What is a bill of lading: the document a carrier issues for goods it takes on, serving as receipt, contract of carriage and, in vehicle transport, the record of the car's condition at collection and delivery
A bill of lading, usually shortened to BOL or B/L, is the document a carrier issues when it takes goods on board. It confirms what was received, sets out the terms on which the carrier moves it, and in sea freight it can also act as the document of title that allows the goods to be claimed at the other end.
In vehicle transport it does one more job that matters more than the rest: it records the condition of each car when the driver collects it and again when it is delivered. If a car arrives with a new dent, the bill of lading is what shows whether the dent was there at collection. The term is used in shipping worldwide and is the everyday word in US auto transport. In UK road haulage the same paperwork is usually called a consignment note, or a CMR note on international journeys, and for car movements the condition part is often a separate vehicle condition report.
What a bill of lading contains
Layouts differ by carrier and by mode, but an auto transport bill of lading normally carries:
- The parties. Shipper, carrier and receiver, with the addresses for collection and delivery.
- The vehicle. Make, model, colour and the VIN, sometimes the mileage.
- A condition diagram. An outline of the car from each side, on which the driver marks existing damage, often with a letter code per type (scratch, dent, chip, crack) and a note on size and position.
- The terms of carriage. The agreed price, the carrier's liability and any special instructions.
- Two sets of signatures. Driver and shipper at collection, driver and receiver at delivery, each confirming the condition as marked.
How the bill of lading works at collection and delivery
At collection the driver and the person handing over the car walk round it together. Every mark is drawn on the diagram, both sign, and each keeps a copy. That is the collection inspection.
At delivery the receiver walks round the car again with the driver and compares it with the diagram. Anything new is written on the delivery section before the receiver signs. That is the delivery inspection. A clean signature at delivery is generally read as acceptance that the car arrived in the condition shown, which is why carriers and shippers both tell receivers to inspect before signing, even in the dark or the rain.
Paper bills are giving way to electronic ones on a driver's tablet or phone, with photos attached to each mark. The idea is the same as electronic proof of delivery: the record is made at the vehicle and cannot be redrawn afterwards.
Bill of lading example: a dealer trade between two sites
A dealer group moves a nearly new SUV from one site to another four hundred miles away on a multi-car transporter. At collection the driver marks a small chip on the bonnet and a kerbed front left wheel, and the yard manager signs.
The car is unloaded at the receiving site after dark. The receiving porter walks round it with a torch, compares it with the diagram and finds a scratch along the rear right door that is not marked. It goes on the delivery section, the driver signs next to it, and the porter photographs it. The group's claim against the carrier is for the door only. The chip and the wheel were on the bill at collection and stay with the dealer.
What a bill of lading does not do, and the mistakes
It does not settle the claim. It is evidence. Who pays, and how much, follows the carrier's terms and its insurance.
It does not see what nobody looked at. A car collected covered in dirt, in the dark or in the rain has a diagram that says little, and damage under the dirt becomes an argument.
The common mistakes: signing at delivery before walking round the car; marking "scratches" with no position or size; no photos to back up the drawing, so the diagram is one person's word against another's; photos with no date or place, which prove nothing about when the mark appeared; and losing the collection copy, which leaves the receiver with half the record.
Who keeps the bill of lading
Everyone involved keeps a copy: the carrier as its contract and receipt, the shipper as proof of what was handed over, the receiver as proof of what arrived. For a dealer, a leasing company or a fleet, the copies belong with the vehicle's file, next to any photos taken at each end.
Where the collection or delivery condition is recorded by the person handing over or receiving the car, Venta Capture, a product of VentaVid, is one way to add photo and video to the paper record. They receive a secure link and follow guided steps in the mobile browser with no app, one step per side of the car, and what is recorded in the session arrives timestamped, located and digitally sealed on a case the team can review. See Venta Capture for car dealerships.
