What is a Bill of Lading?

A bill of lading (B/L or BOL) is a document a carrier issues to a shipper. It sets out the type, quantity and destination of the shipment. The term originally applied to sea freight, but a bill of lading can now be used for different modes of transport.

The three functions of a bill of lading

• Receipt: proof that the goods were taken into the carrier's charge for transport.
• Contract of carriage: it evidences the terms of the transport contract.
• Document of title: a negotiable bill of lading represents ownership of the goods; the lawful holder can claim their release.

Bill of lading, CMR waybill and air waybill

In road freight the CMR waybill plays this role, and in air freight the Master Air Waybill (MAWB). Unlike a negotiable bill of lading, both are accompanying documents only and do not transfer title.