Answers to previous week’s questions: A shipper is also the seller of goods.   A consignee is also the buyer of goods.   A Letter of Credit is similar to paying for goods with a credit card.   Using a Letter of Credit payment method, a seller has to do what three things in order to get paid by the bank? Ship the correct goods on time Ship the correct goods to the right location Ship the correct goods at the agreed price The Bill of Lading is a document that establishes the terms of a contract between a shipper and a transportation company. Lading is another word for cargo or freight. The Bill of Lading (BL) has evolved from a simple ship captain’s receipt into a multi-purpose financial and legal record for modern international trade.   The BL is a legally binding agreement between the shipper and the carrier (APL) for the movement of cargo between point A and point B. This agreement is called a contract of carriage. This contract of carriage specifies what and how much is being shipped, how and when it will be shipped and to whom APL will release the cargo.   A Bill of Lading may be negotiable or non-negotiable. A negotiable BL is made “to the order of,” just like a check. It may be made to the order of the consignee, shipper, foreign bank, a third party in the consignee’s country, or blank endorsed. A negotiable BL may be bought or sold, and the buyer must present at least one original Bill of Lading, properly endorsed, in order to get delivery of the goods.   A non-negotiable BL provides for delivery to the party named in the BL and no one else. The buyer must present proper identification that he or she is the named party on the BL and the owner of the cargo. He or she does not need the BL to get delivery of the goods.   The BL serves several functions: 1. As a final receipt for the goods issued by the carrier 2. As evidence of the contract of carriage between shipper and carrier 3. As a negotiable financial instrument which confers title/ownership to the goods, which therefore can be bought and sold 4. As legal evidence in cases of dispute 5. As source of cargo and shipment information for APL Describe the different functions of a Bill of Lading:   A final ____________ for the goods issued by the carrier.   Evidence of the contract of __________________ between shipper and carrier.   __________________ financial instrument, which confers title/ownership to the goods, which therefore can be bought and sold.   ________________ evidence in cases of dispute.   Source of _____________ information for APL. Home Journey Log Trade Topics People Profiles Index Ask the Eagle