In this article
Talk to our experts- Bill of lading
- A bill of lading (BOL) is the document issued when a carrier takes goods for shipment. It serves as the receipt for the freight, the contract between shipper and carrier, and a document of title. The Uniform Commercial Code defines it as evidence of the receipt of goods for shipment, issued by a business that transports or forwards goods.
Also called: BOL
How it works
Under 49 U.S.C. 14706, a carrier providing transportation or service subject to jurisdiction under subchapter I (motor carrier transportation) or subchapter III (freight forwarder service) of chapter 135 of Title 49 shall issue a receipt or bill of lading for property it receives for transportation. Failing to issue one does not affect the carrier's liability.
The National Motor Freight Traffic Association (NMFTA) describes what the document does in practice. It is proof of shipment once the goods are loaded, and confirmation that the carrier received them in the stated condition. It can also transfer ownership of the goods, which matters in international trade, where goods can be sold more than once in transit.
NMFTA says the carrier or the shipper typically issues the BOL, and a third-party logistics provider (3PL) may prepare it for the shipper.
How a bill of lading is prepared
Shipper and consignee information, a description of the goods and the NMFC codes for the shipment.
Every field is completed accurately to avoid delays or issues during transport.
Both parties sign to acknowledge the terms of the shipment.
Copies go to the shipper, the carrier and the consignee, and you keep one for your records.
This page explains the document; it is not legal advice.
What it contains
For for-hire, non-exempt motor carriers, 49 CFR 373.101 lists what the receipt or bill of lading must contain:
- Names of the consignor (shipper) and consignee (receiver)
- Origin and destination points
- Number of packages
- Description of the freight
- Weight, volume or measurement of the freight, if it applies to the rating
NMFTA's checklist adds the shipment date, both addresses, the National Motor Freight Classification (NMFC) code that determines freight class and rates, the packaging type, the quantity, the dimensions and any special instructions for the carrier.
Types of bills of lading
- Straight. Non-negotiable: the goods are consigned to a specific person or company and cannot be transferred to another party. For ground transport, especially by truck, NMFTA says it is the most common type.
- Negotiable. Under UCC 7-104, a document of title is negotiable when its terms say the goods are to be delivered to bearer or to the order of a named person.
- Through, inland and ocean. NMFTA's types by route: within the country and across international borders, by rail, road or inland waterway, and across international waters.
- Electronic (eBOL). A digital alternative to the paper BOL, with digital standards in development at NMFTA.
Example
A packaging distributor ships 6 pallets of stretch film to a customer's warehouse by less-than-truckload (LTL) freight. Each pallet weighs 450 pounds, so the BOL shows 6 packages and 6 x 450 = 2,700 pounds.
It names the distributor as consignor and the customer as consignee, with both addresses, a description of the film, the NMFC code and a note that the receiver needs a liftgate. The goods go to one named customer, so it is a straight BOL. The driver and the shipping clerk sign at pickup, and each party keeps a copy. If a pallet arrives damaged, the signed BOL records what the carrier received and in what condition.
On Shopify
In Shopify, you mark an order as fulfilled from the admin. You can add a tracking number during or after fulfillment, and Shopify might recognize its format and select the shipping carrier for you. If your carrier isn't fully supported, or you select Other, you can enter the tracking URL manually. If you ship an order without a tracking number, you can mark it as delivered yourself once the buyer receives it.
As a general practice, a BOL number can be kept with the order in a metafield: Shopify says metafields extend an existing platform data model, such as products, customers and orders, with your own custom data.
How Uncap helps
Uncap's packaging and shipping supplies page sets out what packaging needs from the platform, including freight rated as freight: LTL and pallet shipments rated as freight, with class, liftgate, appointment and residential handling, instead of parcel rates quoted on a pallet order.
Sources
Frequently asked questions
What is a bill of lading in layman's terms?
It is the carrier's receipt for your freight, the contract for the shipment between shipper and carrier, and a document of title for the goods.
Who issues the bill of lading?
UCC Article 7 defines a carrier as a person that issues a bill of lading. In practice, NMFTA says the carrier or the shipper typically issues it, and a 3PL may prepare it for the shipper.
What are the different types of bills of lading used in shipping?
Under the UCC, a bill of lading is either negotiable (deliverable to bearer or to the order of a named person) or nonnegotiable, like the straight BOL consigned to a named party. NMFTA also names through, inland, ocean and electronic bills of lading.
Can anyone make a bill of lading?
NMFTA says BOL forms can usually be obtained from the carrier or a 3PL, or downloaded from industry websites. It advises that both the shipper and the carrier sign it to validate the contract of carriage.
