www.bifa.org


Policy & Compliance


It is of utmost importance that all the originals of the first bill of lading are collected and cancelled before the replacement set is produced and issued


on whose behalf the second bill was issued (the NVOCC) and the shipper or consignee shown in the master bill. For non-negotiable sea waybills, generally the


shipper’s right to redirect or to name another consignee remains exercisable before delivery of the shipment to the original consignee. The original waybill need not be returned. Moreover, the shipper cannot just ‘endorse’ the document to the alternative consignee. The shipper must notify the carrier confirming the information in writing. Without such notice of change, the carrier is entitled to deliver the cargo to the consignee named on the waybill.


Change control Take great care with amendments. Invariably, switching bills of lading involves issuing a second document with information that differs from the first. Although the process could be regarded as a bilateral alteration of the terms and conditions of the contract of carriage, various difficulties may arise, depending on the type of information changed. As with the delivery of the cargo without


circulation at any one time. Otherwise there is a risk of facing competing claims from two consignees, each holding an apparently valid bill of lading. The master bill of lading must be addressed to


your agent at destination, who must also be kept informed of any changes to the underlying bills. There must also be a link between the company


production of the original bill of lading, there are clear steps necessary for obtaining an appropriate indemnity before providing switch bills of lading. Regardless, certain information should not be


changed under any circumstances. The date and place of shipment as stated in the original bill of lading must remain unchanged, even where it works to the detriment of an endorsee who has


BIFAlink


relied on it in a sales contract. Equally, the number of packages or the weight shown in the original bill of lading must not be changed. If the original bill of lading is claused, the switch bill must be identically worded. Finally, any special instructions of the shipper, such as temperature requirements, should not be changed or omitted. Other information may be changed, provided


the new information is complete and accurate. This includes: the names of the shipper, consignee or notify party; the shipper’s description of the goods; the name of the ship (if necessary); the place and date of issue (if not the same as those of shipment); the freight and the port of discharge. You should obtain written confirmation from your client, setting out in detail its requirements for the new bill of lading. If significant changes are requested to the


cargo details, you should consider getting both evidence to support the changes and an indemnity from the client to protect you in the event of a dispute with the consignee.


Jurisdiction issues Difficulties may arise if the switch bill is issued in a jurisdiction different from the original; most obviously, this might lead to the application of a different international law regime, but also interpretation of the applicable law. The practice of issuing switch bills of lading can be problematic for the issuer, particularly NVOCCs. Where it goes wrong, there is potential full liability exposure, without the application of contractual limits. BIFA suggests that any Member issuing a


switch bill of lading to checks with its liability insurer before doing so to ensure that its policy covers its liabilities should something go wrong. It is important to be cautious when issuing switch bills and be fully aware of any potential liabilities.


BIFA would like to thank Peregrine Storrs Fox of the TT Club for permitting the reproduction of this article.


Support your local Member group


BIFA holds Regional Member meetings around the UK and listed right are those due to occur soon. If you would like to attend and find out more about BIFA and what we do, then contact the appropriate Regional Consultant to BIFA. All BIFA Members are entitled and


encouraged to attend their regional meetings however pre-booking with the named contact is essential. Full contact details are shown on page 3 of this issue.


February 2019


Region Solent


Regional Members’ meeting Heathrow


Regional Members’ meeting Gatwick


Regional Members’ meeting Stansted


Regional Members’ meeting 17 Date Time Tue 12 Feb 0800 Thu 21 Feb 1400 Venue BIFA, Feltham BIFA Contact Duke of Wellington Colin Young Colin Young Thu 28 Feb 1230 World Cargo Centre Colin Young Tue 5 Mar 1130 Stansted Airport Colin Young


Port of Felixstowe


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