Definition:
A bill of lading is a document issued by a carrier to a shipper acknowledging receipt of goods for transportation. It serves as a contract of carriage between the shipper and the carrier, outlining the terms of the shipment, including the goods being shipped, the destination, and the shipping charges.
Key components of a bill of lading:
- Description of goods: A detailed description of the goods being shipped, including quantity, weight, and value.
- Origin and destination: The shipping point and the destination of the shipment.
- Shipping charges: The shipping charges, including freight rates and any additional fees.
- Carrier’s liability: The carrier’s liability for the goods being shipped, which may be limited under certain circumstances.
- Signature: The signatures of the shipper and the carrier.
Why are bills of lading important?
- Contract of carriage: The bill of lading is a contract between the shipper and the carrier, outlining the terms of the shipment.
- Title to goods: The bill of lading represents title to the goods being shipped.
- Documentation: The bill of lading is a crucial document for customs clearance and insurance purposes.
- Proof of delivery: The bill of lading serves as proof of delivery of the goods to the destination.
In essence, a bill of lading is a document that serves as a contract of carriage between a shipper and a carrier, outlining the terms of the shipment and providing proof of delivery.
