Can I Have More Than Three Original Bills of Lading?

What Is the Limit on Bills of Lading?

The shipping industry standard is three original bills of lading, but you can have more than three as long as the number of originals is documented on each bill.

Key Takeaways:

• A bill of lading is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried.
• For air shipments, an airway bill acts as the bill of lading. However, an airway bill is not a document of title.
• Typically, there are three bills of lading: one for the shipper, one for the consignee, and one for the banker, but there is no limit to the number of bills of lading issued.
• Additional bills of lading increase the risk of fraud, theft, or the unauthorized release of goods.

How a Bill of Lading Works

A bill of lading is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. It acts as a document of title, a receipt for shipped goods, and a contract between a carrier and shipper. The document must accompany the shipped goods and be signed by an authorized representative from the carrier, shipper, and receiver. If managed and reviewed correctly, a bill of lading can help prevent asset theft.

Typically, three bills are issued—one for the shipper, one for the consignee, and one for the banker, broker, or third party. There is no restriction on the number of bills of lading that can be issued, but the number issued must be stated on each bill. Because the bill of lading is a document of title, it is valuable. For security purposes, it is advisable only to request as many bills of lading as you actually need. If more bills of lading are issued, there is an increased risk of fraud, theft, unauthorized release of goods, or release to the wrong person.

Types of Bills of Lading

There are three ways to ship: land, sea, and air. Each mode has its own bills of lading: the ocean bill of lading, the inland bill of lading, and the airway bill, and there are different types used depending on various conditions. Determining which mode of shipping to use depends on time. Air travel is reserved for shipments that are time-sensitive or on a tight deadline, and it is usually more expensive. Travel by ocean and land is slower but more economical, which is why they are used more frequently. BOLs come in two general categories: negotiable and non-negotiable. Some of the types of BOLs are:

• Straight Bills of Lading: Non-negotiable, and must be marked as such. It can only be released to the person named on the bill.
• Order Bills of Lading: Negotiable, outlines any conditions that have been imposed by the shipper. A common example is when payment has been secured by a letter of credit, and the terms must be met before the delivery is accepted.
• Clean Bills of Lading: Given when everything in the shipment is in perfect order. Should any shortages of products or damages occur, a clean bill is not issued.
• Onboard Bills of Lading: Issued when the goods are loaded onto the ship and signed by the ship’s master. This type of ocean bill of lading is rendered when payment is contingent on a letter of credit.

Ocean Bills of Lading

Ocean bills of lading are used when shipments must be made via ship to international destinations. This BOL serves as the carrier’s receipt and a collection document.

Inland Bills of Lading

Inland bills of lading are used in the trucking and railway shipping industries. Often, shippers ship over land to a port of shipping, where goods are loaded onto a ship or plane. Inland bills of lading are not consigned directly to foreign buyers but to a third party, such as a forwarder or packaging company, to be shipped to an international carrier.

Airway Bills of Lading

The airway bill is issued by the air carrier of goods on receipt of goods after completion of export customs formalities. The shipper obtains the airway bill once the cargo is transferred to the air carrier. Since the transit time for air cargo is much less than the transit time for sea shipment, a set of airway bills is sent along with the cargo for immediate reference on transit and for import customs clearance at the destination port by the importer.

Once customs formalities are completed at the loading port customs location, the cargo transfer manifest (CTM) is issued by an International Air Transportation agent along with an airway bill and other required documents for transportation. Original airway bills are issued in quintuplicate, one for the carrier, importer, shipper, and additional copies. The main difference between a bill of lading and an airway bill is that an airway bill is not a document of title.

How Many Original Bills of Lading Can be Issued?

There are three bills of lading issued, but there is no limit on how many can be. However, the number of original bills must be documented on the bills.

What Is Legally Required on a Bill of Lading?

Generally, a bill of lading should have the shipper’s name, list any consignees, who the freight forwarder is, the name of the carrier, shipping date, purchase order number (or reference number), HS codes, shipping and payment terms and conditions, any special instructions, signatures, a description of what’s being sent, and a declared value.

Can I Make My Own Bill of Lading?

You can make and use your own bill of lading as long as it has all the required sections. Templates are available online. However, in some cases, you might need to purchase a bill of lading.

The Bottom Line

Bills of lading detail the type, destination, and quantity of the goods being shipped. A bill of lading acts as a document of title and a receipt for shipped goods and represents the contract between a carrier and shipper. You can have as many originals as you want, but they must be numbered on the bill.