Bill Of Lading: A Beginner’s Guide To Shipping’s Most Crucial Document

Published at 1 September, 2021 - 5:43 am by

 

When you ship items to a foreign country from Dubai, you will have to handle an extensive amount of paperwork. While all of them play an essential role in the global shipping process, none are as crucial as the bill of lading. Suppose it is incorrectly filled out or misplaced. In that case, you will be at risk of not only legal repercussions but also financial ones. Hence, it is absolutely necessary that you become familiar with this document. To help you with that we will examine what it is in this article.

 

What exactly is the bill of lading?

It is a crucial document used commonly in the logistics and shipping industry that has been a key part of international trade worldwide. It is typically issued by the carrier responsible for transporting and delivering the packages to the shipper who sends the items. The document confirms that the goods were in an acceptable condition when received and are ready to be shipped to their destination. 

The shipper, also known as the consigner, is expected to hold onto the bill of lading until the items have been successfully delivered to the consignee (the recipient of the packages). Thus the document is a contract of carriage between the shipper, consignee, and the carrier, affirming the terms and conditions of shipping.

 

What does the document contain?

The document contains crucial information relating to the shipment and those involved in the process. These are as follows:

  • Details of the transportation company
  • Details of the shipper and consignee
  • The mode of transportation
  • The location where the goods were loaded onto the transportation mode
  • The intended destination of the package
  • The terms of the shipment
  • A description of the packages being transported, which includes weight, classification, and dimensions

 

Why is the bill of lading important?

As mentioned previously, it is an essential document in the shipping process. Let us explore the reasons why.

It provides evidence that the goods have been received correctly by the carrier.

When shipping to international countries, evidence of the shipment being received by the transportation company is essential. It helps ensure that the packages were not damaged before being sent and protects the shipper from being blamed for missing goods. 

When you want to engage in international shipping from Dubai, you need to obtain the bill of lading. Until the document is issued, your goods will not be permitted to leave the country. 

It denotes ownership of the goods.

The bill of lading denotes ownership of the goods. The consignee listed in the document will need to present it upon arrival of the package to secure their release from the carrier and claim ownership. 

It ensures that the shipper will receive their payment.

If the consignee has not yet paid for the shipment, the shipper can hold onto the original bill until they do so. When the bill of lading is not released, the receiver will be unable to access the goods. Consequently, they will be forced to make the payment to the shipper.

 

In conclusion…

As you can gather from the above, the bill of lading is important. It can help you gather the amount due from your customer and avoid additional expenses and lawsuits. Hence, you need to ensure its accuracy and keep it in a safe and secure location. We also recommended you have a digital copy of the document to avoid any complications. For more information on the document, contact our shipping company in Dubai, Extra Space. 

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