Partial Shipment

Partial Shipment refers to the shipment of goods under one contract in several batches, at different times or from different locations. It is commonly seen in scenarios involving bulk commodities, long production cycles, or buyer requirements for delivery in multiple batches. When using this term, the contract must clearly specify whether partial shipment is allowed, as well as the quantity, timing, number of batches, and transport document requirements for each shipment. According to the Uniform Customs and Practice for Documentary Credits (UCP600), if a letter of credit does not explicitly prohibit partial shipment, it is deemed permitted. However, if the letter of credit stipulates "partial shipment prohibited," then shipment must be made in a single lot. Note the distinction from "Transshipment": partial shipment means the goods under the same contract are shipped in multiple consignments, while transshipment means the goods are transferred between means of transport during transit. In addition, partial shipment may affect payment, insurance, and inspection arrangements, so it is advisable to stipulate in the contract whether each batch is to be settled independently or cumulatively.