The bill of lading (BOL) and proof of delivery (POD) are important parts of freight shipping. Both are documents that provide evidence of a contract or transaction. However, the participating parties in the transaction and the point at which the contract is signed are what make the difference.
The bill of lading is evidence of a contract between you and your carrier or freight broker. The proof of delivery is more like a proof of shipment and shows that you have received your goods.
In this article, we will answer all of your questions concerning the bill of lading and the proof of a delivery document, from what exactly they are, to what is written on each, and any other details you will need to know about both documents before you ship your package.
Bill of Lading Definition
So what does BOL mean? The bill of lading is a necessary document for freight shipment. It is filled out by the shipper and given to the carrier at pickup. BOL could be considered a receipt, a proof of the contract between the shipper and the carrier. It is legally binding and contains all of the details required to process and invoice a freight shipment.
The bill of lading contains pertinent information regarding the shipment, including, but not limited to order numbers, contact information, pickup/delivery addresses, and billing information. NMFC code, freight class, item count, weight and dimensions of the package, a detailed description, and any special instructions the shipper deems relevant.
Who Issues the Bill of Lading and How Is It Issued?
A BOL is generally issued by the broker or carrier. It is your job to fill out the bill of lading details on the blank BOL form. Some freight services will allow you to make your BOL for LTL shipments, but for FTL (full truckload) shipments, the shippers must always use their BOL.
A BOL is issued for each truckload, container, or shipment, but is also determined by the specific requirements you have as a shipper. It can depend on the types of goods you are shipping, the letter of credit, and the purchase order, as well as other factors.
Every shipment is unique and there is not always one BOL per shipment. For example, one truckload can have two BOLs due to the specifics of the shipment. There is also the possibility that three truckloads could have just one BOL.
Freight Bill of Lading Sample
Bill of Lading Information – How to Read a BOL
What does all of this bill of lading information actually mean? Here’s a quick look at the details you should know to help you read a BOL:
- Names and addresses: The names and addresses of the shipper and receiver (consignee) should be legible and clearly visible.
- Purchase orders or reference numbers: These will be required at pickup and delivery of the freight.
- Special instructions: This is the place to write specifications and instructions for the carrier. However, these instructions should not be extra service requests like delivery notifications.
- Date: This is the date that a consignee can expect to receive their shipment and might be used to reconcile shipping invoices or as a reference to track the freight.
- Description of items: This includes dimensions, weight, density, information regarding the materials and their makeup, and quantity of goods.
- Packaging type: Include whether you are using cartons, crates, drums, and/or pallets for the shipment.
- NMFC freight class: Freight class impacts how much your freight shipment will cost. Shipments are classified into one of 18 classes based on density, handling, liability, and storability.
- Department of Transportation hazardous material designation: any hazardous materials within the shipment must be cited, and there will be specific handling requirements.
- BOL number: given by the BOL issuer.
What Needs to Be on a Bill of Lading
There are a few necessary things that a lot of bills of lading include. As discussed above, the freight BOL must have a delivery address so that the carrier knows where to deliver the freight. The freight BOL must also include the number of items and the total weight of the shipment.
It might seem obvious, but don’t forget to include what you are shipping or the commodity. Also, freight BOL has to have the necessary billing information.
Obviously, these are not the only details that need to be included on the BOL, but they are the minimum unless the shipment is LTL, in which case you will also need the freight class.
If this information is not on the BOL, the freight will not be picked up and you will face extra costs from the carrier.
How Is a BOL Issued?
A BOL is issued for each truckload, container, or shipment, but is also determined by the specific requirements you have as a shipper. It can depend on the types of goods you are shipping, the letter of credit, and the purchase order, as well as other factors.
Every shipment is unique and there is not always one BOL per shipment, like one truckload with two BOLs because of the specifics of the shipment. There is also the possibility that three truckloads could have just one BOL.
Different Types of Bill of Lading
Different BOLs have different terms within their contract and are needed for different shipping situations and scenarios. The list below explains the 18 types of bill of lading that are most commonly used and their different terms
#1. Master bill of lading
This BOL is issued by the trucking company, shipping line, or whoever owns the transport vessel being used for the shipment. This BOL is also used between the freight broker and carrier.
#2. House bill of lading
This BOL is given to clients by the broker, forwarder, or the non-vessel operating common carrier (NVOCC). This BOL is also known as a forwarder’s bill of lading.
#3. Open bill of lading
This BOL specifies that if the consignee signs off, then the shipment can be transferred from one consignee to a different, predetermined consignee. This BOL is also known as a negotiable bill of lading.
#4. Order bill of lading
This BOL is restricted to being delivered to someone predetermined by the shipper. The bill of lading must be verified by the agent responsible for the delivery. This BOL is the most commonly used worldwide.
#5. Bearer bill of lading
This BOL dictates that the shipment should be delivered to whoever has the BOL and the consignee can be unspecified and negotiated later at delivery. This BOL is used for bulk shipments that are sent out in small quantities.
#6. Straight bill of lading
This BOL is also known as a non-negotiable bill of lading. The shipment is consigned to one specific party and when claiming ownership of the delivery, neither the endorsee nor the endorser is prioritized. The consignee has to pay in advance of receiving the shipment and may, depending on the laws of the destination, be required to have the original bill upon receipt.
#7. Received for shipment bill of lading
This temporary BOL is issued when a transport vessel is late. It confirms that the cargo has been received but not necessarily loaded onto the transport vehicle or ship yet. When the shipment has been loaded, it is replaced by a Shipped BOL.
#8. Shipped bill of lading
This BOL is issued when the package is already on board the vessel to bind the carrier with the vessel owner.
