Nautical Term: Bill of lading
Definition of Bill of lading
A Bill of Lading (B/L) is a crucial document in international maritime transport. It outlines the terms and conditions of the contract between the shipper and the transportation company. This document functions as the title of the contract, a contract of carriage, and a receipt for goods. For instance, when a company exports goods from the United States to Europe, the exporter will contract with a freight forwarder or a shipping line to transport the goods to the European destination. The freight forwarder or the shipping line will issue a Bill of Lading to the shipper, indicating that the goods have been received on board the vessel, and that the goods are in good order for shipment. The Bill of Lading is an essential document, as it serves as prima facie evidence of the contract of carriage, and it is also required for releasing the goods from the custody of the customs authorities and the port authorities.
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