+1 800 967-0030

What is a Bill of Lading and Why is it Important to Have One?

Many first-time shippers and many of our fulfillment services clients have a lot of questions about a multi-purpose document called the Bill of Lading (sometimes mistakenly called a “Bill of Loading”). These documents have been around in some form, since the Romans were shipping olive oil across the Mediterranean, and they continue to protect and track cargo today.

How a Bill of Lading Works

When your shipper transfers goods to another carrier, they generate a document called the Bill of Lading, which is a contract that details the terms of shipment of your merchandise, releases the goods into the carrier’s protection and requires them to deliver your items to their destination. Although they’re generated on most commercial shipments, Bills of Lading are particularly helpful for fulfillment services companies and their customers whose goods are frequently exchanged between ground, rail and air shipping.

The Bill of Lading contains detailed information about your shipment, including the type of freight, number of boxes involved and their weight, and is meant to ensure that all of your merchandise arrives at its destination together. If something happens along the way and part or all of your order is damaged or lost, the Bill of Lading provides you with a clear paper trail, along with specific remedies for filing a claim against the carrier who was in charge of your merchandise when it went missing.

Why Fulfillment Services Clients need – and benefit from – a Bill of Lading

When a shipment arrives and it isn’t acceptable in some way, it is the recipient’s responsibility to reject the goods and the shipment on the customer’s behalf. When the recipient is a fulfillment services company like ours, we are acting as the first line of defense and acting on our customer’s behalf. That means that if there is any problem or issue with the shipment, the fulfillment services partner has the right and the responsibility to protect the client and refuse the merchandise.

Small companies that are just beginning to utilize fulfillment services will do themselves a favor by getting familiar with the purpose and importance of the Bill of Lading. The Bill of Lading represents a transference of responsibility for the goods being shipped – the goods of your business – and its importance cannot be understated.

May 16, 2014
Share This:

Related Posts

RECENT POSTS

Boost Your Supplement Brand with Expert Fulfillment

Delivering your products quickly and safely is essential to your success as a supplement brand or ecommerce store owner. The global dietary supplements market, valued at $151.9 billion in 2021, is on track to reach $220.8 billion by 2027, with a projected CAGR of 6.4%...

TikTok Shopping: Turning Scrolls into Sales

Do you TikTok? TikTok has been dubbed the fastest-growing app in the world. At present, there are over 1.7 billion users worldwide. It’s where many of us are spending an increasing amount of our time - usage is up a whopping 70% Year on Year. With the launch of TikTok...

Elevate Your Cosmetics Brand with Expert Fulfillment

As a cosmetics brand or ecommerce website owner, you know that delivering your products quickly and safely is crucial to your success. The global cosmetics market was valued at over $617.2 billion in 2023 and is projected to reach $670.8 billion by 2024, growing at an...

How Do UPCs Help Product Fulfillment?

Modern warehousing is an intricate dance between suppliers and distributors, along with many other players. Almost like magic, both groups manage to keep near-perfect track of their part, be it providing new inventory as it runs low or plucking individual pieces from...

Industry Spotlight: Nutraceutical Fulfillment Services

Efficiency is vital to a successful nutraceutical business, whether you’re selling vitamins, supplements, herbals or a combination of all three. There can be hundreds (or more) of bottles to inventory and ship, if anything goes wrong, the result could be devastating...