What is bill of lading?

WHAT IS BILL OF LADING

Bill of lading is a receipt of goods shipped on board a vessel which facilitate the financial transaction and establish legal ownership. It is signed by the carrier or his agent stating the conditions of the goods on delivery and receipts by the vessel. Though it serves as receipt from the carrier for goods received for shipments, also serves as a contract for shipment between the carrier and the exporter.

There are different types of bill of lading, the important one are as follows

Negotiable bill of lading: this makes possible the transfer of goods by the transfer of bill. It contains the words or his or assigns.
Non-negotiable bills are delivered straight to the consignee who cannot transfer the goods by transfer of the bills.
Claused or uncaused bills of lading: this includes statement that the goods were received in good order as stated.
Claused bills or unclean or foul bills indicate that something or the other about the goods received for shipment was not in order.