The Bill of Lading (BOL) is arguably the most powerful and critical legal document in international shipping. It is issued by the carrier (the shipping line) and serves three distinct, essential functions:
- It is the document of title. This is its most vital role. The original, physical Bill of Lading legally is the cargo. Whoever holds the properly endorsed original BOL is the only party entitled to claim the goods. For high-value project cargo, this document is often held by a bank and will not be released to the buyer until the seller has been paid under a Letter of Credit, securing the multi-million dollar transaction.
- It is a contract. The BOL is the legally binding contract of carriage between the shipper and the carrier, detailing the terms, cargo description, and destination.
- It is a receipt. It serves as indisputable proof that the carrier has received the cargo in good condition (“Shipped on Board”).