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Quantitative Finance · Glossary

What is Bill of lading?

Definition 1.7 Markets III: Commodities, Energy and Crypto · Chapter 1 — Physical Commodity Markets

A bill of lading is the document the carrier issues on loading: a receipt for the goods, evidence of the contract of carriage, and a document of title whose holder may claim the cargo at destination. Its date, the B/L date, anchors most pricing formulas.

The two delivery terms of seaborne commodity trade. Under both, the buyer carries the risk of the voyage; under CIF the seller pays for it and prices that cost into the cargo. Schematic.
Figure 1.1. The two delivery terms of seaborne commodity trade. Under both, the buyer carries the risk of the voyage; under CIF the seller pays for it and prices that cost into the cargo. Schematic.
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