The types of bills of lading (BL or BoL), which specifies the kind, quantity, and final destination of the goods being transported, is a legal document given by a carrier (transport business) to a shipper. When the carrier delivers the goods to a prearranged location, a bill of lading also serves as a shipment receipt. Regardless of the mode of delivery, this document needs to be signed by a representative who is authorized by the carrier, shipper, and receiver. It must be included with the products being delivered. The information is essential since it specifies the shipment’s destination, the number of pieces, how to bill for it, and how to manage it on the dock and in trailers. On a prepaid or collect basis, perhaps. The consignee must confirm that the shipment is collected on delivery, meaning that the driver will take the cost of the goods when the freight is delivered.
Before delving deep into the types of bills of lading, let us acquaint ourselves with the fundamentals of a bill of lading.
The fundamentals of a bill of lading
- The kind, quantity, and destination of the goods being transported are specified in types of bills of lading, a legal document issued by a carrier to a shipper.
- A bill of lading is a contract between a shipper and a carrier, a document of title, and a receipt for shipping goods.
- An authorized person from the carrier, shipper, and receiver must sign this document, which must be included with the transported items.
- The types of bills of lading can aid in preventing asset theft if it is properly kept and evaluated.
Different types of bills of lading
Bills of lading are of the following types:
- Inland bill of lading
These are used to move products over land by rail, road, or inland waterways to the point where the exporter’s international carrier can load them onto a ship. They are frequently the first transportation documents issued for international cargo. It is the agreement between the carrier and the owner of the commodities, outlining the products’ value, description, origin, and destination as well as the conditions of their transit. It will specify the specific vehicle that the items must be transported in addition to the method of payment for freight charges. Both the receipt for the goods’ owner and the carrier’s title for transportation purposes are contained in the bill of lading. The inland bill of lading will be committed to a third party rather than the foreign buyer of the goods because it relates to domestic overland transit. Normally, this is the international carrier, although it is possible to consign the goods to another third party before they get to the international carrier, like a warehouse, goods forwarder, or packaging business.
2. Ocean bill of lading
The transportation of commodities across international waters requires a bill of lading for the ocean. The carrier’s receipt to the shipper is contained in an ocean bill of lading, which also functions as a collection document or invoice. Both the shipper and the carrier of the shipment are parties to the contract, which has legal force. An official document or agreement between the shipper and the carrier that specifies the kind, quantity, and location of the items being transported is called a bill of lading. When the products are delivered to the predetermined location, the bill of lading acts as a receipt for shipment. Bills of lading come in various varieties, each with its own restrictions and requirements.
3. Through bill of lading
With a through bill of lading, merchandise can be shipped internationally as well as across internal borders. The bill serves as a legal certificate allowing a party to be in possession of and conveying a certain good and is frequently needed in order to export commodities. This is because through types of bills of lading enables the shipping company to route the goods through a number of various distribution hubs and modes of transportation. Although there is evidence of receipts for items loaded onto merchant ships dating back to Roman times, the custom of recording cargo in a ship’s log is almost as old as shipping itself.
4. Negotiable bill of lading
Consignment is one way to give a negotiable bill of lading to a different party. The paperwork is delivered to the new consignee (the third party) after being signed or endorsed by the consignee, who is the person or company who is the buyer and is financially responsible for the items. The consignor (the individual or entity shipping the goods) must stamp and sign the negotiable bill of lading in order to transfer it. Next, it must be delivered by the carrier. Written to the consignee’s order, a negotiable bill of lading is required. The bill of lading needs to be accurate.
5. Claused bill of lading
A specific form of bill of lading used for shipping products is one with clauses. In the delivered products, a claused bill of lading indicates a deficiency or damage. A bill of lading is a formal record that traces a shipment from beginning to end. A bill of lading that has been claused indicates that the shipment covered by the official bill of lading fell short of expectations. A claused bill of lading is used when supplied goods differ from the delivery requirements or expected quality specified in the original bill of lading. A claused bill of lading is sometimes known as a “foul bill of lading” or “dirty bill of lading.”
6. Clean bill of lading
This type of bills of lading certifies that the items were not harmed or lost during shipping. The product carrier issues the clean bill of lading following a comprehensive examination of all packages for any damage, missing quantities, or quality variations. A sort of ocean bill of lading known as a “clean bill of lading” is a shipping agreement between a shipper, a carrier, and a receiver for goods being transported by water overseas.
Conclusion
The significance of various types of bills of lading rests in the fact that it is a legally-binding record that gives the shipper and the carrier all the information required to properly process a cargo. This indicates that all parties will go to considerable lengths to assure the accuracy of the document and that it can be utilized in litigation if the need should arise.