Shipping Advice

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📖 Detailed Explanation

Shipping Advice is a written notice issued by the seller to the buyer after the goods have been shipped, used to inform the buyer of shipment details such as the vessel name, voyage number, date of shipment, bill of lading number, estimated time of arrival, etc. Its core purpose is to enable the buyer to arrange insurance, customs clearance, cargo pickup, and sales in a timely manner. It is typically used under trade terms such as FOB, CFR, and CIF, especially when the buyer is responsible for insurance (e.g., FOB), where the Shipping Advice serves as the necessary basis for the buyer to procure insurance. Points to note: The seller must issue the notice within the time specified in the contract, otherwise it may bear the loss incurred by the buyer's failure to insure; the content of the notice should be accurate and complete to avoid the buyer being unable to take delivery or incurring additional costs due to incorrect information. It differs from "Shipping Instructions," which are shipment requirements issued by the buyer to the seller; and from "Notice of Arrival," which is a notice of arrival issued by the shipping company or freight forwarder to the consignee. In addition, Shipping Advice is often used in conjunction with "shipping documents," but it is not a document of title itself and serves only as a notification.

📝 Examples

1. According to Clause 5 of the contract, the seller shall, within 24 hours after the goods are loaded on board, send a shipping notice to the buyer, specifying the vessel name, voyage number, bill of lading number, and estimated date of arrival, so that the buyer can arrange insurance. (Note: Under an FOB contract, the buyer needs the shipping notice to obtain insurance, and delayed notice may result in the seller bearing the risk.) 2. We sent the shipping notice by email on March 15, informing you that the goods have been loaded on "Evergreen" V.123 and are expected to arrive at the Port of Hamburg on April 10. Please arrange customs clearance and pick up the goods in a timely manner. (Note: Under a CIF contract, although the seller is responsible for transportation and insurance, the shipping notice still helps the buyer prepare for receipt of the goods in advance.)

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