Shipping freight can be a minefield of documents, permits, classifications, understanding charges, etc. One huge common misconception is that shipping freight is essentially just loading a truck and hitting the road, no, no, no, there’s way more to it than that. An area that’s often overlooked when shipping freight whether it’s domestically or internationally is the documentation side of things. It’s super important that domestic freight documents are carefully prepared with the highest attention to detail to ensure all details provided are correct. This will help your freight to pass through a supply chain and reach its destination with full authorization, care and any additional needs your cargo might have. Proper documentation can make or break a shipment and failure to produce or provide the correct documentation can lead to delays, compliance issues, or even refused loads.

To avoid any complications occurring in the first place, let’s take a look at domestic freight documents that you will need to begin shipping. We will include each documents purpose, when it’s needed and what information it should include.

1.Bill of Lading (BOL) 📃

Up first is the BOL. Quite possibly the paperwork that’s considered most important in any shipment. This is a legally binding contract between the shipper and carrier that outlines all basic details of your shipment. BOL’s include information such as:

• Freights origin
• Delivery address
• Relevant contact information
• Description of the freight; including, packaging, dimensions, weight and classification
• Carrier, shipper and consignee details
• Mode of transport required

BOLs are issued by a carrier to the shipper once the freight is loaded and ready for transport. This document confirms the receipt of cargo, and also acts as proof of title to the goods (allowing ownership transfer). This means that the shipper will usually keep hold of it until they have received payment of goods and will then transfer the original BOL to the consignee in order for them to claim the freight at drop off.

Who needs a BOL?

Every single shipment requires a BOL, before (in this case) the truck hits the road, but know that BOLs are required across all transportation methods. No BOL, no shipment. The Department of Transportation (DOT) expects every carrier to have a BOL for every shipment should they be chosen for inspection, it is in fact a legal requirement.

2.Freight Bill 📃

The freight bill comes hand in hand with the BOL, you need both. Where the BOL is more of a summary of shipment information, see the freight bill more as an itemized invoice issued by the carrier that outlines the charges incurred for transporting freight, surcharges and any additional accessorial charges.

A freight bill is not legally binding, but is an essential part of shipping to clearly outline costs, act as an invoice and is vital for accounting purposes. They include the following information:

• Breakdown of freight charges
• Total cost and payment terms
• Billing party details (can be the shipper, consignee, or a third party, whoever is indicated on the BOL as “bill to”)

Who needs a Freight Bill?

Once again, every single shipment will involve a freight bill. You may not be invoiced the charges until pick up, delivery or sent electronically during the shipping process. If using a third party provider or broker, they may consolidate their costs, and depending on your agreement the freight bill might be invoiced for each shipment or for multiple shipments during a pre-determined period of time.

3.Packing List 📃

A packing list is used as an official inventory of the shipment, it’s an itemized list, used by the shipper and consignee to help determine that all items shipped, also arrived, with no missing pieces.

It’s important that the shipper correctly records every item and quantity packaged up to avoid confusion at delivery. The recording should include the following information:

• Describe the cargo
• Order and shipment information (e.g. shipment date, reference number, etc.)
• Number of units for each item
• SKU or UPC codes if necessary
• Weight & dimensions
• Total count of packages

In the case that any freight is missing or damaged, the packing list will be a crucial document for insurance claims. Essentially, it covers the shipper, carrier and consignee in different ways

The shipper – Has a clear listing of exactly what was shipped, useful in instances where freight goes missing.

The carrier – Once all freight is unloaded at its’ destination, as long as it matches the packing list the carrier is not liable for any missing freight if not stated on the list.

The consignee – If the recipient accurately checks the freight received, against the packing list. The receiver of goods cannot be blamed for signing off on missing freight.

4.Proof of Delivery (POD) 📃

Once freight has reached its’ destination, it’s a clever move for a proof of delivery document to be created and signed. In most cases, a copy of the BOL is signed by the carrier and consignee and used as POD. Proof of the recipient receiving the shipment in good condition could come in useful. Especially for instances where the recipient tries to claim that they didn’t receive the shipment or try to claim for damages after the fact, once signed off. Although, this type of document ultimately covers all involved the shipper from wrongful claims, carrier from being accused of damages or missing items and the consignee in the cases freight is lost or damaged, as long as they don’t sign the POD the case will be further investigated, once signed they won’t really have a legal leg to stand on to claim.

Proof of delivery should include:

• Details of shipper, carrier and consignee, BOL number and shipment ID number
• Delivery Details
• Condition acknowledgment
• Signature

Who needs a POD?

Any freight moved, should be signed off by consignee. It closes out a shipment, so everyone involved knows the freights’ journey is complete and it’s also important for record-keeping and accounting.

Conclusion 💭

The above domestic freight documents are standard requirements in the U.S. for each ground shipment. Any errors in these documents can severely impact your shipping times, cause lengthy delays or refusal of moving freight, cause safety issues and lead to insurance disputes. This is why it’s so important for your paperwork to be accurate and complete. Especially for all of you emergency, urgent and expedited shippers please pay close attention to detail in documentation as your freight has no room for delays. This blog is a good place to start with documentation. But always double check with your carrier if you need additional paperwork, if perhaps your freight requires specialized documents or handling instructions.

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At PEI we’re experts in dealing with specialized freight and can handle yours with any custom requirements.