# Bill of lading

*Last updated: 2026-06-22*

> Three functions in a single document make the bill of lading indispensable in ocean freight: it serves as the carrier's receipt for goods taken on board, as evidence of the contract of carriage, and – when issued to order – as a negotiable document of title.

Three functions in a single document make the bill of lading indispensable in ocean freight: it serves as the carrier's receipt for goods taken on board, as evidence of the contract of carriage, and – when issued to order – as a negotiable document of title. The holder of the original is entitled to take delivery at the port of destination, and ownership can change hands mid-voyage simply by endorsing the paper. This negotiability makes the bill of lading the cornerstone of documentary credit transactions: banks require a correctly completed original before releasing payment to the exporter. The sea waybill is a widely used alternative, but it names a fixed consignee, cannot be traded, and therefore does not qualify as a document of title.

**Source:** [https://www.iccwbo.org](https://www.iccwbo.org)

## Quick Facts

| Property | Value |
|---|---|
| Term | Bill of lading |
| Language | EN |
| Word count | 124 |
| Last updated | 2026-06-22 |
| Source | https://www.iccwbo.org |

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*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/bill-of-lading-2](https://www.freight-academy.com/en/glossary/bill-of-lading-2)*

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