Documents Used in Transportation – SS2 Marketing Lesson Note (Second Term)

Transport documents are contracts for the carriage of goods exchanged between two or more entities. They differ depending on the method of carriage. Some of them are;

1. Bill Of Lading: A bill of lading is a document issued by a carrier to acknowledge receipt of cargo for shipment. Although the term historically related only to carriage by sea, a bill of lading may today be used for any type of carriage of goods

2. Airway Bill: This document is used when goods are sent by air. It shows that specified goods have been received for carriage to a named destination.

3. Insurance: This document shows that the goods in transit have been properly insured

4. Invoice: An invoice, bill or tab is a commercial document issued by a seller to a buyer relating to a sale transaction and indicating the products, quantities, and agreed-upon prices for products or services the seller had provided the buyer. Payment terms are usually stated on the invoice

5. Consignment Note: This is a document sent by the seller to the buyer which he hands over to the carrier and countersigned by the consignee on delivery as proof that the goods have been delivered

6. Manifest: The captain of the ship completes this form showing details of the passengers and the goods onboard a ship.

Factors that affect the choice of transportation

1. The nature of the product- perishability, fragility, durability, storage etc.
2. The product variables- weight, packaging etc.
3. Cost advantage.
4. Nearness to the market, company’s location.
5. Bargaining and behavioral patterns of consumers.