What Is a Bill of Lading (BOL)? Fields and Types
A bill of lading is the document a carrier issues when it takes your freight. It is a receipt, a contract of carriage and, in some forms, a document of title. Here's what goes in each field and how to sign one at delivery.
A bill of lading (BOL) is the document a carrier issues when it takes possession of freight. It does three jobs: it is a receipt for the goods, it is the contract of carriage between shipper and carrier, and in its negotiable form it is a document of title.
Every freight claim, payment dispute and delivery question starts with this document. This page covers what goes on it, the types you will see, and how to sign one at delivery.
The three jobs of a bill of lading
| Job | What it means |
|---|---|
| Receipt | The carrier confirms it received the freight described, in the condition noted. |
| Contract of carriage | It sets the terms under which the carrier moves the freight. |
| Document of title | In negotiable form, whoever holds the original controls the goods. |
What goes on a bill of lading
Federal rules require a motor carrier's bill of lading to show the names of the shipper and the receiver, the origin and destination, the number of packages, a description of the freight, and its weight, volume or measurement (49 CFR 373.101).
In practice a complete BOL carries more than that.
| Field | What to enter | Why it matters |
|---|---|---|
| Shipper (consignor) | Legal name and pickup address | Start of the chain of custody |
| Consignee | Legal name and delivery address | Who may receive the freight |
| Carrier | Carrier name, plus the PRO or load number | Who is responsible in transit |
| Piece count | Number of handling units, such as pallets or crates | The count the carrier signs for |
| Description | What the freight is | Basis for any claim |
| Weight and dimensions | Actual measured figures | Pricing, and reweigh disputes |
| NMFC item and class | For LTL shipments | Sets the LTL rate |
| Freight terms | Prepaid, collect or third party | Who gets the invoice |
| Special instructions | Temperature, hazmat, liftgate, appointment | What the carrier agreed to do |
| Declared value | Only if you are declaring one | Can change the carrier's liability |
| Signatures and dates | Shipper and driver at pickup, receiver at delivery | Turns the form into evidence |
Count handling units, not cartons. If you hand over 4 shrink-wrapped pallets holding 200 cartons, the driver signs for 4 pallets and cannot verify the 200. Write "4 pallets said to contain 200 cartons" if the carton count matters.
For LTL class and NMFC numbers, see freight class and NMFC codes.
Freight terms: who pays the carrier
- Prepaid. The shipper pays the freight charges.
- Collect. The consignee pays the freight charges.
- Third party. Someone else pays, such as a broker or a parent company. Their billing address goes on the BOL.
Marking the wrong term sends the invoice to the wrong company. Correcting it after the fact takes weeks and often a fee.
Types of bill of lading
Straight bill of lading. Non-negotiable. The freight is delivered to the consignee named on it. Most domestic truck freight moves this way.
Order bill of lading. Negotiable. The freight is released only to whoever presents the endorsed original. It is used when delivery is tied to payment, mostly in international trade.
Clean and claused. A clean bill has no notes about damage or shortage. A claused bill has exceptions written on it.
You will also hear the terms master and house bill. A master bill is issued by the carrier that actually moves the freight. A house bill is issued by an intermediary, such as a freight forwarder, to its own customer.
In the United States, the difference between straight and order bills is set by the Federal Bills of Lading Act (49 U.S.C. chapter 801).
The delivery signature is the part that matters most
When the receiver signs the BOL at delivery, that signed copy becomes the proof of delivery (POD). A signature with no notes says the freight arrived complete and undamaged. The carrier will rely on that signature if you file a claim.
Before signing:
- Count the handling units against the BOL.
- Look at every side of each pallet, including the top and the shrink wrap.
- Write specific exceptions on the BOL. "2 cartons crushed on pallet 3, contents leaking" is useful. "Subject to inspection" is not.
- Have the driver sign or initial the exceptions.
- Take photos before the freight is moved off the dock.
If you find damage after the driver has left, report it to the carrier in writing right away. Concealed damage claims are harder to win, and many carrier tariffs set a short reporting window.
How to file a freight claim covers the deadlines and the documents you will need.
Common mistakes
- Estimated weight or dimensions. On LTL this leads to a reweigh or reclassification and a corrected invoice.
- Vague description. "Freight of all kinds" or "parts" gives you nothing to claim against.
- Missing special instructions. A temperature or appointment requirement that is not written on the BOL is hard to enforce.
- No copy kept. Keep the pickup copy and the signed delivery copy for every load.
How we handle the paperwork
Lancashire Freight issues a signed rate confirmation before the truck rolls. Carriers send back the signed bill of lading at delivery, and that proof of delivery is what we pay them on.
FAQ
What is a bill of lading?
A bill of lading is the document a carrier issues when it takes possession of freight. It serves as a receipt for the goods, as the contract of carriage, and in its negotiable form as a document of title.
What does BOL stand for?
BOL stands for bill of lading. You will also see it written as B/L or BoL.
Who fills out the bill of lading?
The shipper usually prepares the bill of lading, because the shipper knows what is being shipped. The driver signs it at pickup to confirm receipt, and the consignee signs it at delivery.
What is the difference between a straight and an order bill of lading?
A straight bill of lading is non-negotiable and the freight is delivered to the named consignee. An order bill of lading is negotiable and the freight is released only to whoever presents the endorsed original.
Is a bill of lading the same as a proof of delivery?
Not quite. The bill of lading is created at pickup. The copy signed by the receiver at delivery becomes the proof of delivery.
What should I write on the bill of lading if the freight is damaged?
Write the specific damage and the number of pieces affected on the bill of lading before you sign it, and have the driver sign or initial the note. Take photos before the freight is moved.
Is a bill of lading a legal document?
Yes. A bill of lading is a contract between the shipper and the carrier and is used as evidence in freight claims and payment disputes.
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