What is the primary purpose of a Bill of Lading in shipping?

The primary purpose of a Bill of Lading is to provide a record of shipment and ownership. This document serves multiple critical functions in the shipping process. Firstly, it acts as a receipt that confirms the carrier has received the goods for transport, detailing what has been shipped and under what conditions. Secondly, the Bill of Lading signifies ownership of the goods; it is a legal document that can be transferred, allowing the holder to claim the goods upon arrival at the destination. This characteristic is particularly important in transactions where goods might change hands during transit.

Additionally, the Bill of Lading ensures that all parties involved in the shipping process—shippers, carriers, and consignees—are aware of the terms and conditions related to the shipment, which aids in preventing disputes. While it might touch upon the terms of shipping or serve as a sales receipt, its core function revolves around documenting and proving the shipment and the corresponding ownership rights.