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  7. Bill of Lading
Commercial

Bill of Lading(BOL)

Definition

The primary shipping document that serves as a contract of carriage between the shipper and the railroad, a receipt for the goods tendered, and sometimes a document of title. The bill of lading describes the commodity, weight, origin, destination, routing, and any special terms. It is issued by the railroad or its agent when freight is accepted for transportation.

Related Terms

Waybill

An internal railroad document derived from the bill of lading that travels with or ahead of a car and contains all information needed to route, classify, and deliver the shipment. The waybill is the operational document used by railroad employees to handle a car through the system. It may be electronic in modern railroad IT systems.

Freight Bill

The invoice issued by a railroad to a shipper or third party for transportation services rendered, including linehaul, fuel surcharge, and any applicable accessorial charges. Freight bills may be prepaid (paid by the shipper at origin) or collect (paid by the consignee at destination). Freight bill auditing is a significant function in large shipping operations.

Consignee

The party designated on the bill of lading to receive the shipment at the destination. The consignee is responsible for unloading the car within the free time period and for paying collect freight charges if applicable. They are also liable for demurrage if unloading is delayed.

Consignor

The party who ships or consigns goods for transportation; synonymous with shipper in most railroad contexts. The consignor is named on the bill of lading as the originating party and bears responsibility for proper preparation of the shipment. Prepaid freight charges are billed to the consignor.

Reconsignment

A change in the consignee, destination, or routing of a shipment after the original bill of lading has been issued but before final delivery. Reconsignment allows shippers to redirect freight in transit to meet changing market conditions. A charge is typically assessed by the railroad for processing a reconsignment.

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