# Bill of Lading

*Last updated: 2026-06-26*

> The bill of lading serves as the cornerstone document of ocean freight, bundling three distinct legal functions into a single instrument: the carrier's receipt for goods taken in apparent good order, written evidence of the contract of carriage, and—when issued to order—a negotiable document of title.

The bill of lading serves as the cornerstone document of ocean freight, bundling three distinct legal functions into a single instrument: the carrier's receipt for goods taken in apparent good order, written evidence of the contract of carriage, and—when issued to order—a negotiable document of title. An order bill of lading can be transferred by endorsement, allowing cargo to change hands while still at sea. A straight (non-negotiable) bill of lading, by contrast, names a fixed consignee and cannot be traded. Banks rely on original bills of lading as collateral for letters of credit, since only the lawful holder of the original can claim the goods at the port of discharge. The document is commonly abbreviated as B/L or BOL.

**Source:** [https://www.investopedia.com/terms/b/billoflading.asp](https://www.investopedia.com/terms/b/billoflading.asp)

## Quick Facts

| Property | Value |
|---|---|
| Term | Bill of Lading |
| Language | EN |
| Word count | 120 |
| Last updated | 2026-06-26 |
| Source | https://www.investopedia.com/terms/b/billoflading.asp |

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