How To Fill A Bill of Lading When Shipping Freight By Trucks

What is a Bill of Lading, Anyway?

A bill of lading (BOL) is a legally enforceable and binding document that must be completed and provided to the truck driver before a cargo shipment is loaded onto the truck and begins its journey to its intended destination. The word ‘lading’ means to ‘lade’ or in other words ‘load’ the goods on the truck, ship, or rail. 

The act of obtaining a signature on this document from both the shipper and the driver serves as a safeguard for both the parties, as it includes comprehensive information regarding the quantity, nature, and ultimate destination of the shipped goods. A bill of lading can be supplied by either the carrier, forwarder, or the shipper, but its details must be verified by both the driver and the shipper before signing it.

Failure to match the details before signing could end up costing the shipper, carrier, or consignee a lot of money. Hence a lot of care and planning must go into it in order to avoid any costly mistakes. A bill of lading is different from the invoice in a sense that the invoice presents the sale of goods between a buyer and a seller and includes information such as price, currency, country of origin etc. in addition to the information from bill of lading. 

Moreover, Federal Motor Carrier Safety Administration (FMCSA) requires that the carrier must retain a bill of lading for at least one year after completion of delivery.

There are different types of bills of lading that are used in several different scenarios. Here are some of the most commonly used one:

  1. Straight Bill of Lading: A straight bill of lading also known as a uniform bill of lading is a non-negotiable bill of lading. It is used when the goods being shipped are already paid for, or do not require payment.
  2. Electronic Bill of Lading: An electronic bill of lading is a digital equivalent that holds the same importance as a paper bill of lading. Traditionally, the paper bill of lading had been the only ones in use, but with the arrival of technology and rise of eco-friendly movement the electronic bill of ladings are gaining popularity.
  3. Master Bill of Lading: A master bill of lading is an aggregate bill of lading composed of the total values of all individual bills of lading. It can be used as a supplement when the shipment requires many separate bills of lading due to the nature of the shipment.
  4. Claused Bill of Lading: A claused bill of lading is the one that showcases the shortfalls or damages in relation to the goods delivered. If the goods are received at the delivery in good condition and correct quantity then a clean bill of lading is issued. Whereas, when the goods received are damaged or the received quantity is less than that mentioned on the bill of lading a ‘dirty’ or ‘foul’ bill of lading is issued.
  5. Negotiable Bill of Lading: A negotiable bill of lading is the one that can be transferred to a third party thereby transferring the control of goods to the party named on the bill of lading.

Sample Bill of Lading

Here is a blank sample of the most commonly used bill of lading.

To help you better understand please refer to the below bill of lading specifying what information goes where on the form.

You can download a pdf template of the bill of lading here.

Must Have Information On The Bill of Lading

Here are some of the items that must be mentioned on a bill of lading as per official requirements of FMCSA:

  1. Legal or DBA name of the shipper or consignor
  2. Legal or DBA name of the receiver or consignee
  3. Full shipper address and date of shipping
  4. Full receiver address
  5. Unique bill of lading number
  6. Quantity of goods shipped
  7. Description of goods shipped such as weight or volume. Different types of goods must be mentioned separately along with their description.
  8. NMFC freight Classification in case of LTL, i.e. Less than Truckload materials that may be shipping together with other freight. This is also important in order to avoid loading two different types that could be dangerous to ship together

Other Good To Have Information On The Bill of Lading

Here is some more information that is optional but good to be mentioned on the bill of lading and can be helpful if a situation arises:

  1. Terms of payment
  2. Carrier SCAC code
  3. Trailer number and seal number to make sure no transloading or tampering of goods is done if that is a customer requirement
  4. Special instructions such as dangerous material or needing special handling etc.
  5. Phone numbers and email addresses for shipper and receiver
  6. Hours of operation or appointment times
  7. Special Clauses to determine liability of involved parties. Some examples may include – Limitation of Liability clause (which is most common), Force Majeure, Indemnity, etc.
    The sample shown above includes the Limitation of Liability clause on the bill of lading
  8. Shipment PO number or Delivery number
  9. Type of packaging

Summary

This serves as a basic reference guide for preparing a bill of lading. However, a lot more knowledge is required to avoid any potential problems or losses depending on the type of shipment, mode of transport, country where goods are being moved, etc.

The more information you provide on a bill of lading the less obstacles you may face in the shipping process. To learn more about the different aspects of freight shipping you will find our other articles helpful.