Certified Supply Chain Professional (CSCP) Practice Exam

What does a bill of lading indicate regarding the shipment?

1. It provides estimated shipping costs

2. It indicates ownership and shipping instructions

3. It verifies customs clearance

4. It guarantees delivery within a specific time frame

The correct answer is: It indicates ownership and shipping instructions

A bill of lading serves as a crucial document in the shipping process. Its primary function is to indicate ownership of the goods being transported and outline shipping instructions. When a bill of lading is issued, it creates a legal contract between the shipper and the carrier, detailing the specifics of the shipment, including the consignor, consignee, and any handling requirements for the cargo. This document also acts as a receipt from the carrier to the shipper, confirming that the carrier has received the goods for transport. In contrast to the other options, a bill of lading does not typically provide estimated shipping costs or guarantee delivery within a specific timeframe. While it can be part of the customs clearance process, it is not a verification document for customs in and of itself. Understanding these aspects of the bill of lading highlights its significance in logistics and supply chain management.