute surfaces. 
7. You will also note a place on your bill that allows for the signature of your carrier or a representative of that carrier. Depending on the nature of the specific bill, your signature will likely be required upon completion of delivery. 

How to Avoid Common Mistakes When it Comes to Your BoL

It might seem straightforward, but as a bill of lading is created you might want to double-check all entries before the shipment leaves its point of origin. For the most part, the bill will be automatically drafted according to the information you provided but mistakes can be made either by you or your carrier. Be sure that you have entered correct details such as the intended address. 

You will also want to keep copies of all shipping documents. This will come in handy if there are unexpected shipping issues or potential disputes. You might also clarify any unclear terms with your carrier so you know exactly what is happening and when with your transported goods.

We hope that this moving bill of lading guide has been helpful. A BoL can be confusing because it’s often so busy on the eye. The point is to not feel intimidated by the language and the many industry terms. The whole point of a bill of lading is to make sure that whatever you are sending or receiving is perfectly protected and properly delivered. 

If you still have any questions about a bill of lading, please feel free to reach out anytime and ask one of our moving experts. IMS Relocation is Dallas-Fort Worth’s most trusted and highly rated residential and commercial mover. That’s why we respect each and every concern you might have about the delivery of your goods. Peace of mind and your free no obligation quote is just a call away.