BL (Bill of Lading)
Definition
A Bill of Lading is a document issued by a carrier (or its agent) to a shipper, acknowledging receipt of cargo for shipment and serving as a contract of carriage and, in negotiable form, a document of title to the goods.
Why It Matters
Possession of an original negotiable Bill of Lading is often required to take delivery of the goods at the destination port, making it central to trade finance and LC transactions.
Example
A bank releases shipping documents, including the Bill of Lading, to the buyer only after payment or acceptance terms are met.