This is another area which should be clarified. In the majority of cases, there are no physical differences between an original bill of lading and a switch bill of lading. It is still a fact that the buyer or consignee has the right to ask whether or not any switches took place. The shipper will thereafter be obliged to provide basic details without disclosing any proprietary information (such as the name or location of the manufacturer). New packing lists and invoices may also be provided; helping to offer a greater sense of consistency between the two documents.

There are two general sections which can be modified:

• The identity of the shipper, notification party or consignee.
• The general description of the cargo (for instance, “books” as opposed to “financial books”).

Notwithstanding the two situations mentioned above, all other details between the two documents must match. This includes the port of discharge (POD), the port of loading (POD) and the number of items as well as their aggregate shipping weight.

This type of certification can only be requested by the principal or the owner of the cargo. This arises from the fact that the bill is essentially a representation of ownership. So, only entities which possess the original set of documents will be entitled to request a modification

Anyone carrying or forwarding freight to a specific location has to option to approve a switch bill of lading. Still, it should be mentioned that all possible differences need to be closely examined before approval. Assuming that there are no issues, the new bill can then be approved. It is also important to mention that the previous document needs to be taken out of circulation in order for the new one to take effect.

As shipping often represents a complicated and carefully timed logistical process, it is a good idea to look at time limits. In most cases, it is best to issue the new lading bill before the cargo itself arrives at the port destination. However, many companies will not accept such a modification if it is submitted fewer than 72 hours prior to the anticipated arrival. There are also instances when specific shippers will require advanced notice (such as more than five or seven working days). This is why it is always a good idea to check with the shipping line in question in order to ensure that any specific stipulations are met.

There are other concerns when referring to the release of the new switch bill of lading. In most cases, the new document cannot be released until the terms and conditions associated with the first transaction (between the initial seller and buyer) have been legally satisfied. Assuming that the payment has been made in full, the products can then be released to the second buyer (or consignee). During this interim, it is also important that the original bill of lading is presented by the secondary buyer. There may be delays if the previous conditions have not been met. This is why it is sometimes recommended to employ what is known as an express switch lading bill.

This is another rather “grey” area and it therefore deserves attention. The owner (sometimes referred to as the “master”) does not have the legal authority to issue an additional switch bill of lading until the first document has been cancelled. However, there may be certain times when a clause supposedly permitting a switch is mentioned within a contract. This is always a dubious situation; particularly if the document in question was not created by the original owner of the goods. His or her consent will always be required. Furthermore, any party possessing an unauthorised switch bill of lading (or for that matter, a standard bill of lading) does not have the legal right to possess the contents mentioned within the description.

While there is no doubt that switch bills of lading are often quite useful in the event that a shipment is changing hands between more than two parties, it is also a well-known fact that acts of fraud can and will occur from time to time. There are a number of ways to mitigate the risks involved. Three suggestions are:

• To thoroughly establish the reliability of the entity issuing the second set of documents.
• To physically confirm authorisation in writing.
• To request a letter of indemnity that has been signed and notarised (if necessary) by the issuing entity.

There can also be instances when such a document can be countersigned by a building society or a bank. This could be particularly useful if the principal is not a well-known supplier.

This question revolves around the discrete contractual clauses between two parties. Still, it is generally unrealistic to ask a supplier to create a new switch bill of lading. The only time when this would not be the case is if a specific clause within the contract stipulated that such a request must be granted. If these provisions are not made clear from the beginning, it is wise to ask for further clarification.