Shipping Instructions: A Guide

 

Need help shipping internationally? Our guide simplifies the process Learn how to submit accurate instructions and ensure timely delivery.

 

 

Project Cargo

Shipping Instructions

Guide to Shipping Instructions for Global Trade

The Blueprint for Every Successful Shipment

In the complex choreography of global trade, Shipping Instructions are the master blueprint. This critical document, often known as a Shipper’s Letter of Instruction (SLI), is the central command for a shipment, providing a detailed roadmap that guides freight forwarders, carriers, and customs officials. While it may seem like just another piece of paperwork, its accuracy and completeness are the bedrock upon which a smooth, efficient, and successful delivery is built.

Incomplete, ambiguous, or inaccurate instructions can set off a disastrous chain reaction, leading to customs delays, incorrect handling, costly re-routing, and even lost cargo. For UK businesses competing on a global scale, mastering the art of providing flawless shipping instructions is not just good practice, it's essential for protecting your bottom line and reputation. At Shipping International, we transform this crucial task from a source of anxiety into a seamless part of your operation.

The Core Components of Shipping Instructions: A Master Checklist

Comprehensive shipping instructions leave no room for error. A standardised template should be used to ensure all vital information is captured. Here are the essential components every set of instructions must include:

1. Shipper & Consignee Details

This is the fundamental "who" of the shipment. You must provide the full legal name, registered address, and direct contact details (phone and email) for both the shipper (the party sending the goods) and the consignee (the party receiving the goods). Any account numbers or VAT/EORI numbers should also be included for billing and customs purposes.

2. A Precise Description of the Goods

Customs authorities and carriers need to know exactly what is inside your packages. This description must be specific and include the total quantity of goods, the accurate weight (gross and net), and the precise dimensions of the cargo. Most importantly, it must feature the correct Harmonized System (HS) code, a globally recognised code used to classify products for assessing duties and taxes.

3. Packaging, Marks, and Numbers

This section details both the packaging used and the crucial identification marks on the exterior of the cargo. Specify the type of packaging (e.g., cardboard boxes, wooden crates, pallets). Then, list the shipping marks and numbers that will be physically present on the packages. This includes the shipper's and consignee's marks, the port of destination, package numbers (e.g., "1 of 10," "2 of 10"), and any special handling marks (e.g., "Fragile," "This Way Up," "Keep Dry"). These marks allow handlers to correctly identify and manage your cargo without needing to open it.

4. Transport & Routing Details

Clearly state the chosen mode of transport: air, sea, or road. This should be indicated if you have a preferred carrier or a specific shipping service. You should also specify the port or airport of loading and the port or airport of discharge to ensure the shipment follows the desired route.

5. Declared Value & Insurance

You must declare the accurate market value of the goods. This value is used by customs authorities to calculate duties and is also the basis for any insurance claim. Your instructions should also specify whether you require cargo insurance and, if so, the level of coverage needed to protect your shipment against loss or damage during transit.

6. Payment & Trade Terms (Incoterms®)

Clarify how the shipping costs will be paid (e.g., prepaid by the shipper or to be collected from the consignee). Crucially, you must state the agreed-upon Incoterm® (e.g., FOB, CIF, DDP). These internationally recognised trade terms define the precise point at which responsibilities, costs, and risks transfer from the seller to the buyer, preventing costly disputes.

The Critical Importance of Accuracy and Timeliness

The impact of well-prepared shipping instructions reverberates throughout the supply chain, delivering significant benefits and preventing costly mistakes.

Preventing Delays and Rerouting

Accurate instructions are the fastest way to get through customs. Correct HS codes, values, and goods descriptions allow for efficient customs processing. Correct addresses and handling marks ensure the cargo is never misrouted or left at the wrong depot, saving weeks of potential delays.

Reducing Financial Risks

Errors are expensive. An incorrect HS code can lead to customs fines and the wrong amount of paid duty. Vague handling instructions can result in damaged goods. Submitting instructions after the carrier's deadline can cause your cargo to be "shut out" from its planned vessel, incurring storage and re-booking fees.

Improving Customer Satisfaction

At the end of the day, the goal is a happy customer. Reliable, on-time delivery is a cornerstone of customer satisfaction. By ensuring your shipping instructions are flawless, you contribute directly to a predictable and dependable supply chain, building trust and loyalty with your clients.

A Practical Guide: Best Practices for Providing Shipping Instructions

Adhering to a few established best practices can eliminate the vast majority of errors and ensure your instructions are clear, complete, and effective.

  1. Use a Standardised Template: Don't leave it to chance. Use a formal Shipper's Letter of Instruction (SLI) template. This ensures all essential fields are included and reduces the risk of forgetting a critical piece of information.
  2. Be Detailed and Unambiguous: Provide comprehensive information. Instead of "machine parts," write "15 boxes of cast iron Automotive water pumps." Use clear, simple language and avoid industry jargon that could be misinterpreted.
  3. Double-Check Every Detail: Before submission, meticulously proofread all information. Verify names, addresses, contact numbers, and reference numbers. A single transposed digit can send a shipment to the wrong place.
  4. Submit Instructions Before the Deadline: Carriers have strict cut-off times for receiving instructions, as they need the data to create the ship's manifest and plan stowage. Missing this deadline will almost certainly cause your shipment to be delayed.
  5. When in Doubt, Seek Expert Guidance: For complex shipments or if you are ever unsure about a requirement, consult a professional. The team at Shipping International is always available to provide expert guidance and ensure your instructions are perfect.

Frequently Asked Questions

What happens if my shipping instructions are incomplete or wrong?

Incomplete or incorrect instructions can cause problems, including significant customs delays, incorrect duty and tax assessments, fines from authorities, misrouting of your cargo, and even potential damage if special handling needs are not specified. It is one of the most common and costly errors in shipping.

What is an HS Code and why is it so important?

The Harmonised System (HS) code is an internationally standardised system of names and numbers to classify traded products. Providing the correct HS code is a legal requirement for customs declarations. It determines the rate of duty payable and helps authorities track trade statistics. Using the wrong code can lead to fines and delays.

What are Incoterms and how do they affect my shipping instructions?

Incoterms are globally recognised trade terms that define the responsibilities of the seller and buyer. The Incoterm you specify in your instructions (e.g., FOB, CIF) dictates who is responsible for costs like transport and insurance, and precisely where the risk for the goods transfers from one party to the other.

What's the difference between Shipping Instructions and a Bill of Lading (B/L)?

Shipping Instructions are the detailed information you *provide* to your freight forwarder or carrier. The Bill of Lading is the official, legal document that the carrier *issues* after receiving the cargo, based on the instructions you provided. The B/L acts as a contract, a receipt, and a document of title.

How far in advance should I submit my instructions?

You should submit your instructions as early as possible. Every carrier has a strict "shipping instructions deadline" or "cut-off," often 48-72 hours before the vessel's estimated departure. We recommend submitting them well before this deadline to allow time for verification and to resolve any queries.

Can Shipping International create the shipping instructions for me?

As your freight forwarder, we work with you to compile and submit all necessary shipping instructions on your behalf. We use the commercial invoice, packing list, and our consultation with you to prepare the formal instructions for the carrier, ensuring accuracy and timeliness. Contact us to learn more about our comprehensive services.