What is Bill of Lading (BOL)?

The Bill of Lading is the proof of ownership of carriage and a legally binding contract that acts as an acknowledgment of the receipts of the shipment and establishes terms & conditions and legal obligations pertaining to various aspects of the shipment.

Many businesses across the world use ERP Software to streamline the generation of BOL, accelerate their shipping operations, and minimize potential errors. It provides robust integration across different business functions, and enhances efficiency & supply chain visibility to enable faster responding to new challenges.

What are the Contents of Bill of Lading?

1. Shipment Details

a. Shipper’s Details

This includes the name, office address, phone number, and email address of the exporter

b. Receiver’s Details

This includes the name, office address, phone number, and email address of the receiver

c. Port Details

This includes the name and complete address of the shipping ports that are responsible for loading and discharging the shipment

d. Vessel Details

This includes the name of the vessel and its voyage number

2. Description of Goods

a. Type of Goods

Nature of the goods shipped such as electronics, home appliances, personal care, foods, clothing, etc.

b. Quantity of Goods

For example, the number of units, boxes, or bundles

c. Weight

Weight per unit, box, or bundle, as well as the collective weight of the entire shipment

d. Batch Number

The unique Batch Number that is linked to each product being shipped

3. Legal Information

a. Terms & Conditions

Contractual terms and conditions signed between both parties pertaining to various clauses

b. Service Details

Description of the service being provided

c. Carrier’s Liability

The liability of the carrier in the event of loss or damage of a part of the shipment or the entire shipment

d. Handling Instructions

Any special instructions to ensure the safe and secure handling of the carriage

e. Legal Acceptance

Signatures of the concerned parties (exporter, shipping line, and consignee) signifying their acceptance.

Bill of Lading Example

Let’s take a hypothetical Bill of Lading example of ABC Ltd which is a Germany-based electronic company. It decides to purchase electronic equipment from an Indian vendor and generates a Purchase Order (PO). The Indian vendor hands over the products to the carrier company, and signs a BOL. According to the contents of the BOL, the carrier company hands over the products to the German company and hands over a signed copy of the Bill of Lading. The store manager uses Supply Chain Management Tools to bring efficiency throughout the operation. He verifies the information in the bill with the Purchase Order and accordingly makes final payment to the vendor.

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