Bill of Lading

May 17, 2012 United States

Bill of Lading: Abiding by the Rules of Shipment

Sending out packages anywhere in the world can become quite a complicated task, and it is something that the Bill of Lading works to cover for. Because shipment companies are faced not just with handling a specific package for delivery throughout the world but would most often work to transporting hundreds, even thousands of packages every day, there may be some instances that such packages that have been sent out would encounter situations that might end up doing a little damage to such goods.

Companies who work on package deliveries do take good care of the goods that they carry, but more often than not, transport is something that does not guarantee that such packages will be delivered in the same condition. While most people who send out such goods would take great care in making sure that they goods will be well protected by their own packaging, delivery is another question.

Bill of Lading: Covering Shipment Rules and Responsibilities

Carriers assure their customers that they will proceed with delivery and take great care of such packages, and the Bill of Lading is considered as an extra precaution that will cover for situations out of their control that will damage such packages. Because carriers mainly work with shipment companies for the delivery of packages across the globe, most of the time, it is out of their hands to see to the safety of such packages while in transit.

What is A Bill of Lading?

Much like the contract that you sign when you send out a package through a carrier, the Bill of Lading will cover the delivery terms of your package, but this time, the terms will cover the agreement between the carrier and the shipper. The Bill of Lading form basically states that the shipper acknowledges the receipt of the package, and the carrier would agree that the non-specified goods that are sent out for shipment are handed over for conveyance to the other party.

While this document may be something that customers may find to add further confusion to the deal of their package shipment, it is actually a contract that will just carry over the terms they have agreed to with the carrier they are working with. This contract though will be an extension of what the carrier and the consignee have agreed to, and will basically cover further the deal that will be between the carrier and the shipper.

Why is A Bill of Lading an Important Document?

Carriers are held to be responsible for the goods that they have agreed to ship out, but the delivery of such would often be carried out by a third party or so, which would be the shipper. Most of the time, shipment of such goods is done through delivery through two or more modes of transport, which can be by road, rail, sea, and air.

Because carriers may not be able to see to such delivery of packages and do much hands-on, the Bill of Lading will basically cover the transfer of good from the carrier to the shipper. But the use of the document does not end there. This document is to assure the customer that their goods have been received in good condition by the shipper from the carrier. It will also make for an agreement that such packages to be delivered are in good shape to be sent out, meaning it shows the consignee that the carrier has done its job of taking care of such packages well.

A Bill of Lading also works as a freely transferable document, and will allow the endorsement for the ownership of the goods being delivered by certain carriers. The terms for shipment that a customer might agree to with a carrier will cover such, and the Bill of Lading will also hold the carrier to the contract that will be signed for a shipper to actually proceed with the delivery of specified goods.

What Information Must a Bill of Lading Contain?

For the document to be considerably legal, a Bill of Lading must contain certain elements that will see to the agreement that will be made for the delivery. To make things easy, a Bill of Lading template can be researched on. However, for those who want to know the details, here is the information that should be included:

• Names of the carrier (Consignor) and the customer/receiver (Consignee).
• Name of the Shipper.
• Name of the Shipping Company.
• Flag of Nationality.
• Names of the Ports of Departure and the Destinations.
• Dates of Departure and Arrival.
• Order and Notify Party.
• Itemized List and Description of Goods.
• Weight of the Cargo Gross/net/tare.
• Total Freight Rate Measurements and Weight of Cargo.

Such information in a Bill of Lading is essential, as it will basically cover all the ground that needs to identify what the goods that have been sent out are all about, and will also contain information on who the carrier has agreed to ship the package to certain destinations. It will also cover the basic information about the delivery of the package, meaning its transport or voyage will clearly leave a paper trail that makes it quite easy for tracking.

Other Things that Makes a Bill of Lading Important

Aside from being a concrete agreement for the transportation of a customer’s goods, a Bill of Lading also makes for other purposes, most ideally since it can be issued in a negotiable form. When it is issued in a negotiable form, the Bill of Lading can be used as letter of credit transactions. This would mean that it can be used as collateral or security that will cover for loans or borrowing money from certain creditors.

Another use that a Bill of Lading will basically cover is the shipping complaints or disputes by customers with regard to the transport of their goods. One is required to present a Bill of Lading for claims when it comes to compensation for the damage of the goods they have sent out, as well as delay or loss of such. Resolving disputes when it comes to identification of the cargo’s ownership, is another thing that also important to have the Bill of Lading.