What is a Bill of Lading

When you are shipping cargo from your manufacturing company to another party abroad, you are issued a bill of lading. This is a document that is issued by your carrier, whether it is a shipping line or an airline, to you as the shipper. The bill of lading acknowledges that your goods have been received and carried on board the vessel as a cargo being sent to an identified receiver.

A bill of lading is very important in the business of trade and transportation of goods. First, it acts as evidence that a valid contract of carriage exists between a shipper and a carrier. Next, it acts as a receipt signed by the carrier confirming that the goods that are with them match the contract description and has been received in good condition. Finally, it operates as a document of transfer similar to any negotiable instrument like a cheque. That means the document can be endorsed, administering all the legal aspects of the carrier and affecting the ownership of the goods carried by the vessel.

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