BILL OF LADING
A sample bill of lading
A document signed by a carrier (a transporter of
goods) or the carrier’s representative and issued to
a consignor (the shipper of goods) that evidences
the receipt of goods for shipment to a specified designation and person.
Carriers using all modes of transportation
issue bills of lading when they undertake the
transportation of cargo. A bill of lading is, in
addition to a receipt for the delivery of goods, a
contract for their carriage and a document of
title to them. Its terms describe the freight for
identification purposes; state the name of the
consignor and the provisions of the contract for
shipment; and direct the cargo to be delivered to
the order or assigns of a particular person, the
consignee, at a designated location.
There are two basic types of bills of lading. A
straight bill of lading is one in which the goods
are consigned to a designated party. An order
bill is one in which the goods are consigned to
the order of a named party. This distinction is
important in determining whether a bill of lading
is negotiable (capable of transferring title to
the goods covered under it by its delivery or
endorsement). If its terms provide that the
freight is to be delivered to the bearer (or possessor)
of the bill, to the order of a named party,
or, as recognized in overseas trade, to a named person or assigns, a bill, as a document of title, is
negotiable. In contrast, a straight bill is not
negotiable.
State laws, which often include provisions
from the UNIFORM COMMERCIAL CODE, regulate
the duties and liabilities imposed by bills of lading
covering goods shipped within state boundaries.
Federal law, embodied in the INTERSTATE
COMMERCE ACT (49 U.S.C. [1976 Ed.] § 1 et
seq.) apply to bills of lading covering goods traveling
in interstate commerce.
CROSS-REFERENCES
Consignment; Shipping Law.
