What is a Bill of Lading?
The Bill of Lading (B/L) is the single most important document in international commodity shipping. It serves three critical functions:
Three Functions
- Receipt: Confirms carrier received the goods in stated condition
- Title: Serves as document of ownership (can be traded)
- Contract: Evidence of contract of carriage between shipper and carrier
Types of B/L
- Clean B/L: No notations about damage or irregularities
- Claused B/L: Notes damage or discrepancies
- Shipped on Board: Confirms goods are loaded on vessel
Important Tips
Always insist on a clean, shipped-on-board Bill of Lading. Verify all details match the commercial invoice.
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