Bill of Lading:
How to Prepare and the Best Template

Female logistics worker with bill of lading (BOL)

From lost Bills of Lading to delayed freight payments, manual processes can slow down your business. Explore how AI-powered automation can transform logistics, improve accuracy, and ensure seamless supply chain operations.

Misplaced, misclassified, or incorrect Bill of Lading details can cause expensive disputes. Come to think of it, Bill of Lading (BoL) serves as the trusty compass guiding goods from one port to another. This document, while seemingly mundane, plays a pivotal role in ensuring that shipments reach their intended destinations smoothly. Let’s learn how to create the correct BoL, explore its evolution, and highlight its significance in today’s trade landscape. In this guide, you will learn:

Automate Your Bill of Lading Processing with docAlpha

Automate Your Bill of Lading Processing with docAlpha

Stop wasting time on manual data entry! docAlpha intelligently extracts and processes Bill of Lading information, ensuring faster approvals, fewer errors, and smoother logistics. Take control of your shipping documentation today!

What is a Bill of Lading?

A Bill of Lading is a legal document between a shipper and a carrier detailing the type, quantity, and destination of goods being shipped. BoL serves as a receipt of shipment, a contract for the transportation of goods, and a document of title.

At its core, a Bill of Lading is a legal document issued by a carrier to a shipper, acknowledging the receipt of goods for transport. It serves three primary functions:

  • Receipt of Goods: Confirms that the carrier has received the cargo in good condition.
  • Title of Ownership: Acts as a document of title, signifying who owns the goods during transit.
  • Contract of Carriage: Outlines the terms and conditions under which the goods will be transported.

Who Issues the Bill of Lading?

Typically, the carrier or the shipper issues the Bill of Lading. In some cases, a third-party logistics provider may prepare the BOL on behalf of the shipper.

What Information Should be Included in a Bill of Lading?

Essential details containing in every Bill of Lading include:

  • Shipper’s and consignee’s names and addresses
  • Date of the shipment
  • Description of the goods (including type, quantity, and packaging)
  • Weight and dimensions of the shipment
  • Any special handling instructions
  • Freight classification and National Motor Freight Classification (NMFC) code
  • Purchase order or reference number
  • Declared value of the goods
  • Signatures of the shipper and carrier

What Are the Different Types of Bills of Lading?

There are various types of this important logistical document representing different trade scenarios, including:

  • Straight Bill of Lading: Non-negotiable document, as goods are consigned to a specific person or entity and cannot be transferred to another party.
  • Order Bill of Lading: Negotiable and can be transferred to another party by endorsement.
  • Through Bill of Lading: Covers transportation across different modes and/or carriers from origin to destination.
  • Inland Bill of Lading: Used for transportation over land (e.g., rail or road).
  • Ocean Bill of Lading: Used for sea transport.

It’s common practice to issue multiple original Bills of Lading (usually three) to ensure that at least one original is available at the destination for cargo release. Once one original is used, the others become void.

If the original BOL is lost, a new set can be obtained by providing a letter of indemnity stating that the carrier is not to be held responsible if the first set is found and surrendered. This letter must be signed by the shipper and counter-signed by a reputable bank.

What is a Telex Release in the Context of a Bill of Lading?

A Telex Release allows the release of goods to the consignee without the presentation of the original Bill of Lading. This is automated and facilitated by the shipper surrendering the original BOL to the carrier at the origin and requesting the destination office to release the cargo to the consignee.

No More Delayed Freight Payments When You Use ArtsylPay
Avoid costly shipping delays due to unpaid invoices! ArtsylPay streamlines accounts payable processing, ensuring your freight bills and Bill of Lading payments are settled on time. Keep your supply chain moving!
Book a demo now

The Evolution of Bill of Lading: From Paper to Digital

Traditionally, Bills of Lading have been paper-based, a system that has worked for centuries but is not without its pitfalls. Paper documents can be lost, forged, or delayed, leading to significant complications.

For instance, in a recent incident, the loss of paper bills led to substantial delays and costs, underscoring the vulnerabilities of relying solely on physical documents.

