ABSTRACT WHAT IS A BILL OF LADING Administrator FREIGHT FORWARDING
Vietnam Shipping Gazette V.2019 CONTENT:
• The meaning of the bill of lading
• The contents and filling of the bill of lading
• How to fill a Bill Of Lading (BOL)
• What information must be included on the bill of lading?
• The Function Of The Bill Of Lading
• Issuance & Correction Of The Bill Of Lading
• Endorsement of the bill of lading Pages 1
Vietnam Shipping Gazette V.2019
• Recommendations of Bill of Lading
• Common Types of the bill of lading & When to Use Them
• Mistakes you need to avoid on BOL
• Frequently Asked questions about Bill Of Lading
1. THE MEANING OF THE BILL OF LADING
a) What is the bill of lading?
The short name is B/L or BoL when you start shipping your products transport
department give a certificate to the consigner.
The interesting thing is, the word In foreign trade, the piece of document (certificate) is called Bill of Lading. Pages 2
Vietnam Shipping Gazette V.2019
Another name certificate of ownership of the freight which allows shipping of your products.
The person has the bill of lading allowed to receive & exchange goods. Pages 3
Vietnam Shipping Gazette V.2019
Bill of lading is the contract which allows the carrier to transfer goods from the
loading port to the destination port.
Most important and worthy document in the shipping journey but also the most misused document.
b) Roles of a Bill Of Lading • The contract of carriage • Receipt of loading products • Title of goods i.
The contract of carriage Pages 4
Vietnam Shipping Gazette V.2019
To transfer freight required details about loading port, destination port, and
regulations mentioned in this paper.
The Bill of lading is a simple contract between buyer and seller.
BOL is a negotiable instrument and can be endorsed to the third party without any restriction. ii. Receipt of carriage
Details, number of loaded products & cost on freight services. iii. Title of goods
Required names for receiving party mentioned on the bill of lading.
This allows the holder to further transfer the products to someone else.
c) Who issues a bill of lading?
The bill of lading issued by the freight forwarder or shipping agent after properly
acknowledging the freight receipt.
Carrier or agent is responsible for the loss & profit during cargo transfer & consignee
is the other party mentioned on air waybill for which shipment is committed.
But keep one thing in mind authorization of carrier or shipping agent must be crystal clear.
d) When is a Bill Of Lading issued? Pages 5
Vietnam Shipping Gazette V.2019
Bill of lading is issued at loading time. In case of ocean freight, BOL issued when ocean container loaded.
But there’s another case at the time of rail freight multimodal Bill of Lading issued by the freight forwarder.
2. THE CONTENTS AND FILLING OF THE BILL OF LADING 1. The Bill of Lading Number. 2. Shipper 3. Consignee 4. Notify party
5. Name of vessel or container 6. Place of receipt 7. Port of loading 8. Port of Discharge 9. Place of Delivery 10. Description of goods
11. Number and kind of package 12. Shipping marks 13. Gross weight
14. Freight & Charges Detail 15. Temperature Control
16. Freight forwarder or agent signature 17. Terms and conditions of Pages 6
Vietnam Shipping Gazette V.2019
a) The Bill of Lading Number
Check the upper right corner of BOL.
When consigner starts shipping process, he should provide ship name & Bill of
Lading number to the consignee. b) Shipper
Shipper name and address is recommended to fill out in BOL, the code is also necessary.
Shipper detail is mandatory to proceed the process. c) Consignee
All the information relevant to consignee is mandatory to fill.
Credentials required to contact the consignee phone number, fax number, and address. d) Notify Party
This is about the receiving end, shipping company notify after reaching the destination port.
This section may have the same information Name, detail address, and phone number.
If you provide a wrong address or phone number, then how a company contact
consignee to inform about the freight status.
e) Name of The vessel/Container Pages 7
Vietnam Shipping Gazette V.2019
Filling the name of shipment, container, and voyage.
