Bill of lading

Scope

This regulation applies to for-hire carriers and those who ship goods.

Regulatory citations

• 49 CFR 373.101 — For-hire, non-exempt motor carrier bills of lading

Key definitions

• Bill of lading (manifest): The written transportation contract between shipper and carrier. It identifies the freight, who it is consigned to, the place of delivery, and gives the terms of the agreement.

• Consign: To send goods to purchaser or agent to sell.

• Consignee: A person who takes delivery from a motor carrier or driver of a commercial motor vehicle of property transported in interstate or intrastate commerce.

• Consignment: Goods shipped when an actual purchase has not been made, but when the consignee agrees to sell the goods.

• Consignor: The person or company (usually the owner) that ships goods to customers.

• For-hire motor carrier: A company or person engaged in the transportation of goods or passengers for compensation.

• Freight: Goods being transported from one place to another.

• Order bill of lading: A negotiable bill of lading that consigns the goods “to the order” of the person named. It is assignable and negotiable.

• Receiver: A person who takes delivery from a motor carrier or driver of a commercial motor vehicle of property transported in interstate or intrastate commerce.

• Shipper: A person who tenders property to a motor carrier or driver of a commercial motor vehicle for transportation in interstate or intrastate commerce.

• Straight (uniform) bill of lading: A non-negotiable document used to provide that the shipment is to be delivered directly to the party whose name is shown as the consignee.

Summary of requirements

As a contract, the bill of lading serves the same purpose as any other contract entered into between two parties.

The face of the bill of lading provides for the entry of information required for the transportation of the freight.

The reverse side usually contains the terms and conditions of carriage.

However, the bill of lading does differ from the ordinary contract in one respect. The terms and conditions, primarily dealing with claims and liability issues, are prescribed by statute. These terms and conditions are part of the bill of lading contract, whether they are actually printed on the form or not. Participants in the bill of lading contract are assumed to be familiar with these terms and conditions.

There are three distinct functions served by the bill of lading:

• A receipt issued by a carrier to a shipper for goods received for transportation. It states the place and date of the shipment, describes the goods, their quality, weight, dimensions, identification marks, condition, etc., and sometimes their quality and value.
• A contract naming the parties involved, the specific rate or charge for transportation, and the agreement and stipulations regarding the limitations of the carrier’s common law liability in the case of loss or injury to the goods. It also lists other obligations assumed by the parties or to matters agreed upon between them.
• Documentary evidence of title to the goods. “Negotiable” bills of lading are made out “to the order of” a consignee and the carrier may only deliver the cargo to the person in possession of the original bill of lading. When a negotiable bill of lading is negotiated, the person to whom it is negotiated receives title to the goods. Non-negotiable bills of lading, commonly known as straight bills of lading, do not convey title to the goods.

Preparation. Bills of lading must be legibly written in ink, indelible pencil, or preferably, typed. It is important that all information be written or typed in the exact space provided for it. It is a good idea to number bills of lading consecutively. Bills of lading issued by common carriers must include:

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