Consider this: a shipment is ready to dock, but the crucial paper BoL is accidentally used as a coffee coaster back at the office. The result? A logistical nightmare. With eBLs, such human errors become tales of the past, ensuring that your cargo isn’t held hostage by a misplaced piece of paper.

Recognizing these challenges, the industry is shifting towards Electronic Bills of Lading (eBL). A 2024 global survey by the International Chamber of Commerce revealed a steady rise in eBL adoption, with nearly half of respondents incorporating electronic versions in their operations. The benefits are clear: faster processing, cost savings, improved data accuracy, and enhanced security.

The impact of transitioning to eBL is substantial. McKinsey & Company estimates that full adoption of electronic Bills of Lading could save approximately $6.5 billion in direct costs and potentially enable $30-40 billion in new global trade volume.

READ MORE: Intelligent Automation: Transportation & Logistics

The Switch to Digital Bill of Lading: More Than a Trend

The push for digitalization is gaining momentum. In July 2023, the UK’s Electronic Trade Documents Act received Royal Assent, paving the way for increased use of electronic trade documents, including Bills of Lading. This legislative move aims to modernize trade practices, making them more efficient and secure.

However, challenges remain. Regulatory ambivalence and the need for greater governmental support are hurdles that the industry must overcome to achieve widespread eBL adoption.

Simplify Order Fulfillment with OrderAction
Ensure your Bill of Lading, purchase orders, and invoices stay in sync with OrderAction. Automate your order processing, reduce bottlenecks, and improve order accuracy for seamless supply chain management.
Book a demo now

How to Create a Bill of Lading

Filling out a Bill of Lading (BoL) correctly is crucial to ensuring smooth shipping and avoiding costly mistakes. Here’s a step-by-step guide on how to fill it out properly:

1.Shipper Information (From)

  • Company name: The name of the business shipping the goods.
  • Address: Full address, including street, city, state, and zip code.
  • Contact details: Phone number and email for communication.

2. Consignee Information (To)

  • Recipient’s name: The entity receiving the goods.
  • Address: Full delivery address.
  • Contact details: Phone number for delivery coordination.

3. Carrier Information

  • Name of the carrier: The transport company responsible for the shipment.
  • SCAC code (if applicable): The Standard Carrier Alpha Code, which identifies the carrier.

4. Bill of Lading Number

This unique tracking number is assigned to identify the shipment.

5. Date of Shipment

The date when the goods leave the shipper’s location.

6. Purchase Order or Reference Number

This number is used for tracking and matching the BoL with the shipper’s records.

7. Freight Terms

  • Prepaid: Shipper pays for freight.
  • Collect: Consignee (receiver) pays for freight.
  • Third Party: A third party (e.g., a logistics company) covers the cost.

8. Description of Goods

  • Number of units: Number of boxes, pallets, crates, or pieces.
  • Weight: Total weight of the shipment.
  • Dimensions: Length, width, and height of goods (if applicable).
  • Freight class: Required for Less Than Truckload (LTL) shipments.
  • NMFC code: The National Motor Freight Classification code categorizing the shipment.
  • Hazardous materials: If applicable, include the UN/NA number and certification.

9. Packaging Type

Specify whether the goods are in cartons, pallets, crates, drums, etc.

10. Special Handling Instructions

If the goods are fragile, perishable, or require specific handling, note it here.

11. Declared Value

Some shipments require the declared value for insurance purposes.

12. Signature and Date

  • Shipper’s signature: Confirms the details are correct.
  • Carrier’s signature: Accepts responsibility for transporting the goods.
  • Consignee’s signature (upon delivery): Confirms the goods were received.

Bill of Lading Template (Customizable)

You can copy this template to a new document, fill out and print it. Alternatively, leave the fields blank and fill them out by hand.

