What is a Bill of Lading in shipping?

A Bill of Lading is a legal document that has a few important functions in shipping and logistics. It is firstly a contract between the shipper, carrier and consignee stating what goods are being shipped, where the shipment is coming from and where it’s headed to.

Now if you’re new to logistics, terms like shipper, carrier and consignee can be confusing – so let’s clear it up:

The shipper – Is responsible for packing and preparing the shipment for transportation. This might be your supplier, or your own warehouse/manufacturer.

The carrier – Is the party that moves the cargo. So, through Twill this would be our colleagues at Maersk – or any shipping line, haulage company or airline that carries your cargo.

Consignee – Is the party designated to receive the shipment. Again, depending on what you’re shipping this could be your company, or a manufacturer who uses parts you’re shipping.

The Bill of Lading is only issued after vessel departure from the Port of Loading and the customer has provided us with all the details, such as the shipper, consignee, notify party, commodity, weight, cargo description, etc. It also serves as a receipt, i.e., an acknowledgement that the goods have been loaded (not where the cargo is) and contains or evidences the terms of the contract of carriage.