Shipping Documents Primer

Brief Overview of Documentary Trade Receipts

What is a Bill of Lading?

A bill of lading is the contract of carriage for the main leg, and like any other contract has terms and conditions. The conditions limit forwarder and carrier liability.

It also provides proof of ownership of the goods when the goods arrive at the destination, or in case of damage, theft or loss. Your country of departure’s forwarder office, or your forwarder’s agent, express delivers a copy to the import agent (forwarder office at your country).

To re-cap, a bill of lading is a: Loading Receipt, Contract Of Carriage and a Document Of Title.

Why its important?

Creating a true “chain of custody” is worthless without having the bill of lading becoming a paperless document. Freight Trust creates that asset on-chain through the DApp. It also includes something called parametric smart contracts. We plan on insuring the accentedness of these documents that are prepared through the DApp to carriers (e.g. truck companies).

What's more for example, when a shipper is sending hazardous material freight, they are responsible for the correctness of the documents. If anything is wrong you can be fined per incidence $75,000 USD.