Shippers Letter of Instruction

Shippers Letter of Instruction: The Ultimate FAQ Guide

Let’s explore some of the fundamental aspects you need to know about shippers’ letter of instruction.

Of course we will explore what it is, why it is important, and why you need it among other fundamental aspects.

So, keep reading to learn more.

What Is Shipper’s Of Instruction (SLI)?

Figure 1 Shippers letter of instruction

Shippers Letter of instruction

A shipper’s letter of instruction is usually a letter that comes from the exporter to freight forwarders. It instructs them on where and how to handle the shipment export.

The exporter generally permits the freight forwarder to take action on the authorized forwarding agent.

Who Are The Main Parties In Shipper’s Letter Of Instruction?

The main parties for the Shipper’s letter of instruction are;

  • The exporter
  • The freight forwarder
  • The recipient of Importer

How Do You Fill Out Shipper’s Letter Of Instruction?

Filling Shipper’s letter of instruction is not an easy task, but you might find online templates in which you will fill out the required information.

With the help of a template, you will be guided on filling in the following information;

  • What product is shipped
  • The name and telephone number of a freight forwarder
  • Name and phone number of the exporter
  • Qualities, weight, and dimensions
  • How a product is packed
  • How to handle the product
  • The exporting restrictions
  • Who will pay the freight forwarder
  • Type of freight used (rail, air, or road)
  • If goods should be shipped alone
  • Insurance details
  • Documents accompanying shipment

What Details Does Shipper’s Letter Instruction Contain?

Figure 2 Content of shippers letter of instruction

Content of shippers letter of instruction

Well, Shipper’s letter of instruction is an optional document used for shipping.

There are usually no original standards for it.

You can decide to create one SLI for your company.

But remember the following information is important and will have to be included in the Shipper’s letter of instruction;

  • Your business address and names
  • The recipient business address and names
  • The freight forwarder details
  • Where the pick-up and delivery of goods will be
  • Consignment detail (license number, weight, and value) of the goods
  • If the goods are hazardous
  • Shipper’s signature

What Are Some Benefits Of Completing Shipper’s Letter Of Instruction?

Completing Shipper’s letter of instructions have a lot of benefits which include;

  • You will be able to prevent delays of goods while shipping.
  • By giving forwarders clear instructions and understanding will avoid unnecessary mistakes.
  • It will reduce the risk of any damages of goods since the condition of the goods is indicated.
  • In case of any arising problems, it will be able to provide written evidence.

Who Is Responsible for Preparing Shipper’s Letter Of Instruction?

The person who is typically responsible for preparing the Shipper’s letter of instruction is the exporter.

They fill the Shipper’s letter of instruction in advance to provide precise details to the forwarders.

By filling the SLI, the exporter will be sure that goods are handled appropriately, loaded, and unloaded safely with better storage.

What Is The Importance Of Shipper’s Letter Instruction (SLI)?

Shipper’s letter of instruction has importance such as typically

  • The shipment information is always in one place. All details of contacts, collection, goods condition, and freight type are on one document, which makes everything easy.
  • Issuing the export documents will be the best way to ensure that the freight forwarders know how to handle the goods. It has all the information they will need during the shipping process.
  • Another importance is here is proof of instructions given to freight forwarders in case of hazardous goods or particular goods in advance.
  • SLI will always allow freight forwarders to act on the Shipper’s behalf.

For Which Products Will You Need To Fill The Shipper’s Letter Of Instruction?

Well, the exports from the U.S. usually require this document to be issued by the Shipper.

This will help the freight forwarders to access a standardized file with important details or information about a particular shipment.

Sea freight services will mainly be required with the Shipper’s letter of instructions.

This is due to the nature of sea freight, where cargo ship stops in multiple ports.

SLI will ensure the safety of the goods throughout the process.

What Guidelines Do You Need While Submitting Shipper’s Letter Of Instruction?

While submitting Shipper’s letter of instruction, there are specific guidelines you need to put in mind, which will also help speed the process of approval.

The guidelines are

  • To submit the Shipper’s letter of instruction on time
  • To ensure correct details
  • Find an SLI template that is suitable
  • I need help you request
  • Appoint a freight forwarder in advance

Is Shipper’s Letter Of Instruction Necessary?

This always depends on the country of delivery and collection, but usually, the SLI is not mandatory.

But for countries such as the U.S., it is a requirement to have a complete shipper’s letter of instruction.

 Can Shipper’s Letter Of Instruction Be Classify As A Legal Document?

Yes, Shipper’s letter of instruction is a legal contract and document created between the exporter and freight forwarders company, organizing the logistics and shipping of your goods.

Do I Need To Sign A Shipper’s Letter Of Instructions?

Yes, you need to sign the Shipper’s letter of instruction since it’s a part of the requirement to be complete.

 Is The Difference Between Shipper’s Exporter Declaration Form and Shipper’s Letter Of Instruction?

Figure 3 Export declaration

Export declaration

Many exporters use the Shipper’s exporter declaration in the U.S., but it does not contain the option to include all the details required.

This will mean that your freight forwarders will always contact you to get any additional information they may need along the way.

While for Shipper’s letter of instruction, it’s mandatory to give the details of all parties involved for it to be valid and makes it easy for freight forwarders to do their jobs.

For any questions or inquiry about freight forwarding services from China to any global destination – contact BanSar now.

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