  1. Shipper Information (From):
    Company Name: ________________________
    Address: _______________________________
    City, State, ZIP: ________________________
    Contact Name: ________________________
    Phone: ______________________________
    Email: _______________________________
  2. Consignee Information (To):
    Company Name: ________________________
    Address: _______________________________
    City, State, ZIP: ________________________
    Contact Name: ________________________
    Phone: ______________________________
    Email: _______________________________
  3. Carrier Information:
    Carrier Name: __________________________
    SCAC Code (if applicable): ________________
    Tracking/Bill of Lading Number: _____________
    Shipment Date: ________________________
  4. Freight Terms (Check One):
    [ ] Prepaid (Shipper pays)
    [ ] Collect (Consignee pays)
    [ ] Third Party (Other party pays)
    Third Party Name: ______________________
  5. Description of Goods:
Bill of Lading Template (Customizable)
QuantityPackaging TypeDescription of GoodsWeight (lbs)Dimensions (LxWxH)Freight ClassNMFC Code
  1. Special Handling Instructions (if any):

[ ] Fragile [ ] Perishable [ ] Hazardous Material (UN/NA #______)

  1. Declared Value (if required for insurance):
    $_____________
  2. Additional Notes or Instructions:
  3. Signatures:
  • Shipper Signature: __________________________ Date: ____________
  • Carrier Signature: ___________________________ Date: ____________
  • Consignee Signature (Upon Delivery): ___________ Date: ____________

Terms & Conditions:
This Bill of Lading is subject to all applicable tariffs, terms, and conditions of the carrier. The carrier’s liability is limited to the amount specified in the governing classification, tariff, or contract unless declared otherwise.

Sage Contact

Contact Us for an in-depth
product tour!

What Is the Difference Between a Bill of Lading and a Freight Bill?

A Bill of Lading (BoL) and a Freight Bill are both critical documents in the shipping and logistics industry, but they serve distinct purposes.

The Bill of Lading is a legally binding document issued by a carrier to acknowledge receipt of goods for shipment. It acts as a receipt, contract, and document of title, meaning it confirms the carrier has received the goods in good condition, outlines the agreed terms of transport, and serves as proof of ownership during transit. The BoL is essential for resolving disputes, ensuring smooth cargo transfers, and facilitating international trade.

On the other hand, a Freight Bill is essentially an invoice issued by the carrier to request payment for shipping services. Unlike the BoL, the Freight Bill is not a document of title and does not transfer ownership of goods. Instead, it provides a detailed breakdown of charges, including freight rates, fuel surcharges, and any additional fees associated with the shipment. It is used primarily for accounting and payment processing rather than legal transport documentation.

READ NEXT: Getting AP Right with Invoice Processing Software

To put it simply: if the Bill of Lading is the passport of a shipment, ensuring it gets where it needs to go, the Freight Bill is the receipt, making sure someone pays for the journey. While they share some information, such as shipper and consignee details, their functions are entirely different—one governs the movement of goods, while the other governs the financial transaction.

Common Bill of Lading Mistakes to Avoid

Incomplete or Incorrect Information – Ensure all fields, including addresses and contact details, are accurate to prevent delays.

Wrong Freight Classification – Misclassification can lead to additional charges or shipment rejection.

Missing or Incorrect NMFC Code – A missing or incorrect code can affect freight rates and liability.

Omitting Special Handling Instructions – If goods require special care, note it clearly to avoid damage.

Failure to Indicate Freight Terms – Clearly mark who is responsible for shipping costs.

Not Reviewing Before Signing – Double-check all details before signing to avoid legal and financial issues.

If you want to avoid paperwork headaches, consider using Electronic Bills of Lading (eBL), which streamline documentation and prevent errors.

Capture Freight Documentation Instantly with InvoiceAction
Don’t let lost invoices or missing Bills of Lading slow down your operations! InvoiceAction digitizes and validates freight invoices, ensuring accurate payments and hassle-free logistics tracking.
Book a demo now

What Are the Risks and Liabilities Associated with a Bill of Lading?

Imagine this: A company ships a container full of high-end electronics from Shanghai to New York. The goods are packed, the Bill of Lading (BoL) is issued, and everything seems to be in order. The ship sets sail, and the importer eagerly awaits the arrival of the cargo.

