Everything About Bills of Lading in Trucking (BOL Templates, 18 Types of Bills, Hazmat & Proof of Delivery)

A bill of lading, or BOL, is a legal document that transfers ownership of the freight from shipper to carrier to receiver. You need this document before you can move the freight.

How does a bill of lading work?

The BOL is a contract between freight carrier (trucker) and shipper/broker. It also serves as a receipt that provides both parties with all relevant details about the freight that is being moved.

Do truck drivers need a bill of lading? Yes, truck drivers are required to have a bill of lading.

Is a bill of lading a mandatory legal document? Yes, the law does require a bill of lading.

When are bill of lading issued? A BOL is issued before a shipment of a freight can commence.

Are bill of lading and shipping bill the same? No, they are not the same.

A bill of lading (BOL) is important and functions for the following purposes:

1. It serves as a legally binding contract. The BOL outlines who is responsible for the freight, the liabilities upon each party involved, along with freight and service details.
2. Title of ownership. The BOL holder is afforded the goods upon arrival to the destination. It signifies who is the owner of the goods.
3. Receipt. The BOL holds details about the shipped goods and that the carrier in possession is responsible
4. Proof of Delivery. This is proof that the freight load has reached it’s recipient.

A shipping bill states info on the goods being shipped, such as quantity, value, and type.

Does a bill of lading need to be signed?

Yes, a BOL needs to be signed to show that the freight has been transferred between shipper, carrier, and receiver. This means that all parties mentioned will need to sign the BOL to prove where the freight is coming from, who is transporting it, and that it’s been received at its destination.

Who is responsible for the bill of lading?

The broker or carrier is responsible for issuing a BOL. A shipper uses their BOL to make Full Truckload (FTL) Shipments.

A shipper BOL is issued for each freight load and is based on specific details, such as:

• Type of Goods (Commodity)
• Purchase Order
• Credit Letter
• etc.

These factors can cause a carrier to carry more than one BOL in a single truckload since each freight shipment demands its own BOL.

Is a bill of lading required by DOT?

Yes, you can get into serious legal trouble if you are pulled over by the Department of Transportation (DOT) and don’t have a BOL for your freight.

Make sure you carry blank BOL forms for your shipper to sign if they don’t provide you with a BOL.

Honestly, 99.99% of the time they will give you a BOL. But it’s nice knowing you have blanks ready if the occasion arises.

Trucking Bill of Lading (BOL) Example

Below is a free, printable generic bill of lading short form that you can use:

You get a templates like this in our Trucking Business CEO Training, including:

• Carrier / Shipper Agreement
• Company Profile
• Dispatch Agreement
• Invoice
• Notice of Assignment
• and more

You can get your FREE electronic fillable bill of lading short form here.

Instructions for Creating a Bill of Lading

1.) Names, Addresses, Dates.

You start by filling out the full names and addresses of both the shipper and consignee receiver.

Fill out the Shipper address, also known as the “Ship From” or “Origin” location. Include the company name, phone number, email, and other relevant contact information.

Then do the same with the “Ship To” or “Destination” location. There’s also a field for any special instructions for the delivery, if needed.

Make sure to include the dates and times for both pickup and delivery deadline.

2.) Cargo Details & Carrier Info.

The BOL should provide a description of the goods in the freight load. These details should include:

• Shipment Weight
• Type of Commodity
• Quantity
• Packaging Type (pallets, crates, etc.)
• Freight Classes (if needed)

In the Trucking Business CEO program you learn how to use this information to maximize your profits by identifying where you have negotiation power based on cargo details, destination, and other factors only the professionals know about.

3.) Special Reference Numbers, Purchase Orders, Shipping Class.

This is where you put down the BOL number, trailer number, serial number, and so on. Based on the company, you may need these reference details for the freight to be picked up or accepted at delivery.

The NMFC freight shipping class influences the cost of shipping. The freight class is based on:

• Cargo Density
• Weight
• Dimensions
• Stowability (Storage Capability)
• Value
• Liability
• Ease of Handling

4.) Additional Special Instructions.

The carrier special instructions for the delivery can be put here. The additional services requested can be put here too, such as:

• Accessorial Fees
• Temperature-Controlled Transit
• Delivery Notifications
• Hazmat (more on this later)

5.) Review & Sign the BOL.

All parties involved should perform their due diligence and review the BOL to make sure all information is accurate and no details are missing. Once the document is signed off, the load will be shipped off by the carrier, and the BOL will serve as a receipt for your records.

Hazmat Bill of Lading (BOL)

A hazardous material, or “hazmat”, is an item that can harm living organisms and damage property or environments if handled, stored, or shipped improperly.

The Department of Transportation (DOT) states that hazardous material, or “hazmat”, freight must be clearly cited and acknowledged when shipping. This means that hazmat carriers must be trained and carry the proper endorsements when dealing with hazardous materials.

When shipping hazardous materials, all packaging and labels must provide proper documentation.

The Hazmat Bill of Lading can also be used as shipping papers if it provides the proper information.

