Short Shipment refers to a situation during the loading process where the actual quantity loaded onto the vessel is less than the quantity stipulated in the bill of lading or contract, resulting in part of the cargo failing to be shipped as planned. It commonly occurs in container transport, LCL consolidation, or bulk commodity trade, with causes including insufficient shipping space, cargo not arriving at the port in time, documentation errors, and customs inspection delays. Unlike 'Shortage,' which emphasizes the result of an insufficient actual quantity, Short Shipment emphasizes the act of 'failing to load what should have been loaded'; it is the opposite of 'Over Shipment.' Usage scenarios: the seller notifying the buyer, the carrier issuing a short shipment certificate, amending the bill of lading, or arranging supplementary shipment on the next voyage. Precautions: Short Shipment may constitute a breach of contract unless the contract allows a quantity tolerance (e.g., ±5%); the buyer should be notified promptly and supplementary shipment or refund negotiated; if the letter of credit requires strict compliance, short shipment may cause document discrepancies, requiring prior amendment of the L/C or obtaining the buyer's acceptance. Distinction: Short Shipment ≠ Short Landing (which refers to a shortage discovered at the time of unloading); the former occurs at the port of loading, while the latter occurs at the port of destination.
📝 Examples
1. Due to tight shipping space, 80 out of the 500 cartons originally scheduled for loading on March 15 were short-shipped. We have contacted the shipping company to arrange supplementary shipment on the next voyage. We kindly ask for your understanding. (Explaining the cause of short shipment and the supplementary shipment arrangement)
2. The letter of credit stipulates that partial shipment is not allowed, but this short shipment has resulted in an actual shipped quantity that is insufficient. We need to obtain the buyer's consent to amend the L/C; otherwise, the bank will refuse payment. (Explaining the impact of short shipment on L/C settlement)
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