Commonly Used International Trade Documents: Bill of Lading

A Bill of Lading represents the main transport document for the carriage of goods by seas. The document has several functions:

Evidence of a contract of carriage.
Details of many of the terms of the contract of carriage.
The condition of the goods when delivered to the carrier.
Evidence that goods have been shipped on board the named vessel.
It may be completed in a manner which would make it a negotiable documents and thus a document of title.
It undertakes hat the carrier will deliver the goods detailed on the Bill of Lading on the surrender of the original Bill of Lading to the carrier at the destination port.

Containerisation has seen the development of a 'combined transport' Bill of Lading as opposed to the traditional 'port to port' Bill of Lading.

As the Bill of Lading is essentially a receipt for the goods, issued by the carrier at time of loading the goods on board the named vessel, the carrier requires that this receipt will need to be produced to the shipping company on arrival at the destination port.

This receipt also ensures that only those goods detailed will be released to the consignee.