Shipping Instructions (SI) refer to the detailed information provided by the shipper or exporter to the carrier or freight forwarder regarding the shipment of goods. This documentation is critical in the shipping and logistics industry as it contains essential data needed for the preparation of the Bill of Lading (B/L), which is a key document in international trade.

Purpose of Shipping Instructions

The primary purpose of Shipping Instructions is to ensure that all necessary and accurate information is communicated to the carrier or their agent. This information is used to:

Prepare the Bill of Lading, which serves as a receipt of the goods and a contract of carriage between the shipper and carrier.
Ensure compliance with all shipping regulations, both domestic and international.
Facilitate customs clearance and other related procedures.

 

Key Elements of Shipping Instructions

Shipping Instructions typically include the following details:

Shipper’s and Consignee’s Details: Names and addresses of the shipper (sender) and consignee (receiver).
Notify Party: Contact details of the person or company to be notified upon arrival of the goods.
Vessel and Voyage Number: Specifics of the ship and its voyage number.
Port of Loading and Discharge: The ports where goods will be loaded and unloaded.
Description of Goods: Detailed description of the goods being shipped, including type, quantity, and weight.
Container Numbers: If the shipment is containerized, the container numbers are specified.
Marks and Numbers: Identifying marks and numbers on the cargo, which correspond to those on the packages.
Hazardous Information: Details if the cargo is hazardous, including the relevant handling instructions and emergency contact information.
Special Instructions: Any special handling or shipping instructions that the carrier needs to be aware of.

 

Process of Submitting Shipping Instructions

The process for submitting Shipping Instructions generally involves the following steps:

Compilation of Information: The shipper gathers all necessary information about the cargo, including legal requirements and specific carrier instructions.
Submission to Carrier/Freight Forwarder: The SI are usually submitted through an online platform provided by the carrier or freight forwarder, or through a standardized form.
Review and Confirmation: The carrier reviews the SI for completeness and accuracy. Any discrepancies or issues are communicated back to the shipper for correction.
Issuance of Bill of Lading: Once the SI are confirmed and agreed upon, the carrier issues the Bill of Lading based on these instructions.

 

Importance of Accurate Shipping Instructions

Accurate and complete Shipping Instructions are crucial for several reasons:

They ensure that the Bill of Lading reflects the true nature of the goods and terms of shipment, thus avoiding disputes or legal issues.
They help in avoiding delays at customs or with carriers due to incorrect or incomplete information.
They contribute to efficient handling and transportation of the goods, thereby reducing potential costs and complications.

 

In summary, Shipping Instructions play a vital role in the smooth execution of transport operations in international trade, serving as a foundation for accurate documentation and compliance with shipping regulations.

 

Read More:

Logistics 101 | Shipper’s Letter of Instruction in International Trade | FreightAmigo