What is a Bill of Lading?
A Bill of Lading is a document that confirms the receipt of shipped cargo. Lading is the process of loading cargo or shipment into a vessel. The bill serves to document that a shipment has been loaded and has been received at its predetermined destination. The document also includes information describing the type, quantity, and destination of the cargo.
There are three main types of the Bill of Lading. A straight bill of lading is one where the transporter has received advanced payment. An order bill of lading is used when the shipment of goods happens before the payment for transportation is made. An endorsed order bill of lading will transfer ownership of goods once delivery has been made. It can also be traded as a security or even used as collateral for debt obligations.