A bill of lading is done any time you are shipping goods nationally or internationally.
In general, there are two types of bills of lading:
Straight bill of lading – used when the shipment has been paid for in advance
and the carrier is delivering the freight to the buyer or other appropriate party.
Order bill of lading – used when the goods are being shipped before they’re paid for.
It is expressed as “to order of” on the bill of lading often followed by the recipient’s name.
An order bill is considered a “negotiable instrument,” which means that it acts as a substitute
for money or as a promise to pay. An order bill of lading might be used if the goods are
shipped under an open account or letter of credit.