A bill of lading is a legal document issued by a carrier to the shipper. It contains details about which goods are being shipped, where the shipment is coming from and going to, and details of the shipper, carrier, and consignee.

In addition, it provides evidence of the terms of the contract between a shipper and a transport company under which goods are moved between specified places for a specified charge.

A bill of lading is vital because it acts as the legal document of title, which allows the person holding it to claim ownership of the cargo.

A bill of lading can also be a transferable document of title to goods -meaning goods can be bought and sold simply in exchange for the bill.