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LandedCost

How to Read a Bill of Lading: Every Field Explained

DT
David Townsend
· 4 min read
How to Read a Bill of Lading: Every Field Explained

The Document That Controls Your Cargo

The Bill of Lading (B/L) is more than just a shipping receipt. It serves three critical functions:

  1. Evidence of the contract of carriage — proof that the carrier agreed to transport your goods
  2. Receipt for the goods — confirmation of what was loaded onto the vessel
  3. Document of title — whoever holds the original B/L owns the goods

Getting the details wrong can delay customs clearance, prevent you from collecting your cargo, or create legal complications.

The Key Fields

Shipper

The party sending the goods — usually your supplier or their freight forwarder. This should match the seller on your commercial invoice.

Consignee

The party receiving the goods — you, or your customs broker/freight forwarder acting on your behalf.

Important: If the B/L says "To Order," the goods are released to whoever presents the original B/L — this is used in letter of credit transactions.

Notify Party

The party to be notified when the vessel arrives. Usually you (the importer) or your freight forwarder. This is purely informational — it doesn't confer ownership.

Port of Loading

Where the goods were loaded onto the vessel. Should match your Incoterm (e.g., FOB Shenzhen means loading port is Shenzhen).

Port of Discharge

Where the goods will be unloaded. This is your destination port (e.g., Felixstowe, Rotterdam, Los Angeles).

Place of Delivery

The final destination if different from the port of discharge. May list your warehouse address if the carrier provides door-to-door service.

Vessel Name / Voyage Number

Identifies the specific ship and journey. Useful for tracking your shipment.

Container Number(s)

The unique identifier for your container(s). Format: four letters + seven digits (e.g., MSCU1234567). You'll need this for tracking and port collection.

Seal Number

The security seal number placed on the container after loading. If the seal is broken on arrival, it suggests the container was opened in transit.

Description of Goods

A general description of what's inside the container. Doesn't need to be as detailed as the commercial invoice but must be accurate.

Number of Packages

Total number of cartons, pallets, or packages. Must match the packing list.

Gross Weight

Total weight of the shipment including packaging. Must match the packing list.

Measurement (CBM)

Total volume in cubic metres.

Freight Terms

Whether freight is prepaid (paid by the shipper) or collect (paid by the consignee at destination). Under FOB terms, freight is usually collect.

B/L Number

The unique document reference number. You'll use this for tracking and customs clearance.

Date of Issue

When the B/L was issued. Under letter of credit terms, this date must fall within the shipping deadline.

Types of Bill of Lading

Original B/L

Physical paper documents (usually issued in triplicate). The consignee must surrender an original to collect the goods. Slower but provides maximum security.

Telex Release / Sea Waybill

Electronic release — no physical document needed. Faster and more common today. The carrier releases the goods to the named consignee upon arrival.

Express B/L

Similar to a sea waybill — the carrier releases goods without requiring surrender of an original document.

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Common Mistakes

  1. Name mismatches — if the consignee name doesn't match your customs registration, clearance will be delayed
  2. Wrong port of discharge — double-check the destination port before the B/L is issued
  3. Incorrect package count — discrepancies between the B/L and packing list trigger customs scrutiny
  4. Lost original B/L — if you lose a full set of originals, you'll need a bank guarantee to release the goods (expensive and slow)

What to Check When You Receive Your B/L

  • Your company name is spelled correctly
  • The port of discharge is correct
  • Package count, weight, and CBM match the packing list
  • The container and seal numbers are recorded
  • Freight terms match your agreement

Create matching commercial invoices with the invoice generator and track all shipping documents alongside costs in LandedCost.io.

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