Bill of Lading Guide

Understand the role, common types, process, and supporting information behind one of freight’s most important transport documents.

Introduction

What is a Bill of Lading?

When it comes to international trade, an original bill of lading is one of the most important documents for shippers and consignees. Issued by a carrier, it specifies consignment title and is used to guarantee receipt of goods for importers and payment for exporters. Sometimes abbreviated as B/L or BoL, a bill of lading is a legal document that additionally catalogues contract terms and conditions for the sale and purchase of merchandise.

Why it is important

Accurate document data supports carrier instructions, customs processes, banking requirements, cargo release, and clear communication between the shipper, consignee, forwarder, and carrier.

Document treatment varies by mode, contract, jurisdiction, and shipment. Obtain professional guidance for legal or documentary-credit requirements.

Common Types

Choose the right document flow.

The appropriate form depends on the contracting parties, mode, commercial terms, and cargo-release requirements.

Straight Bill of Lading

A non-negotiable document naming a specific consignee.

Order Bill of Lading

A negotiable document that can be transferred by endorsement when properly issued.

House Bill of Lading

Issued by a freight forwarder to the shipper for the consolidated movement.

Master Bill of Lading

Issued by the ocean carrier to the contracting forwarder or shipper.

Clean Bill of Lading

Indicates no apparent adverse remarks about cargo or packaging at receipt.

Claused Bill of Lading

Contains remarks identifying apparent cargo or packaging exceptions.

Process

From instructions to release.

A controlled document workflow reduces amendment delays and destination issues.

  1. 01

    Booking confirmed

    Shipment instructions and routing details are agreed.

  2. 02

    Cargo received

    Cargo quantity, condition, and identifying marks are checked.

  3. 03

    Draft prepared

    Parties review shipper, consignee, cargo, vessel, port, and freight details.

  4. 04

    Document issued

    The applicable bill is issued after required checks and approvals.

  5. 05

    Release and delivery

    Document instructions support cargo release at destination.

Documents Required

Prepare complete shipping information.

Exact requirements vary, but these items commonly support Bill of Lading preparation.

  • Shipping instructions
  • Commercial invoice
  • Packing list
  • Booking confirmation
  • Export and customs references
  • Cargo marks, quantity, and weight
  • Consignee and notify-party details
  • Letter of credit requirements, when applicable

Bill of Lading Guidance

Lost, Destroyed or Stolen B/L

An original bill of lading facilitates delivery of goods to the consignee at the destination port. Should the document be lost, destroyed or stolen, there are ways to resolve – though prevention is better than cure. For anyone unfortunate enough to experience the distress of losing the original bill of lading, their consignment may be liable for additional fees and charges (i.e. detention, demurrage, bank guarantee, etc.).

Note: Regional laws, regulations and carrier specific requirements may vary. Please check with your carrier or freight forwarder for further information and assistance.

What To Do

Whether it is a simple case of misfiling or the result of something more sinister (i.e. stolen), there are some steps you can take to resolve a missing original bill of lading.

  • If lost in transit, use your courier reference number to track the documents. This will pinpoint the location of your mail and if it was signed upon receipt.
  • Contact your freight forwarder to inform them of the loss. Their thorough industry knowledge and experience will be an invaluable resource throughout.
  • Subject to the carrier’s policy, some international transporters may still accept a bill of lading if one of a set of three is missing.
  • Lending institutions can provide a letter of indemnity, indemnifying carriers (if approved) from liability for the release of goods to the consignee. In such instances, the original bill of lading must be returned to the carrier if found.
  • There are other ways to complete cargo delivery if a bill of lading is missing. Speak to your carrier or freight forwarder for more information.

Safeguard

Tips and advice to help you protect your original bill of lading from loss.

  • Before the original bill of lading is produced, carriers issue drafts to shippers which can be amended and refined. While such copies won’t be legally admissible, filing these documents is wise as they contain important consignment information which can be referenced later if required.
  • Carriers typically issue a set of three original bill of ladings. It is prudent for shippers to retain any excess copies if not required by third-parties and the consignee.
  • When issued, the shipper should double-check to ensure they have received all original copies.
  • Use a reputable courier to send documents which offers tracking and ‘signature required’ services.
  • If terms of sale allow, utilise telex release services which are available through either the carrier or your freight forwarder.

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