What Is a Bill of Lading?
A bill of lading is a form for shipping cargo or merchandise. These bills are used for carriage by sea and international trade as well as a wide range of domestic or inland modes of conveyance. Order bills of lading are commonly used to ship goods in advance of payment. In addition to air, sea and other bills of lading for different modes of transportation, bills of lading also indicate the condition of cargo.
A clean bill of lading indicates full contract compliance without discrepancies between the shipper’s description of the condition of cargo and the actual status of goods. A claused, dirty or foul bill of lading indicates damage or loss. Importers can refuse shipments with claused bills.