Early Shipment

Early Shipment refers to the seller completing the loading or dispatch of goods before the shipment period stipulated in the contract. It commonly occurs when the buyer urgently needs the goods, the seller's production is ahead of schedule, or both parties agree to early delivery. Key points: Early shipment must be agreed by the buyer, otherwise it may constitute a breach of contract; if the letter of credit specifies a fixed shipment period, early shipment may be rejected by the bank unless the L/C allows it; additionally, early shipment may involve extra storage, insurance, or capital occupation costs, and the parties should clearly define who bears these costs. Unlike 'Partial Shipment,' early shipment emphasizes earlier timing rather than splitting quantity; unlike 'Prompt Shipment,' which usually means shipment within a short period after the contract takes effect, early shipment is relative to the agreed date. In practice, it is advisable to specify in the contract whether early shipment is allowed and to what extent, and to amend the relevant L/C terms to ensure safe receipt of payment.