An onboard bill of lading is a legal document held on a seagoing vessel that confirms receipt of goods and provides legal authority to carry them to a prearranged destination. It sets the terms of the purchase contract, including how goods will be transported and delivered. A freight forwarder is responsible for the cargo once they receive and sign the BOL on board. The BOL certifies that goods have been loaded onto the vessel as promised by the exporter. The ship’s bill of lading obliges the shipper to deliver the goods to the consignee named in the contract.
An onboard bill of lading is a legal document held aboard a seagoing vessel which confirms receipt of goods to be shipped and provides the shipper with legal authority to carry those goods to a prearranged destination. In its most general sense, a bill of lading – often abbreviated BOL, BL or simply B/L – is essentially a contract of carriage for the carriage of goods. Indicates both the buyer and the seller, but focuses on the means by which the goods will get from one place to another. The condition and quantity of the goods, the date of loading and the expected delivery must also be established.
Onboard BOLs are more common in international shipping arrangements. In these situations, neither country’s contract laws govern the transaction. A bill of lading is a way for parties to set the terms of their purchase contract and set requirements when it comes to how the goods will be transported and delivered.
In almost all cases, import agreements necessarily involve more than just the importer and exporter. A third party shipper is usually required to actually coordinate and facilitate transportation from one place to another. This freight forwarder is usually not a party to the contract, but still becomes responsible for the cargo once he receives and signs a bill of lading on board.
The main purpose of a BOL is to certify that the goods have actually been loaded onto the vessel as promised by the exporter. It may be difficult for the exporter to physically escort the goods to the importer, but this usually does not mean that the exporter ceases to be responsible. The onboard bill of lading is a way for the exporting company to cover its bases and fulfill its shipping obligations.
In a sense, the onboard bill of lading is like a shipping receipt. Indicate what was loaded and prove that the exporter left the goods as promised. Shipping companies are generally required to sign the BOL on board the moment the goods are loaded into the holds. Agents must count the goods and investigate their quality, noting any damage or deterioration. The invoice also usually contains clauses shifting the responsibility for safe delivery to the carrier, but this can vary by party, agreement and jurisdiction.
Unless the ship’s bill of lading is specifically deemed negotiable, it also obliges the shipper to deliver the goods to the consignee named in the contract. The consignee, called the consignee, is usually the importer or an agent designated by the importer. This person is responsible for examining the ship’s bill of lading and comparing it with the BOL drawn up at the start of the operation. He or she must sign for receipt of the goods if they meet the description or refuse immediately if there are any discrepancies. In some cases, a consignee may receive defective goods under protest or with the right of refusal reserved, although these conditions must usually be noted on the delivery note when the goods are first unloaded.
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