#9. Ocean bill of lading
This BOL is transported both nationally and internationally, using ocean freight.
#10. Inland bill of lading
This BOL is used for domestic shipments delivered only on land (rail or road).
#11. Airway bill of lading
This non-negotiable BOL is issued by the air freight forwarder or company.
#12. Clean bill of lading
The BOL states that the shipment has been loaded into the vessel in good condition and that the packaging and goods cannot be declared defective. If the packaging and/or goods do end up being damaged or incorrect, it can be replaced by a Dirty BOL.
#13. Dirty bill of lading
This BOL contains a clause that states that the condition of the shipment can be declared “dirty” if there is significant damage to the packaging, broken cargo, the incorrect quantity of goods, etc.
#14. Through bill of lading
This BOL is considered a legal document that allows the shipment to be passed from one distribution center to another, through international and domestic borders, and between different modes of transport. An Ocean or Inland BOL might also be necessary, depending on the shipment’s final destination.
#15. Combined transport bill of lading
This BOL is used when there are two or more modes of transport for this shipment. This BOL is also referred to as the multimodal transport BOL.
#16. Direct bill of lading
This BOL is used for cargo that is meant to be both picked up and delivered by the same vehicle and vessel.
#17. Stale bill of lading
This BOL is considered “stale” if the shipment arrives at the port before the BOL itself.
#18. Surrender bill of lading
This BOL is issued to an importer by an exporter to signify that once the cargo is received, the ownership has been transferred.
What Is a Proof of Delivery (POD)?
The proof of delivery (POD) is a receipt signed by the consignee after receiving a shipment or cargo. The proof of delivery document confirms that the shipment was delivered at the stipulated time and that there are no damages of any kind, including concealed freight damages.
Before you sign the proof of delivery or proof of shipment, you should follow these guidelines:
- Take or have photographs of what the package looks like before it is shipped.
- If there are any internal or external damages upon delivery, take photographs of them.
- Take time to inspect the condition of the shipment. This includes external packaging conditions to the actual goods beneath the packaging.
If there are damages worth concern, take the following steps:
- Report them within 2 to 5 days of receiving the delivery. You should file your official claim with the carrier soon enough.
- Provide shipment information on the bill of lading and/or proof of delivery document.
- Give your contact information to the consignee.
Doing all of this will help you to successfully file claims in case of damaged goods.
Who Handles the Proof of Delivery?
Being a critical delivery document, the proof of delivery or proof of shipment must be signed by a recognized and authorized official of the receiving company. Examples of such officials are the warehouse manager or the accountant who initially signed the bill of lading.
Companies need to decide who would officially sign POD tracking documents to avoid confusion and misappropriation of roles. Inexperienced personnel may not make a thorough crosscheck before signing the proof of delivery document.
When Do You Sign the POD?
The proof of delivery is signed at the delivery point after you have confirmed that there are no damages to the shipment.
First, you must confirm that it is your shipment or that the shipment was addressed to you. Next, you must check that you received your shipment in all its entirety and that there are no third-party shipments packed with yours.
While it is quite easy for an honest consignee to return shipments that are not his, it may not be easy to prove that you did not get all of your shipments after the proof of delivery document has been signed.
You must always remember that a POD is not just a receipt of delivery; it is an attestation to the fact that you received all goods in intact condition.
If there are damages you must lay claim to, you should state them in the proof of delivery before signing or you will have a hard time laying claims if you later discover damaged goods after signing the proof of delivery document.
Cargo Inspection Tips Before POD Signing
Here are a few cargo inspection tips to follow before signing the proof of delivery:
- Record the Process: A short video or even a couple of pictures can be your saving evidence when you need to lay claims. You can photograph the shipment before, during, and after unloading. You should also ask the shipper to take photographs.
- Carry Out Cargo Inspection with the Truck Driver: It is important for the truck driver to witness the inspection process with you so he/she can also note damages or losses.
- Inspect the Cargo Thoroughly: Check each package individually. Look out for damaged packaging, shrink wrapping, tampered pallets, tears, holes, stains, and opened packages.
- In Case of Damages: Take pictures of damages and make a detailed note of them in the proof of delivery. If a package or pallet is damaged, note it in the POD and point it to the truck driver, then go ahead to open such a package and check for damages to the real thing. If there are damages, you should also report it in the proof of delivery document.
- Get the Driver’s Signature: Get the driver to sign the proof of delivery next to your notes on damages.
- Look out for Carrier Notifications: Some shipments come with notes from the shipper. This could state that the shipment was not properly packaged before shipping. If you get notes like this, then the liability could shift from the carrier to the shipper.
Why Is It Important to Use the Correct Bill of Lading?
A BOL contains details and terms that are necessary to ensure your freight shipment goes smoothly. Using a correct bill of lading will allow you to evade unnecessary challenges like extra freight charges and avoid timing issues like the items being delivered to the wrong addresses.
Conclusion
The bill of lading vs. proof of delivery debate is easy to unravel when you properly understand all the movement points involved in bringing a shipment from the seller to the final consumer. The bill of lading is a contract signed at the point after the package has been shipped, while the proof of delivery is a contract or receipt signed upon receiving the package from the carrier.
Often, the bill of lading is signed by the carrier while the proof of delivery is signed by the consignee. The bill of lading should be signed correctly to avoid freight charges and timing issues like the items being delivered to the wrong address.
Freight shipping with Cowtown Express means always meeting all the necessary documentation requirements. We will make sure that your shipments are cared for, from the first pick up to final delivery. If you're looking for high-quality freight shipping services, contact us at Cowtown Express for a quote.
