How to Create a Bill of Lading: Fields, Hazmat, and Delivery Claims

To create a bill of lading, decide whether it needs to be negotiable or nonnegotiable, collect the shipper, consignee, and cargo details in advance, enter each field precisely on the carrier’s form or the federal uniform template, mark payment terms and any declared cargo value, and sign the document with the driver at pickup after inspecting the freight. The document works as three things at once: a receipt for what the carrier took, a contract for the transport, and, in some forms, a document of title that controls ownership of the goods. Under the Carmack Amendment at 49 U.S.C. § 14706, the carrier is liable for actual loss or injury to cargo it receives under a bill of lading, so every entry on the form can become evidence later.¹

Pick the Type First

The first choice is negotiable or nonnegotiable. A bill is negotiable when it states the goods will be delivered “to the order of” a named consignee; the holder can then transfer ownership by endorsing the document, similar to endorsing a check. A nonnegotiable (straight) bill names the consignee directly, must be stamped “nonnegotiable” or “not negotiable,” and locks delivery to that recipient regardless of any endorsement.²

A few other labels show up depending on who issues the form and how far the cargo travels. A master bill is issued by the actual carrier running the truck, ship, or rail car. A house bill is issued by a freight forwarder or 3PL that consolidates shipments from several shippers. A through bill covers a multi-mode journey under one document, with the issuing carrier or forwarder responsible for the full route. Rights and duties under all of these fall under Article 7 of the Uniform Commercial Code at the state level.³

What to Gather Before You Write Anything

Open the form only after you have the inputs. The federal uniform straight bill of lading template in 49 CFR Part 1035 sets the standard fields, and most carrier forms track it closely.⁴

Full legal name, street address, and city/state/ZIP for the shipper and the consignee, plus a notify party address if you’re using a negotiable bill.
A plain, specific cargo description with the count and type of packaging units (pallets, crates, drums) and any identifying marks.
Accurate gross weight for each line. Carriers reweigh freight, and understated weights generate adjustment fees.
The National Motor Freight Classification class, from 50 to 500, assigned by density, handling, stowability, and liability. A wrong class gets corrected after pickup and your rate moves with it.⁵
Reference numbers that tie the shipment to your records: purchase orders, shipping order numbers, internal tracking codes.
For any hazmat, the four-digit UN identification number, proper shipping name, hazard class, and packing group, taken from the product’s Safety Data Sheet.⁶

Filling In the Form Field by Field

Start at the top: shipper name, address, and date, then consignee name and destination address. If the bill needs to be negotiable, write the consignee line as “to the order of [name].” That phrase is what makes the document negotiable under federal law; leaving it off produces a straight bill no matter what the parties intended.²

In the cargo area, give each type of packaging its own line, and describe what’s actually inside. “12 pallets corrugated cartons containing automotive parts” is useful; “auto parts” is not. Enter weight and freight class next to each line in the columns provided. If the rate depends on the cargo’s value, note the declared value per unit in the space provided.⁴

Use the special instructions field for anything the driver or receiving warehouse needs to know: temperature control, liftgate delivery, inside delivery, appointment required, do not stack, tailgate inspection on arrival. Vague instructions are worse than none.

Payment Terms and the Nonrecourse Clause

Every bill of lading says who pays the carrier. Mark it “prepaid” when the shipper pays, or “collect” when the consignee pays on delivery. Those labels tell the carrier who to bill. They don’t settle who ultimately bears the cost under the sales contract between buyer and seller, which can push the economics the other direction (a shipment marked “FOB Destination, Freight Collect” has the buyer paying the carrier while the seller still carries the risk of loss until arrival).

If you’re the shipper and you want to be off the hook for freight charges once the carrier takes the goods, sign the nonrecourse clause on the face of the form. On the federal uniform bill, this ties into Section 7 of the contract terms: by signing, you instruct the carrier not to deliver without collecting payment from the consignee. If the carrier delivers anyway without collecting, you’re released from liability for those charges.⁷ Skip the signature and you stay liable if the consignee refuses to pay.

