What is a bill of lading?

• A. A bill of costs from warehousing.
• B. A document issued by a carrier detailing shipment contents, origin, destination, and terms of transport.
• C. A contract listing all suppliers in a supply chain.
• D. A receipt for customer payment.

Answer: (B)

A bill of lading is a document issued by a carrier that provides the official record of a shipment. It describes what is being shipped, where it is from, where it is going, and the terms of transport. This document serves as both a receipt for the goods once they are loaded and as a document of title that can be used to transfer ownership of the goods while they’re in transit. In international trade, it can be negotiable, meaning the holder can claim and take possession of the goods at destination.

Other options describe different concepts: a bill of costs relates to warehousing charges, a contract listing suppliers is about procurement relationships, and a receipt for customer payment is a payment receipt. None of those capture the carrier-issued record that governs shipment details, ownership, and transport terms.