How to Create a Bill of Lading: Complete Guide

A bill of lading looks simple. Fill in the fields, get it signed, send it to the bank. But one wrong entry can block your payment and hold your cargo at port.

This guide explains what a bill of lading is, what each field means, and how to fill it out correctly.

What is a bill of lading?

A bill of lading (B/L) is a document the shipping line gives you when your cargo goes on the ship. It looks like a form, but it does three jobs at once:

Receipt: Proves the carrier got your cargo
Contract: Sets the rules between you and the shipping line
Ownership proof: Whoever holds the original B/L owns the cargo

That third job is why banks care so much. The B/L proves who owns the goods. No B/L, no cargo.

What are the key fields on a bill of lading?

Every B/L has 15+ fields. Here are the ones that matter most:

Shipper: Who's sending the cargo (usually you)
Consignee: Who receives the cargo (this field is critical)
Notify party: Who gets called when cargo arrives (optional)
Carrier: The shipping line moving your cargo
Vessel name: The ship carrying your cargo
Port of loading: Where cargo goes on the ship
Port of discharge: Where cargo comes off
Cargo description: What you're shipping, how much, how heavy
"Shipped on board" date: When cargo was loaded

How do you fill out shipper, consignee, and notify party?

These three fields tell everyone who's involved. Get them wrong, and you have a problem.

Shipper

This is who's sending the cargo. Usually your company name and address. Simple.

Consignee

This field answers: "Who gets the cargo?" But it does more than that. It decides whether the B/L is negotiable (ownership can change) or straight (ownership is fixed).

Two options:

Option 1: "To order"

Means: "We'll decide later who gets it"
Ownership can change while cargo is on the water
How? Sign the back of the B/L and hand it to someone else
Banks like this because: no payment = no B/L = no cargo for buyer
You must sign the back before submitting to the bank

Option 2: Company name (e.g., "ABC Trading Co.")

Means: "ABC gets it. Nobody else."
Can't change ownership
No signature needed on back
Used when buyer already paid, or you trust them completely

Check your L/C. It will tell you which one to use.

Notify party

This is who the shipping line calls when cargo arrives. Usually the buyer or their customs broker. This field is optional—if you leave it blank, the carrier contacts the consignee directly.

But if your L/C says "notify party: [specific name]," you must include it exactly as written.

What does "shipped on board" mean?

This is the date your cargo was loaded onto the ship. It matters because:

Your L/C has a "latest shipment date"
If "shipped on board" is after that date, the bank rejects your documents
You also have 21 days from this date to submit documents (unless L/C says otherwise)

Always check: Is the "shipped on board" date before your L/C deadline?

What does UCP 600 require for a bill of lading?

UCP 600 is the rulebook banks follow for letters of credit. Article 20 covers bills of lading. Key requirements:

Carrier name and signature

The B/L must show who the carrier is. Someone must sign it—either the carrier, the ship's captain, or their agent. If an agent signs, they must say who they're signing for.

No signature or unclear signature = rejection.

"Shipped on board" proof

The B/L must show cargo is on the ship, not just "received" at the port. Look for words like "shipped on board" or "laden on board" with a date.

Correct ports

Port of loading and port of discharge must match your L/C exactly. "Busan" vs "Busan, Korea" can be a problem if your L/C is specific.

Endorsement for "to order" B/Ls

According to ISBP 745 (the companion guide to UCP 600), if your B/L says "to order" or "to order of shipper," you must sign the back. Missing this is a common mistake.

What mistakes get your B/L rejected?

According to the ICC Banking Commission, 60-75% of L/C documents get rejected the first time. Common B/L errors:

Port name doesn't match L/C: Small spelling differences count
Late shipment: "Shipped on board" date is after L/C deadline
No carrier signature: Or signature without saying who signed
Wrong consignee: L/C says "to order" but you put a company name
Missing endorsement: "To order" B/L with no signature on back
Dirty B/L: Carrier noted damage or bad packaging

Each error is called a "discrepancy." Each one can delay or block your payment.

Bill of lading checklist

Before you submit to the bank:

Shipper name matches your company
Consignee matches L/C exactly ("to order" or specific name)
Notify party included if L/C requires it
Carrier name is clear
Vessel name and voyage number are present
Port of loading matches L/C
Port of discharge matches L/C
Cargo description matches commercial invoice
"Shipped on board" date is before L/C deadline
Carrier or agent signed with clear identification
If "to order" — you signed the back
No damage notes (clean B/L)
Full set of originals (usually 3/3)

The front of the B/L gets your cargo on the ship. The back—if you need to sign it—gets you paid.

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