A sample bill of lading. Image credit uvlightpen.com

A sample bill of lading. Image credit uvlightpen.com

ZIMSEC O Level Commerce Notes: Transport/International Trade: Bill of Lading

Bill of lading

  • Is required whenever goods are transported by sea.
  • An agreement entered into by the shipping company and the exporter.
  • Is evidence (acknowledgement) of receipt fr goods on board a ship.
  • It is a document of title which gives the bearer ownership of goods.
  • It is a quasi-negotiable instrument which allows ownership of goods to be transferred to another person by endorsement.
  • Forms part of a documentary credit.
  • Allows goods to be bout or sold whilst in transit.
  • I usually made in three copies which are distributed as follows:
  • One copy remains with the exporter who is also known as the consignor.
  • The second cop is sent to the importer also known as the consignee by air transport to reach him/her/them before the goods arrive.
  • The third copy is given o the captain of the ship and accompanies the consignment of goods.
  • It shows:
  • A detailed description of the goods i.e. the types and quantities of the goods forming the consignment.
  • The condition of the goods when the bill was made, described as either clean or dirty. A clean bill of lading is issued when the goods are received intact and a dirty bill when the goods are damaged.
  • The port of loading and offloading the goods.
  • The cost of transporting the goods.
  • The numbers or markings of the crates or containers.
  • The name of the shipping company and the details of the ship.
  • Names and addresses of the consignor and the consignee.
  • Anticipated date of arrival of the ship.
  • The total value of the goods.
  • The party paying for the insurance of the goods.
  • The signatures of the exporter and the captain of the ship.

To access more topics go to the Commerce Notes page.

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