Bill of Lading (BOL)

A Bill of Lading (BOL) is a legally binding document issued by a carrier to a shipper that outlines the type, quantity, and destination of the goods being transported. It serves three primary functions:

1. A receipt confirming the carrier took possession of the goods.
2. A contract of carriage specifying the terms under which the shipment will be transported.
3. A document of title (in specific cases), indicating ownership of the goods and allowing the holder to claim them upon arrival.
   

A BOL is central to domestic and international shipping, ensuring that products move through the supply chain with proper documentation, accountability, and compliance.

Purpose of a Bill of Lading

A BOL ensures legal clarity and operational accuracy within the logistics process. It documents the shipment’s essential information, protects both shipper and carrier, and provides a traceable record for audits, disputes, and claims.

A valid BOL confirms:

• What was shipped
• Who shipped it
• Who is receiving it
• How it should be transported
• Who is responsible at each stage of the shipment journey
  

Because the BOL is legally enforceable, it acts as a cornerstone of transportation documentation across LTL, FTL, rail, intermodal, and international freight.

Essential Information on a Bill of Lading

A standard BOL contains:

• Shipper name and address
• Consignee (receiver) name and address
• Carrier name and SCAC code
• Description of goods (SKU, NMFC, class, packaging type)
• Quantity, weight, and dimensions
• Origin and destination
• Purchase order or reference numbers
• Special handling instructions (e.g., “Do Not Stack,” hazmat details)
• Declared value and freight terms (FOB origin or destination)
• Signatures from both shipper and carrier
  

For hazardous materials, the BOL must also include:

• UN/NA number
• Hazard class
• Packing group
• Emergency contact information

Key Functions of a Bill of Lading

Receipt for Goods

Confirms the carrier has received the shipment in good condition and in the quantities listed, creating a baseline for claims or disputes.

Contract of Carriage

Outlines the conditions of the shipment, including:

• Liability limitations
• Freight charges
• Transit terms
• Handling instructions
  

It binds both parties to the stated terms.

Document of Title

For negotiable BOLs, the document grants ownership rights. Whoever holds the original BOL can claim the goods—critical in international trade and financial transactions like letters of credit.

Types of Bills of Lading

Type	Description	Use Case
Straight BOL	Non-transferable; goods delivered to a specific consignee.	Standard shipments where ownership is fixed.
Order BOL	Transferable through endorsement; acts as a document of title.	International trade, goods sold while in transit.
Bearer BOL	Whoever physically holds the document can claim the goods.	Rare; used when flexibility is needed in delivery.
Master BOL	Issued by the main carrier for consolidated freight.	Freight forwarders and NVOCCs.
House BOL	Issued by a freight forwarder to the shipper.	LCL shipments and multi-party logistics.
Electronic BOL (eBOL)	Digital version eliminating paper documents.	Modern automated supply chains and EDI workflows.

Bill of Lading vs. Proof of Delivery (POD)

Bill of Lading (BOL)	Proof of Delivery (POD)
Issued at the start of a shipment	Issued at the completion of a shipment
Acts as contract, receipt, and sometimes title	Confirms successful delivery to the consignee
Focuses on what is being shipped and under what terms	Focuses on delivery time, condition, and signature
Used for carrier–shipper accountability	Used for invoicing, claims, and customer confirmation

Why the BOL Is Critical in Logistics

A Bill of Lading ensures:

• Legal protection for both shipper and carrier
• Accurate billing and freight audits
• Visibility across the supply chain
• Efficient dispute resolution
• Regulatory compliance, especially in hazmat and international shipping
  

Incorrect or incomplete BOLs can cause delays, fines, carrier refusals, or customs issues, making accuracy essential.

Real-World BOL Example

A manufacturer sends a palletized shipment to a retailer using an LTL carrier. When the truck arrives for pickup, the driver signs the BOL, confirming receipt of the goods. During transit, the BOL travels with the shipment and is used at each checkpoint. Upon delivery, the consignee signs the BOL or related POD, completing the transaction and updating the logistics record.

Back to Glossary