Bill of lading

A Bill of Lading, usually abbreviated as B/L, is a key legal document in physical oil trading. It is issued when crude or product is loaded onto a vessel and acts simultaneously as a receipt for the cargo, a document of title, and evidence of the contract of carriage. The B/L specifies details such as the grade, quantity, loading port, vessel, and loading date. For traders, the B/L date is crucial because many contracts price barrels against a benchmark on or around that date, and delivery windows and laycan terms are tied to it. Banks rely on original B/L documents when providing letters of credit and releasing payment, so inaccuracies or delays can create financing issues. Disputes over shortages, contamination, or off-spec cargoes often reference the B/L and associated inspection reports. Traders also track B/L data to follow vessels, estimate arrivals, and infer regional supply. In short, the B/L sits at the heart of risk, logistics, and settlement for seaborne oil flows.