What Is a Bill of Lading? Legal Validity and Importance in Transport

Türeli & Ceylan Attorney Partnership – Transport and Maritime Law

Among the most commonly encountered documents in international transport, the bill of lading carries significant legal implications for both the carrier and the consignor during the loading and delivery stages. Primarily used in maritime transport, this document not only proves that the goods have been shipped, but also provides specific legal protections to the party claiming rights over the cargo.

But what exactly is a bill of lading? What legal framework governs it? What rights does it confer in the context of transport? And as attorneys, how can we assist clients in resolving disputes related to bills of lading?

Definition: What Is a Bill of Lading?

A bill of lading is a negotiable transport document issued by the carrier to the shipper or their designated party, evidencing that the goods have been received for transport and will be delivered to a designated destination.

In Turkish law, the bill of lading is mainly governed by:

• Turkish Commercial Code (TCC), Articles 1228 to 1240,
• International conventions such as the Rotterdam Rules, Hamburg Rules, and Hague-Visby Rules.

Legal Characteristics of a Bill of Lading

1. Receipt Document – Confirms that the carrier has taken possession of the goods.
2. Proof of the Contract of Carriage – Serves as evidence of the transport agreement between parties.
3. Negotiable Instrument – If issued “to order,” it can be endorsed and transferred; it also represents possession over the goods.

Types of Bills of Lading

• Straight (Named) Bill of Lading: Issued to a specific individual; non-transferable.
• Order Bill of Lading: Transferable by endorsement to third parties.
• Bearer Bill of Lading: Rights to the goods belong to whoever presents the document.

Legal Validity in Transport

According to Article 1237 of the Turkish Commercial Code, the carrier is only obliged to deliver the goods to the party presenting the bill of lading. Failure to do so may result in liability for damages.

Additionally, Article 1240 TCC affirms that the bill of lading constitutes proof of the existence and content of the transport contract. Thus, the provisions specified in the bill are binding terms of the contractual relationship.

Common Disputes and Legal Remedies

Legal disputes involving bills of lading frequently arise from:

• Damaged or partial delivery of goods,
• Delivery to unauthorized parties,
• Forgery or discrepancies in bill content,
• Irregularities in endorsement chains.

In such cases, the consignee or rightful holder may pursue compensation claims against the carrier. The type and content of the bill of lading play a crucial role in determining the legal remedy.

International Dimension: INCOTERMS and Bills of Lading

Delivery terms such as FOB, CIF, and others should be clearly indicated in the bill of lading and aligned with the main sales contract.
Failure to do so may lead to significant disputes involving:

• Transfer of ownership,
• Risk allocation,
• Insurance responsibilities, and more.

Why Legal Support Is Essential

Proper drafting, verification, and use of bills of lading in legal proceedings require in-depth expertise, particularly regarding:

• Interpretation of carriage contracts,
• Validity of endorsement chains,
• Application of international conventions,
• Initiation and conduct of compensation lawsuits.

At Türeli & Ceylan Attorney Partnership, we provide comprehensive legal consultancy and litigation support in the field of transportation law and maritime trade, ensuring that our clients’ commercial rights are effectively protected.