Final answer:
The bill of lading is a legal contract that defines responsibility for the goods in the company's warehouse.
Step-by-step explanation:
The bill of lading is a legal contract that defines responsibility for the goods in the company's warehouse.
In commercial shipping, a bill of lading serves as both a receipt for the goods being shipped and a contract of carriage between the shipper and the carrier. It outlines the details of the cargo, such as quantity and packaging, and specifies the terms and conditions of the transportation.
For example, if a company ships a container of goods from Port A to Port B using a container ship, the bill of lading will indicate that the responsibility for the goods transfers from the shipper to the carrier once the cargo is loaded onto the ship at Port A and remains with the carrier until it is unloaded at Port B.