Declared Value and Carrier Liability

Under the Carmack Amendment, a motor carrier is liable for actual loss or injury to cargo in its possession. In practice, carriers cap that liability through their tariff or rate agreement, often at a set dollar amount per pound. The bill of lading is where you either live with that cap or declare a higher value.¹

The uniform form includes a line reading: “The agreed or declared value of the property is hereby specifically stated by the shipper to be not exceeding _____ per _____.” Leave it blank and your recovery is limited to the carrier’s released value, no matter what the goods are worth. Declaring a higher value raises the carrier’s exposure and your freight rate. For high-value cargo, weigh the rate increase against the loss you couldn’t recover.⁴

Hazmat Entries

If any item is hazardous under 49 CFR Part 172, the bill of lading doubles as the shipping paper, and federal regulations dictate what appears and in what order: UN identification number, proper shipping name, hazard class or division, and packing group. These must appear in that exact sequence, with no other information inserted between them. You also need the total quantity, number and type of packages, an emergency contact phone number, and a signed shipper’s certification.⁸

Precision here isn’t optional. As of the 2025 inflation adjustment, the maximum civil penalty for a hazmat violation is $102,348 per violation, rising to $238,809 if the violation causes death, serious injury, or substantial property destruction. Training-related violations carry a minimum of $617.⁹ Pull the Safety Data Sheet first and transfer the classification exactly.⁶

Signing, Inspecting, and Distributing Copies

The bill isn’t effective until both parties sign. The shipper and the carrier’s driver sign and date at the dock once the freight has been counted and visually inspected. That signature is the moment the carrier’s liability starts. Before you sign, walk the shipment with the driver. If any packaging is already crushed, torn, or wet, write it on the bill in specific terms. “Two cartons crushed on north side of pallet 4” protects you. “Damaged” does not.

Distribute copies so every link in the chain has a record: the shipper keeps the original, the driver carries copies for the carrier and the consignee, and a copy rides with the freight. Federal regulations allow bills of lading to be issued electronically, and most carriers now run electronic platforms that accept digital signatures on mobile devices and push the signed document to all parties in real time.⁴

If Something’s Damaged at Delivery

The consignee should inspect the freight before signing the delivery receipt. Any visible damage, shortage, or discrepancy from the bill of lading goes on the delivery receipt in specific detail at that moment. A clean signed receipt without damage notations makes a later claim much harder to win.

Concealed damage, the kind you only find after opening the packaging, is trickier. Industry practice is to report it to the delivering carrier within five days of delivery, in writing, with a request for carrier inspection. The longer you wait, the easier it is for the carrier to argue the damage happened after delivery, and there’s no obligation to accept a concealed damage claim reported weeks out.

Federal law sets the outer timeframes. Under the Carmack Amendment, a carrier cannot impose a claims-filing deadline shorter than nine months after delivery, and once the carrier denies the claim in writing, you have at least two years from that denial to sue.¹ Some tariffs allow more time; none can offer less. An offer of compromise isn’t a denial unless the carrier states in writing that part of the claim is disallowed and explains why.

How Long to Keep the Document

Federal motor carrier regulations require carriers to keep bills of lading and related shipping documents for at least one year from the date of the document.¹⁰ That handles the transportation side. For taxes, the IRS generally wants business records supporting income or deductions kept at least three years from the return filing date, longer in cases of substantial underreporting or bad-debt claims.¹¹

With freight claims runnable up to nine months after delivery and litigation stretching two years past denial, three years covers both the IRS window and any realistic claim. Hold hazmat paperwork and declared-value shipments longer. A stored PDF costs nothing; the only proof that your cargo left the dock in good order is worth keeping.

1
Office of the Law Revision Counsel. 49 USC 14706 Liability of Carriers Under Receipts and Bills of Lading
2
Office of the Law Revision Counsel. 49 USC 80103 Negotiable and Nonnegotiable Bills
3
Legal Information Institute (LII) / Cornell Law School. UCC Article 7 Documents of Title
4
eCFR. 49 CFR Part 1035 Bills of Lading
5
National Motor Freight Traffic Association, Inc. NMFC Codes and Freight Classification
6
U.S. Department of Transportation. Check the Box Getting Started with Shipping Hazmat
7
eCFR. 49 CFR Part 1035 Bills of Lading – Section 7
8
eCFR. 49 CFR Part 172 Subpart C Shipping Papers
9
Federal Register. Revisions to Civil Penalty Amounts 2025
10
eCFR. 49 CFR Part 379 Preservation of Records
11
Internal Revenue Service. How Long Should I Keep Records