Container name is required when the Bill of Lading shipped.
Actual time of loading cargo Fill onto the Bill of Lading.
f) Place of Receipt
This column is specified for the multimodal transport.
It indicates the location where freight forwarder receives the freight.
g) Port of Loading
This column should be filled by the name of the port from where cargo is loaded.
h) Port of Discharge
The column should be filled with the specific name of the destination port.
Port of discharge where all the products unloaded from the container.
You should pay keen attention when you fill this column.
You need to have the exact name of port for smooth shipping process.
i) Place of Delivery
This column indicates where the freight forwarder delivers the products.
Carrier fills this column under multimodal mode. Pages 8
Vietnam Shipping Gazette V.2019
The terms of carriage involved are door to door, field-door, and station-door.
j) Description of Goods
The important thing is the name of products must be the same as the name on the letter or credit.
All the details about products mentioned in the Bill to make shipping process secure.
k) Gross Weight (Measurement)
If delivery details mentioned in the letter of credit, it should be filled according to rules and regulations.
In another case, weight is mentioned in kilograms & volume in the cubic meter.
l) Temperature Control Instructions
If you want to ship a refrigerator, the specific temperature should be mentioned in the
column of the temperature control instructions.
m) Terms and Conditions
Two parts are included in the content of Bill of lading 1. Positive fact record 2. Back bill of B/L
Every shipping company formulated the contents approximately in the same way. Pages 9
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3. HOW TO FILL A BILL OF LADING (BOL)
a) BOL is the legal document of ownership used by shipping companies.
The main purpose of this document is the shipping companies or freight forwarders has received the products.
b) You should follow some instructions when you fill a Bill of Lading. •
Put your exact name and location in the appropriate field. •
Mention your purchase order on Bill of Lading. •
Insert the name and address of shipment receiver. •
Include some guidelines for the freight forwarder about the handling of shipment. •
If you already collect the shipping charges then mention. •
Mention the number of packages in the container & specify the type of packages. •
If you want to ship hazardous material then choose a special type of shipment &
mention on BOL to avoid any inconvenience.
c) Check how the BOL filled correctly by an example: YRC BoL Pages 10
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d) To get the better understanding to follow step by step. 1. Put the exact date
2. If necessary, then fill with lading number.
3. Attach barcode to fill this field.
4. Enter pro number of freight forwarder.
5. Insert reference number for official use (optional).
6. 6 Insert Shipper and consignee’s name and proper address. (Zip code is mandatory to mention)
7. If a third party involved paying for shipment then mention the company name, contact and address.
8. Some of the special notes should be marked on Bill Of Lading
✓ Special guidelines for delivery status ✓ Purchase order number ✓ Account number
9. Indicate the shipment delivery date and time & mark for the proactive notification.
10. If you want your freight is collected by freight forwarder mark the BOL as COD (Collect On Delivery)
11. Insert collect on the delivery amount, this is basically the price of the specific product.
12. Indicate verification of company for COD.
13. Mention number of shipping containers. Sometimes you don’t need to mention
the individual number of packages and items in a shipment. Pages 12
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14. Indicate the type of package typically package is boxes, barrels, and skids.
15. Enter the number if you ship individual pieces.
16. Mention unit of measures for weight and volume.
17. If you want to ship chemically hazardous (HAZ) material then first discuss with the freight forwarder.
✓ Special rules applied to such type of products.
✓ Place simply X in this Column to mention products hazardous.
18. Write a proper description of products with the nature of the material. Your
freight forwarder helps you to determine the exact specification of your freight.
19. Insert item number of National Motor Freight Classification.
20. Your shipping charges based on the classification of products. Enter correct class specification.
21. Put exact field in this field. If you want to ship different types of products then prepare the list of things.
22. You need to mention the exact height and width of the products. If you want
multiple products to ship then list of shipment products required to attach with Bill of Lading.
