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What is the Bill of Lading?
The bill of lading, also known as BOL, is among the most crucial documents in the delivery procedure. A bill of lading is an important document which is essential for sending any merchandise to its destination. It actually performs the roles of a contract. By showing this, it becomes a legal responsibility of the carrier to obtain the cargo and deliver the same to the consignee in the same condition as was accepted. It becomes an extremely important document when international trade is concerned.
It also functions as a receipt whenever the goods arrive at their destination. An inventory of products, together with information about weight, size, and declared value, is also an important part of the document.
You might not have ever heard of a Bill of lading before, but it’s an incredibly important portion of freight shipping. Inland bills of lading are essential for the domestic transportation of products and ocean bills of lading are essential for the global carriage of products.
Why do businesses need a Bill of Lading?
In other words, a Bill of Lading is just one of the several kinds of documents that has to be managed in a purchasing system, and businesses want to review these documents to stop asset theft. So, it is actually a general sort of contract that makes sure the ownership of goods which is transferred by one party to another using a neutral carrier. It also acts as an affirmation of the goods received. In the supply chain, the owner of the goods also has the right to transfer the ownership of the cargo to someone else.
When it is used as a document of title, it is particularly related to the case of the buyer. It is the best source to determine whether the companies have met their obligations to each other. There are several sorts of Bill of Lading for assorted uses. The shipper receives this document from the shipping lines and can claim the balance amount from the buyer. This means that the ownership of the goods remains with the shipper and can use this as a guarantee till the balance amount is received.
As a consequence, a bill of lading also can help protect the standing of all businesses involved with the shipment of products. Even if you think you import below a home bill or straight bill of lading, it’s helpful that you ask your carrier or freight forwarder for the AMS(automated manifest system) bill of lading so you know your ISF(Importer Security Filing) is going to be matched properly.
How Many Types of Bill of Lading are used in Logistics’ Industry?
In supply chain carriers can issue various types of bill of lading and their formats, some of them are given below –
- House Bill of Lading
- Straight Bill of Lading
- Surrender Bill of Lading
- Blank Bill of Lading
- Master Bill of Lading
What is the information which is there on a Bill of Lading?
- The contact details, address, company name of the shipper.
- The contact details, address, company name of the consignee.
- Notify party(is it is different from the consignee). In general cases, the consignee and the notify party are the same.
- Terms and conditions, address, company name, logo, contact details of the carriage.
- Number of Bill of Lading.
- Vessel’s name along with the journey number.
- Loading port, delivery port, receipt’s place, delivery’s place, and final destination,
- Number of the container, number of the seal, number and marks of shipping, cargo’s description, gross weight and special instructions(if any).
- Prepaid freight
- Date of issue, place of issue and signature.
These are some of the necessary information which is usually involved in the Logistics’ world. So, we hope that this blog must be helpful to you to understand the importance and the need for the Bill of Lading.
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