Bill of Lading: Maritime Glossary

A bill of lading is a document issued by a carrier to a shipper that acknowledges the goods have been received for shipment. It serves three roles at once: a receipt for the cargo, evidence of the contract of carriage, and a document of title that can be used to transfer ownership of the goods.

What a bill of lading contains

A bill of lading identifies the shipper, consignee and carrier, describes the goods, their quantity and condition, and states the ports of loading and discharge. Because it can act as a document of title, whoever holds an original negotiable bill of lading can claim the cargo at destination.

Bill of lading in the supply chain

For maritime buyers and suppliers, the bill of lading is the backbone document that ties a physical shipment to its paperwork. It is checked against the purchase order, packing list and invoice so that what was ordered, shipped, delivered and billed all line up.

Tidal reads email RFQs and returns margin-protected quotes in under 30 minutes. See Tidal maritime procurement software or the ship chandler RFQ-to-quote process.

Related terms

Charter party Laytime Demurrage Delivery note Port agent All glossary terms →

Frequently asked questions

What is a bill of lading?

A bill of lading is a document issued by a carrier that acts as a receipt for cargo, evidence of the contract of carriage, and a document of title used to transfer ownership of the goods.

What are the three functions of a bill of lading?

A bill of lading is a receipt for the goods received, evidence of the contract of carriage between shipper and carrier, and a document of title that can transfer ownership of the cargo.

What is the difference between a bill of lading and an invoice?

A bill of lading is a transport document that proves receipt and title of cargo, while an invoice is a commercial document stating the goods sold and the amount owed. They are cross-checked against each other.

Who issues the bill of lading?

The carrier, or its agent, issues the bill of lading to the shipper once the goods have been received for shipment.