Bill of lading

What is a bill of lading?

A bill of lading (BOL) is a legally binding contract of carriage document between a consignor/shipper and a logistics services provider (LSP). The bill of lading reflects the transportation provider responsible for transporting goods through to the final destination and any conditions for transporting the shipment. Bills of lading are used in land, ocean and air transportation.

Why is a bill of lading important?

The bill of lading serves three functions. It's a document of title to the goods described in the BOL. The bill of lading form or electronic bill of lading serves as proof of shipment/receipt when the LSP delivers those goods to a pre-determined destination. The BOL details special instructions and tracking information, and it represents agreed-upon terms and conditions for the transportation of the goods.

Who issues a bill of lading?

The bill of lading is issued by an LSP to a shipper to detail the type, quantity and destination of goods being transported. A BOL accompanies the shipped products and is signed by an authorized representative from the LSP or carrier, the consignor/shipper and the receiver.

When is a bill of lading required?

Transportation service providers engaged in the transportation of property other than livestock and wild animals are required by the Federal Motor Safety Carrier Administration to provide a BOL. The shipper must receive it before the vehicle leaves its origin.

What is a bill of lading number?

Each bill of lading includes a unique number issued by the transportation provider. This is the primary number used for tracking a shipment's status.

What is the PRO number on a bill of lading?

The shipping progressive rotating order number, or PRO number, is used in over-the-road transportation—less-than-truckload (LTL) and truckload (TL). It's an order identifier that becomes a piece in the tracking and chain of custody process from shipper to consignee. Affixed to shipments as a scannable barcode, this 7-10-digit number identifies and tracks specific orders tendered to particular carriers.

What information does a bill of lading include?

A complete bill of lading typically includes:

  • Names and addresses: full names and addresses of both the shipper and the receiver, easy to locate

  • Purchase orders or special reference numbers: integral to effective tracking of freight as it's released for pickup or accepted at delivery

  • Special instructions: any instructions for carriers, excluding requests for additional services or equipment type

  • Date: the pickup date, recorded as a reference for freight tracking

  • Description of items: the number of shipping items, dimensions, weight, and description of the freight and makeup

  • Packaging type: whether freight is contained in cartons, crates, pallets, drums, a shipping container or other packaging

  • NMFC freight class: freight class affects the cost of the shipment and can be grouped in one of 18 classes, ranging from class 50 to class 500, based on transportation characteristics such as stowability, density, handling and liability

  • Hazardous materials designation: any hazardous shipments must be clearly designated, with special rules and requirements applying

Types of bills of lading

Straight BOL

Also known as a non-negotiable bill of lading, it reflects that a freight shipment is consigned to a specific person and can't be given to another party.

Open BOL

Also known as a negotiable bill of lading, it specifies that a shipment can be transferred from one consignee to another with the consignees' signature. An open BOL can be transferred multiple times.

Bearer BOL

This states that a delivery will be made to whoever holds the bill. Bearer bills of lading are used for bulk cargo delivered in small quantities.

Order BOL

The most widely used BOL in the world, this is a negotiable BOL made out to, or to the order of, a particular person. It can be transferred by endorsement and delivery of the bill.

Surrender BOL

Issued by exporters, this allows importers to legally own the items the exporter shipped.

Received for shipment BOL

A document issued by a transportation provider before a vehicle is loaded, as evidence of receipt of goods for shipment.

Shipped BOL

A document issued when cargo is loaded on board, binding the shipowner and the shipper directly.

Clean BOL

Issued by a shipping company without any declarations of damaged goods or packaging.

Through BOL

More complex than most BOLs, this document is used in international shipment of goods. It permits the shipping carrier to pass the cargo through several modes of transportation or through several distribution centers. This bill includes an Inland BOL and an Ocean BOL, depending on the destination.

Combined transport BOL

Details information about freight transported across multiple transportation modes, or multimodal, usually including ocean/air, rail, truck and final mile.

Dirty or claused BOL

When a transportation service provider has concerns about the cargo's condition at the time of pickup, notes recorded about the condition cause the BOL to be "dirty" or "claused"—for example, torn packaging, broken cargo or a quantity shortage.

Container BOL

A document that gives information about goods delivered in a safe container or containers moving from one port to another.

House or forwarders BOL

Created by an Ocean Transport Intermediary (OTI), such as a freight forwarder or non-vessel operating common carrier (NVOCC), to acknowledge receipt of goods that are shipped, issued to suppliers when the cargo is received.

Master BOL

A document created for shipping companies by their carriers as a receipt of transfer. It summarizes the contents of a shipment, including the BOL numbers assigned to items within the shipment and a description of the freight under each BOL, along with terms for transporting the cargo and the name and address of the consignor, shipper and consignee.

Charter party BOL

Issued by the charterer of a ship or transportation vessel, this document outlines details about the shipment, such as the types of goods, quantity and the condition under which the goods are to be transported.

Multimodal transport/combined transport BOL

A type of Through BOL that involves a minimum of two different modes of transportation, often sea and over-the-road.

Stale BOL

A bill of lading presented to the consignee more than 21 days after the scheduled date of arrival of the shipment.

Short-term or blank BOL

A document issued when the detailed terms and conditions of the carriage contract aren't given on the body or back of the BOL.

How technology supports bill of lading management

The BOL is important in complex freight invoice processing and financial settlement for freight transportation. Often expensive and error-prone, the settlement process benefits from technology that can manage and store all shipping and proof-of-delivery documents in one centralized location.

By supporting this verifiable shipping document, as well as PRO numbers and Standard Carrier Alpha Code (SCAC) information, the right technology makes electronic BOLs quickly accessible claims management, shipment monitoring, delivery verification and financial settlement.