At Radius Logistics, we provide expert advice on best practices for all your transportation management needs. The Bill of Lading, or BOL, is amongst the most important pieces of paper in a business’ supply chain and for a long time has been virtually ignored by many companies. It is a legally binding document that helps guarantee that exporters receive payment and importers receive merchandise. If a Bill of Lading isn’t properly completed, you could be exposing your business to liability over damaged products, unanticipated costs, time delays, and unsatisfied clients.
The Bill of Lading has three basic functions:
- Evidence of contract of carriage – The Bill of Lading is evidence of the contract entered into between carrier and shipper or ground-freight It outlines the condition of order carried out for the transportation of freight as per the contract between the buyer and the seller.
- Receipt of goods – A Bill of Lading is issued to the shipper in exchange for the receipt of the freight transportation. The issuance of the Bill of Lading is proof that the carrier has received the goods from their shipper in apparent good order and condition.
- Document of Title – The Bill of Lading outlines who has rights to claim the goods that are being transported. However, this title varies according to the way in which the Bill of Lading has been consigned.
How to get it right!