What Is a Bill of Lading?
A bill of lading is a shipping receipt form issued by the carrier to the shipper, which serves as proof that the carrier has received the goods and outlines the terms of the agreement between the two.
This document also details information about the goods, such as their type and quantity, as well as the origin and destination points. It can be non-negotiable (straight) or negotiable (order).
Who Is Required to Fill Out a Bill of Lading Form?
The shipper usually fills out a bill of lading form before pickup, but the carrier is the one who’s required to issue it to the shipper upon receiving the goods. For hazardous materials, federal rules make the shipper responsible for describing the cargo on the shipping paper.
When Is a Bill of Lading Required?
For-hire motor carriers are required to issue a receipt or bill of lading for interstate and foreign shipments, and carriers generally won't take freight without one. Air freight uses an air waybill instead, and intrastate or private-fleet shipments may follow different rules.
What Are the Risks of Not Having a Bill of Lading?
The risks of not having a bill of lading include misdelivery of goods, loss and delay of shipments, issues with customs, and difficulty with cargo claims on damaged or lost goods. Under the Carmack Amendment, carriers must allow at least 9 months to file a claim and 2 years to sue.
Who Signs a Bill of Lading, and How Many Copies Are Needed?
The shipper signs before pickup, the carrier's driver signs when taking the goods, and the consignee signs at delivery. Copies typically go to the three involved parties: the carrier, the shipper, and the consignee.