Bill of Lading for international transport 

There are different types of modes for exports and imports, sea, air and land. 

In each one, different documents are required for sending merchandise from one place to another.  

One of them is the Bill of Lading known by its initials BL, B/L, BOL and, in Spanish-speaking countries, it is also called “Conocimiento de Embarque”  

Indeed, the BL is key when claiming compensation in case of damage, delay, losses or any other situation arising during shipment, as it acts as a title to the goods.  

In international trade it is also used as a guarantee for banks and other institutions providing funding for the purchase of products.  

Its importance lies in its validity and the fact that it is recognized worldwide because it complies with the rules regulated by the United Nations Convention for the carriage of goods by sea, better known as the Hamburg Rules of 1978.  

We invite you to go on reading our article to find out what a Bill of Lading is in international transport, its purpose, and the information it contains, among other aspects.  

What is a BL in foreign trade?  

As already mentioned in the introduction to this article, the document is used in foreign trade to guarantee secure delivery and ownership of the goods transported.  

It is issued by the carrier and acts as proof of the contract of carriage of the goods. At the same time, it provides detailed information, such as the quantity of product, weight, description and destination.  

The BL has implications for the different actors involved in the transport.  

For exporters and importers, the document is basic to ensure payment for the merchandise, receiving the product and complying with customs requirements.  

For example, it is a way for the transport company to say:  

“I sign receipt of X merchandise, which will now be my responsibility during the transport which is in my charge and shall only deliver to X consignee”.  

In other words, the document answers the questions: “what, who, why, how and when” relating to the operation.  

Similarly, the Bill of Lading reflects the terms and conditions agreed between the seller and the buyer of the merchandise, that is, the Incoterm applied in the transaction.  

Who issues the BL and what information must it contain?  

The Bill of Lading is issued by the Carrier or the company in charge of the transport of the merchandise. To this end, it uses two modalities: 

• Master BL. Delivered by the company as main carrier to the receiver of the goods or freight forwarder, provided they appear as a consignor.  
• House BL. Drawn up by a freight forwarder of agent of the shipper or exporter of the merchandise.  

In turn, it must include details about the place of receipt of the goods, the destination agent, the port for unloading and the transport of the cargo.  

It is important that the following information is complete, and all the fields contain exact data, with no room for doubt, as this could give rise to dispute between the exporter and importer:  

• Consignee. This is the recipient or legal owner of the cargo.  
• Type of merchandise transported. To this end, it is recommended to use the tariff classification system of the World Customs Organization.  
• Sender. The person sending the merchandise.  
• Recipient’s representative. This is the person to notify of the arrival of the merchandise at its destination.  
• Consignor or shipper. The company issuing the Bill of Lading.  
• Destination agent. It is the company representing the carrier at the destination.  
• Data of the transport of the merchandise.  
• Place of loading and unloading.  
• Bill of Lading number.  
• Freight forwarder.  
• Registration and type of container. In this case, it is important to define if the cargo is Full Container Load (FCL) or Less THAN Container Load (LCL) or consolidated.  
• Number of packages or pallets.  
• Dimensions of the cargo specified in cubic meters.  
• Marks and special signs that help identify the goods.  

As the Bill of Lading is a document with over 30 fields, mistakes are commonly made in some of them. However, it is best to include the requested detailed information on the merchandise and be as descriptive as possible to help the work of the other people involved in the transport.  

How is a Bill of Lading prepared?  

• The BL on paper. It is a physical document that is delivered to the sender or their agent. It is used as proof of the existence of a transport contract and as a receipt of the goods on board.  

This method is the oldest and most traditional, but it can also be slower and more costly due to the need to send the physical document by mail or messenger.  

• The electronic BL. It is an alternative to paper because it is issued and transferred electronically. It is important to know that is has the same legal validity as the physical document and is used for administrative and monitoring purposes.  

One of its advantages is that it can be shared and updated in real-time among the different actors involved in the carriage of goods, which facilitates coordination.  

• The combined BL. It is a mixture of a paper BL and the electronic BL. In this method, the carrier issues one on paper and another electronic one, and delivers them to the sender or their agent.  

The sender uses the one on paper to claim the goods at the destination port, whereas the electronic one is used for administrative purposes.  

Worthy of mention is that each country has its own trade regulations and practices with respect to the issuing of the BL. Consequently, it is important to know the local rules and comply with the legal and trade requirements of the country of origin and the country of destination. 

When is the bill of lading delivered? 

It is delivered to the sender or their agent once the merchandise has been loaded at the point of origin.  

Remember that the document acts as proof of the transport contract and as title to the goods. Consequently, it must be issued accurately and be up to date to avoid errors or discrepancies affecting the delivery of the goods or the validity of the document. 

At KENSA Logistics, we help you process the Bill of Lading  

At KENSA Logistics, we are here to help you. We know that processing the Bill of Lading can be a complicated procedure, but do not worry.  

Our team of experts in logistics is at your disposal to guide you every step of the way. If you need help with processing documents or with any other related aspect, do not hesitate to contact us.