What is a Bill of Lading Form?
What is a Bill of Lading Form is a question you could probably ask as a distributor who usually hires trucking companies and other freight carriers to convey your goods.
This form is not only for distributors as a lot of big businesses who rely on several logistics providers also use this.
Actually, a bill of lading form is a legal document that is used during shipping. It is sometimes referred to as a BOL or B/L.
The person who ships the goods (consignor), the one who receives it (the consignee), and the carrier who actually transports the items all use this document.
If you want to find out more about the bill of lading form, and why you should use it, keep reading.
Why Should I Use a Bill of Lading Form?
There are many reasons you should use a bill of lading form. Some of them include:
1. Helps Owners of Goods to Make Claims
A bill of lading certifies who owns the items being transported. The person who has the form can legally make claims or arrange for ownership of the product to be transferred to another party in the supply chain.
There are situations where the shipper may refuse to release the bill of lading until after the consignee has paid.
By doing this, the consignee is unable to access their goods until payment has been received.
2. Acts as Receipt
A bill of lading acts as both a receipt and a contract of carriage by giving legal protection to the seller, shipper, and recipient. It also gives a record of the time and location of a product during delivery.
If the shipment is lost or delayed, you can use the bill of lading to identify the cause and time of the issue so that the right person is held accountable.
So make sure all the information it contains is correct and current. Usually, if the BoL isn’t signed and dated by everyone, it becomes meaningless.
3. Contains Details About Payments
You’ll find the purchase orders, invoices, terms of payment, and freight charges of the shipment in the bill of lading forms.
While some shippers take a down payment to be followed by a collect on delivery (COD) amount, others demand full prepayment for their goods.
These fees are specified in the bill of lading, which also instructs the carrier on how to take payment on the shipper’s behalf.
4. Helps Resolves Disputes
The signed bill of lading by the recipient merely acts as a receipt if the goods are delivered in good condition.
However, bills of lading, together with liability waivers, can assist in resolving disputes. It can clearly state who is accountable for what if items are lost or damaged in transportation.
Meanwhile, liability concerns will also be affected by the type of BOL you choose.
Types of Bill of Lading Forms
There are different types of bill of lading forms. Some of them include:
1. Straight Bill of Lading
A straight bill of lading is a document that must be shipped with goods. It lists the items, the consignor, and the terms of payment.
You can also refer to it as “a consignment bill of lading” since the items are consigned to a single individual who is expected to accept delivery and cannot assign that right to another party.
2. Order Bill of Lading
This is the most used BOL globally. They are widely used in international transactions. Initially, only the recipient listed on the form can receive the shipment. By doing this, packages cannot be delivered to uninvited persons.
However, with this BOL, the receiver can assign ownership of the items to any other person after accepting delivery.
3. Master Bill of Lading
Sometimes a truck business, shipping line, or other carriers that own a transport vessel being used for shipment would issue a master bill of lading, also known as a carrier BOL.
Cargo shippers who deal directly with mainline carriers or freight forwarders are the only ones who receive a master bill.
4. Thorough Bill of Lading
With this bill of lading, shipments can travel between multiple modes of transportation, across national and international boundaries, and between distribution centers.
Here, the carrier is transporting things to multiple destinations in each instance.
5. Ocean Bill of Lading
This bill of lading applies to shipments sent abroad. When the freight shipment crosses international waters, you must produce an ocean bill of lading to guarantee your package arrives safely.
Evidence of delivery from the carrier to the shipper is provided by an international bill of sale.
Can I Create a Bill of Lading Form Online?
Yes, you can easily create a bill of lading form online. Many online platforms can help you do that like Incodocs, PDFFiller, etc. You just have to find the one that resonates with your needs.
On these platforms, you’ll need to create a profile and select a free trial if you’re a new user.
Then, you can select the template for a bill of lading. To generate a bill of lading template, you will be required to click on ‘New document set’.
Afterward, you just fill out the form according to your personal preferences and include the letterhead from your business.
If you want to have it immediately in sync with all other papers, enter the important details of your package into the Master File. This will help save time and avoid re-entry problems.
The next thing for you to do is to click the signature box at the bottom of your document, then select “Save”. Your document will now be ready to be downloaded.
What Should I Include in My Bill of Lading Form?
If you want to send a domestic or international shipment, the bill of lading will be different. This will also affect what should be included as well.
No matter what you’re sending, this information should always be included in your bill of lading form.
1. Basic Information
You should always include the shipper’s and receiver’s names, addresses, and phone numbers on your bill of lading.
It should also have the shipment date and a bill of lading number as well.
2. Freight Classification
Freight pricing and classification are made easier by the National Motor Freight Classification (NMFC) system.
You’ll need to consider the shipment’s weight and density, value, handling guidelines, and stowing capacity while determining this classification.
For instance, in less-than-truckload (LTL) freight shipping, shippers only have to pay for a fraction of the carrier’s vehicle.
3. Details of Shipment
Here, you will clearly state the precise weight of the package and the quantity of shipping units. If there are several freight units, the weight of each item needs to be specified.
Also, you will be expected to give the quantity of the products being shipped together with a thorough description of them. Highlight the type of packing, such as drums, pallets, and cartons, along with the manufacturer’s name.
Remember to include any account numbers that either party will need to trace the order, together with the declared value of the item and the total cost of shipping.
3. Special Instructions
If you’re shipping a fragile, then you should include special instructions in your bill of lading.
These instructions will help the handlers while loading your package into the truck or airplane.
If you send a fragile item without these instructions, your package stands a risk of being damaged or completely destroyed.
4. Hazardous Material
If any of the items you are shipping contain products that the Department of Transportation has labeled as “hazardous,” then you should include such information in your bill of lading.
Also, give an emergency phone number that you could be contacted with in case there are any issues.
You can also include the contract number or the name of the supplier of these items.
5 Broker’s Name
While shipping goods internationally, you will need to include the broker’s number.
Also include the Electronic Export Information(EEI). This is because the U.S. Census Bureau uses this number to help regulate the export of commodities to other nations and to compile official export statistics.
Now that you know what a bill of lading form is, you can always use it when you’re shipping your products.
However, the type of bill of lading form that you will use depends on the products being transported and the mode of transportation you’re using.
