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An official document known as a bill of lading acts as a receipt for commodities transported by a carrier, such as a ship, truck, or train. The fact that it provides evidence of the transfer of ownership of the products from the seller to the buyer makes it an essential document in the process of international trade.
Important details concerning the shipment are included in the bill of lading, such as the parties involved, the origin and destination of the products, their type and amount, and any special instructions or needs. Additionally, it acts as a contract between the shipper and the carrier, laying out the terms and conditions under which the items would be transported.
The bill of lading serves as both a receipt and a contract, and it also has a significant impact on finance and trade credit. It may serve as loan collateral, a document of title that can be transferred to another party, or for other purposes.
The bill of lading is used as proof of the terms and circumstances surrounding the transportation of the goods in the event of a dispute between the shipper and the carrier. Because of this, it's crucial that the bill of lading is precise and comprehensive and that it be stored safely and securely throughout the life of the cargo.
