What is the Bill of Lading?
It is a document issued by the exporter of the goods, who is the beneficiary of the letter of credit “LC” (document of the payment at the specified time and place) and given to the importer, who is the provider of the letter of credit, in order to provide the importer with the details of the consignment sent.
Also read: Why Are Shipping Terms Important to the Trader
The Importance of the Bill of Lading?
The bill of lading allows the importer to obtain information that would help him arrange insurance procedures at the specified location to avoid any troubles with customs authorities or transport companies.
This document shows the agreement between the exporter of the goods and the importer on the method of transportation and includes data on the responsibilities of each party regarding the cost of shipping and insurance of the goods. Bill of lading includes terms such as EXW, FOB, CFR, DAP, CPT, and other shipping terms.
Also read: Information About Shipping Terms
Accordingly, the importer can:
- Complete the procedures for obtaining an insurance policy based on the information included in the bill lading.
- Track the shipment using the information in the bill of lading, such as the container number.
What Information are Included in the Bill of Lading?
- A brief introduction.
- A description of the goods.
- The total weight of the goods.
- The net weight of the goods.
- The value of the goods.
- The letter of credit number.
- The name of the transport company.
- The ship’s name and the flight number.
- The date when the goods were loaded onto the ship.
- The container’s number.
- The number of packages in the container.
- The name of the importer and the exporter.
- Waybill.
- When the shipment is expected to arrive to the destination.
Also read: The Meaning of CFR in Shipping