Meaning
Negotiable or non negotiable documents issued by a carrier that detail the quantity, destination and specific description of goods being moved across land or sea. Proper bills of lading serve as the official evidence of a contract of carriage between the supplier and the transportation company.
Title Proof
Possession of physical property does not always denote legal ownership of high value industrial materials during the middle stages of a journey. Holding the original bills of lading grants the rightful party the power to claim the cargo at the arrival gate or to sell it while the ship is still in motion.
Cargo Verification
Receiving clerks compare the itemized entries on the trailer with the physical counts discovered during the offloading process at the factory dock. Errors found in the bills of lading suggest that the load has been tampered with or that the shipping warehouse made a clerical mistake before the seals were applied.
Financial Mechanism
Banks often require these papers to release payment under a letter of credit or to advance funds against a manufacturing schedule. Accurate bills of lading prevent commercial disputes by freezing the counts of weights and sizes at the exact moment the driver takes control of the freight. Each document marks a shift in liability.