In the logistics industry, a bill refers to any printed or written statement of the price for any goods or services to be delivered or have been already delivered. On the other hand, the term lade is putting the cargo onto a ship or any other form of goods carrier.
Bill of lading in shipping is a tracker of the traded goods which have been received on board. It is a file or document that proves the agreement or deal made between the transportation company and the shipper for the delivery of the goods. The transportation company or carrier issues these kinds of documents to the shipper.
In addition, bill of lading serves as a receipt where it contains the shipment details and the parties involved. It is a legal transportation document between the shipper and the logistics company.
There are two types of bill of lading. In a negotiable bill of lading, a clear directive is given in order to make the delivery of the goods shipped to the right destination. The buyer or receiver should have a copy of this for the goods to be released.
On the other hand, a non-negotiable bill of lading fixes a specific consignee or name of the receiver to whom the parcel will be delivered or shipped. In addition, it doesn’t serve the ownership of the goods. The receiver of the products can then claim the cargo by confirming their identity.
One of the main purposes of the bill of lading is to serve as a document to act as proof or evidence of the carriage of the goods. Another purpose is to contain the terms and conditions under which the parcel will be carried out.
To know the importance of bill of lading, check out and read this infographic.
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