Why is the Bill of Lading (BoL) particularly important in the ground transportation of produce?
The Bill of Lading (BoL) plays a crucial role in the transportation of commodities, but in the ground transportation of the fresh produce industry, it becomes more significant.
Produce sellers and buyers with years of experience in produce transportation know that the BoL serves as the legally binding contract of carriage between the carrier and their principal—whether that principal is the shipper or the receiver.
What makes a produce BoL particularly important, and distinct from BoLs used in other industries, is that in the fresh fruit and vegetable trade, the shipper is the one who issues the BoL. It is not created by the carrier or freight forwarder.
In transactions where the carrier is hired by the buyer or receiver—such as Free on Board (FOB) sales—the buyer provides the carrier with all necessary transportation instructions and requirements but, it not the carrier who prepares the BoL nor do they have any say over the information that goes on it, until they receive it from the shipper. This means the carrier must ensure that the buyer’s instructions align with the BoL issued by the shipper.
The Fruit and Vegetable Dispute Resolution Corporation (DRC) has extensive experience handling produce disputes, including transportation claims. Sporadically, we find discrepancies between the BoL and the transportation instructions provided by the shipper or the receiver. These conflicts often involve differences in carton counts, inconsistent temperature requirements, or other critical handling details.
So, what should be done when conflicting information appears on these documents?
If a driver fails to compare the BoL with the instructions received, the carrier will likely default to the BoL, since it is the binding contract of carriage. However, relying solely on the BoL may not lead to the best outcome. Any inconsistency between documents should immediately prompt communication—either with the shipper or, in the case of an FOB transaction, with the receiver who hired the carrier.
Clarifying differences early is essential. It helps prevent disputes, protects the carrier, and ensures the shipment is handled in accordance with the correct requirements.
If you have any questions about the article and would like to learn more, our team at the DRC is here to assist you. We value your inquiries and are eager to provide support. Click here to proceed.
