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The consequences of lost or damaged bills of lading can be very costly. If a bill of lading is lost, the shipper may have to pay a penalty to the carrier. If a bill of lading is damaged, the shipper may have to pay for the repairs.
The bill of lading is a contract signed at the point after the package has been shipped, while the proof of delivery is a contract or receipt signed upon receiving the package from the carrier. Often, the bill of lading is signed by the carrier while the proof of delivery is signed by the consignee.
The carrier is not justified in delivering the goods to a cargo unless the bill of lading is produced, even if the carrier knows that he is the owner of the goods. Besides legal reasons, there can be practical reasons for this rule.
Shipments cannot be executed without a Bill of Lading. BoLs must be issued for goods to travel from Point A to Point B. They are legally binding documents, and they often serve as proof of ownership over the goods being carried. A bill of lading also covers its role as the title to goods.
A bill of lading (B/L or BOL) is one of the most important shipping documents you'll need to transport any kind of shipment. You won't be able to make a shipment without it. A BOL is issued for all cargo transported by sea.
Importers can refuse a shipment of goods if there is no accompanying clean bill of lading, or if a claused bill of lading comes with the shipment. That's because the entity that receives the goods?the importer?pays the shipper for a certain quantity of goods in a specific condition.
Understanding Through Bill of Lading It is required to ship goods and acts as a receipt and contract. It shows that the carrier has received the freight as described?that's the cargo receipt. It also documents the terms of delivery and release of the product.