What are the four 4 most common freight documents? (2023)

The five most common documents for international shipping you should be aware of are bill of lading, purchase order, air waybill, and export packaging list.

As far as interstate transportation of goods in the US, there are three documents that are of the greatest importance; the bill of lading, freight bill, and the Free On Board (FOB) terms of sale.

Bill of Lading & Sea Waybill

It is the transportation contract, and important details on the shipment are included in it. It is another relevant part of the ocean freight and proof that the carrier has received the goods from the shipper in good condition.

Bill of lading

The bill of lading (BL or BoL) is a legal export trade document between the person shipping and the shipping company. It contains everything the shipping company needs to know to be able to get the goods to the right destination in optimal conditions.

Air, Road, Sea and Rail. These are the four major modes of transport (or types) in the logistics industry.

A bill of lading is a document that is linked to a shipment and describes what the carrier transports from A to B on behalf of the shipper. The CMR Convention is a treaty between European countries and some countries outside of Europe on the legal rules regarding the carriage of goods by road.

Less Than Truckload (LTL)

By far the most popular type of freight transportation, LTL freight is generally shipped by truck to and from your pickup and destination locations.

There are four major types of freight transportation available for shippers to use in the world of freight shipping. The primary ones are by ground (road), rail, ocean, and air. Although these are the main categories of freight transportation, each method has their own processes that differ from one another.

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House Bill of Lading: Issued by the freight forwarder or non-vessel operating common carrier (NVOCC). Here, the consignor is the seller/exporter and the consignee is the receiver/buyer. Master Bill of Lading: Issued by the shipping line or carrier and is also known as the ocean or carrier BOL.

Imports must have the following documentation: Invoice (unless a commercial sample under $25 in value) Ocean bill of lading, inland bill of lading, through bill of lading, air waybill (air cargo) Proof of insurance.

Whether you’re shipping a full truckload (FTL) or less-than-truckload (LTL) freight shipment, it is vitally important that the shipment is accompanied by a Bill of Lading.

Bill Of Lading

It is one of the most important documents in the shipping industry. It is a contract of carriage between the carrier and the shipper. It states the terms and conditions of carriage and acts as a receipt of goods and proof of ownership.

Typically, there are four common types of freight claims that you will encounter in the industry. Damage, loss, shortage, and concealed damage or shortage are the common claims that can occur in logistics.

Freight classification is a type of product categorization unique to freight shipping. It relies on four factors that help determine cost: density, stowability, liability, and handling.

A freight term identifies how transportation costs are calculated. The default freight terms of Sterling Order Management are: Cost Insurance and Freight (CIF) – The freight cost is completely paid by either the Seller, the Enterprise, or the Hub.

A Sea Waybill is evidence of a contract of carriage and receipt of the goods being transported; whereas a Bill of Lading acts as the contract of carriage and receipt of the goods, while also serving as a document of title affording ownership.

An air waybill (AWB) or air consignment note is a receipt issued by an international airline for goods and an evidence of the contract of carriage, but it is not a document of title to the goods ( unlike Bill of lading which is a document of title of the goods).

What is the difference between a freight bill and a bill of lading? A freight bill is simply an invoice. In contrast, a BoL is a legal document between the shipper and the logistics company describing what’s being shipped, how much of it there is, and where it’s going.

There are two types of FOB, which are FOB destination and FOB shipping point. The type of FOB to be used is typically designated in a customer’s purchase order, and is also stated on the supplier’s invoice to the customer.

Truckload and less than truckload are both excellent options, but what are they? The transport of freight that does not require the entire space of a truck is also known as less than truckload (LTL) shipping, whereas full truckload (TL) shipments take up the space or weight limit of an entire trailer.

All three modes of shipping-land, air, and sea-play a major role in our economy. Each offers benefits that the other mode of transport might not offer.

The type of freight

Flat-bed loads are good-paying loads because they’re usually heavier or larger cargo, and the driver often has to help secure and cover the load. Dangerous goods, such as fuel, chemicals, or other unstable cargo, are better-paying as well.

