Short Shipment

Short Shipment refers to the situation where the quantity of goods actually shipped by the seller is less than the quantity stipulated in the contract or letter of credit. It commonly occurs with bulk cargo, commodities, or goods with imprecise packaging units (e.g., grain, ore, oil). Usage scenarios: Letters of credit usually specify a tolerance for quantity (e.g., 5%); if not specified, according to UCP600, a 5% tolerance is allowed, but this does not apply when the quantity is expressed in packing units or individual items. Precautions: Short shipment may lead to buyer rejection or claims; the seller should clearly stipulate a quantity tolerance clause in the contract; if the letter of credit states 'about' or 'approximately', a 10% tolerance is allowed. It is the opposite of 'Over Shipment', which means the quantity exceeds the stipulation. Difference: Short shipment focuses on insufficient quantity, while over shipment focuses on excess; both must fall within the allowed range of the contract or letter of credit. If short shipment exceeds the allowed tolerance, the seller constitutes a breach of contract, and the buyer has the right to claim damages or reject the goods. In practice, the seller should reasonably estimate the shipment quantity to avoid the risks associated with short shipment.