Everything you need to know about your Bill of Lading

When shipping freight, having the correct documentation is essential, and the Bill of Lading is a key document that shippers need to understand. 

The Bill of Lading (BOL) is a legal document that lists key details about a shipment, such as the shipper’s name, special handling instructions, and cargo weight.

Why is a BOL so important, and what different types are available? In this guide, we’ll explain all you need to know about the role of the Bill of Lading in shipping. 

What is a Bill of Lading for trucking?

A Bill of Lading is a legal document issued by carriers to acknowledge receipt of any cargo being shipped. It lists the specific conditions under which the shipment has been made and key details about the goods. 

A BOL functions as:

• A receipt of cargo for senders and receivers
• A contract of transport between the shipper and the carrier
• A title of ownership, with delivery considered the fulfillment of the contract (particularly in international trade)

Carriers typically issue the shipping Bill of Lading, but it may also be supplied by the shipper or third-party logistics provider (3PL), depending on the shipping arrangement. 

With a Bill of Lading for trucking, whether full truckload (FTL) or less than truckload (LTL), the document is used in the following way:

• The carrier collects the freight with a signed BOL
• The BOL is checked upon delivery of the goods
• If any items are missing or damaged, these are noted on the BOL

Information included on a shipping Bill of Lading

The format of Bill of Lading documents can vary, but most include the following information:

• Names and addresses of the shipper and consignee
• Carrier name
• Description of goods (e.g., weight, quantity, packaging)
• Freight class
• Special handling instructions
• Payment terms (such as prepaid, collect, etc.)
• Signatures from the shipper, driver, and receiver

Shippers should carefully check their BOL for accurate information to ensure the shipment is handled and stored properly in transit.

Types of Bills of Lading

There are multiple types of Bill of Lading forms, and choosing the right one for a shipment depends on three factors:

• Shipment type
• Carrier
• Contract terms

Here are the four main BOL types you’re likely to see:

• Straight Bill of Lading (non-negotiable): Used for shipments sent directly to a specific receiver only
• Order Bill of Lading (negotiable): Used when you may need goods to be transferred to another party during transit 
• Electronic Bill of Lading (eBOL): Digital versions of paper BOLs have become increasingly common, especially among companies adopting paperless policies
• Inland vs. ocean Bill of Lading: Inland BOLs are for domestic transportation by road or rail, and ocean BOLs are for international shipping by sea

Understanding the different types of shipping Bill of Lading will help you use the right one when sending freight anywhere in the world. 

Why is a shipping Bill of Lading important?

The Bill of Lading is one of the most important documents in the freight shipping process. This is particularly true in trucking, as it functions as a key source of truth from pickup to delivery. 

Here are just a few reasons why the Bill of Lading matters so much.

Proof of collection and delivery

The BOL is a signed receipt that confirms the carrier received the correct freight in good condition. When the shipment arrives, the consignee signs to verify delivery. This chain of custody is crucial for recordkeeping and accountability.

Supports damage and loss claims

If cargo becomes damaged or goes missing during transit, the shipping Bill of Lading is the main document used to file a freight claim. It can help you determine when and where a problem occurred. 

Outlines critical shipment details

Carriers and drivers depend on the trucking Bill of Lading for key details. These include:

• Freight class
• Handling instructions
• Number of pallets or packages
• Weight and description of goods

With this information at hand, carriers can classify and handle freight properly. This reduces the risk of reclassification fees and shipping delays. 

Helps avoid delays and legal issues

If a BOL is missing or incorrect, it may prevent the carrier from collecting or delivering cargo. Crucially, a BOL is a legal document — mistakes could cause disputes between shippers, carriers, and customers. 

Essential in FTL and LTL shipping

The trucking Bill of Lading is a key component of successful FTL and LTL shipping. It ensures smooth communication between shippers, carriers, and receivers, as it specifies the party responsible for freight at each stage of its journey.

Ultimately, the BOL keeps everyone involved in the shipping process on the same page. Freight can’t legally be transported without a Bill of Lading, and issues (e.g., misdelivery, claims, fines) also become much more difficult to resolve. 

DTS can help with freight documentation and seamless shipping

The Bill of Lading is critical for shipping goods legally and efficiently, but it can be difficult for busy teams to manage independently. 

DTS will help you understand the BOL and other essential documentation, making your freight shipping easier than ever. To learn more, get in touch today.