The BOL (aka Bill of Lading) is that piece of paper you have to print out before a driver will accept an LTL shipment. Much like website terms of service, it’s often glazed over despite how key it is. But, what’s on there that you should know about? If you’re just curious or if you want to check the box that you’re not missing anything crucial, this post is for you.
According to investopedia: A bill of lading (BL or BoL) is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. A bill of lading also serves as a shipment receipt when the carrier delivers the goods at a predetermined destination.
A little over-simplified but it’s the basic idea
The Bill of Lading:
Here is a list of what’s on an LTL freight BOL:
Shipper
Consignee
Bill to party (collect, prepaid, 3rd party)
Date, carrier, reference #’s
PO#’s Identifiers for shipper/consignee
Requested services
Special Instructions
Commodity description (including pieces, packaging, weight, dimensions, freight class & NMFC item #)
Declared Value
Liability agreement*
Rules, waivers*
Shipper signature & dates, Terms & conditions*
Carrier driver signature & date, Good condition & Safety agreement*
*asterisks reference another document or source.
I’ll assume we’re all up to speed on this list up to commodity description/NMFC item# info. This is an entire subject unto itself. Please check out my blog post about NMFC item#’s if you have any questions about that.
Declared value:
In some cases, LTL shipment classes are rated based on their value.
According to Fedex Freight: When the rate is dependent on the value, the shipper is required to specifically state the agreed-upon or declared value of the shipment. In all other cases, value is based on the agreement with the carrier (usually based on their rules tariff unless a specific agreement is made) which is a maximum amount they’ll take responsibility for if they lose or damage the freight. (Note: this is not “insurance” it is a “liability limitation...please see this post for more on that)
Liability Limitation agreement: THE CARMACK AMENDMENT
Somewhere on every bill of lading you will find a reference to the Carmack Amendment [aka 49 USC 14706(c)(1)]. This amendment was made in 1877 (yep, you read that right) and covers an interstate carrier’s exposure when there is a damage or loss. It’s been updated and revised since then but the basic premise is to contain carriers liability to the freight they’re carrying.
Rules, Waivers:
Sometimes located on the back of the document (if it’s a hdn-written BOL) but often showing a link to a website, this is like the terms and conditions of a website. The party setting up the BOL will state any rules or agreements that apply to the shipment.
Shipper Signature:
The shipper is agreeing to everything stated and referenced on the BOL and confirming the shipment was given to the carrier in good condition.
Carrier Signature / Safety Agreement:
The carrier’s representative, the driver, is agreeing that the BOL is the legal contract and the goods are received in good order as far as (s)he knows. Many BOL’s will often refer to DOT safety rules and regulations as well.
A wise man once said, always bring your own contract. If you want to start from scratch and create your own this is a cool site with a fillable PDF https://billoflading.org/. There is a free (and presumably also a paid) version.
To Wrap It Up:
The BOL is the legal contract that describes what’s on the truck, where it came from and where it’s going. It also lays out the rules of the shipment, liability, any agreements and safety regulations. The standard bill of lading described here pertains to domestic trucking only.
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