GlossaryEN1 min readUpdated: Jun 26, 2026
Bill of Lading
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.
Quick Answer
Last updated: Published:
Source: https://www.investopedia.com/terms/b/billoflading.asp
Category
Logistics Concept
Reading time
1 min
Words
120
Mentioned in
–
Definition & Explanation
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.
Next steps
Matching tools and partners
Related Terms
You might also be interested in these terms
Logistics knowledge straight to your inbox
Free · No password · Never a paywall. Weekly top news and facts from logistics.
Community Questions & Answers
Share your knowledge, ask follow-up questions, or add practical insights to this page. Every contribution is moderated before publication.
No community answers yet. Be the first.