Bill of Lading is a term we throw around often in our office due to our line of business (Trade Finance), recently someone asked me what it was, so i thought I would answer via our blog.
A Bill of lading is a legal document between the shipper of a particular good and the carrier – whether it be a trucking company, railroad, ship or air freighter. It details the type, quantity and destination of the goods being carried and is used to acknowledge the receipt of a shipment of goods. It is a contract protecting the shipper by guaranteeing payment and satisfies the carrier that the recipient has proof of the right to the goods. The bill of lading is then sent to the buyer by the shipper upon payment for the goods, and is proof that the recipient is entitled to the goods when received. If there is no bill of lading, there is no delivery.