What is a Bill of Lading (BOL)?

The Bill of Lading in shipping is a signed legal document by the Consignee that serves three purposes:

1. Confirms the shipment's handover to the carrier (proof of delivery completion) and may also serve as a Document of Title.
2. Serves as a receipt for freight services and proof of ownership.
3. Outlines the transportation terms and conditions and agreement between the carrier and the exporter.

It also contains all the essential information needed for the driver and the carrier to handle the freight shipment such as:

• Names and addresses of the shipper (consignor) and the receiver (Consignee).
• Shipment date, quantity, exact weight, value, and freight categorization.
• Detailed description of the shipped goods, including whether they are hazardous.
• Type of packaging used.
• Any specific instructions for the carrier and any special-order tracking numbers.

• Straight Bill of Lading: Used when the shipment is prepaid, and the carrier delivers the goods to the buyer or another recipient.
• Order Bill of Lading: Used when goods are shipped before full payment with the following conditions:

a. Indicated on the BOL as "to order of", followed by the recipient's name.

b. An order bill can be used as payment or a promise to pay, typically when goods are shipped with open accounts or letters of credit.

The information provided in this document does not, and is not intended to, constitute legal and/or business advice; instead, the information contained herein is for general informational purposes only. Readers of this document should contact their own advisor to obtain advice with respect to any particular matter or topic addressed herein. The content in this document is provided on an “as is” basis; FedEx makes no warranties or representations in relation to the currency, accuracy and/or sufficiency of the information set out herein and shall not be liable for any reliance placed on the same.  For the avoidance of doubt, any and all liability with respect to actions taken or not taken based on the contents of this document are hereby expressly disclaimed.