A Bill of Lading (BOL) is the foundational shipping document in international trade. Issued by the carrier (or its agent) to the shipper, it performs three legal functions simultaneously: a receipt acknowledging cargo has been received in apparent good order, a contract of carriage setting the terms under which the goods will be transported, and — in its negotiable form — a document of title that controls who may take delivery of the goods at destination.
In the United States, ocean BOLs are governed primarily by the Carriage of Goods by Sea Act (COGSA, 1936), which codifies the Hague Rules and limits carrier liability to $500 per package unless a higher value is declared.
The BOL has two main forms:
- "To order" BOL — negotiable. Title passes by endorsement of the original document. Banks rely on these to secure letter-of-credit transactions.
- Straight BOL — non-negotiable. Goods are consigned to a named consignee and cannot be transferred. Cargo is released against ID, not the original document.
In container shipping, the BOL is typically issued in three originals. Surrender of one original at destination authorizes release of the cargo. To speed delivery when originals haven't moved through the banking chain, carriers may issue a Telex Release or use an Express Release / Sea Waybill instead.
Different carrier relationships generate different BOLs — see Master Bill of Lading and House Bill of Lading for the distinction in NVOCC shipments.