What is a Bill of Lading?: A Guide to LTL BOLs and More
The Bill of Lading (BOL) is a critical document for any freight shipment, whether it’s truckload, partial, or less-than-truckload (LTL). Think of it as the backbone of your shipment’s journey: it contains all the essential details about what’s being shipped, where it’s coming from, and where it’s going. This document acts as a legally binding agreement between the shipper and the carrier, serves as a receipt for the goods, and establishes a chain of custody to keep everything on track.
BOLs are important for all freight shipments, but they’re especially critical in LTL shipping. That’s because LTL shipments share trailer space with other freight, making accurate and detailed documentation critical to avoid mix-ups, delays, and unexpected fees. In this post, we’ll break down everything you need to know about BOLs, including what they are, what they include, and why accuracy is especially important for LTL shipping. Whether you’re new to freight or just want to double-check your process, this guide has you covered.
A little over-simplified but it’s the basic idea.
What is a Bill of Lading (BOL)?
The BOL is a legally binding document that keeps your freight shipment organized and lays out all the details the driver and carrier need to handle your goods from pickup to delivery. Here are the BOL's many purposes:
Contract of Carriage: The BOL spells out the agreement between the shipper and the carrier, including each party’s rights, responsibilities, and liabilities.
Receipt of Goods: It serves as proof that the carrier has taken possession of the shipment.
Title of Goods: In some cases, the BOL represents ownership of the goods and allows the holder to claim them upon delivery.
A properly filled-out BOL helps you avoid surprise fees, minimize delays, and ensure your freight gets where it needs to go without a hitch. Let's take a closer look at what you need to include on your BOLs.
What Goes on a BOL?
Every BOL includes essential information about the shipment, and while much of it is standard across all freight, there are unique considerations for LTL shipments. Here’s what you’ll typically find:
Shipper: The name and address of the party sending the goods.
Consignee: The recipient’s name and address.
Bill to Party: Indicates who is responsible for paying for the shipment (collect, prepaid, or third party).
Date, Carrier, Reference Numbers: Identifiers that track the shipment.
Purchase Order (PO) Numbers: Important for connecting shipments to orders.
Requested Services: Any additional services needed, like liftgate or inside delivery.
Special Instructions: Notes for the carrier on handling the shipment.
Commodity Description: This includes details like pieces, packaging, weight, and—for LTL—dimensions, freight class, and NMFC item number.
Declared Value: The shipment’s value for liability purposes.
Liability Agreement: Specifies the carrier’s responsibility in case of loss or damage.
Rules and Waivers: Terms and conditions set by the shipper.
Signatures: Both the shipper and carrier must sign, confirming the agreement and receipt of goods.
Liability Limitation Agreement (aka The Carmack Amendment)
Somewhere on every bill of lading, you’ll find a reference to the Carmack Amendment (49 USC 14706(c)(1)). Created in 1877, this amendment defines a carrier’s liability for loss or damage during interstate shipping. While the law has been updated over the years, its purpose remains the same: to set limits on the carrier’s responsibility for the freight.
Declared Value
In some cases, LTL shipment rates are determined by the declared value of the goods. According to FedEx Freight, when the rate depends on value, the shipper must state the agreed-upon or declared value on the BOL. If no specific agreement is made, the carrier typically follows their standard liability limits, which are outlined in their rules tariff.
Rules and Waivers
Rules and waivers are often listed on the back of a handwritten BOL or linked via a website for digital documents. These terms outline specific conditions or agreements that apply to the shipment. Think of them as the fine print—not glamorous, but definitely important.
Shipper Signature
The shipper’s signature on the BOL confirms that they agree to all the terms and conditions outlined in the document and that the goods were handed over to the carrier in good condition.
Carrier Signature / Safety Agreement
When the carrier’s representative signs the BOL, they acknowledge receipt of the goods and agree to transport them under the terms specified. Many BOLs also reference Department of Transportation (DOT) safety regulations.
Why Accuracy is Critical for LTL BOLs
Did you know that -70% of extra fees and over half of shipment delays in LTL are caused by avoidable mistakes on the BOL? That's right, even the smallest mistakes on your BOL can turn into major headaches and added costs.
Let’s say the weight of a shipment is off by 100 pounds. In a full truckload, the impact is pretty negligible (I mean, 35,000 lbs versus 35,100 lbs isn't a big deal for a 53' trailer). But in LTL, where costs are calculated down to the pound, even a 10-pound miscalculation can trigger delays and extra fees. LTL carriers depend on accurate weight and dimensions to plan their loads, so getting it right on the BOL before pickup is essential. Here’s what you can expect if you don't get those details right:
Reweigh fee: LTL carriers use precise digital scales to check shipment weights. If the weight on your BOL doesn’t match, the carrier will reweigh the shipment and add a Reweigh accessorial to your invoice as well as the additional weight (if applicable). So double-check the exact weight before finalizing your BOL to avoid these unnecessary fees.
Reclassification: Freight class is based on factors like weight, dimensions, and density. If your BOL has incorrect details for any of these, your shipment might be reclassified to a different freight class, and you'll be hit with yet another accessorial fee for the Reclassification (annoying, right?).
To avoid these issues, make sure your BOL includes accurate NMFC item numbers, weights, and dimensions.
Disputing LTL BOL Accessorials and Fees
It's important to note that carriers will not allow you to contest reweighs or reclassifications unless you have one or all of the supporting documents linked to your shipment (by PO# or product info) showing the correct weight or dimensions:
Invoices
Spec Sheets
Packing Slips
Product or Website Pages
Keeping these documents handy gives you the tools to resolve disputes without unnecessary back-and-forth. When it comes to LTL shipping, those small details make all the difference.
Partner with TFWW Manchester for Expert LTL Solutions
At TFWW Manchester, we understand how crucial it is to get your BOL details right the first time. With decades of experience in LTL shipping, our team is here to simplify the process, reduce your risk of costly errors, and ensure your LTL freight gets to its destination quickly. From making sure every detail is spot-on to navigating NMFC classifications, we’re equipped to save you time, money, and stress.
Ready to experience hassle-free LTL shipping? Contact TFWW Manchester today and let us help you take the guesswork out of freight logistics.