International finance-14
A bill of lading (sometimes abbreviated as B/L or BOL) is a document issued by a carrier (or their agent) to acknowledge receipt of cargo for shipment. Although the term historically related only to carriage by sea, a bill of lading may today be used for any type of carriage of goods. Bills of lading is a crucial document used in international trade to ensure that exporters receive payment and importers receive the merchandise. Bill of lading is negotiable instrument. In international trade outside the United States, bills of lading are distinct from waybills in that the latter are not transferable and do not confer title.
Bills of lading may take various forms, such as on-board and received-for-shipment.
● An on-board bill of lading denotes that merchandise has been physically loaded onto a shipping vessel, such as a freighter or cargo plane.
● A received-for-shipment bill of lading denotes that merchandise has been received, but is not guaranteed to have already been loaded onto a shipping vessel. Such bills can be converted upon being loaded. The received for shipment BLs are used to deliver documents to the consignee faster. Yet these BLs are not accepted if the payment method is LC (Letter of Credit).