But when the shipment reaches the port, chaos unfolds. The cargo is damaged, and the importer can’t claim ownership because the original BoL is missing. Suddenly, what seemed like routine paperwork turns into a logistical and financial nightmare.

This scenario highlights the risks and liabilities tied to a Bill of Lading—a document that carries significant legal weight in global trade. Here are some of the most common risks businesses face:

Lost or Misplaced Bill of Lading

In traditional shipping, physical BoLs are often used, and losing the original document can result in costly delays. Without an original BoL, the consignee may be unable to take possession of the goods, leading to demurrage fees (penalties for holding containers at port). Some businesses mitigate this risk by using Electronic Bills of Lading (eBLs), but many shipping routes still rely on paper.

Fraud and Forgery

Because the BoL represents ownership of the goods, it can be exploited by fraudsters. There have been cases where fake BoLs were created to claim goods unlawfully, leaving the rightful owner empty-handed. Fraudulent endorsements or duplicated documents can lead to disputes, financial loss, and even legal action.

ALSO READ: Document Automation In Logistics Compliance

Incorrect Bill of Lading Information

A small clerical error—like a misspelled consignee name, incorrect cargo description, or misclassified freight—can have huge consequences. If the shipment details don’t match customs records, the cargo might be held or rejected, leading to additional costs and delays. Worse, a misdeclared shipment could result in legal penalties if authorities suspect fraud or misrepresentation.

Liability for Damage or Loss

The BoL serves as proof of the cargo’s condition at the time of shipment. If the consignee receives damaged goods but the BoL states they were in good condition at departure, the carrier may deny liability. This leaves the shipper or consignee scrambling to prove that damage occurred during transit rather than before shipping.

Liability for Damage or Loss

Failure to Endorse a Bill of Lading or Transfer It Properly

Certain types of BoLs, like Order Bills of Lading, can be transferred between parties. However, improper endorsement (such as failing to sign a negotiable BoL) can prevent the new owner from claiming the shipment. This can be particularly damaging in international trade, where multiple transactions may occur before the cargo even reaches its final destination.

Delayed Payment Disputes

In many cases, a BoL is used as collateral for trade finance, meaning banks release funds based on the document’s terms. If there’s any discrepancy or dispute over the BoL, payment may be delayed or withheld, affecting cash flow for businesses relying on timely transactions.

Cargo Held Hostage

Some carriers or freight forwarders may refuse to release goods if there are outstanding freight charges, even if the consignee has a valid BoL. This can happen if there’s a disagreement over additional fees, leading to prolonged delays and financial strain.

How to Mitigate Bill of Lading Risks

  • Double-check all details on the BoL before shipment to avoid costly errors.
  • Use Electronic Bills of Lading (eBLs) to minimize the risk of loss or fraud.
  • Ensure proper endorsements if transferring ownership of goods.
  • Keep track of freight payments to prevent disputes or cargo holds.
  • Invest in cargo insurance to protect against damages or losses not covered by the carrier.

In global trade, the Bill of Lading is more than just paperwork—it’s the key to ownership, liability, and smooth logistics. Treat it with the same level of care as you would a passport or financial contract because, in the world of shipping, a single misstep can sink an entire transaction.

Final Thoughts: Bill of Lading Is More Than a Piece of Paper

As you can see, the Bill of Lading, whether in its traditional paper form or as a modern electronic document, remains a cornerstone of global trade. As the industry navigates towards digital solutions, embracing eBLs promises a future of enhanced efficiency, security, and resilience in the supply chain.

So, the next time you think of the BoL, remember: it’s not just a document; it’s the lifeline of international commerce.

Avoid Costly Shipping Delays with AI-Powered Data Capture
Manual processing of Bill of Lading, invoices, and shipping documents can cause delays and errors. docAlpha uses AI-driven automation to capture, validate, and integrate your documents seamlessly.
Book a demo now

Artsyl

Automate Bill of Lading Processing & Eliminate Manual Work

Eliminate manual data extraction, validation, and processing to accelerate logistics with docAlpha’s Intelligent Process Automation. Transform your supply chain today!

Book a Live docAlpha Demo Now
Looking for
Document Capture demo?
Request Demo