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With the increased interconnectedness, in the current globalized world, freight forwarders work for multiple international organizations and have to deal with more international transactions. The Bill of lading though seems difficult to understand, makes the shipping process convenient for the business parties as it makes sure that everything happens according to the agreed conditions. The bills of lading verify that the products shipped are exactly according to what was ordered and in good condition. The bill of lading provides with crucial shipment information including
There are many types of Bills of Lading. Some of them are:
One of the most common types of trade is the triangular trade. A mediator or a middle man is often involved in a trade where the importers do not trade directly with the original seller and the trade happens between three parties.
The movement of the goods might be different from the real commercial transaction taking place. But as far as the documentation is concerned, the shipping and the commercial documents must not be contradictory. For every transaction, a bill of lading is to be issued. But in the above-mentioned case, the trader buys the goods from the original seller and then sells it to the importer.
For the first transaction, the bill of lading is issued but for the second transaction, a switch bill of lading needs to be issued. It is issued as a replacement for the Original Bill of Lading.
It is often used for international shipments, where the shipper has to keep the information related to the supplier secret.
Oftentimes the trading agents have to conceal the information related to the factory from the end buyer. This can be made possible through the switch bill of lading. The switch bill of lading is the second set of bill of lading which substitutes the original bill of lading issued during the shipment.
This bill of lading is issued by the carrier or by their representative.
Though both the bills are about the same cargo.
The information on the switch bill of lading is different from that on the original bill of lading. It is often edited or some parts may be hidden.
The Switch Bill of Lading is different from the Original Bill of Lading. But they do serve the same purpose:
The Switch Bill of Lading can only be issued in the place of the original Bill of Lading. The issuance may be issued to serve the interests of any of the three parties involved in the direct transactions i.e.
The bill is usually issued in these cases:
Also Read: Ocean Freight Vs. Air Freight: Which Is Really Better
The Switch Bill of Lading can only be requested by the original seller, a trading agent, and the end buyer. The original set of bills between the seller and the trading agent is switched between the trading agent and the final buyer.
There are specific pieces of information that can be altered. These can include
There are however some things to keep in mind that there are some important details that cannot be changed in the switch bill of lading. These may include:
The changes to the shipment description can only be made under the jurisdiction of the original seller. This is done only to conceal information related to
Any conflict can result in severe consequences for the agent and the carrier for misquoting. The claims can be filed against them by the parties involved.
The Switch Bill of Lading doesn’t make any reference to the Original Bill of Lading. Hence it cannot be inferred if the OBL was switched or not. Though the end buyers can ask if the bill was switched yet the shipping agents are not bound to disclose the secret information.
There is a proper procedure along with conditions that have to be followed to issue the It can only be requested by the original seller or principal. Only the original seller or the principal can officially request the switch bill.
In recent years, there have been increased cases of counterfeiting and frauds under the switch bill of lading
In order to avoid any chances of fraud or counterfeiting, the following guidelines can prove to be helpful.
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