Shipping Advice

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📖 Detailed Explanation

A Shipping Advice is a written notice sent by the seller to the buyer after the goods have been loaded on board, informing the buyer that the goods have been shipped, along with key details such as the shipment date, vessel name, voyage number, bill of lading number, and estimated time of arrival. It is mainly used in sea or inland waterway transport under trade terms such as FOB, CIF, and CFR. Especially when the buyer is responsible for insurance (e.g., under FOB and CFR), the seller must send the Shipping Advice promptly so that the buyer can arrange insurance and prepare to take delivery. Precautions include: the notice should be timely (usually sent immediately after shipment, no later than the time limit stipulated in the contract), the content must be accurate and complete, and proof of sending should be retained; if the seller's failure to notify in time causes the buyer to miss insurance coverage or incur extra costs, the seller may be liable for compensation. Unlike a Delivery Note, a Shipping Advice specifically addresses the loading stage and is often associated with documents such as the bill of lading and commercial invoice; unlike an Arrival Notice, which is issued by the carrier to the consignee. In foreign trade practice, the Shipping Advice is one of the common documents under a letter of credit; if required by the L/C, the seller must submit a copy.

📝 Examples

1. According to the contract terms, the seller sent a Shipping Advice to the buyer within 24 hours after loading the goods, specifying the vessel name "Oriental Star", voyage number V.123, bill of lading number B/L001, and estimated time of arrival, so that the buyer could arrange insurance in time. (Note: Under FOB terms, the seller fulfills the notification obligation to prevent the buyer from missing insurance.) 2. The letter of credit required submission of a copy of the Shipping Advice. The seller sent it to the buyer by email immediately after shipment, together with a copy of the bill of lading, as one of the documents for negotiation. (Note: In L/C transactions, the Shipping Advice is a documentary requirement, and the seller must submit it in compliance.)

💡 Foreign Trade Tips

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