E-Conomy Finance Group publishes articles focusing on a different aspects of trucking industry.  Issue 3: ”Importance of the Bill of Lading”…

 

Originally this articles was published in Doroga/Road: April 2013

 

“Importance of the Bill of Lading”

 

Bill of Lading is one of the most fundamental and important shipping documents. It is evidence of a contract between shipper, carrier, and consignee. Bill of Lading forms and acts as a receipt that the carrier has accepts the goods/shipment in good order, and consequently proves delivery of the goods to the consignee. Some shippers insert terms and conditions that no thinking carrier would knowingly sign.

 

The following elements should be considered by carriers while participating in the acceptance and transportation of the shipment.

 

Requirements for the Bill of Lading.  Once freight is accepted for shipment by, or on behalf of a carrier. There are 15 requirements of the Bill of Lading, including name and address of the shipper, date, originating point, name of the originating carrier, names of the connecting carriers (if any), name and address of receiver, shipment destination, and “particulars” of the goods in the shipment, including weight and description.

 

Carrier’s Name on the Face of Bill of Lading. Bill of lading must have a field for the name of the carrier. Often, carrier has no control over preparation of the bill of lading, however, carrier should instruct its drivers to endorse carrier’s name and address on the bill of lading in the appropriate field.  By doing this, driver on behalf of the carrier, advising all parties to the transaction; shipper and consignee of carriers’ involvement with the shipment.

 

Damaged Shipment.  If shipment appears to be damaged, driver has the right to indicate such occurrence, on the bill of lading at the time of pick-up. It is important, for driver to make notes, right at a time of pick-up. In case if shipper won’t allow driver to make a damage record on the bill of lading, refuse the shipment, and pull the driver out.

 

Freight Prepaid.   The term “freight prepaid”, can be viewed as a representation to the consignee that the charges for carriage are already paid.  If this term implemented for one of your shipment, advise consignee before delivery that you have not been paid yet. In such case consignee might be liable if broker is to neglect to pay your invoice.

The successful carriage of goods  goes beyond timely delivery of the shipment, its finalized by the full payment for carrier services.  Often timely payment depends on proper treatment of the Bill of Lading.

 

Create, implement and monitor a policy for drivers to treat accordingly each Bill of Lading they encounter in course of their duties.