Bill of Lading
Also known as: BOL, B/L
A bill of lading is a legal shipping document issued by a carrier that acts as a receipt for goods, a contract of carriage and, often, a document of title.
A bill of lading (B/L) serves three roles: it acknowledges that the carrier received the goods, sets out the terms under which they will be transported, and can act as a document of title that determines who is entitled to collect the goods at the destination. It records details such as the shipper, consignee, description of goods and delivery terms.
In international trade the bill of lading is central to releasing cargo and to trade-finance instruments such as letters of credit, where banks require it as proof of shipment. Procurement and logistics teams check that the B/L matches the order and invoice, since discrepancies can delay clearance, payment or collection of goods.
Frequently asked questions
- What is a bill of lading?
- A bill of lading is a legal shipping document issued by a carrier that acts as a receipt for goods, a contract of carriage and, in many cases, a document of title.
- Why is the bill of lading important in trade finance?
- It provides proof that goods were shipped and can control who collects them, which is why banks require it under instruments such as letters of credit before releasing payment.
Related terms
Freight Forwarding
Freight forwarding is the service of arranging and coordinating the transport of goods on behalf of a buyer or supplier, often across multiple carriers and borders.
Read definitionCustoms Clearance
Customs clearance is the process of getting imported or exported goods approved to cross a border by meeting documentation, duty and regulatory requirements.
Read definitionLetter of Credit (LC)
A letter of credit (LC) is a bank's guarantee that a supplier will be paid once agreed shipping and documentary conditions are met.
Read definitionIncoterms
Incoterms are standardised international trade terms that define who is responsible for shipping, insurance, duties and risk at each stage of a delivery.
Read definitionExplore related across the knowledge graph
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