Introduction
A bill of lading is also referred to as BL or BoL. It is a legal document issued to a shipper by the carrier. This will detail the quantity, type, and the place to which the goods must be delivered. A bill of lading also acts as the receipt for shipment when the carriers go onto delivering the goods at the specified destination.
The shipped products would be accompanied by a bill of lading, regardless of the form of transportation being used. This documents would be signed and sealed by the authorised person from the receiver, shipper, and carrier.
Example
Imagine that a transport or logistic entity is intending to transport fuel in a large truck from Karnataka to a petrol station in Gujarat. A representative from the plant and truck driver will sign the bill of lading once the loading of crude oil into the truck is done.
Once the truck driver reaches the destination and delivers the fuel at the fuel station in Gujarat, the truck driver would hand over the bill of lading to the authorised person at the fuel station and request them to place their seal and signature on it. On doing this, the delivery request would be completed by the transport entity.
Breaking Down Bill of Lading
The bill of lading is a lawful document which offers the goods carrier and shipper with all required details to finish the shipment process correctly. This includes three main functions.
At first, it is a document of title for the described goods mentioned in the bill of lading. Secondly, it acts as a receipt for the shipment of goods. Lastly, the bill of lading reflects the terms and conditions which are agreed upon for the goods to be transported to the destination.