23. Enter correct contact number in case of the emergency company can contact you.
24. Mention the name of the person or company who is responsible for the payment of shipment charges.
25. Insert the declared price of products.
26. Mention the charges billed to the consignee. Pages 13
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27. Enter the name of Freight Forwarder Company (as the shipper) and sign the bill BOL by the forwarder.
28. An authorized person from freight Forwarder Company sign the Bill of Lading
and mention the number of shipping containers.
29. All the details should be mentioned here who loaded the container & counted the shipment packages.
4. WHAT INFORMATION MUST BE INCLUDED ON THE BILL OF LADING? Pages 14
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Vietnam Shipping Gazette V.2019 •
Shipper and carrier name and contact credentials. • The date and port of shipment • Freight Classification. •
Weight and volume of the shipment • Types of Bill of Lading •
Description of the products according to the material and nature of goods. •
Special instructions to the freight forwarder.
5. THE FUNCTION OF THE BILL OF LADING •
Bill of Lading is the receipt of shipping products or the ownership documents to allow
the goods to be loaded into the container. •
The function of Bill of Lading is receiving goods, this is not only for loaded freight
carrier has issued the obligation to ship the bill of lading. •
Bill of lading is the proof of loading the cargo in the container, it also indicates the time when products loaded. •
Loading goods mean seller to transfer the products to the buyer and transit time of
shipping also means the time of receiving goods. •
Bill Of Lading is the legal ownership of freight to transfer products and carrier has
right to receive goods on the destination port. Pages 16 •
If you transfer bill of lading to the third party it means you are transferring the right to transfer goods. •
The freight forwarder is responsible if any product is damaged during shipping. •
After transferring the bill of lading from seller to buyer risk of damage products also transfer to the buyers. •
The document is a legal contract to ship products by sea.
How Bill of lading works? Bill of Lading works in a different way like: ✓ As receipt of products
✓ As a contract between carrier & shipper ✓ As a title of goods
a) Receipt of goods
Bill of Lading is a document issued as receipt of products, this is the evidence carrier
receive products in good condition.
b) As Contract between carrier and shipper
BOL is a contract to transport the freight from seller to buyer.
This contract is an evidence for the ownership of the carriage.
c) As the title of the goods
A piece of paper is the legal proof of ownership.
The holder of the BOL has the right to claim the products to transfer to another party. Pages 17
Vietnam Shipping Gazette V.2019
Consequences of an incorrect bill of lading
6. ISSUANCE & CORRECTION OF THE BILL OF LADING
There’re four (04) different things you have to face by the incorrect filing of BOL
✓ Freight doesn’t transfer safely to the destination ✓ Claims
✓ Loss or protection from the loading port to destination port
✓ Loss of the right to transfer goods to the third party
A Bill Of Lading is the legal document issued by the carrier for the transfer of goods.
a) Bill of lading terms & conditions Pages 18
Vietnam Shipping Gazette V.2019
In the year 0f 2013 The FMCSA of USA issues new regulations about New rules
established to eliminate double brokers. You cannot ship without brokerage license
and keep one thing in mind freight breakage and carrier responsibilities are not same.
You must follow the regulations, what is acceptable and unacceptable according to the
shipper and carrier. If carrier finds any type of incongruity then shipper must amend to
correct the Bill of Lading by following carrier’s amending procedure.
Bill of lading as Contract Of Carriage:
The contract between the carrier and the shipper is already created before issuing the
bill of lading when the cargo is loaded on the ship. This is done to safeguard the
shipper in case the cargo is damaged before loading it on board the vessel and to help
the shipper in the claim process. For the carrier and the consignee, the bill of lading
will act as the actual contract of carriage.
The popularly used conventions and rules which covers the contract of carriage for carrying goods by sea: ✓ Hamburg Rules ✓ Rotterdam Rules ✓ Hague Rules ✓ US COGSA ✓ Hague – Visby Rules Pages 19