Free shipping advice template (notice of shipment)
A shipping advice tells the buyer, and often the buyer's insurer, that the goods have been shipped and on what vessel, with what documents and value. Many letters of credit ask for a copy of it, or a certificate that it was sent, within a set number of days after shipment. Use the email version for a quick notice and this sheet when a formal document is needed.
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What the template covers
- Shipper and the addressee: buyer, notify party or the buyer's insurer
- Date, your reference, and the L/C number when the sale is under a letter of credit
- The buyer's insurance cover note or open policy number, when the buyer insures the cargo
- Goods description, number and kind of packages, gross and net weight and volume
- Invoice number, date and value
- Vessel and voyage or flight, ports of loading and discharge, ETD and ETA
- B/L or AWB number and date, and container and seal numbers
- Name, title and signature of the person sending the advice
Sources
Guides on this topic
Why the buyer needs it: risk and insurance
Under Incoterms 2020 the seller must give the buyer notice that the goods have been delivered (article A10 of each rule). Under FCA, FOB, CFR and CPT the risk passes to the buyer at delivery while the buyer arranges insurance, so a prompt advice with the vessel, value and documents lets the buyer, or its insurer under an open policy, cover the cargo in time.
Shipping advice under a letter of credit
Credits often require a copy of the shipping advice sent to the applicant or to the applicant's insurer, quoting the insurance cover note or open policy number, or a beneficiary's certificate that it was sent within a number of days after shipment. Send it within that time, keep proof such as the email or fax report, and make sure its data do not conflict with the invoice and transport document (UCP 600 article 14(d)).
Keep it consistent with the other documents
Use the same goods description, package count, weights, vessel, B/L number and dates as on the commercial invoice, packing list and bill of lading. If anything changes after the advice was sent, such as a later vessel or a different B/L number, send a corrected advice and say what changed.
Common questions
What is a shipping advice in export?
A notice from the seller to the buyer, and often to the buyer's insurer, that the goods have been shipped, with the vessel, dates, documents, packages and value. It can be an email or a formal document.
When should the shipping advice be sent?
As soon as the goods are loaded or the transport document is issued. Under a letter of credit, within the number of days the credit states, usually counted from the shipment date.
Why does a letter of credit ask for a shipping advice?
So the applicant can insure the goods in time when it arranges the insurance itself, as under FOB or CFR, and prepare for clearance. The credit may require a copy of the advice or a beneficiary's certificate that it was sent.
What is the difference between a shipping advice and a shipping instruction?
A shipping instruction goes from the shipper to the forwarder or carrier before shipment, to book and issue the bill of lading. A shipping advice goes from the seller to the buyer after shipment, to say what was shipped and how.
Is there an email version?
Yes. The shipping advice email template fills in the same details from your invoice; use this sheet when a formal signed document is required.
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