Shortage

In foreign trade, 'Shortage' refers to a situation where the actual quantity of goods delivered is less than the quantity stipulated in the contract, invoice, or packing list. It commonly occurs during shipment: the factory loads less, the warehouse omits items, the container has fewer goods, or goods are stolen or lost in transit. After receiving the goods, the buyer counts and finds a shortage, then files a claim with the seller or carrier. Usage scenarios include: quantity inspection after unloading, reporting loss to the insurance company or shipping company, and submitting discrepant documents under a letter of credit. Precautions: First, a distinction must be made between 'Shortage' and 'Short Shipment'—short shipment usually means the seller intentionally loads less and is allowed within a more or less clause, while shortage mostly refers to an unintentional or unattributed quantity deficiency; Second, upon discovering a shortage, immediately take photos, retain original packaging, and request a survey by a public notary to obtain a Shortage Report; Third, the time limit and target for claims must be clear: if it is the carrier's liability, written notice must be given within 3 days after taking delivery; if it is the seller's liability, handle according to the contract's claim clause; Fourth, in letter of credit settlement, a shortage may cause document discrepancies, and the bank may refuse payment. The difference from terms like 'over shipment,' 'damage,' and 'wrong shipment' is that shortage only emphasizes insufficient quantity and does not involve quality or specification issues.