Switch Bill of Lading
A Switch Bill of Lading is a second set of bills of lading issued by the carrier or its agent to replace the first set, changing certain details — most often the shipper, consignee, port of loading or discharge, or goods description. The original bills are surrendered before the switch set is issued, so only one valid set exists at a time.
Switch bills are used mainly in triangular or intermediary trade: a trader buying from a supplier and selling to a customer may switch the bill to hide the original supplier's identity from the end buyer (and vice versa), or to change the load/discharge port when cargo is re-routed or re-sold in transit. Because they can be misused, switch bills carry legal and fraud risk and must be handled carefully.
Switch bills are the mechanism that makes entrepôt and intermediary trade work — a trader in Dubai or Singapore can buy and re-sell cargo in transit without exposing their supplier to their customer. But because they alter a document of title, they carry real fraud and liability risk, so knowing exactly what can and cannot be switched is essential.
Why issue a switch bill of lading?
Usually in intermediary trade — to conceal the original supplier from the end buyer, or to change the load/discharge port when cargo is re-sold or re-routed in transit.
Are switch bills risky?
Yes — because they replace a document of title, they carry legal and fraud risk and must be issued only against surrender of the original set.