Through Bill of Lading: What it is, How it Works

What Is Through Bill of Lading?

A through bill of lading is a legal document that allows for the transportation of goods both within domestic borders and through international shipment. The through bill of lading is often required for the exporting of goods, as it serves as a cargo receipt, a carriage contract, as well as the title (sometimes) for the products.

Understanding Through Bill of Lading

A through bill of lading is just one kind of bill of lading. A bill of lading is a between a shipper of a good and a transporter or carrier used in international trade. It is required to ship goods and acts as a receipt and contract. It shows that the carrier has received the freight as described—that's the cargo receipt. It also documents the terms of delivery and release of the product. It stipulates that the shipper must deliver that cargo to the consignee in good condition—the carriage contract. The word lading is derived from the word loading, referring to the loading of goods onto a ship.

A bill of lading is perhaps the most important document in shipping.

Special Considerations

A through bill of lading has specific stipulations and conditions. A bill of lading will sometimes only cover one part or one aspect of the shipping process. A through bill of lading is more involved.

As noted above, a through bill of lading allows the transportation of goods both within domestic borders and through international shipment. The bill is often required in order to export goods and serves as a legal certificate authorizing a party to be in possession of and transporting a particular good. This is because a through bill of lading allows for the shipping carrier to pass the cargo through several different modes of transportation, and several different distribution centers.

While there is evidence for receipts for goods loaded aboard merchant vessels stretching back as far as Roman times, the practice of recording cargo in a ship's log is almost as long-lived as shipping itself. The modern bill of lading only came into use with the growth of international trade in the medieval world.

A transporter can move products both within a country and export them, often by air, with a through bill of lading. The through bill must contain an "inland bill of lading," which is the documentation required for domestic transportation. If the shipper wants to move the goods across the ocean, the "inland bill of lading" will not suffice; the through bill of lading will require an "ocean bill of lading" will be required for any goods moving across the ocean.