The shipping industry has multiple stakeholders, compliances, and chances of unexpected errors. A single misstep can result in colossal cargo losses in this overcrowded, complex digital industry. We have a clear and precise shipper’s letter of instruction, a comprehensive document that offers a clear path for freight forwarders and carriers to follow. It consists of a detailed explanation of who, when, where, and what is transported in what manner to ensure on-time and safe delivery of goods. 

This blog will describe the shipper’s letter of instruction, including its benefits, importance, and types of shipments that need it. 

What is a shipper’s letter of instruction? 

The shipper’s letter of instruction is a formal document that consists of the instructions and compliance the carrier and the shipper must follow when transporting goods from one place to another, whether through intermodal transportation or a particular single mode. It creates a uniform standard among the shipper, carrier, and freight forwarder, ensuring they know the decided regulations to uniformize the working and shipping process. The SLI documentation for international shipping is required to be conveyed to the logistic partners. SLI in shipping answers all the cargo insurance and customs questions, posts carriers’ questions, and communicates them to the freight forwarder. 

What are the components of the shipper’s letter of instruction? 

Following are the components of the shipper’s letter of instruction mentioned below: 

1. Route and mode of transportation: SLI includes instructions for the preferred route and mode of transportation that you will choose. This allows logistic providers to have pre-information on the process, which will help them choose the best one for their cargo.  
2. Shipping terms and conditions: This document describes the shipping terms and conditions you must follow. This includes the Incoterm type you have chosen, defining the exact roles and responsibilities of the buyer and seller. Therefore, this makes the logistic cycle transparent and efficient. 
3. Custom requirement: This document mentions all the specific documentation required for customs clearance. These may include commercial invoices, packaging lists, origin certificates, or other important paperwork for adhering to international regulations. 
4. Shipment information: This manual also contains crucial information regarding the shipment. It mentions the nature of the goods, the packaging standards, special permissions, special cargo handling, weight, and dimensions. However, this portion of the shipment information helps the logistic providers plan and execute the shipment as per the situation. 
5. Contact information: SLI, in shipping terms, has the phone number, address, and all the relevant details for the shipper and the consignee. Consequently, this ensures smooth and well-connected shipping. 

What is the use of the shipper’s letter of instruction? 

A shipper’s letter of instruction is not merely a page; despite this, it has a legal value. Let’s have a look at the purpose of this letter: 

1. Information in one place: This letter contains all the information, from the collection to the delivery, in a single document. As a result, it is easier for freight forwarders to access all key information related to shipping. 
2. Empowering freight forwarders to act on the shipper’s behalf: This SLI instruction letter gives carriers the power to handle operations and oversee transportation on the shipper’s behalf. 
3. Legal proof of the instructions: This formal document is the legal proof that shippers and carriers must follow while shipping. This letter of shipper instruction mentions all the cargo’s specifications, requirements, and special needs. Failure to follow these regulations can result in fines or legal implications. 
4. Issuing export customs: If you are new to the shipping industry scenario or unaware of the procedure for getting export documents with SLI, the shipper’s letter of instruction can be your savior. It consists of all the required documents to attain export documents, be it a bill of lading or Electroniс Export Information extract.

Why is the SLI important in shipping?

The Shipper’s letter of instruction, an instructional letter, is about how you need to handle your cargo and shipment, adhering to all the rules and regulations prescribed by the respective authorities. It is handed over to the person who has to take care of the shipment on your behalf.  Let’s discuss the importance of SLI in shipping in some brief points: 

1. Passing the authority: No one can act on behalf of the shipper. There is a need for a legal transfer of authority. That legal transfer of delegation is through the shipper’s letter of instruction. All the queries related to the shipment are mentioned in this international shipping legal document related to the freight forwarder. So, all the questions are answered in this document. Shippers can choose a freight forwarder who will take care of their shipment in their absence during transit. 
2. Workflow and efficiency: The shipper’s letter of instruction aims to streamline the shipping process. It centralizes the critical data to make it accessible to all the stakeholders involved in shipping. This detailed guide suggests ways for logistic providers and carriers to manage shipping operations efficiently. 
3. Provides information: SLI is an informational document for carriers and shippers that contains all the related information. Additionally, it provides comprehensive information about the shippers’ cargo’s weight, nature, origin, assigned destination, and packaging compliances by organizations like ISO. 
4. Clear communication: This legal letter provides clear instructions to the carriers and freight forwarders. It ensures that the stakeholders are aware of the cargo and handling requirements. Consequently, this transparent communication simplifies and speeds up operations. 

How do you fill out the shipper’s letter of instruction?

When the logistic partner has decided, you can fill out the SLI and issue it immediately. Some templates govern you through issuing the shipper’s letter of instruction. The following steps are to fill out the SLI form for shipping: 

1. While drafting an SLI, you need to fill in the accurate and updated contact details of the receivers and shippers of the consignment. 
2. After that, you must mention the specific logistic partner you are working with. These details are mentioned in the Notify section of SLI. 
3. In the SLI, the information regarding the departure, such as the destination port or container depot and the logistic partner’s terms and conditions, must be mentioned. 
4. The SLI must include all the specific instructions, such as whether the cargo is stackable or nonstackable. In addition to these, there are specific methods for cargo handling or any other regulations you must adhere to. 
5. The last and foremost important section is the exporter’s signature and the date of the issuance of the SLI shipping document. 

Who fills out the shipper’s letter of instruction?

A shipper’s letter of instruction is a significant, informational, legal, and instructional letter filled by the shipper or the exporter. Shippers or exporters own the shipment and are responsible for filling out this document. SLI ensures that the information given to the freight forwarder and the carrier is correct. It ensures adequate cargo handling methods and proper warehousing of the goods as per their nature. It also optimizes the loading and unloading of cargo. 

What are the downloaded formats of the shipper’s letter of instruction? 

There are two most important downloaded formats of the shipper’s letter of instruction: 

1. SLA in NCBFFA (National Customs Brokers and Forwarders Association of America)  format: This is a conventional letter of instruction that directs transportation and customs clearance. It allows freight forwarders to file the SLI form precisely through AES (Automated Export System). It provides comprehensive details about international trade regulations. 
2. SLI in the SED format: The SED (Shipper’s Export Declaration) is an updated format exporters use to help forwarders with extra information. The Foreign Trade Regulations updated this new format in 2014. 

LOTUS Containers is the leading business in container trading, offering port logistics services to its customers. We offer durable and sturdy shipping containers for sale and lease to clients with the best services.