DOT Hazmat BOL requirements include the following:

Basic Description contains the following in the given order (1) Identification Number, (2) Proper Shipping Name, (3) Hazard Class, (4) Packing Group. These four details are also referred to as “ISHP” and is pronounced “I Ship”.

Additional Information can include—

• Total Quantity (measured by mass or volume)
• Type of Packaging Used
• Technical Names
• Labels (ex. “Radioactive”, “Hot”, “Peroxide”, etc.)

Certification statement that ensures all materials are properly labeled, packaged, classified, and prepared for freight transportation.

Date records of when the carrier picked up the hazmat freight. This must be kept for a minimum of two years.

Emergency Information such as contact information and precautionary notes for emergency responders who find themselves involved in an incident regarding the hazardous freight materials.

If you fail to process the paperwork properly, you can find yourself dealing with civil penalties ranging from $508 to $200,000 if involved in a case of serious violations or destruction. Investigations that follow can halt business operations as well as the time spent correcting paperwork errors. All of this can damage business reputation and client trust.

Hazmat Safety Data Sheet (SDS)

If this material isn’t included on the Hazmat BOL already, then it will be found on a separate document called a Safety Data Sheet (SDS).

The SDS document is made by the hazardous material manufacturer and contains the following info on the freight:

• Chemical Properties
• Environmental/Physical Health Hazards
• Safety Precautions
• First Responder Recommendations
• Notes on Proper Disposal

A closer look at the “Packaging Group”, that we mentioned earlier, tells us the degree of danger the commodity presents based on the type of hazardous material and freight quantity.

The packing groups are I, II, and III, where the degree of danger is Great, Medium, and Minor, respectively.

The “Hazard Class” is a Department of Transportation (DOT) categorization that places hazardous materials in the nine following classes:

What are the types of bills of lading?

There are 18 different types of bills of ladings. Each of these are used for unique shipping scenarios and are stated differently within their contracts.

Here’s a list from most commonly used to least commonly used BOL’s in the industry:

1. Order Bill of Lading is the most common BOL, where the delivery is restricted to a predetermined destination to be signed off by an authorized person responsible for receiving the delivery.
2. Master Bill of Lading is issued by the transport company and used between a freight broker and the transport vessel carrier.
3. House Bill of Lading, also known as “Forwarder’s Bill of Lading”, is given to clients by their freight broker.
4. Straight Bill of Lading, also known as “Non-Negotiable Bill of Lading”, where the freight shipment is not prioritized by either the endorser or endorsee. Instead, the freight is consigned to a specific party that has paid in advance for the shipment. Based on local laws, the consignee can only claim ownership if they hold the original BOL at delivery.
5. Bearer Bill of Lading is used for bulk shipments that are sent out at smaller quantities to be delivered to whoever carries the BOL—the consignee is unspecified and can be negotiated at delivery.
6. Through Bill of Lading allows freight to travel between distribution centers and across international and national borders on various necessary means of transport. This can include Inland BOL, Airway BOL, and Ocean BOL, if any are needed.
7. Combine Transport Bill of Lading, also known as “Multimodal Transport BOL”, is used when the freight must use more than one mode of transport.
8. Open Bill of Lading, also known as “Negotiable Bill of Lading”, allows for the freight load to be transferred among different designated consignees at every sign-off.
9. Direct Bill of Lading is where the freight is picked up and delivered by the same transport vessel.
10. Ocean Bill of Lading is for freight transported overseas.
11. Inland Bill of Lading is for freight transported on land.
12. Airway Bill of Lading is a non-negotiable BOL for freight transported by air.
13. Received Shipment Bill of Lading is a temporary document that is used when the carrier is late. This bill is used to confirm the goods are received but haven’t been put aboard the transport vessel yet. This bill is replaced by a “Shipped BOL” when the goods are officially loaded into their transport.
14. Shipped Bill of Lading is when the freight is aboard the carrier transport.
15. Clean Bill of Lading indicates that all freight on the given transport vessel is in good, working condition.
16. Dirty Bill of Lading indicates that freight on the given transport vessel is “dirty” due to broken goods, severe package damage, incorrect quantity, etc.
17. Stale Bill of Lading is when the freight is delivered before the BOL. This means that the transfer of ownership hasn’t occurred yet.
18. Surrender Bill of Lading is issued by an exporter to an importer to indicate that the freight has been delivered and ownership is transferred.

What is Proof of Delivery (POD)?

Proof of Delivery (POD) is a receipt document that proves that the delivery has been properly received by an authorized recipient and confirms the completion of services between the receiver and transport carrier.

If you have gone through our training, then you know that as an owner of a small trucking company, it helps to cover your own hide by getting your drivers to take pictures of the truckyard, the port, and the freight cargo for your own records.

When does the authorized recipient sign the proof of delivery? If you are the receiver, you want to confirm that the shipment you received is your shipment. Make sure you received your entire shipment and inspect the goods. If there are any damages, state them in the POD pre-signing. Look out for any notes from the shipper amongst the cargo.