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Bill of Lading a bill of lading is a document issued by a carrier to a shipper of goods it is a negotiable instrument and it serves three purposes it is a receipt for the goods shipped it evidences the contract of carriage and it serves as a document of title name the word lading means loading both words being derived from the old english word Haledon lading specifically refers to the loading of cargo aboard a ship however bills of lading should never be called Bills of loading description a Bill of Lading sometimes abbreviated as BL or buh L is a standard form document it is transferable by endorsement or by lawful transfer of possession and is a receipt from shipping company regarding the number of packages with a particular weight and markings and a contract for the transportation of same to a port of destination mentioned therein in the case of Coventry V Gladstone Lord Justice Blackburn defined a bill of lading as a writing signed on behalf of the owner of ship in which Goods are embarked acknowledging the receipt of the goods and undertaking to deliver them at the end of the voyage subject to such conditions as may be mentioned in the Bill of Lading a bill of lading is a key document used in the transport of goods as a document of title it is also an important financial instrument a bill of lading is a document generated by shipping line or its agent giving details of a shipment of merchandise alongside this principal purpose the Bill of Lading also certifies that the goods have been shipped aboard a vessel and in some cases certifies the condition of the goods at the point of loading assigns title to the goods and requires the carrier to release the merchandise to the holder of the title or a named party at the destination port history while there is evidence of the existence of receipts for goods loaded aboard merchant vessels stretching back as far as Roman times and the practice of recording cargo aboard ship in the ship's log is almost as long lived as shipping itself the modern bill of lading only came into use with the growth of international trade in the medieval world the growth of mercantilism which produced other financial innovations such as the Charter party once Carter partita the bill of exchange and the insurance policy produced a requirement for a title document that could be traded in much the same way as the goods themselves it was this new avenue of trade that produced the Bill of Lading in much the same form as we know today codified provisions on bills of lading may be found in the 1924 hague rules in 1924 and the hague this b rules 1968 and 1979 and the hamburg rules although the term bill of lading is well-known and well-understood it may become obsolete articles 115 and 116 of the Rotterdam rules.