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.
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.
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.
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.
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®.
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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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.
A clean BOL indicates goods were loaded without apparent issues. A claused/dirty BOL notes discrepancies (e.g., damage or shortages) observed at receipt.
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.
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.
Electronic BOLs enhance security and speed by integrating shippers, carriers, banks, and customs systems—reducing errors and fraud while improving visibility across borders.
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.
Required to prepare a customs entry and often referenced on the BOL. Read more about an invoice for customs.
Useful where preferential duty may apply under trade agreements. Read more about certificates of origin.
Details item placement within
No. A BOL is the carriage contract/receipt/title document. The commercial invoice is the sale document used for customs valuation.
Negotiable BOLs can be endorsed/assigned to another party and typically require presentation of originals for cargo release.
It indicates no apparent damage or irregularities were noted at loading. A “claused” (dirty) BOL lists discrepancies.
The ocean carrier (VOCC) issues a master BOL; a forwarder/NVOCC can issue a house BOL to the shipper.
Indirectly. It evidences the shipment details, while duties are based on customs value (including freight/insurance where applicable).
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