A
bill of lading (sometimes abbreviated as
B/L or
BoL) is a document issued by a
carrier which details a
shipment of
merchandise and gives
title of that shipment to a specified
party. Bills of lading are one of three important documents used in
international trade to help guarantee that
exporters receive payment and
importers receive merchandise. A
straight bill of lading is used when payment has been made in advance of shipment and requires a carrier to deliver the merchandise to the appropriate party. An
order bill of lading is used when shipping merchandise prior to payment, requiring a carrier to deliver the merchandise to the importer, and at the endorsement of the exporter the carrier may transfer title to the importer. Endorsed order bills of lading can be traded as a
security or serve as
collateral against
debt obligations.