Why bill of lading matters to a first-time founder
A bill of lading is a transport document commonly issued by a carrier to a shipper. Depending on its form and governing law, it can acknowledge receipt of goods, provide evidence of the carriage contract and operate as a document of title, meaning control of the document can affect rights to claim the goods.
Examples of bill of lading
A Vietnamese furniture exporter ships 20 containers to Canada. The ocean carrier issues a bill of lading naming the goods, ports, shipper and consignee. The buyer’s bank checks the document under a letter-of-credit arrangement, and the consignee uses the required release process to obtain the cargo in Vancouver.
Common misunderstanding
A bill of lading is not simply a packing list, invoice or guarantee that goods are undamaged. Its legal effect depends on whether it is negotiable or non-negotiable, paper or electronic, and on applicable law and contract terms. An inaccurate description can create serious payment, insurance and delivery disputes.
When to use it
Use the correct bill of lading for the transport route, sale terms and financing arrangement. Check names, goods, quantity, condition, ports and release instructions before issue. Coordinate with the carrier, freight forwarder, bank and legal adviser where needed, and never alter or misstate the document to obtain payment or cargo.