Carriers must acknowledge receipt of goods for various reasons, like customs in international trade and general insurance. They sign a bill of lading once cargo is loaded. This document is essential for confirming payments and product acceptance in both domestic and international transactions.
A bill of lading serves as:
- A cargo loading receipt
- A binding agreement proof
- A shipment title
Originally for sea transport, bills of lading now apply to all transport forms, including road shipments in countries like the US.
Some suggest replacing "bill of lading" with "transport document," but this new term isn't widely adopted yet.
Types of Bills of Lading
- Received-for-shipment: Indicates receipt but not loading of goods.
- On-board: Confirms cargo loading.
- Order: Used when shipping precedes payment.
- Straight: Applied when shipping is prepaid.
When to Use
Bills of lading are vital for both international sea shipping and domestic transport in the US. They're signed by carrier representatives and the receiver after delivery.
How to Fill Out
- Get the Form: Download from a form site.
- Add Details: Fill in dates, goods origin, destination, and any third-party billing.
- Include Carrier and Cargo Info: List carrier name, trailer number, and cargo details.
- Assign Numbers: Note the bill of lading and barcode numbers.
- Identify Freight Charges: Indicate who pays, using terms like "prepaid" or "collect."
- List Goods: Detail the items shipped, including type and weight.
- Finalize: The shipper and carrier sign the form, acknowledging terms and condition of the shipment.