Bill of Lading: Small Business Guide (2024)

Shipments begin and end with the BOL

Bill of lading definition

The bill of lading (BOL) is a required document to move a freight shipment. The bill of lading is legally binding and provides the driver and the carrier with all the details needed to process and invoice the freight shipment correctly. The BOL works as a receipt of freight services, a contract between a freight carrier (the party transporting the goods) and shipper (the party sending the goods), it also acts as a document of title.

Automate BOLs with Freightquote® by C.H. Robinson

We improve the efficiency of your business by automatically creating bills of lading during the quoting and booking process. Remember: The BOL should be provided to the carrier at pickup, as well as attached to the packaged freight.

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Freight bill of lading (BOL) example

Bill of Lading: Small Business Guide (3)

Information included in a freight bill of lading

The BOL contains detailed information about the goods being shipped, the origin and destination of the shipment, the parties involved, and the terms and conditions of the transportation agreement. Here are the required fields that will be populated in your BOL after booking your shipment online with Freightquote:

  1. 1. Names and addresses: The full names and addresses of both the shipper and receiver (consignee) should be legible and easy to locate on the document.
  2. 2. Date: This is the pickup day, and it may be needed as a reference to track your freight or when you reconcile shipping invoices.
  3. 3. Purchase orders or special reference numbers: These numbers may be important to your business or a necessary reference for freight to be released at pickup or accepted at delivery.
  4. 4. Description of items: Shippers should note the number of shipping units, the dimensions and weight, as well as information about the material and its makeup.
  5. 5. Packaging type: Note whether you are using cartons, crates, pallets and/or drums when shipping.
  6. 6. NMFC freight class: Freight classescan impact the cost of your shipment. Freight shipments are broken down into 18 classes based on weight, dimensions, density, storage capability, ease of handling, value and liability.
  7. 7. Special instructions: Note any instructions for the carrier, but not requests for extra services like lift gate or delivery notifications.
  8. 8. Department of Transportation hazardous material designation:While the example above does not include this, hazardous shipments must be clearly cited, and special rules and requirements apply when shipping.

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Frequently asked questions: Bill of lading (BOL)

Why are BOLs important?

Bills of lading are required for most types of freight shipments. They are an important part of the shipping process because they help ensure goods are delivered safely and efficiently.

What purpose does the BOL serve?

The accuracy of your bill of lading is critical to the timely and efficient routing and transportation of your freight.

  • Contract of Carriage: It serves as a contract between the shipper and the carrier, outlining the rights, responsibilities, and liabilities of each party involved in the transportation process.
  • Receipt of Goods: The BOL acts as a receipt for the goods being shipped, acknowledging that the carrier has taken possession of the cargo.
  • Title of Goods: The BOL can also serve as a document of title, meaning it represents ownership or control of the goods. It allows the holder of the BOL (such as the consignee or a bank) to claim the goods upon arrival at the destination.
  • Proof of Delivery: The BOL provides evidence that the goods have been delivered to the recipient or their authorized representative at the destination.

Bill of Lading: Small Business Guide (5)

Bill of lading (BOL): What you need to know

Learn more about how this invoicing receipt can protect you and your freight.

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Bill of Lading: Small Business Guide (6)

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Bill of Lading: Small Business Guide (2024)

FAQs

How to fill out a bill of lading short form? ›

How to Fill Out a Bill of Lading: A Comprehensive Guide
  1. Step 1: Identify the Parties Involved. ...
  2. Step 2: Describe the Goods. ...
  3. Step 3: Declare the Value of the Goods. ...
  4. Step 4: Indicate the Shipping Terms. ...
  5. Step 5: Indicate the Freight Charges. ...
  6. Step 6: Indicate the Lading Number. ...
  7. Step 7: Indicate if There are Multiple Freight Units.
Apr 12, 2023

What is a bill of lading for a small business? ›

The bill of lading (BOL) is a required document to move a freight shipment. The bill of lading is legally binding and provides the driver and the carrier with all the details needed to process and invoice the freight shipment correctly.

What information must be on a bill of lading? ›

The bill of lading must include the name and address of the shipper, the name and address of the consignee, a description of the goods being shipped, the quantity of the goods, the method of transportation, and the date of shipment.

What is a bill of lading for beginners? ›

A bill of lading is a legal document that is issued by a carrier to the shipper. It contains details about which goods are being shipped, where the shipment is coming from and going to, as well as details of the shipper, carrier, and consignee.

Can I create my own bill of lading? ›

Filling out a BOL is easiest if you can make your own. So, how to make a bill of lading? It's easy, with a quick Google search you can find BOL templates for most applications. You may need to purchase a bill of lading in certain cases.

Who pays for a bill of lading? ›

In most cases, the shipper (seller) supplies and pays for the BOL, as it acts as a receipt and title to the goods. But if specific arrangements exist between the parties, such as a free on board (FOB) contract, the buyer may be responsible for obtaining and paying for the BOL.

Is it illegal to not have a bill of lading? ›

(c) A copy of the bill of lading must accompany a shipment at all times while in your (or your agent's) posses- sion. Before the vehicle leaves the resi- dence of origin, the bill of lading must be in the possession of the driver re- sponsible for the shipment.

Who prepares the bill of lading? ›

A bill of lading is a legal document that's issued by a carrier to a shipper detailing the type, quantity, and destination of the goods being carried. This document must accompany the shipped goods and must be signed by an authorized representative from the carrier, shipper, and receiver.

What is a sample sentence for bill of lading? ›

The driver handed him the documents he'd brought as well as the bill of lading from the container off the ship.

Does Excel have bill of lading template? ›

Excel Bill of Lading Form Template by WPSTemplate

With its user-friendly design, you can easily input and edit essential shipment details such as the shipper and consignee's information and the description of goods, etc. The template will help you automatically format your bill of lading, saving you time.

Who signs a bill of lading? ›

Each bill of lading is actually two documents, each containing the same information. Both copies must be signed by the shipper and then also by the receiver when the shipment is delivered. (In addition, the driver signs on the carrier's behalf.) If you use paper forms, you'll have two physical copies of every BOL.

How to properly fill out a BOL? ›

Fill Out the Cargo Description and the Carrier Info

In the next step, provide a complete description of the goods being shipped. These include shipment weight (in pounds or kilograms), dimensions, freight class (if applicable), description of cargo, and the package quantity (number of crates, pallets, pieces, etc).

Do all shipments need a bill of lading? ›

A BOL is required for all freight shipments, regardless of transportation method or piece count, and must contain specific information to be considered legally binding.

What makes a bill of lading valid? ›

The bill of lading is only legally binding once signed. It must list the responsible parties, origin and destination, number of packages, contents of the packages, and package details to be binding. The responsible parties in a standard bill of lading are the shipper, the consignee, the carrier, and the notify party.

What is the short form of bill of lading? ›

A Bill of Lading (B/L) is a crucial document in the transportation of goods. It serves as a receipt of the goods being transported and also acts as a contract between the carrier and the shipper.

What is the abbreviation of BL number? ›

A bill of lading number—often abbreviated as BOL number—is the unique identifier for a bill of lading document. It is issued by the carrier once a shipment is booked and used to track and manage cargo.

What is a short form bill? ›

A quick definition of short-form bill of lading:

A short-form bill of lading does not contain all the details of the transportation contract but refers to another document that does. A clean bill of lading has no notes or clauses, while an unclean bill shows that the goods were damaged or missing.

What is the abbreviation for the House bill of lading? ›

A house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to a shipper to acknowledge receipt of their items for shipment. In other words, it's a receipt for the goods.

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