Everything shippers and carriers need to know about the bill of lading — the document that makes every freight shipment legal, billable, and traceable.
A bill of lading (BOL) is a receipt for freight services and a legally binding document between a shipper and the carrier transporting their freight. It details the type, quantity, and destination of the goods shipped. The BOL serves as the core contract between the shipper, the consignee, and the carrier, so it outlines the key terms of the shipment, provides essential shipping information, and protects all parties involved. Without one, carriers cannot legally transport the shipment, and shippers cannot bill it correctly.
Who issues a bill of lading?
Only the carrier can issue a bill of lading — one copy goes to the shipper, another to the consignee. The shipper is responsible for accurately describing the shipment’s essential characteristics, such as weight, dimensions, and freight class. Occasionally, a freight forwarder may issue the BOL, though not every forwarder holds that authorization. In most cases, the shipper, a broker, or a freight forwarder holds the completed BOL afterward.
What’s the purpose of a BOL?
A bill of lading serves three core legal functions:
- Receipt of goods — confirms the carrier received the shipment as described.
- Evidence of contract — documents the terms the carrier and shipper agree to.
- Document of title — in some cases, lets ownership of the goods transfer while they’re still in transit.
Bill of lading types
There are several types of BOLs, but shippers most often use two: the straight BOL and the order BOL. The key difference between them is negotiability — whether the goods’ ownership can change hands while the shipment is still moving.
| Straight BOL | Order BOL | |
|---|---|---|
| Negotiable? | No | Yes |
| Consignee | Named specifically, cannot be changed | “To the order of” a party; can be reassigned |
| Release of goods | Only to the named consignee | To whoever holds the endorsed original |
| Common use | Domestic truckload and LTL freight | International, bank-financed shipments |
Straight bill of lading
A straight BOL is a non-negotiable document. It names a specific consignee, so the carrier can release the goods only to that party, and endorsing the document can’t transfer title. In fact, it’s the most common BOL type in domestic trucking.
Order bill of lading
Shippers consign an order BOL “to the order of” a specified party rather than to one fixed recipient, which makes it negotiable. Whoever holds the properly endorsed original BOL can take delivery of the goods or redirect the shipment.
What’s in a bill of lading?
A BOL gives the carrier everything it needs to process the shipment and invoice it correctly. A standard BOL form includes:
- Shipper’s name and address
- Receiver’s/consignee’s name and address
- Purchase order or special account numbers
- Special instructions
- Date of shipment
- Number of shipment units and packaging type
- Note if the shipment contains hazardous material
- Description of items
- The NMFC freight class
- The exact weight and declared value of the goods
When a customer books a shipment with PLS PRO, our web-based transportation management system, the platform automatically generates the BOL from the shipment details you enter while quoting and booking. As a result, it’s available online immediately, so you can download and share it right away.
Completing a BOL
Accuracy is crucial when filling out a BOL. Even experienced shippers can find it a complicated task, especially with freight that has special handling requirements or with intermodal shipments. That’s why partnering with an experienced 3PL removes most of that risk.
Key actions before you sign
| → Double-check every weight and dimension | → Confirm the NMFC freight class |
| → Flag hazardous materials clearly | → Verify shipper and carrier contact info |
| → Describe cargo specifically, not generically | → Reuse the same BOL template every shipment |
Read our full guide on how to complete a bill of lading form for a step-by-step walkthrough.
Quick answers
Who signs a bill of lading?
The carrier signs at pickup, taking on liability for the freight. Then, the consignee signs at delivery to confirm receipt.
Is a bill of lading the same as an invoice?
No. The BOL is a shipping receipt and contract, while the carrier creates the invoice afterward, using the BOL’s details.
What happens if a BOL is filled out incorrectly?
Errors can trigger reclassification, delays, or incorrect billing, and in some cases, the shipper loses the right to limit liability.