What is a Bill of Lading?

One of the concepts frequently heard by those working in the logistics sector, “bill of lading,” has been borrowed from the Latin word “cognosciménto,” meaning information/knowledge, into Turkish. Bill of lading is also known as a transport document within the logistics industry.

The bill of lading or transport document essentially is a valuable document that contains information about individuals such as the shipper, receiver, and notifying party, along with all the details related to the commercial transaction in question. This document serves as a contract regarding the transport process from the point of loading the goods to the destination. The bill of lading is sent by the carrier to the export company following the loading of the goods. The bill of lading is prepared by the carrier company as at least 3 original documents to be sent to the sender, receiver, and carrier. In some cases, the same bill of lading may need to be issued multiple times. At this point, each bill of lading is referred to as a “copy of the bill of lading.”

This document, which is essential for the logistics sector and required for the importer to retrieve the goods from customs, must include specific information, which is detailed below:
● Name and address of the exporting company,
● Name and address of the importing company,
● Name and address of the transport company,
● Weight, material value, and quantity of the goods sent,
● Information about the loading and destination locations of the goods,
● Date of loading,
● Description of the products and quantity packaged,
● Freight payment information,
● Signature and date of document preparation.

What is Bill of Lading Data?

The advancements in technology have opened the door for new export methods in the field of trade. The bill of lading used in logistics, also known as the transport document, has begun to be utilized in the new generation of export.

With some countries around the world making their bill of lading and customs declaration data available to access, global trade has become analyzable thanks to these data, accounting for 60% to 70% of it.

About 30 countries have shared customs records and bill of lading data with the world, accessible under various restrictions. While some countries prefer to conceal the names of exporting companies, others keep the price details confidential. Therefore, not all data is of the same type, but the most relevant part for companies is primarily the name of the importing company and the FOB price information.

Despite debates about the accuracy of the data, a vast majority trusts these data at 100%, excluding statistical deviations and typos. As an example of the data source, it can be stated that the data belonging to the USA is officially provided by U.S. Customs and Border Protection (CBP). Additionally, another way to verify the accuracy of the data is to check your own export data.

Bill of lading and customs declarations can be accessed for free from online sources. However, this is limited to 3 countries. Countries such as Canada, the United Kingdom, and Spain, which accept the principle of transparency contrary to the principle of confidentiality, publish the data on state or officially sourced websites. The criteria for searching to access these data are given below:
● 6 or 8 digit GTIP number,
● Company name,
● Product name,
● Brand or model name.

Although many countries share their data with the whole world, Turkey has not yet initiated such an effort. However, in foreign trade transactions with countries that share data, data from Turkey is visible alongside the data of the counterpart country. For instance, exports/imports from Turkey to the USA or India can be seen in the data of those countries. Companies can see whether their data is public or not, if they have done import/export transactions with countries that share data, by following the same route.

What Types of Bills of Lading are There?

There are a total of 9 different types of bill of lading, and these documents are used in different fields. All types of bills of lading are organized accordingly to the goods to be transported or the firm carrying out the transport. The general outlines of all types of bills of lading are provided below:
● Short Form Bill’s of Lading: In this type of bill of lading, the text of the contract is found at the back of the agreement made with the transport company. Generally, these bills of lading are accepted by banks.
● Container Bills of Lading: This type of bill of lading covers all transportations done using containers. Since the shipped goods are sealed by customs and loaded onto the ship, they cannot be controlled by the transport company. Therefore, the document is prepared entirely based on the sender's declaration.
● Liner Bill of Lading: Frequently preferred due to being a secure transport option, this type of bill of lading contains detailed information about all ports the ship will visit and the departure/arrival times during the transport process.
● Through Bill of Lading: This type of bill of lading is issued for transportations made with transfers. If the transport will take place overland first and then by sea, a Through Bill of Lading must be issued.
● Charter Party Bill of Lading: This type of bill of lading is issued not only for the loading of goods onto the ship during the transport process but also when the company providing the shipment leases part of the ship. With this type of bill of lading, the risks that may arise from contracts made between two companies can be eliminated or time-based agreements can be established.
● Non-Negotiable Bill of Lading: This type of bill of lading is issued to prevent loss or late arrival of the document in cases like the transfer of the bill of lading. This document is only sent to the recipient of the goods being transported and cannot be endorsed due to its informational nature.
● Combined-Transport Bill of Lading: This type of bill of lading is prepared when goods are transported using multiple routes. The difference between this document and the Through Bill of Lading is that there is no obligation to transport the goods by sea.
● Tanker Bill of Lading: This type of bill of lading is issued when transporting materials such as chemicals, crude oil, or liquid fuel. Given the risk of spillage during the transportation of these materials, special expressions and conditions are included in this document.
● Mate’s Receipt: This type of bill of lading is considered a temporary document and contains the receipt of goods loaded onto the ship. This document can be used as a bill of lading in transactions involving the sale/purchase of goods without transfer.

What are the Features of a Bill of Lading?

In the logistics sector, the features of the bill of lading, which is a transport document, can be listed as follows:
● The bill of lading is classified as a valuable document,
● The bill of lading represents the ownership of the specified goods,
● The bill of lading is an endorsable document. By endorsing the bill of lading, the goods specified in the bill of lading change hands,
● The bill of lading can also be used as a receipt,
● The bill of lading is a transport document that indicates that the company loading the goods, its authorized firm, or the ship captain (if there is no company in the loading port) has delivered the goods to the company that instructed the loading,
● Additionally, when the bill of lading contains a loading record, it can also be seen as a transport contract,
● The bill of lading is generally prepared in 3 copies. One copy is given to the loader, the second copy accompanies the goods, and the third copy remains with the transporter,
● Unless presented, the importing company cannot retrieve the goods from customs using the bill of lading.

What are the Examples of Bills of Lading?

An example of a bill of lading or transport document is provided below:

Who Prepares the Bill of Lading?

The bill of lading is a legal document showing that the goods loaded have been received and includes the names of the sender and recipient companies. The previously sent bill of lading to the party receiving the goods demonstrates the recipient's ownership rights over the goods. The receiving company cannot take delivery of the goods without this document. The transport document, namely the bill of lading, is a document used by countries that accept the provisions of the CMR (Convention of Contract for the International Carriage of Goods by Road). Additionally, this document verifies that the transport is conducted according to CMR provisions.

The bill of lading is issued on behalf of the recipient by the freight forwarder or transportation company. With this document, it is legally proven that the goods have been received in good condition and are set to be transported under specified conditions, and that a transport contract has been established.