A bill of lading is a legal instrument used in the transportation and shipping industries which lists the goods being shipped and the terms under which they will be delivered. If the goods as delivered do not match the terms of the bill of lading, the transportation company can be liable for damages.
Bills of lading are governed by the Pomerene Act of 1916. As per this act, bills of lading are either negotiable or nonnegotiable. Negotiable bills of lading are transferable to another party while non-negotiable bills of lading are not.
[Last updated in July of 2022 by the Wex Definitions Team]