A bill of lading (BOL) is a legally binding document between a shipper and carrier that defines responsibility and control of goods during transport. It confirms the terms of carriage, identifies the shipment, and helps determine liability for loss or damage—making it essential for cross-border trade and final delivery.
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Quick Answer: What is a Bill of Lading?
Proof of contract: Evidence of an agreement to ship goods.Proof of receipt: Carrier’s acknowledgment of cargo received in stated condition.Document of title: Identifies who has rights to the goods in transit.
Contents
What is a Bill of Lading? BOL vs. Ocean/Trucking/AWB Who Issues the BOL and Terms of Sale Purpose and Who Receives It What Information Appears on a BOL? BOL as Cargo Receipt (INCOTERMS) Clean vs. Claused BOL; STC Title along with Possession of Goods
What is a Bill of Lading?
A bill of lading (BOL) is the carrier’s receipt and evidence of the contract of carriage for your goods. It typically includes a unique number used for tracking—especially valuable for LTL freight with multiple handoffs—and can help establish whether any damage occurred in transit.
The term bill of lading traces back to the idea of a “list of cargo.” In modern logistics, it is one of the most important legal documents created during international shipments and serves as contract , receipt , and document of title .
What’s the difference between Ocean and Trucking BOLs?
An Ocean Bill of Lading governs port-to-port maritime moves, while a Trucking Bill of Lading covers inland, point-to-point transport. Both are issued by the carrier and are legally binding.
Bill of Lading vs. Air Waybill (AWB)
An Air Waybill serves a similar function for air cargo and courier shipments but is typically non-negotiable and does not function as a document of title the same way many ocean BOLs do.
Who issues the Bill of Lading?
A master bill of lading is issued by the Vessel-Operating Common Carrier (VOCC). A house bill of lading can be issued by a freight forwarder or NVOCC to their customer. Which appears on your shipment depends on your contracting party and INCOTERMS® .
Understanding Terms of Sale (INCOTERMS®)
INCOTERMS allocate costs and responsibilities between seller and buyer. For example, under DAP the seller is responsible up to the named place of delivery; under FOB , the seller’s responsibility typically ends after loading at the origin port. Your BOL should reflect the agreed terms.
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What is the purpose of a BOL?
Proof of contract: Physical evidence of a carriage agreement; mandates delivery to the named consignee or authorized party.Proof of receipt: Signed by the carrier to confirm goods were received as described.Proof of title: Clarifies rights to the goods during transit.
Who receives the BOL?
Shipper/exporter
Freight forwarder/NVOCC or customs broker
Purchaser/importer/consignee
What information appears on a BOL?
BOL number and date
Purchase order/reference
Shipper/exporter & consignee/importer
Notify party (if applicable)
Origin & destination
Package/container count & descriptions
Handling instructions and special marks
BOL as a Cargo Receipt
Once issued, the BOL serves as conclusive evidence of receipt —especially for ocean shipments after loading on board—and is often used for customs and insurance. Obligations under INCOTERMS® (e.g., EXW, CFR, FOB) influence the handoff points and risk transfer.
Clean vs. Claused (Dirty) BOL
A clean BOL indicates goods were loaded without apparent issues. A claused/dirty BOL notes discrepancies (e.g., damage or shortages) observed at receipt.
“Said to Contain” (STC)
For sealed containers or when examination isn’t possible, carriers may add “Said to Contain (STC)” , limiting their responsibility for contents not visible at receipt. See related: choosing freight forwarders .
Title & Possession of Goods
When possession transfers from exporter to carrier, payment may still be pending. The BOL becomes a critical control document enabling secure transfer of rights to the consignee or bank.
Negotiable vs. Non-Negotiable BOL
Negotiable: Transferable to a third party; originals typically required for cargo release.Non-negotiable: Delivery to the named consignee only (e.g., straight BOL).
Common Types of BOL
Original BOL (OBL) — contract, receipt, and document of title.Seaway Bill — evidence of contract/receipt; not a document of title.Container BOL — covers containerized movements.Through BOL — covers multi-mode or multi-leg shipments.Master BOL — issued by carrier (VOCC) to forwarder/NVOCC.House BOL — issued by forwarder/NVOCC to shipper.Short-form/blank-back — when full terms are not printed on face.Straight BOL — non-negotiable; delivery to named consignee.Order BOL — delivery per further order (negotiable).Charter Party BOL — tied to charter agreements.Multimodal/Combined Transport Document — for sea + inland moves.Stale BOL — presented after shipment date or LC deadline.
shipping ocean freight from Canada .
Electronic Bill of Lading (eBOL)
Electronic BOLs enhance security and speed by integrating shippers, carriers, banks, and customs systems—reducing errors and fraud while improving visibility across borders.
BOL & Import Duty/Valuation
The customs value (landed cost) generally includes the cost of goods, freight, and insurance. Ensure the commercial invoice reflects freight/insurance as appropriate for duty assessment.
BOL vs. Freight Bill vs. Commercial Invoice
Freight bill: The carrier’s invoice for transport charges—often referencing BOL data like dimensions and weight.Commercial invoice: Buyer–seller invoice used for customs clearance (often shows shipping costs).Bill of lading: Contract/receipt/title document for the shipment.
Supporting Documents Used with a BOL
Commercial Invoice
Required to prepare a customs entry and often referenced on the BOL. Read more about an invoice for customs.
Certificate of Origin
Useful where preferential duty may apply under trade agreements. Read more about certificates of origin.
Packing List
Details item placement within
Bill of Lading FAQs
Is a bill of lading the same as a commercial invoice?
No. A BOL is the carriage contract/receipt/title document. The commercial invoice is the sale document used for customs valuation.
What makes a bill of lading “negotiable”?
Negotiable BOLs can be endorsed/assigned to another party and typically require presentation of originals for cargo release.
What does a “clean BOL” mean?
It indicates no apparent damage or irregularities were noted at loading. A “claused” (dirty) BOL lists discrepancies.
Who issues the bill of lading?
The ocean carrier (VOCC) issues a master BOL; a forwarder/NVOCC can issue a house BOL to the shipper.
Does the BOL impact import duties?
Indirectly. It evidences the shipment details, while duties are based on customs value (including freight/insurance where applicable).
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