What is a switch bill of lading: Guide to its meaning and uses

When switch bills are issued, the first set should be given to the carrier in exchange for the new one. Some of the reasons to issue a switch bill are²:
• If the cargo’s destination needs to be changed to another port, a switch bill of lading is issued as the original bill.
• Any custom authority or the buyer or consignee can request the cargo description to be modified or edited at the final destination.
• The customer or importer prefers to have only one Bill of Lading covering all the details because earlier the goods were shipped in small parcels on separate bills.

Below are some of the components included in a switch bill of lading are:

• Details of the exporter and the importer
• Booking number and Master Bill of Lading number and its issue date
• NRA (Negotiable Rate Arrangement) number, which is a document exchanged between the shipping and the Non-Vessel Operating Common Carrier (NVOCC) to ensure that all the rates are regulated and accepted before shipping
• Details of the place of pickup and delivery
• Details of the port of loading and unloading
• Vessel and voyage details

Some of the features of a switch bill of lading are³:
• A new set of Bill of Lading is issued in the form of a Switch Bill of Lading when a seller of the goods does not want the name of the original shipper to appear on the bill.
• The original bills are held in the country of shipment.

The shipper, consignee, and notification information can be permitted to be changed in a switch bill of lading. If the new information is accurate and factual and has no impact on transportation and delivery, additional elements/information indicated below can also be altered⁴:
• Products as described by the shipper
• Ship’s name (if relevant)
• Location and date of issuing (if different from those of shipment)
• Shipment and discharge port

• Site and date of shipment, as altering these could have an impact on the conditions of delivery according to the sales contract information of the cargo, including the quantity, size, weight, and measurement of the parcels.
• If there is any information regarding hazardous cargo and in that case keep in mind that the cargo is already on board based on the original hazardous cargo declaration.
• Reefer cargo information, such as temperature and humidity settings, etc.; note that the cargo is already on board based on the original cargo declaration.
• Information regarding OOG Cargo, if any, and keep in mind that cargo is already on board based on the initial OOG details stated, including lost slots computation, etc.
• Original clauses on the bill of lading.

A few suggestions to handle a switch BoL are:

• Trustworthiness of the major party authorizing the issuing of the second set should be confirmed by goods forwarders. Obtain their written consent along with a letter of indemnification (countersigned by a bank if the agent determines it is necessary) holding the cargo agent harmless from any repercussions of issuing the additional set of bills of lading.
• The need for written consent from any additional parties who may be impacted by the freight forwarder's action, such as the ship owner, shipper, or bank, should be taken into consideration by freight forwarders as well. The ship owner must provide written consent before a goods forwarder can act on behalf of the carrier if the charterer has given them permission. If this is not done, the ship owner will have a strong case against the agent for any losses brought on by the unauthorized issuing of the second set.
• The agent should obtain the correct wording from the principal and obtain the primary party’s approval of the completed indemnity before issuing the switch bill if the principal party has asked them to do so based on a customer indemnity.
• It’s also a good idea to make sure the freight agent has their own insurance that covers the issuance of switch bills. They must tell their insurance provider the precise justification behind the switch bill of lading’s issuance.