Bill of lading is one of the most important documents that are used in international trade. It is used in shipping of goods. The document is a legal one and can be used as a proof in any court of law. We will now tell you all about the bill of lading and the precautions that you need to take when you make a bill of trading. It is a document that is given by the shipping company to the person consigning the goods. It is nothing but a detailed description of all the goods that the consigner is sending on the ship. Both the parties need to sign this document as a proof that they agree to what is mentioned on the bill of lading. It is also called invoice or waybill.

We will now discuss about the points that you need to check or the precautions that you must have in place while you prepare a bill of lading. It is a very important document and the whole shipment depends on the same. The bill of lading generally has points like detailed description of the good, the quantity of the good and the destination where the good is sent.

The bill of lading is generally signed by the captain of the ship. The captain must see the document properly and understand all the legalities in it before he signs the bill of lading. The first point to check is the shipper. The identity of the shipper must be verified. The name and address of the shipper must be clearly stated in the bill of lading. The name of the shipper will be helpful to the captain. If it is a new consigner then the captain needs to be more careful. If the shipper is an old and existing client then the probability of miscommunication reduces. However, this does not mean that the captain can be little relaxed when it comes to existing clients. Similarly if there is a shipper who has a history of discrepancies in the bill of lading then extra attention must be given to the same.

The second point that must be checked as a precaution is the port and the date of loading that is mentioned in the bill of lading. Both these information must be true and up to date. It is very important to determine the origin of the country the goods are from. The goods must have cleared the customs of the country before they are shipped. The document must clearly state the port of discharge or the name of the port where the goods will be unloaded. This port must be in the route that the ship is taking and in the charter party limits.

Another very important point that must be checked before signing the bill of lading is the condition of the goods. The goods should be in the best of conditions and exactly as mentioned in the bill of lading. The captain should ensure that all the goods as mentioned in the bill of lading are taken into the ship. The quantity and the description of the goods too must match the bill of lading. This can be ensured by physically checking the goods.

The captain must check the freight clauses. It either should be freight paid or freight prepaid. It is recommended that a written statement is taken from the shipper about the freight. The terms in the bill of lading should not conflict with the terms as mentioned in the charter. If there is any difference then the same must be rejected.

Another very important point that the master must check before signing the bill of lading is that the number of bill of lading is similar to what is mentioned in the document. The captain must ensure that he signs the bill of lading only after the consigner has signed on it. The signatures should be with the dates.

These are more or less all the points that a master of the ship must check before he signs on a bill of lading. It is like taking an obligation and giving a commitment. Any default in this can be a big blow for the reputation of the shipping company and the captain.

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