The Importance of Bills of Lading

A bill of lading can be one of the most overlooked items when making shipments. Simply put a bill of lading accomplishes two things. First, the bill of lading is a contract between a carrier and shipper for the transportation of goods. Second, it serves as a receipt issued by a carrier to the consignee for the goods received. As simple as this seems there are some common problems associated when preparing a bill of lading. A few of these problems are highlighted below :

#1) Delivery Information
The consignee name, and most importantly current address need to be included. Also a phone number whenever possible is helpful as well.

#2) Freight Charge Terms
The shipper should accurately list if the shipment is prepaid, collect, or third party billing. Incorrect freight charge terms lead to confusion for both the shipper, consignee, and transportation provider.

#3) Quantity and Weight
Accurate quantities need to be listed. Delays at the consignee will occur if the quantities listed are incorrect. Carriers may charge for detention if the delay is longer than two hours. Incorrect weights, especially on heavy shipments, can cause major problems for the transportation provider. Fines, delays and longer transit times may occur.

#4) Retention of Bill of Lading
It is important to retain your copy of the bill of lading. As stated above the bill of lading serves as a receipt of goods received. This receipt serves as a record to all parties that the shipment was made and completed. Billing procedures can then proceed upon receipt of a signed bill of lading.

The shipment of goods starts and ends with the bill of lading. From the delivery address to quantities and weights, the bill of lading should contain accurate information for all parties concerned. If the information is accurate the process is simpler and easier for the shipper, consignee, and transportation provider.