Usually, when you see trucks and other vehicles, they either have some or the other form of a commodity that they would be transporting from one place to another. But then to transport these things, there needs to be some form of formal documentation that needs to be shown that it's been transported by a company to one place to another. It's the same for cargo that is being transported in airplanes or ships. But then when you convert this same ideology from a shipping point of view, then you have the term "Bill of Lading."
Bill of Lading is nothing but a formal document that is carried by a shipper that includes all the details and necessary information about the goods that are being transported by the shipper. It's a predetermined bill that shows the proof of the commodity that is being transferred to a predetermined destination. But then such documents need to be signed and authorized by the respective personals.
Importance of bill of lading.
The significance of the bill of lading proves to be crucial in the shipping industry. It’s no doubt that every shipper irrespective of the type of transportation has a bill of lading. But the primary significance of a bill of lading is given below. Take a look.
• If you have a bill of lading, then carrying the original documents becomes irrelevant. The exporter withholds all the original documents such that upon the payment or some form of reassurance is carried out, the bill of lading tends to act as a token that the original documents will be given once the payments are carried out.
• Also, it works as an informant from the carrier to the shipper in guiding the shipper to its respective destination. Also, the terms and conditions of the transportation of goods from one place to another are mentioned.
• Not only this but then it's a legal document that is used to pass several countries without any form of issue. Also provides all the necessary details and information of the cargo that is being shipped from one place to another.
• Along with this, it's a piece of document that provides the necessary information and insight over the permit of selling of goods and other financial credit.
Types of the bill of lading.
Based on the usage and the purpose of using a bill of lading, the various types are as follows.
• Straight bill of lading.
This form of a bill of lading is used when the financial transactions have already been made and are carried out from the shipper to a customer.
• Clean bill of lading.
It's an assurance sort of a bill that is used by the shipping carrier to provide a document of assurance that the package has been boarded properly and there isn't any damage that has occurred while boarding the cargo.
• To order bill of lading.
This sort of bill of lading is used when the payments are not carried out in advance. It's usually between eh shipper and the customer.
• Shipped on board bill of lading.
This form of a bill of lading is handed out when the cargo arrives at the port in exact condition without any damage. And this it's loaded onto the ship to be exported to the designated destination.
• Direct bill of lading.
Direct bill of lading is used when the same form of transportation that picked up the cargo will deliver the package to its designated location.
• Stale bill of lading.
Usually or most of the times, the cargo that needs to be transported over a short distance through seas arrives way before the bill of lading has been generated. When it occurs, it's known as a stale bill of lading.
• Inland bill of lading.
This sort of bill of lading allows shipping carried to use any form of transport to ship the cargo but not overseas.
• Ocean bill of lading.
This form of a bill of lading allows that shipper to ship cargo nationally and internationally employing oceans.
• Through bill of lading.
A shipper uses this form of a bill of lading when the cargo is transported to its respective destination by various types of transportation. And based on the destination, another bill of ladings is included.
• Claused bill of lading.
If the received cargo is damaged, then this form of a bill of lading is issued.
Thus, a bill of lading is crucial in the shipping industry as it has a lot of power in terms of shipping and gaining approval for transportation. Therefore, based on the usage and the type of shipment, respective bills of lading are issued.