Bill of lading (BOL): the shipment's key document
A bill of lading, or BOL, is the document a carrier issues for a shipment. It records what was handed over, acts as the contract of carriage, and, for many ocean shipments, works as a document of title that controls who can collect the goods. In closeout deals, it is also your evidence of what was picked up and in what condition.
Reviewed by Tyler Kober · Updated
Key takeaways
- A BOL is a receipt for goods, a contract of carriage and, for negotiable ocean bills, a document of title.
- Count pallets and note any damage on the BOL at pickup and delivery; it is the basis of any freight claim.
- Export-only sellers may ask for the ocean bill of lading as proof that goods left the country.
What is a bill of lading?
A bill of lading (BOL) is the document a carrier issues when it takes goods for shipment. It does three jobs: it is a receipt showing what the carrier received, it is evidence of the contract of carriage, and, for negotiable ocean bills, it is a document of title that controls who can claim the goods at destination.
How BOLs are used in closeout deals
Domestic trucking. For a truckload or LTL pickup, the BOL lists shipper, consignee, pallet count, weight, description and freight class where it applies. The driver signs at pickup; the receiver signs at delivery. Both signatures matter:
- At pickup, the seller and driver agree on the count and condition.
- At delivery, the receiver notes any shortage or damage before signing.
Those notes are the starting point for any freight claim. A receiver who signs a clean BOL and finds damage later has a much harder claim. See how to inspect a load and file a freight claim.
Ocean export. The ocean bill of lading is a core export document, alongside the commercial invoice and packing list. Sellers who sell under export-only terms may ask for a copy as proof that the goods actually left the country. In letter of credit deals, an order (negotiable) bill of lading is often required so the bank can control release.
Example
A jobber's carrier picks up a 26-pallet truckload. The warehouse counts 25 pallets on the dock. The driver writes "25 pallets received" on the BOL and both sign. The seller then finds the missing pallet in another aisle and ships it separately. Because the BOL was corrected at pickup, there is no later argument about whether the carrier lost a pallet.
The common confusion
A BOL is not a manifest or a packing list. The manifest lists products for the sale, the packing list lists contents by carton for receiving and customs, and the BOL is the carrier's document for the freight. Another confusion: domestic "FOB" terms printed on a BOL are not the same as the FOB Incoterm. For moving pallets, see LTL freight, and for ocean shipping, FCL vs LCL for export.
Related terms
Frequently asked questions
What should I check on a bill of lading at pickup?
The number of pallets or pieces, the description, weight, pickup and delivery addresses, the seal number for containers, and any special instructions. If the count is off or anything looks damaged, write it on the BOL before the driver signs and leaves. A clean BOL signed without notes is hard to dispute later.
What is the difference between a straight and an order bill of lading?
A straight bill of lading names a specific consignee and is not negotiable: the carrier delivers to that party. An order bill of lading is negotiable and can be transferred by endorsement, which is how banks and buyers use it to control goods in letter of credit deals. Closeout trucking usually uses straight bills.
What is a house bill versus a master bill of lading?
A master bill is issued by the ocean carrier to the forwarder or consolidator. A house bill is issued by the forwarder or consolidator to the actual shipper. In LCL and many FCL shipments, you receive a house bill, and the forwarder holds the master.
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