What is a Bill of Lading used for?

A Bill of Lading (B/L or BoL) document is an extremely important document that the Carrier (the company responsible for the transport of goods) issues to the Shipper (the Consignor). It serves a few critical roles within an export shipment: Evidence of contract of carriage A Bill of Lading is essentially a contract of carriage between the Shipper, Consignee, and Carrier stating the terms and conditions of carriage. Receipt of goods It acts as proof of delivery, confirming that the goods were received in an acceptable condition and are ready to be shipped. Document of title to the goods A Bill of Lading also serves as proof of ownership over the goods being carried. The owner of the cargo (the holder of the B/L) has the legal rights to claim the goods or arrange transfer ownership of the cargo to another party in the supply chain. In some cases, the Shipper can withhold the Bill of Lading until having received payment from the Consignee. Doing this prevents the Consignee from accessing their goods until payment has been made and the Bill of Lading has been released. *Only the consignee listed on the Bill of Lading has contractual rights to request the release of the cargo.

How to create a Bill of Lading

1. Open IncoDocs

   Open IncoDocs in your browser and navigate to the “Export Docs” section.

2. Choose the Bill of Lading template

   Click on 'New document set' and select the Bill of Lading template along with any other export documents you wish to create.

3. Fill out & customize your doc

   Fill out the document, customize template fields to your needs and add your company letterhead. To save time and prevent re-entry errors, enter key shipment data into the Master File to have it sync across all other documents in your set automatically.

4. Sign & seal

   Click on the signature box at the bottom of your document to create and place a digital signature then hit “Save & Quit”. On the document preview screen, click on the ‘More’ dropdown button and select “Add company seal” to place a digital stamp.

5. Download or share

   Download or share documents from IncoDocs in 1-click. Documents can be downloaded as PDF or CSV which can be imported into other systems without manual re-entry.

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Types of Bill of Lading Documents

There are many types of Bill of Lading documents and formats that carriers can issue along the supply chain.  Below are a few examples of B/L types:

House Bill of Lading

Surrender Bill of Lading

Straight Bill of Lading

Master Bill of Lading

Blank Bill of Lading

What is the difference between Freight Collect and Freight Pre-Paid?

The B/L will state that the shipment has been sent on ‘Freight Collect’ or ‘Freight Pre-Paid’ terms.  These terms relate to which party will be paying for the International Freight costs.

If the shipment is sent Freight Collect – the freight charges will be ‘collected’ by the Consignee.  If the shipment has been sent on Freight Pre-Paid terms, the shipper will be billed for the freight charges.

It’s important to note that the carrier must receive payment of the shipping charges (by either party) BEFORE they will release the cargo to the Consignee.

What information is included on a Bill of Lading Document?