There are three main modes of transportation to consider for your freight shipping logistics: ground – including full truckload (FTL) and less-than-truckload (LTL) – air and ocean.

What are the types of cargo? Container ship, General cargo ship, tankers, dry bulk carriers, multi-purpose vessels, reefer ship, Roll-on/roll-off vessels.

Freight itself can be defined as the goods transported by truck, train, ship or plane. The means of transport commonly associated with freight shipping are trucks, railroad cars and large ships carrying containers.

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Typically three bills are issued—one for the shipper, one for the consignee, and one for the banker, broker, or third party. There is no restriction on the number of bills of lading that can be issued, but the number issued must be stated on the bill. Because the bill of lading is a document of title, it is valuable.

In many shipments where there is a Master Bill of Lading and House Bill of Lading is involved, the shipper on the bill of lading will mostly be the freight forwarder or NVOCC operator..

The B3 Form is an accounting document used for paying duties and taxes.

No load can be transported without the proper bill of lading associated with it. Not only does the bill of lading create a record of the freight’s condition, quantity, starting point and destination, but the BOL also serves three key functions that promote its necessity to this process further.

Quantity and Description of Cargo Loaded

Prior to endorsing the Bill of lading, the master should ensure that the quantity and description of the goods is true to its correct value of that loaded on board.

The Bill of Lading is issued at the point when the container – the cargo you’re shipping – is loaded onto a vessel for international transport. Much like Incoterms, there are many different types of Bill of Ladings, depending on where you are shipping to, what commodity you are shipping and what are your needs.

7.9.1 Shipping documents

Shipping documents are prepared by you or your freight forwarder. They allow the shipment to pass through customs, be loaded onto a carrier and be transported to the destination. Key shipping documents include: commercial invoice.

What is the difference between the shipper and the carrier? The shipper is the company that owns the goods being shipped. The carrier is the company that transports the goods on behalf of the shipper. Shipping carriers transport packages on behalf of senders, known as shippers, to recipients, known as consignees.

A transport document is a kind of document used to convey information about cargo that is being transported. Kinds of transport documents include: Air Waybill, a transport document used for air freight. Bill of Lading, a transport document for sea freight.

Transportation document (TD) means any executed document for transportation service, such as a bill of lading, a tariff, a tender, a contract, a Government Transportation Request (GTR), invoices, paid invoices, any transportation bills, or other equivalent documents, including electronic documents.

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A road consignment (CMR) note is a standard contract used by companies who want to use a provider to transport goods internationally by road. The CMR note confirms that the haulage company has received the goods and has a contract from the supplier to carry them.

The CMR is a consignment note with a standard set of transport and liability conditions, which replaces individual businesses’ terms and conditions. The CMR note confirms that the carrier (ie the road haulage company) has received the goods and that a contract of carriage exists between the trader and the carrier.

Original Bill of Lading: The Bill of Lading is the primary document used in sea transport. It functions as a contract of carriage, transport goods receipt and a document of title affording ownership.

A bill of lading (also seen as B/L and BoL) is a document given to a shipper by the carrier that details the shipment and serves as a means of transferring the title of goods. The purpose of a bill of lading is to ensure that exporters receive payment and importers receive the merchandise they ordered.

Commercial documents are written records of commercial transactions describing various aspects of those transactions. They may include orders, invoices, shipping documents, transport papers, and certificates of origin.

Electronic Data Interchange is the most ubiquitous protocol for sharing data and documents between logistics companies today. With EDI, trucking enterprises can send information back and forth electronically rather than using slow, costly, and error-prone paper-based methods.

Electronic Data Interchange (EDI) is a data exchange protocol that eliminates humans from the process.

Therefore; an essential part of transportation management lies in building an efficient supply chain from the six main modes of transportation: road, maritime, air, rail, intermodal, and pipeline. Understanding the strengths and weaknesses of each mode is paramount to building an effective supply chain.

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The Eight Principles of TOD are WALK, CYCLE, CONNECT, TRANSIT, MIX, DENSIFY, COMPACT, and SHIFT. They illustrate the relationship between transport and land use.

The different modes of transport are air, water, and land transport, which includes rails or railways, road and off-road transport.