A Bill of Lading (BOL) is one of the most important documents used in the transportation of goods by sea, land or air. It provides all parties involved in the delivery of the goods, the details of the delivery and the goods itself. Whether it’s a short form bill of landing, a long one, or any other variety–most company staff does not understand what a Bill of Landing is, let alone how to make use of one. This fact can easily cause confusion
It is very important to understand just what a BOL is.
TYPES OF BILLS OF LADING:
1. Negotiable Bill of Lading: A negotiable Bill of Lading is a document of title which may be used to transfer ownership of the goods from one party to another. The original consignee, by signing the back of the bill, transfers title in the goods to another party (the new consignee). The new consignee may transfer title to another party and so on. The party to which the ownership of the goods is to be transferred must possess the required documents showing the endorsed bill of landing.
2. Non-Negotiable Bill of Lading: A non-negotiable Bill of Lading is not a document of title and therefore does not allow ownership to be transferred from one party to another.
3. Ocean Bill of Lading: This is the bill of lading issued by the carrier from the carrier port and covers the goods sea transport to the receiver port. It does not cover land areas.
4. Through Transport Bill of Lading: This may cover inland areas. It may include the collection or delivery of the goods in the exporting country or importing country. For it to include collection or delivery, it must state so in the bill of landing. The collection point or delivery point should also be stated. In the through transport bill of landing the carrier only accepts liability while the goods are on board their vessel.
5. Combined Bill of Lading: This type of bill of lading includes inland collection and delivery. Here the carrier accepts liability for the goods throughout the journey. So in the case of loss or damage, the carrier alone is held responsible.
6. House Bill of Lading: This is issued by a party who is not operating the vessel or vehicle of transport but on the responsibilities of the carrier.
THE IMPORTANCE OF THE BOL:
1. Proof of Contract Existence: There is an actual contract between the shipper and the carrier when the carrier is booked for the delivery. The bill of landing is proof that a contract exists. Bills of landing are only issued when the goods have been collected or received by the carrier.
2. Acts as a Receipt: The bill of landing acts a receipt given to the shipper in exchange for the goods. It serves as proof that the carrier has collected or received the goods from the shipper.
3. Entitlement to Ownership: The bill of landing gives entitlement to the holder if made to order to claim the goods. If it is not negotiable it is known as a straight bill of landing.