Your goods are ready for shipment to international markets, correctly packed, and all the necessary documentation has been collected. Now, it is time to ship the items, and at this stage, it is vital to get confirmation that you have handed over the cargo to the contractor. This is the primary purpose of the Bill of Lading. Understanding what this document is and what shipping conditions it defines will clarify why it is needed.
This document is dominant during sea freight, but there are types of Bill of Lading for both sea and land transportation. In simple terms, this document serves as a receiving receipt for goods placed on a ship or other vehicle and describes the terms and conditions of carriage.
What is a Bill of Lading?
It is an indispensable doc in the supply chain that provides information about the cargo transportation route, the number of departing voyages, the country of origin of the goods, the direction of delivery, and the tentative arrival date of the cargo.
In addition, it contains a great deal of other information, such as a description of the products being transported, details of the party sending the commodities, the carrier responsible for the loading, and the recipient.
Why is a Bill of Lading important?
It allows you to claim your cargo in case of unforeseen situations, such as damage to the merchandise, theft, or other possible problems during transportation.
It includes a description of the cargo’s condition, the port or airport of shipment, and the intended place of delivery. Therefore, it is a critical tool that addresses the interests of every stakeholder named in the document.
The document is usually sent to the carrier or freight forwarder. It is drawn up by the transportation company or the goods’ shipper, with his mandatory signature confirming the transfer of the supplies to the forwarder. It specifies the Incoterms terms, information about the consignee, transportation method, and cargo transfer place to the addressee.
Types of Bill of Lading
Customers who want to navigate transportation documentation need to understand the differences in the varieties of bills of lading. Below, we’ll break down the distinguishing characteristics so that shippers understand the intricacies of the supply chain.
Sea Bill of Lading
This is the documentation for delivery by ship. There isn’t a singular format for the Bill of Lading for execution, and each shipping line processes it differently.
The document usually includes details of the cargo, the ship on which it is being departed, the ports of loading, transloading, unloading, and features of the shipment, providing a complete record of the items being forwarded from the shipper to the customer.
The carrier usually produces three copies of the information on his official stationery. One is kept for the shipper, one is given to the carrier, and one is given to the consignee.
Inland Bill of Lading
It is demanded for truck or train shipments within the same state. This document records the main information about the internal stage of delivery, which is the main point for cargo shippers.
Loads with this kind of documentation are applicable when items are transported from a warehouse or port of shipment to a seaport or airport.
The document specifies the vehicle used to carry the products, the shipping arrangements, and the costs. The Bill of Lading sets ownership of the goods and the transporter’s responsibility for their transportation.
If the document does not specify a consignee, it will be negotiable. The right to the items can be transferred or sold during transit, and the Bill of Lading becomes a valuable asset.
Multimodal Bill of Lading
This is the connecting element of shipment by different modes of transport. It is created to record the shipment of products in various ways in a single document.
It facilitates the smooth transit of cargo through various vehicles, including land, rail, sea, and air transportation. Furthermore, it is also an excellent option for combined shipments from multiple senders.
Bill of Lading for transshipment
When transloading a container to another vehicle, that is, transferring it from one ship to another, a Bill of Lading for transshipment is used. Such a paper is usually provided by the carrier or his agent, who first received the goods in hand.
The document spells out the entire itinerary, from the initial loading port to the final loading port with reloading.
In this case, the shipowner or agent who received the consignment at the loading port bears all transshipment costs.
Various forms of Bill of Lading that may be mandatory for you:
Straight Bill of Lading: a document for the transportation of cargo that points to a single consignee, the receiver, whose full name appears on it. It is like a personal invitation assigned exclusively to the named addressee.
Order bills of lading: These papers secure more flexibility in delivery. Another party responsible for paying for services and the shipped commodity can be designated as the shipper. This document is similar to a transfer of ownership.
Bearer Bill of Lading: it does not specify specific names or surnames. The document’s owner is considered the cargo’s holder. The bill functions as cash, and the holder directly controls the products.
Bill of lading: Examples
Suppose a shipper transfers a load of glassware to a consignee, for example. In that case, the document will state that the goods belong to the shipper and indicate the path of the merchandise – from the point of shipment to the final destination. If the glassware sustained impairment during transportation, the Bill of Lading will remain the main document that can be used to solve the problem.
When a company imports expensive electronic products from an overseas supplier in a commercial setting, the manufacturer will issue a certificate that the goods have been placed aboard the ship and dispatched to the destination country.
Ensure that you verify the correctness of the Bill of Lading. If there are any mistakes, customs can hold the cargo until it is thoroughly checked. You should be especially careful to proofread the cargo data and check the weight and quantity of items.
Whatever method of transportation you choose, you will need a specific set of documents. Global Unity Logistics will help you simplify the process of shipping your products. Simply send us a request specifying the direction, type of cargo, and quantity of goods, and your contacts and consultants will give you answers on cargo transportation.