Shipper’s Letter of Instruction: Your Essential Document for Smooth International Shipping

Shipper's Letter of Instruction: Your Essential Document for Smooth International Shipping

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In the complex world of international shipping, the Shipper's Letter of Instruction (SLI) plays a pivotal role. Let's explore the essentials of this document, understand its purpose, find out who uses it, and highlight the benefits of a well-crafted SLI.

What Is an SLI?

An SLI is a crucial document prepared by the shipper for their appointed freight forwarder. It explains how, when, and where to route the cargo and is an important component of building a seamless shipping process. Here's what you need to know:

Purpose of the SLI

• Clear Communication: The SLI bridges the gap between the shipper, freight forwarder, and other involved parties. It outlines responsibilities, terms, and conditions to minimize miscommunication and potential errors.
• Authorization: By issuing the SLI, the shipper authorizes the freight forwarder to act on their behalf for transportation and documentation purposes.
  

Components of the SLI

• Shipper Information: Provide accurate contact details (name, address, phone, email) to facilitate effective communication.
• Consignee Information: Include complete consignee details (name and address, contact person, phone, email, consignee type) to ensure goods reach the correct destination and the right recipient.
• Miscellaneous: Specify information (whether there are related parties, routed export transactions, or hazardous materials) required for all shipments.
• Description of Goods: Detail the shipped goods comprehensively to prevent confusion and aid safe transportation:
  • Type of goods
  • Quantity
  • Weight
  • Dimensions
  • Special handling requirements

• Freight Charges: To ensure clarity regarding financial responsibilities in international trade contracts, it is essential to explicitly define who bears the freight charges (shipper or consignee). This is typically determined by adhering to Incoterms, a globally recognized set of rules outlining the obligations of buyers and sellers in international transactions.
• Document Instructions: Specify required documents (e.g., commercial invoices, packing lists, certificates of origin) to prevent delays at customs or other regulatory checkpoints.
• Other fields: Conditional information, license information, transportation method, and other special instructions and insurance information may be required depending on the shipment.
  

How to Fill Out an SLI Correctly

• Gather Information: Collect details of the shipper, consignee, and goods before starting the SLI.
• Accuracy Matters: Be specific and accurate in each section. Avoiding errors at this stage reduces potential delays and complications.

Why the SLI Matters

The SLI is essential for smooth sailing in international shipping. This document acts as a roadmap, guiding cargo from shipper to consignee. By clearly communicating details and responsibilities, the SLI prevents costly mistakes and delays. For further guidance, review Expeditors' U.S. Shipper's Letter of Instruction (SLI) Completion Guideor reach out to an Expeditors representative.