Bill Of Lading

AAA

DEFINITION of 'Bill Of Lading'

A legal document between the shipper of a particular good and the carrier detailing the type, quantity and destination of the good being carried. The bill of lading also serves as a receipt of shipment when the good is delivered to the predetermined destination. This document must accompany the shipped goods, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper and receiver.

INVESTOPEDIA EXPLAINS 'Bill Of Lading'

For example, suppose that a logistics company must transport gasoline from a plant in Texas to a gas station in Arizona via heavy truck. A plant representative and the driver would sign the bill of lading after the gas is loaded onto the truck. Once the gasoline is delivered to the gas station in Arizona, the truck driver must have the clerk at the station sign the document as well.

RELATED TERMS
  1. Assembly Service

    Combining a number of small shipments from multiple parties into ...
  2. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
  3. Mothballing

    The preservation of a production facility without using it to ...
  4. Supply Chain

    The network created amongst different companies producing, handling ...
  5. Logistics

    The overall management of the way resources are obtained, stored ...
  6. Cash On Delivery - COD

    A type of transaction in which payment for a good is made at ...
Related Articles
  1. Working Capital Works
    Insurance

    Working Capital Works

  2. Inventory Valuation For Investors: FIFO ...
    Fundamental Analysis

    Inventory Valuation For Investors: FIFO ...

  3. What is Globalization?
    Investing

    What is Globalization?

  4. Ever Wanted to Own International Stocks? ...
    Economics

    Ever Wanted to Own International Stocks? ...

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center