What is a bill of lading?

A bill of lading is fundamentally a document that acts as proof of shipment and receipt of goods. It is issued by a carrier or their agent and details the types, quantities, and destination of the goods being transported. This document serves not only as a receipt for the merchandise but also as a title for the goods, meaning it can be transferred to others, providing security to their ownership during transit.

In the context of maritime commerce, the bill of lading is crucial because it provides key information to all parties involved in the shipping process, including the shipper, the consignee (the party to whom the goods are shipped), and the carrier. It outlines the responsibilities of the parties, establishes liability, and is often required for customs purposes.

The other choices do not accurately represent the function of a bill of lading. For instance, a contract between two shipping companies describes an agreement for services, while a form of insurance policy pertains to coverage for losses rather than proof of goods shipped. Lastly, a warranty for the quality of goods addresses the condition and fitness for use, which is a separate concept from the transport and receipt documentation that a bill of lading provides.