A Bill of Lading (BOL) is a legal document issued by a carrier (like a shipping company or freight carrier) to a shipper that:

1. Acknowledges receipt of the goods for shipment,

2. Details the type, quantity, and destination of the goods being shipped, and

3. Serves as a contract between the shipper and carrier for transportation.

Additionally, the Bill of Lading often acts as a document of title, meaning the person holding the BOL has ownership rights over the goods.

Key Functions of a Bill of Lading:

• Receipt of goods: Confirms that the carrier has received the merchandise.

• Contract of carriage: Specifies the terms under which the goods will be transported.

• Title document: Can be used to transfer ownership of the goods during transit.

Types:

• Straight Bill of Lading: Non-negotiable, consigned to a specific party.

• Order Bill of Lading: Negotiable, can be transferred to others by endorsement.

• Clean Bill of Lading: Indicates goods were received in good condition.

• Claused Bill of Lading: Notes any defects or damages to goods on receipt.

In summary, the Bill of Lading is essential in shipping and logistics for tracking goods, proving shipment, and facilitating payment and ownership transfers.