Bill of Lading

What is a bill of lading?

A bill of lading is a transport document issued by a carrier or its agent when goods are shipped by sea. It describes the goods, confirms receipt by the carrier and sets out key shipment details.

Depending on the type used, a bill of lading can also act as a document of title, meaning it may control the right to take possession of the goods.

Why does a bill of lading matter?

The bill of lading connects the physical movement of goods with the commercial transaction between buyer and seller.

It may be needed for customs clearance, cargo release, bank payment, transfer of control and proof that goods were shipped.

What information is usually included?

A bill of lading usually includes:

• shipper details

• consignee details

• notify party

• vessel name

• port of loading

• port of discharge

• goods description

• package count

• weight and volume

• freight terms

• bill of lading number

Common mistakes

Common mistakes include:

• incorrect consignee details

• mismatched shipment descriptions

• wrong port information

• inconsistent dates

• misunderstanding original versus sea waybill use

• late release of documents

How iTradeDigital helps

iTradeDigital helps buyers and sellers identify which transport documents are required and keeps those requirements connected to the agreed trade terms, shipment details and payment workflow.

Related terms

• Air waybill

• Commercial invoice

• Packing list

• Letter of credit

• Incoterms®

FAQs

Is a bill of lading used for air freight?

No. Air freight usually uses an air waybill.

Who issues the bill of lading?

The carrier, shipping line or authorised agent issues the bill of lading.

Is a bill of lading the same as a sea waybill?

No. A sea waybill is generally not a document of title, while certain bills of lading can be.