What is the billing party on the bill of lading

Transcript

What Goes on the “Billing Party” section of the Bill of Lading?

There are a number of documents that accompany every LTL shipment. They are used to communicate important information about the shipment to the carrier, the shipper, the consignee, or all three. The most vital document for every piece of LTL freight is the bill of lading, or BOL. This document is given to the carrier by the shipper at the time of pickup. It includes all the relevant information needed to process, perform, and invoice the freight.

 

What is a Bill of Lading (BOL)?

The bill of lading (BOL) is the receipt of the transaction between the shipper and the LTL carrier. It is a legally binding document that also serves as a document of title, allowing the person holding it to claim ownership of the freight. The BOL provides all the shipping information needed for the carrier and LTL driver to transport the freight shipment and bill it accurately. A copy of the BOL is provided to the carrier upon pickup, and a copy is attached to the cargo itself. 

 

The bill of lading should include: 

·  Pickup and delivery addresses

·  Contact information

·  Freight weight and dimensions

·  Item count

·  Freight class

·  NMFC code

·  Additional services

·  Special instructions

·  Commodity description

·  Shipping/purchase order numbers

·  BOL number

·  Billing party information

 

Who is the Billing Party?

While most of the information listed on the BOL is self-explanatory, there may be some things new shippers are unfamiliar with, one of which is the “billing party.” In short, the billing party refers to whoever is paying for the transportation of the shipment. That can be the shipper, consignee, or a third party. Sounds simple, right? But here’s the tricky part.

You probably want to work with a third-party logistics provider (3PL) to book your LTL shipment. Booking with a 3PL connects shippers to a trusted carrier network, offers better discounts, and provides support from LTL freight professionals. 3PLs also make booking a breeze, instantly showing a variety of online rate quote options to choose from, allowing you to schedule your LTL pickup in just a few clicks.

However, when you book through a 3PL like Koho, the 3PL is the billing party, not the shipper or the consignee. The carrier bills the 3PL directly for the shipment, and the 3PL bills the shipper. If the wrong billing party is indicated on the BOL, a carrier may issue a bill of lading correction fee, which can be as high as $100 or more. Luckily, if you book your LTL shipment through Koho, you don’t have to worry. When you make your booking on Koho’s intuitive, easy-to-use platform, Koho provides you with a complete, printable bill of lading that you then give to the carrier upon pickup as well as attach to the shipment itself. As long as you do this, you won’t have to worry about any BOL correction fees appearing on your invoice.

 

Find out other ways Koho can make your LTL shipping experience simple and painless. Contact Koho today to schedule your next shipment.

Image of trucks lined up in a parking lot

What Goes on the “Billing Party” section of the Bill of Lading?

There are a number of documents that accompany every LTL shipment. They are used to communicate important information about the shipment to the carrier, the shipper, the consignee, or all three. The most vital document for every piece of LTL freight is the bill of lading, or BOL. This document is given to the carrier by the shipper at the time of pickup. It includes all the relevant information needed to process, perform, and invoice the freight.

 

What is a Bill of Lading (BOL)?

The bill of lading (BOL) is the receipt of the transaction between the shipper and the LTL carrier. It is a legally binding document that also serves as a document of title, allowing the person holding it to claim ownership of the freight. The BOL provides all the shipping information needed for the carrier and LTL driver to transport the freight shipment and bill it accurately. A copy of the BOL is provided to the carrier upon pickup, and a copy is attached to the cargo itself. 

 

The bill of lading should include: 

·  Pickup and delivery addresses

·  Contact information

·  Freight weight and dimensions

·  Item count

·  Freight class

·  NMFC code

·  Additional services

·  Special instructions

·  Commodity description

·  Shipping/purchase order numbers

·  BOL number

·  Billing party information

 

Who is the Billing Party?

While most of the information listed on the BOL is self-explanatory, there may be some things new shippers are unfamiliar with, one of which is the “billing party.” In short, the billing party refers to whoever is paying for the transportation of the shipment. That can be the shipper, consignee, or a third party. Sounds simple, right? But here’s the tricky part.

You probably want to work with a third-party logistics provider (3PL) to book your LTL shipment. Booking with a 3PL connects shippers to a trusted carrier network, offers better discounts, and provides support from LTL freight professionals. 3PLs also make booking a breeze, instantly showing a variety of online rate quote options to choose from, allowing you to schedule your LTL pickup in just a few clicks.

However, when you book through a 3PL like Koho, the 3PL is the billing party, not the shipper or the consignee. The carrier bills the 3PL directly for the shipment, and the 3PL bills the shipper. If the wrong billing party is indicated on the BOL, a carrier may issue a bill of lading correction fee, which can be as high as $100 or more. Luckily, if you book your LTL shipment through Koho, you don’t have to worry. When you make your booking on Koho’s intuitive, easy-to-use platform, Koho provides you with a complete, printable bill of lading that you then give to the carrier upon pickup as well as attach to the shipment itself. As long as you do this, you won’t have to worry about any BOL correction fees appearing on your invoice.

 

Find out other ways Koho can make your LTL shipping experience simple and painless. Contact Koho today to schedule your next shipment.

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