It is a document that defines a transportation agreement between a shipper and a transportation company. The shipper receives these documents from the transportation company. A bill of lading specifies the carrier by which the goods will be transported to their final destination, as well as the terms on which the shipment will be transported and the payments will be initiated through Business Accounts.
Therefore to put it in precise manner, A bill of lading is a legal document that specifies the form, amount, and destination of goods being transported by a carrier. When the carrier delivers the goods to a predetermined location, the bill of lading also acts as a shipment receipt. This document must be signed by an approved official from the airline, shipper, and recipient and must accompany the shipped goods, regardless of mode of transportation.
Types–
Order bill of lading- This is the most common form of bill of lading found aboard. The consignee or his order is addressed on the bill of lading. That is, the designated consignee is the cargo's owner, or he may have the shipment shipped to another party by supporting the bill of lading to that party.
Bearer bill of lading- The bearer bill of lading is one in which the bill of lading's bearer is the cargo's owner and the bill of lading contains no consignee. This type of bill of lading is extremely rare, since there are significant risks associated with misusing this type of bill of lading.
Straight bill of lading- The straight bill of lading is assigned to a specific group, and that party is not allowed to delegate it to someone else. The party must only accept delivery of the cargo, which cannot be sold by moving the bill of lading to the name of another party.
Switch bill of lading- This is a duplicate bill of lading for a shipment for which the original bill of lading has already been given. When the consignee does not want to disclose the identity of the cargo's shipper to the new buyer, a switch bill of lading is usually demanded from the vessel's owner.