What is the primary purpose of a Bill of Lading?

The primary purpose of a Bill of Lading is to serve as a document that not only acts as a receipt for the goods being transported but also evidences the contract of carriage between the shipper and the carrier. When it comes to transferring ownership, a Bill of Lading can signify the legal transfer of ownership of the goods upon delivery. This is critical in international trade, where the movement of ownership can often hinge on the presentation of this document.

In many cases, the Bill of Lading functions as a negotiable instrument, meaning that it can be endorsed and transferred to another party. This aspect plays a crucial role in global supply chains where ownership needs to be clearly established during transit.

The other options, while related to aspects of shipping and logistics, do not encapsulate the primary role of a Bill of Lading. For example, it does not primarily serve as proof of sale; this function is typically fulfilled by invoices or sales contracts. Additionally, a Bill of Lading does not document the payment of international tariffs—this is managed through customs documentation. Lastly, while a Bill of Lading may contain shipping instructions, its main purpose is not to issue such instructions to carriers, but rather to record the terms under which the carrier is