The bill of lading serves several important functions in international trade and shipping:
- Receipt of Goods: The bill of lading database serves as a receipt issued by the carrier (shipping company or freight forwarder) to the shipper. It confirms that the goods described in the document have been received for shipment. This function provides proof that the goods have been handed over to the carrier and are ready for transportation.
- Contract of Carriage: The bill of lading acts as a contract between the shipper and the carrier, outlining the terms and conditions of transportation. It specifies the agreed-upon route, the type of transportation (ocean, air, rail, etc.), and the carrier's responsibilities for safe delivery of the goods.
- Document of Title: The bill of lading functions as a negotiable instrument and can serve as evidence of ownership and possession of the goods. In some cases, it can be used to transfer ownership or to allow the recipient (consignee) to take possession of the goods upon arrival at the destination port. This transfer can occur through endorsement and delivery of the original bill of lading.
- Evidence of Contract and Goods: The bill of lading serves as evidence of the contract of carriage and the goods being transported. It includes details such as the description of the goods, quantity, packaging, and any special handling instructions. This information is vital for customs clearance, insurance claims, and resolving disputes between parties involved in the shipment.
Overall, the bill of lading is a crucial document in international trade that facilitates the smooth movement of goods, provides legal protection for both shippers and carriers, and enables efficient tracking and handling of shipments from origin to destination.
