What Is a Bill of Lading and How to Read It

A Bill of Lading (B/L) is the main shipping document. It works as a receipt for the cargo, a contract of carriage with the shipping line, and often a document of title for the goods.

Key fields to check

• Shipper: the seller or exporter who sends the goods
• Consignee: the person or company that receives the goods (your company name must be exact)
• Notify party: who is told when cargo arrives
• Vessel and voyage: the ship and trip number
• Port of loading and port of discharge: where cargo is loaded and where it arrives
• Container number and seal number: these must match what you declare to Customs
• Description of goods, packages and weight: quantity, gross weight and sometimes volume
• Freight terms: "Prepaid" (seller paid freight) or "Collect" (you pay at destination)

Types of B/L

• Original B/L: you must present it (or the release) to collect the cargo
• Telex or express release: no paper needed, the shipping line releases electronically
• Sea waybill: not a document of title, simple to use for trusted trading partners
• Master vs House B/L: the shipping line issues the Master B/L, a forwarder issues the House B/L

Why it matters

errors on the B/L, such as a wrong consignee name or container number, can delay clearance and may require an amendment that costs money. Always ask the supplier to send a draft B/L for checking before the final version is issued.