An exchange bill of lading is a secondary shipping document issued by the carrier to replace the original bill of lading. It can be used to update information, protect the shipper’s identity, or streamline billing. Consent and compliance with shipping regulations are necessary.
An exchange bill of lading is a type of shipping document that is sometimes issued by the carrier who will actually handle shipping the goods from the seller to the buyer. The documents are known as bills of lading or bills of lading because they are used in place of the original bill of lading provided by the seller when the shipment is picked up from the point of origin. Although it is not used in all situations involving the transport of goods, the carrier can determine that there is something in the original bill of lading that is not within the required parameters and create this second set to bring the documents into conformity.
One of the most common reasons you may need an exchange bill of lading is when you discover that the originals contain information that is no longer relevant to the shipment. For example, when the shipping process involves a change in the port that will ultimately receive the shipment, the carrier can prepare a revised bill of lading that reflects the new port. The creation of this document may also have to do with the need to keep the original sender’s name unknown for some reason. While the carrier or carrier’s agent will be aware of the original shipper, the exchange bill of lading will list another agency as the shipper, effectively protecting the shipper’s identity.
In some situations, the document may be prepared as a way to arrange billing to meet the buyer’s needs. This would mean, if the shipper originally sent multiple bills of lading to cover multiple units being shipped, the carrier or carrier’s agent can streamline the process by using the exchange bill of lading to list all of these units on one central invoice , listing them sections or classes in the detail of the invoice. This approach allows the consignee to quickly review the detail, sign for the shipment and proceed to take possession of all units, without the need to manage a series of multiple invoices.
There are some precautions to observe when using this approach. The originator of the shipment must be aware of the preparation of the transfer invoice and provide consent. Also, the original bills of lading have to be delivered, so they are no longer in circulation. It is also imperative that the structure and terms on the switch bill of lading fully comply with both the shipping regulations of the port from which the goods were shipped, any ports involved in the transfer of the goods, and the port of destination.
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