The bill of lading and other freight shipping documents: what shippers need to know

Every truck shipment starts with paperwork, and the most important piece is the bill of lading (BOL). It is the document a driver signs at pickup, the record of what was handed over and the contract that governs the move. If something goes wrong in transit, the BOL and the delivery receipt are usually the first documents anyone checks. This guide explains what a BOL does, what it should contain and how it fits with the other documents in a freight shipment.

What a bill of lading does

A BOL plays three roles at once:

• A receipt. The Uniform Commercial Code definitions published by Cornell's Legal Information Institute describe a bill of lading as a document evidencing the receipt of goods for shipment, issued by a business that transports or forwards goods (UCC 1-201).
• A contract. The Federal Highway Administration's freight glossary calls it "the contract of carriage containing the terms and condition between shipper and carrier."
• A document of title, in some cases. The same UCC section lists a bill of lading as a type of document of title. With a negotiable bill, explained below, the paper itself controls who can claim the goods.

The BOL is also tied to carrier liability. Under 49 U.S.C. 14706, the federal cargo liability law often called the Carmack Amendment, a motor carrier "shall issue a receipt or bill of lading for property it receives for transportation" and is liable for actual loss or injury to the property. The statute adds that failing to issue a receipt or bill of lading does not affect the carrier's liability.

What a BOL should contain

For interstate shipments, federal rules at 49 CFR 373.101 require for-hire, non-exempt motor carriers to issue a receipt or BOL containing:

• Names of the consignor (shipper) and consignee (receiver).
• Origin and destination points.
• Number of packages.
• Description of the freight.
• Weight, volume or measurement of the freight, if it applies to the rating.

A complete BOL usually carries more, and each extra detail can prevent a dispute later:

• Pickup date, BOL number and any purchase order or reference numbers.
• For less-than-truckload freight, the NMFC item and class, the number of handling units and their dimensions. The National Motor Freight Traffic Association recommends recording exact dimensions on every bill of lading.
• Freight payment terms, such as prepaid by the shipper, collect from the consignee or billed to a third party.
• Special services ordered, such as liftgate or appointment delivery, so they are authorized and billed correctly.
• Any declared value. Section 14706 lets carriers offer rates that limit liability to a value declared by the shipper or agreed in writing, if that value is reasonable under the circumstances, so the BOL and the carrier's tariff together set how much a claim can recover.
• Hazardous materials details, which have their own shipping paper requirements in 49 CFR Part 172, Subpart C.
• Signatures of the shipper and the driver, with the piece count confirmed at pickup.

Straight vs. order bills

Bills of lading issued by common carriers for interstate shipments are covered by a 1916 federal law, commonly called the Federal Bills of Lading Act or Pomerene Act, now codified at 49 U.S.C. 80101 and following sections. The current text uses "nonnegotiable" and "negotiable" in place of the older terms straight bill and order bill (49 U.S.C. 80103).

The statute also says that indorsing a nonnegotiable bill does not make it negotiable or give the transferee any additional right. Delivery rules are in 49 U.S.C. 80110.

Shipper's load and count

Many trailers are loaded and sealed by the shipper, so the driver cannot count what is inside. 49 U.S.C. 80113 addresses this. When the shipper loads the goods and the bill carries words such as "shipper's weight, load, and count," the carrier is generally not liable under that section for missing or misdescribed goods it had no way of knowing about, or for damage caused by improper loading. When the carrier does the loading, it must count the packages, and that notation has no effect except for freight concealed by packages.

Other shipping documents

• Freight bill: the carrier's invoice. Under 49 CFR 373.103, it must show details including the exact rates assessed and the total charges.
• Packing list: FHWA defines a shipping manifest as a document that lists the pieces in a shipment, which makes it useful for checking a delivery.
• Delivery receipt and proof of delivery (POD): FHWA describes proof of delivery as information from the carrier with the name of the person who signed for the shipment, the time and date of delivery and other delivery details.
• Inspection or reweigh report: issued when a carrier changes the weight, dimensions or class of less-than-truckload freight.
• Freight claim: a written demand for payment for loss, damage or delay.

Noting damage and exceptions at delivery

The delivery receipt is the consignee's best chance to record a problem. Before signing, receivers can:

1. Count the pieces against the BOL.
2. Look for visible damage, such as crushed corners, punctures, wet cartons or torn stretch wrap.
3. Write specific exceptions on the delivery receipt, such as "2 of 10 cartons crushed" or "1 pallet short," rather than a vague note.
4. Take photos and keep damaged goods and packaging until the claim is resolved.
5. Report damage discovered after delivery to the carrier as soon as possible.

A notation is evidence, not a claim. Under 49 CFR Part 370, notations of shortage or damage on delivery receipts do not, standing alone, count as a claim. A claim is a written communication that identifies the shipment, asserts the carrier's liability and asks for a specified or determinable amount of money. The carrier must acknowledge it in writing within 30 days of receipt, unless it has already paid or declined it, and must pay, decline or make a firm settlement offer in writing within 120 days, or send written status updates after that.

Deadlines matter too. Under 49 U.S.C. 14706, a carrier may not allow less than 9 months for filing a claim, or less than 2 years for bringing a lawsuit, counted from the date the carrier gives written notice that it has disallowed the claim. The actual limits are set in the BOL terms and the carrier's tariff, so it is worth checking them for each carrier.