Switch bill of lading

What a switch bill of lading is

A switch bill is not a new kind of document. It is an ordinary bill of lading issued for cargo that already has one, in exchange for that first set, so that the bill presented at discharge is not the one signed at loading.^[1][3]

Hapag-Lloyd's letter of indemnity for switch bills states the exchange: the requester surrenders the full first set of originals, and the carrier issues another set of original bills or sea waybills naming a new shipper and consignee and, where applicable, a new notify party.^[3] Maersk's Malaysia instructions present the same request as an amendment of the shipper, consignee and notify-party details against surrender of all three originals.^[2]

Surrender matters because of what a bill does. Under the UK Carriage of Goods by Sea Act 1992, the lawful holder of a bill, including by delivery of an indorsed bill, has "transferred to and vested in him all rights of suit" under the contract of carriage.^[5] Skuld and Gard warn that a second set issued while the first still circulates means several bills for the same cargo, each of which may be presented for delivery.^[1][6]

Why traders ask for one

The common reasons are commercial. Gard lists splitting one bill into smaller parcels, consolidating bills for blended cargo, changing the discharge port after a sale made while the goods are at sea, keeping a trader's supplier confidential from its buyer, and correcting bills that do not meet a letter of credit's requirements.^[6] West of England names the buyer who wants to appear as shipper so that the sub-buyer does not see the supplier, and the trader who wants to change or add a delivery port.^[4] Hapag-Lloyd's letter of indemnity has the requester release the carrier from any liability for disclosing the original shipper's details to a third party.^[3]

Worked example. A trader buys steel coils from a mill in Asia and resells them to a customer in the Gulf. The mill ships against a to-order bill naming itself as shipper. The trader does not want its customer to see the mill's name, so it surrenders all three originals to the carrier's office, signs the carrier's letter of indemnity and pays the fee. The carrier issues a second set naming the trader as shipper and the Gulf customer as consignee, with cargo, ports and quantity unchanged, which the trader presents to its customer against payment.^[3][2][1]

The conditions carriers impose

Surrender of the full first set. Maersk's Malaysia instructions require surrender of all three originals issued at the load port, which the carrier says is how ownership of title is determined.^[2] Its Singapore process starts work only after the full first set is confirmed surrendered at a Maersk office, and its 14 July 2026 advisory on the online workflow lists surrender of the full first set at a counter desk as step one.^[7][8] Hapag-Lloyd's form has the requester surrender the full first set and warrant that it alone is entitled to possession and delivery of the goods.^[3]

A negotiable bill. Maersk's Singapore process states that a sea waybill is not negotiable and cannot be switched; the bill type must first be amended to a negotiable bill.^[7] See sea waybill vs bill of lading.

A letter of indemnity. Hapag-Lloyd's switch LOI indemnifies the carrier, its servants and agents, the vessel and her owner, charterer, operator and master against any liability arising from the switch, requires the requester to provide security if a vessel is arrested or detained, is governed by German law, and says the carrier may refuse the request at its sole discretion.^[3] Maersk's Malaysia instructions require a letter indemnifying Maersk Malaysia against all risks and liabilities.^[2]

Limits on what may change. Maersk's Malaysia instructions do not amend the volume, measurement or weight declared by the shipper at the load port, citing Article III rule 3 of the Hague-Visby Rules, unless the change is instructed and approved from the origin office.^[2] Under those Rules, scheduled to the UK Carriage of Goods by Sea Act 1971, the bill shows the quantity or weight supplied by the shipper and the apparent order and condition of the goods, and once the bill has been transferred to a third party acting in good faith "proof to the contrary shall not be admissible".^[9]

Payment, timing and fees. Maersk's Malaysia instructions require all outstanding freight and surcharges to be paid and charge MYR 300; its Singapore process asks for requests no later than 10 working days before arrival at the final port of discharge and charges SGD 270 per bill, plus SGD 140 per bill once the import manifest has been submitted.^[2][7] Its North America notice of 6 October 2025 set a USD 175 switch fee and a USD 125 administration fee for requests submitted through Maersk.com rather than by email; its notice of 8 July 2026 kept both fees but reversed the channel, so that the USD 125 fee applies to requests made outside Maersk.com.^[10][11] These are one carrier's figures; fees, channels and lead times differ by carrier and country.^{[2][7][10][11]}

Risks

Two sets in circulation. Skuld warns that if new bills are issued before the originals are cancelled and returned, several bills may circulate for the same cargo, a dishonest shipper could sell the goods twice, and the carrier may face a shortage claim equal to the full cargo value.^[1] Gard and West of England make the same point about misdelivery.^[6][4]

False statements. Skuld names a different load port stated to hide the cargo's origin, and ante-dated or post-dated bills used to draw on a letter of credit.^[1] Gard names hiding a sanctioned shipper, altering the shipment date to fall before a credit's last shipment date, and altering the cargo description to turn claused bills into clean ones.^[6] Both clubs say the new bill should show its true place and date of issue.^[1][6] Under the Hague-Visby Rules the shipper's guarantee of the quantity and weight it supplies does not limit the carrier's liability to anyone else.^[9]

Cover and indemnities. Skuld states that no express rule in its terms automatically removes P&I cover because bills were switched, but cover for cargo claims may be lost where the new bill is antedated, post-dated or describes the cargo or its quantity in a way the member knows is incorrect.^[1] West of England says cover may be prejudiced for cargo claims arising from false statements on switch bills and will "nearly always be prejudiced" for misdelivery claims.^[4] Gard and West of England both say a letter of indemnity does not reinstate cover, and Gard adds that it may be unenforceable where fraud or illegality is involved.^[6][4]

What the P&I clubs say to check

The clubs' guidance converges on a short list. The requester explains the purpose, and the carrier satisfies itself that it is legitimate.^[1][6][4] The requester shows it is the lawful holder of the complete original set, since bills may have been transferred or indorsed since issue.^[1] Gard adds that the original shipper's consent to removal from the bill is normally obtained.^[6] The draft of the new bill matches the original in format and clauses, with cargo description, ports and quantity identical.^[1] The original set is cancelled before the new set is issued.^[1][6][4] The LOI is checked for the signatory's authority and the provider's creditworthiness, and Skuld suggests it be co-signed by a bank of good standing.^[4][1] This describes the clubs' guidance; it is not legal advice.

Switching an electronic bill of lading

Skuld contrasts the two media: an electronic bill of lading can be amended while the goods are in transit without issuing new bills, which mitigates the risk of multiple bills in circulation that a second paper set creates.^[1]

Amendment. Article 16 of the UNCITRAL Model Law on Electronic Transferable Records (MLETR) provides that where the law requires or permits amendment of a transferable document, the requirement is met for an electronic record if a reliable method is used so that the amended information is identified as such.^[12] The Explanatory Note says amended information must be "identified as such and therefore be recognizable", because an amendment visible on paper may not be visible in an electronic record.^[12]

Change of medium is different. Articles 17 and 18 of the Model Law and section 4 of the UK Electronic Trade Documents Act 2023 allow a paper bill to be replaced by an electronic one or the reverse, with a statement of the change of medium in the new form; the old form ceases to have effect.^[12][13] The Explanatory Note states that "replace" in article 17 does not refer to reissuance, a distinct concept.^[12]

Whether a carrier offers a switch on an electronic bill is set by each carrier's and platform's own terms; the carrier pages cited here describe paper procedures.^[2][7][8] See the carrier tracker and platform directory.

Frequently asked questions