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A bill of lading is a document issued by a carrier to a shipper. Its three functions are: receipt of goods (confirming quantity and apparent condition at loading), evidence of the contract of carriage (recording the terms on which carriage was agreed), and document of title (enabling the holder to claim delivery or transfer ownership by endorsement and delivery).

Bills of lading issued in connection with shipments from ports in England and Wales are governed by the Carriage of Goods by Sea Act 1971, which incorporates the Hague-Visby Rules. COGSA 1992 determines who may sue the carrier. The Hague-Visby Rules set mandatory minimum standards for carrier liability that cannot be contracted out.

A bill of lading is a negotiable document of title; only the holder can claim delivery. A sea waybill is a non-negotiable receipt; delivery is made to the named consignee without production of the document. Bills of lading are used in documentary credit transactions where banks need a transferable security interest in the goods. Sea waybills are simpler but do not serve as documents of title.

The carrier must make the vessel seaworthy before and at the commencement of the voyage, properly man, equip, and supply the vessel, and make the cargo holds fit for carriage. The carrier must properly load, stow, carry, keep, care for, and discharge the goods. These obligations apply before and during the voyage and cannot be contracted out in a bill of lading subject to the Hague-Visby Rules.

Under the Hague-Visby Rules, a carrier's liability for loss of or damage to goods is limited to 666.67 Special Drawing Rights (SDRs) per package or unit, or 2 SDRs per kilogram of gross weight, whichever is higher. The limit does not apply where the shipper has declared the nature and value of the goods and this is incorporated into the bill. The limit also falls away on proof of intentional misconduct.

Under COGSA 1992, a person who becomes the lawful holder of a bill of lading, or who becomes named as consignee, acquires the same rights of suit against the carrier as the original shipper. Rights transfer with the bill when it is endorsed to a buyer or their bank. This makes the bill of lading essential in financing transactions where the bank holds the bill as security.

No. Under English law, the carrier must deliver goods to the holder of a valid original bill of lading on surrender of the bill. Delivering to someone who cannot produce an original bill exposes the carrier to significant liability. If the bill is lost, the carrier will require a letter of indemnity (often counter-indemnified by a bank) before releasing the goods.

Electronic bills of lading are not yet fully equivalent to paper bills under COGSA 1992, which was not drafted with digital documents in mind. However, commercial platforms such as BOLERO and essDOCS use contractual frameworks to replicate the transfer and title functions digitally. The Electronic Trade Documents Act 2023 has extended legal recognition to certain electronic trade documents including electronic bills of lading.