Quick Summary:
If you are new in the import-export industry and wondering what is a bill of lading, this blog post is definitely going to be for you. Get an in-depth guide discussing everything about BoL – starting from the definition of a bill of lading, bol meaning in shipping, its purpose, and functions, ocean bill of lading definition, different types of bill of lading, who issues a bill of lading, and how much a bill of lading costs.
Introduction:
What is a bill of lading (BOL)?
People in the export-import business are familiar with the definition of Bill of Lading or its abbreviations – also addressed as BL, BoL, or B/L.
A Bill of Lading is an essential binding document for the import-export business beginners that define bill of lading and its types, quantity, and destination of the goods being carried, along with details of the shipper, carrier, and consignee. There are various ways you can define bill of lading, but eventually, the bill of lading purpose is to make the export and import function under the law and avoid any unforeseen events during the goods transition.
We hope now you understand what the bill of lading means.
What is the purpose and function of Bill of Lading (BOL)?
A Bill of Lading offers 4 main functions: These are 4 functions of bill of lading that gives documents their unique identity.
It works as a carriage contract between the carrier and the shipper.
It provides a receipt for shipped goods.
It provides the title document for goods.
Potential liability as a physical carrier
A Bill of Lading is a legal document that connects the sending and receiving parties (importer-exporter) and protects them from false claims and losses.
A bill of lading is a legal agreement whose term has been agreed upon by all involved parties, and thus it works as a legal statement in case of disputes.
Different Types of Bill of Lading (BOL)
Different types of bill of lading with various terms in the contract are used in diverse shipping scenarios. Continue reading to understand the bill of lading types to understand the concept better.
Here are 18 common types of BOL:
Master Bill of Lading
Master bill of lading provides the shipping line to the trucking company, and it also provides services to the business owners or the operator of the transport ship. Bill of lading tracking includes detailed information to the transport company about the consignment.
Generally, your freight forwarder or broker uses this type of Bill of Lading, and it provides detailed information regarding the cargo that is used mainly. The master bill of lading in export is vital for the smooth functioning of the transportation process.
House Bill of Lading
This type of BOL, also known as a forwarder’s bill of lading, is provided by the broker, forwarder, or non-vessel or non-vessel operating common carrier (NVOCC) to the clients.
Open Bill of Lading
Openbill, a Kind of a bill of lading is defined as a negotiable bill of lading that indicates you can transfer cargo from one consignee to another as long as the consignee’s signature is there. The consignee is a pre-determined party by the carrier, a bank, or the importer of the goods.
Order Bill of Lading
This common type of bill of lading specifies the cargo delivered to the party or person that the shipper determines. To ensure the safety of the delivery, the agent or mediator in charge of the delivery must check the order bill of lading. It is the most common type of bill of lading globally – also known as a negotiable bill of lading.
Bearer bill of lading
A bearer bill means that the cargo will be delivered to whoever possesses the bill of lading, while the consignee may be initially unspecified or negotiated upon delivery of the freight. A bearer bill of lading is used for bulk shipments released in smaller quantities.
Straight bill of lading
This common type of bill of lading is known as a non-negotiable bill of lading that is assigned the cargo to a specific person. When claiming possession of the delivery, neither the endorser nor the endorsee is given priority.
Depending on the destination country’s rules, the consignee is frequently obliged to make any advance payment before receiving the goods. They may or may not be required to show the original bill upon delivery.
Received for shipment bill of lading
The carrier issued this type of Bill of Lading and confirmed that the items have been received but not yet loaded aboard the ship or transport vessel. When the vessel is late, it is used as a temporary BOL and is replaced by a Shipped BOL once the cargo is loaded.
Shipped bill of lading
When the cargo is on board, this common type of bill of lading is issued, connecting the vessel’s owner to the carrier.
Ocean bill of lading
Nationally and internationally, this bill of lading helps the cargo transport via ocean freight.
Inland bill of lading
Inland bill of lading allows the carrier to transport it by land (road or rail) but only inside the country’s borders.
Airway bill of lading
An air freight business or forwarder issues this common type of bill of lading, and it’s usually non-negotiable unless the cargo is shipped on the shipper’s order.
Clean bill of lading
A clean bill of lading ensures that the cargo is loaded in good condition. But, packaging and the inside goods cannot declare damaged condition. However, a Dirty BOL is replaced if the shipment is damaged or the quantity is missing.
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