Functions of bill of lading

What does Bill of lading mean? How to make Bill of lading? Functions of the Bill of Lading Bill of lading is one of the most important documents when it comes to shipping and freight procedures.

It is a legal document that provides a record of the goods that are transported from one place to another and ensures a convenient and safe logistics process. A bill of lading must be transferable, and serves three main functions : it is a conclusive receipt, i. The ocean bill of lading has three primary function.

Why is the Receipt of Goods an important function of bill of lading 1) To prove that the cargo described in the bill of lading was handed over to the Carrier by the Cargo Owner 2) To prove the condition in which the container and cargo was handed over by the Cargo Owner to the Carrier. The bill of lading has three functions. First, it is used as a receipt that the goods have been shipped or received for shipment. Another function of the bill of lading as a document of title is the most important function when comparing with other two functions. A Bill of Lading is a document that is issued by the Carrier of goods to the “Shipper” of the goods.

The function attributed to Bill of lading is based on ancient customs and usages followed by merchants in trade known as lex_marcatria (law merchants). To this should be added that it constitutes, by statute in United Kingdom law, a transferable contract. When asked to define a bill of lading, people may state that it “… has the following functions: it is a receipt for cargo, a document of title to the goods described and evidence of the contract of carriage”.

The word “function” reflects the purpose or duty of the document rather than its nature or characteristics or status. It has three main functions. There are three types of bills of lading: nominate bills of lading – which require goods to be delivered to a named party and are non-negotiable documents of.

Status and Function of Bill of Lading. Carrier and Broker recognize and acknowledge that an accepted practice of the transportation industry is the preparation of bills of lading by companies tenderin. THE FUNCTIONS OF THE BILL OF LADING AND OTHER SHIPPING DOCUMENTS The Bill of Lading. It serves as proof that the carrier has gotten the goods from the shipping agent in good condition. Title to the Goods.

The four vital functions of bill of lading are: I) It acts as the receipt for the goods from the shipping company to the exporter. Ii) It is evidence of the contract of carriage between the exporter and the carrier. Since a received for shipment bill of lading does not evidence shipment of the goods by the carrier, it has a limited function as a document of title, and in any event will only so function if it has been issued by or for (with the necessary authority) the carrier. To order bills of lading have two functions in international trade transactions: They prevent delivery of the cargo to unwanted parties. Consignee can transfer the title of goods to another party with endorsement and delivery of the original bill of lading.

Definition: Bill of lading (BOL) is one of the most important documents in the shipping process. To ship any goods, a bill of lading is required and acts as a receipt and a contract. A completed BOL legally shows that the carrier has received the freight as described and is obligated to deliver that freight in good condition to the consignee. The electronic bill ensures replication of core functions of a Bill of Lading.

As of now no separate format for Electronic Bill of Lading is not issued.

The primary purpose of issuing Electronic bill is to encourage to people to move from paper transactions. Above were all the different Types of Bill of Lading.