Bill of lading definition

A bill of lading is a confirmation by a common carrier that goods have been received for transport to a given destination.

For example, a manufacturer arranges for a freight company to deliver the goods to its customer and the bill of lading is the document that binds all parties together while the goods are in transit from the manufacturer's dock to the purchaser's dock.

The bill of lading acts as a receipt for the goods and as a contract for delivery. A negotiable bill of lading transfers ownership of the goods although this is not as common as the non-negotiable form.