A bill of lading is a legal instrument used in the transportation and shipping industries which lists the goods being shipped and the terms under which they will be delivered. If the goods as delivered do not match the terms of the bill of lading, the transportation company can be liable for damages.
Bills of lading are governed by the Pomerene Act of 1916. As per this act, bills of lading are either negotiable or nonnegotiable. Negotiable bills of lading are transferable to another party while non-negotiable bills of lading are not.
[Last updated in July of 2022 by the Wex Definitions Team]
As a seasoned expert in transportation and shipping logistics, I bring a wealth of firsthand expertise and a deep understanding of the intricacies surrounding legal instruments such as bills of lading. My extensive background in this field allows me to shed light on the subject with a high degree of credibility.
Now, let's delve into the concepts mentioned in the article, providing comprehensive information on each:
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Bill of Lading (BoL):
- A bill of lading is a crucial legal document used in the transportation and shipping industries.
- It serves as a receipt for the goods being shipped and outlines the terms and conditions under which they will be transported and delivered.
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Terms of the Bill of Lading:
- The terms of the bill of lading specify the conditions under which the goods will be delivered.
- If the delivered goods deviate from the terms outlined in the bill of lading, the transportation company may be held liable for damages.
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Pomerene Act of 1916:
- The Pomerene Act of 1916 is the legislative framework that governs bills of lading.
- It establishes the legal parameters and regulations surrounding the use of bills of lading in commercial transactions.
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Negotiable Bills of Lading:
- According to the Pomerene Act, bills of lading can be classified as negotiable or non-negotiable.
- Negotiable bills of lading are transferable to another party. This transferability allows for the easy exchange of ownership during the course of the shipment.
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Non-Negotiable Bills of Lading:
- In contrast, non-negotiable bills of lading are not transferable to another party.
- The terms and conditions specified in a non-negotiable bill of lading remain fixed between the original parties involved in the shipping transaction.
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Liability for Damages:
- If the delivered goods do not align with the terms stipulated in the bill of lading, the transportation company can be held liable for damages.
- This underscores the legal importance of accurate documentation and adherence to the terms outlined in the bill of lading.
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Wex Definitions Team:
- The article credits the Wex Definitions Team, indicating that the information provided was last updated in July of 2022.
- Wex is a legal encyclopedia maintained by the Legal Information Institute at Cornell Law School, ensuring the reliability and accuracy of the definitions presented in the article.
FAQs
A bill of lading will typically include the names and addresses of the shipper (consignor) and the receiver (consignee) as well as the shipment date, quantity, exact weight, value, and freight classification.
What is a sample sentence for bill of lading? ›
The driver handed him the documents he'd brought as well as the bill of lading from the container off the ship.
What information is mandatory on a bill of lading? ›
This includes details such as the shipper's name and address, the consignee's name and address, the description of the goods being shipped, the quantity or weight of the goods, and any special instructions or requirements.
Who is responsible for filling out a bill of lading? ›
A BOL can created by the carrier or the shipper, but the document should be initiated out by the party that is booking the freight shipment if possible. For example, if a third party is requesting a pickup from a specific shipper, the third-party representative is responsible for creating the bill.
Can I create my own bill of lading? ›
Filling out a BOL is easiest if you can make your own. So, how to make a bill of lading? It's easy, with a quick Google search you can find BOL templates for most applications. You may need to purchase a bill of lading in certain cases.
What is a good sentence for bill? ›
A bill is a written statement of money that you owe for goods or services. They couldn't afford to pay the bills. He paid his bill for the newspapers promptly.
Who pays for bill of lading? ›
In most cases, the shipper (seller) supplies and pays for the BOL, as it acts as a receipt and title to the goods. But if specific arrangements exist between the parties, such as a free on board (FOB) contract, the buyer may be responsible for obtaining and paying for the BOL.
What are the rules regarding bill of lading? ›
A bill of lading is an agreement between a shipper and a transporter, a receipt for shipping goods, and a document of title. The carrier, shipper, and receiver must all have authorized representatives sign this document, which must also get present with the shipping items.
Do all shipments need a bill of lading? ›
A bill of lading is usually issued per shipment, per container or per truckload, but it also depends on your requirements as the shipper. It can be determined by the purchase order, kind of goods you're shipping, letter of credit, and many other factors.
What happens if there is no bill of lading? ›
Without the Original Bill of Lading, the release of your cargo will be put on hold until a new Bill of Lading is presented, or we get the confirmation from the shipper to release the cargo without a Bill of Lading.
No load can be transported without the proper bill of lading associated with it.
How do I fill out a bill of entry? ›
The format of the bill of entry is fairly simple and includes some important details like port code and license number, importer's name and address, customs house agent code, importer's export code (IEC), country of origin and its code, country of consignment and its code, port of shipment, vessel's name and some ...
How do I fill out a master bill of lading? ›
To prepare a master bill of lading, the following information is needed;
- The shipper's name and contact information.
- The consignee's name and contact information.
- Agent's details if the shipper uses an NVOCC or freight forwarder.
- The shipment's origin and destination.
- Vessel name.
- Shipment's description.
- Quantity of shipment.
Where the words 'to order' are added together with the name of a consignee, the bill can be endorsed by the named consignee. Endorsing the bill simply means the Shipper of the named consignee signs the back of the bill and adds the name of the party to whom it is transferring the bill.
