Certified Supply Chain Professional (CSCP) Practice Exam

What do bills of lading signify?

1. They provide a guarantee for payment

2. They show ownership of goods

3. They act as a sales contract

4. They detail the shipping methods

The correct answer is: They show ownership of goods

Bills of lading are essential documents used in the transportation of goods, and one of their primary functions is to signify ownership of the goods being transported. When goods are loaded onto a carrier (such as a shipping company), the bill of lading serves as a receipt for the goods and indicates that the carrier has taken possession of the cargo. Additionally, it identifies the party that has a claim to the goods, which means that it effectively demonstrates ownership. By showing ownership, the bill of lading allows the legal transfer of ownership from one party to another. For example, if the original shipper sells the goods while they are in transit, the bill of lading can be endorsed to the new owner, thereby transferring rights to claim the goods upon delivery. In contrast, while a bill of lading may contain information regarding shipping methods and could implicitly suggest payment upon delivery, these are not its primary purposes. It is primarily a legal document that conveys ownership and facilitates the movement of goods through the supply chain.