Time of Shipment

Time of Shipment is a key clause in international sales contracts, referring to the latest time by which the seller must load the goods onto the means of transport or deliver them to the carrier. It differs from Time of Delivery, which refers to the deadline for the goods to arrive at the destination. It is used in payment methods such as letters of credit (L/C), documentary collections, and telegraphic transfers, and is especially critical under trade terms such as FOB, CIF, and CFR. Points to note: 1. Specify a clear date or period, e.g., 'no later than June 30, 2025'; 2. Avoid vague expressions such as 'immediate shipment' or 'shipment as soon as possible' unless permitted by the L/C; 3. Coordinate it with the L/C expiry date and the presentation period to prevent inability to present documents in time after shipment; 4. If the buyer nominates the carrier, allow time for booking space. The often-confused term 'Time of Delivery' may coincide with shipment time under symbolic delivery, but differs under actual delivery (e.g., EXW, DDP). In addition, the time of shipment affects insurance, warehousing, and cash flow, so it must be clearly stipulated in the contract and exceptions such as force majeure should be considered.