"Lading" is another word for cargo. Lading refers to the material goods that are transported by the carrier from one location to another on behalf of a sender and a receiver. Such transportation may be carried out by way of ground transport, by aircraft or by cargo ships. Carriers use the bill of lading associated with a given shipment to ensure that goods are delivered safely to the sender as the shipper had named. “Bill of lading” is a legal document which is using by the shipping companies and freight companies. The purpose of the bill of lading is to acknowledge that the carrier has received the goods. The bill of lading transfers the title, or legal ownership, of the goods to the carrier; therefore. If there anything happens to the goods in transit (at the en route), the carrier is responsible for paying for the damages. The bill of lading is a receipt given to the person who shipping the products. Delivery time and method of delivery are also outlined within the bill of lading. This is a standardized form which is provided by licensed carriers to be filled out by the party sending a shipment. The most prominent feature of the B/L is the list of all items contained in the shipment, with spaces for individual quantities and their condition at the time of shipment. And also the B/L must state the value of all items and include the names and signatures of both the consigner and the consignee. The ports of consigner and the port of the consignee are also very essential. There is a description about how shipping materials are packaged in the shipment. Also it was noted, total weight of items and the total cost charged by the carrier for the service. Legally, Bill of lading is representing goods of value and their ownership. It should be written as a negotiable document or non-negotiable document. In any case, the producer is shipping an order of goods to a paying recipient, so that a transaction will be completed at delivery, then the Bill of lading must be non-negotiable. But if the ownership and delivery of goods associated with a negotiable B/L may be transferred from one party to another. For this reason, negotiable B/Ls may be used in as collateral for securing a loan. The transport of goods from one destination to another bears the risk that the goods may be lost or sustain damage en route. Though professional carriers go to great lengths to ensure the safety and proper care of their cargo, loss and damage can occur. For the receiver, a shipment's B/L is a dynamic snapshot of the shipment prior to its voyage. If the receiver finds fault with the goods in terms of content, quantity or condition by virtue of any discrepancy between the shipment and the B/L's contents, she may pursue legal action against the carrier using the B/L as evidence for her case.
* Functions of the Bill of Lading
2.1. As a receipt of cargo
Bills of lading often are prepared by shippers and carriers, if they prepare bills of lading, must rely principally on information supplied by shippers. Carriers often will have little opportunity, in the course of loading, independently to confirm all that is said by shippers as to the nature, condition and quantity of their cargoes, e.g. because cargo is concealed within packaging. Nonetheless, because the bill of lading is a receipt issued by the carrier, it is the carrier and not the shipper that will be liable to the receiver for any discrepancies between the quantity and apparent order and condition of the cargo on shipment, as acknowledged in the bill of lading, and of the cargo as delivered to the receiver. The bill of lading can be treated as conclusive evidence as between the carrier and a receiver and as at least prima facie evidence as between the carrier and the shipper, as to the number, weight or quantity and apparent order and condition of the cargo on loading. Two types of bill of ladings can be issue in within this scenario, * Clean...