In ocean export operations, a Shipping Instruction (S/I) is a mandatory document that the shipper must submit to the shipping line or freight forwarder before vessel departure. It serves as the basis for the carrier to issue the Bill of Lading (B/L) and file the cargo Manifest in accordance with regulatory requirements.

Even a minor error on the Shipping Instruction may result in an incorrect Bill of Lading, amendment charges, customs clearance delays, or disruptions to delivery schedules. So, what exactly is a Shipping Instruction, what information must be declared, and how can exporters avoid common risks when submitting an S/I? Let's explore in detail below.

What Is a Shipping Instruction (S/I)?

A Shipping Instruction (S/I) is a shipping document prepared by the Shipper and submitted to the shipping line or freight forwarder, providing complete details of an export shipment.

Based on the information contained in the S/I, the shipping line will:

• Submit the export cargo manifest.
• Prepare the Draft Bill of Lading.
• Issue the original Bill of Lading.
• Transmit required data to destination customs authorities for shipments subject to AMS, ENS, AFR, ISF, and other advance filing requirements.

Purpose of a Shipping Instruction

• Confirm the details of the Shipper, Consignee, and Notify Party.
• Provide accurate cargo information for the Bill of Lading.
• Support manifest filing by the shipping line.
• Ensure compliance with destination customs regulations.
• Minimize document amendment costs after vessel departure.

When Must the S/I Be Submitted?

Shipping lines typically specify a deadline known as the:

S/I Cut-off Time

This is the final deadline for submitting the Shipping Instruction.

The cut-off time is usually indicated on:

• Booking Confirmation
• Shipping Order
• Booking confirmation email from the shipping line or freight forwarder

Exporters must submit the S/I before the cut-off deadline to allow sufficient time for data processing, Draft B/L preparation, and manifest filing.

Serious Consequences of Late Shipping Instruction Submission

Many exporters underestimate the importance of the S/I submission deadline and wait until shortly before vessel departure. However, this often leads to significant and avoidable costs.

1. Risk of Cargo Roll Over

If the shipping line does not receive the S/I by the required deadline:

• The booking may be automatically locked in the system.
• The container may be removed from the vessel loading list.
• The cargo may have to wait for the next sailing schedule.

This can directly affect:

• Delivery schedules
• Production planning
• Commercial contracts with customers

2. Late S/I Charges

Many shipping lines impose Late S/I Fees, typically ranging from:

USD 30 – USD 100 or more per shipment

These charges apply when the carrier must process shipping instructions outside the standard deadline.

3. Increased Demurrage & Detention Costs

If the container has already been delivered to the terminal but misses its scheduled vessel:

Demurrage (DEM)

Terminal storage charges for containers remaining at the port.

Detention (DET)

Charges for holding carrier equipment outside the port beyond the free period.

These costs generally increase progressively based on the number of delayed days.

4. Additional Costs for Reefer Cargo

For Reefer Containers, missing a scheduled vessel may result in:

• Plugging fees
• Reefer repositioning charges
• Reefer storage charges

Actual costs can become substantial if the cargo must wait several days for the next vessel.

5. Risk of Manifest Filing Violations

Many countries require advance cargo filing before vessel departure, including:

• United States (AMS/ISF)
• European Union (ENS)
• Japan (AFR)

If the S/I is submitted too late:

• The carrier may be unable to transmit data on time.
• Destination customs may refuse cargo discharge.
• Manifest amendment fees may apply.
• Penalties can reach thousands of U.S. dollars.

6. Increased Bill Amendment Fees

Submitting the S/I close to the deadline often increases the likelihood of errors.

Common mistakes include:

• Incorrect Consignee information
• Wrong container numbers
• Incorrect destination port
• Incorrect cargo weight

Each amendment may cost:

USD 40–50 per correction or more, depending on the shipping line.

Mandatory Information Required on a Shipping Instruction

To ensure accurate Bill of Lading issuance, exporters should provide the following information:

Standard Shipping Instruction Submission Process

Step 1: Consolidate Information After Cargo Stuffing

Once cargo loading is completed:

• Confirm container number(s).
• Confirm seal number(s).
• Update actual cargo weight.
• Verify VGM (Verified Gross Mass).

Step 2: Submit the Shipping Instruction

Exporters may:

• Enter data directly into the shipping line's online system.
• Complete the carrier's S/I form.
• Send the S/I via email to the freight forwarder.

All submissions must be completed before the S/I cut-off time.

Step 3: Review the Draft Bill of Lading

Upon receiving the Draft B/L from the shipping line, carefully verify:

• Shipper details
• Consignee details
• Notify Party details
• Cargo description
• POL/POD
• Container number(s)
• Seal number(s)
• Cargo weight
• Freight terms

Step 4: Confirm the Bill of Lading

If all information is correct, the shipper should send confirmation:

"Draft Bill is OK."

The shipping line will then issue the final Bill of Lading after vessel departure.

Golden Rules for Preparing Shipping Instructions

Submit the S/I Early

Avoid waiting until the cut-off deadline.

Recommended practice:

• Complete the S/I at least 2–3 hours before cut-off.
• For special cargo, submit at least 24 hours in advance.

Maintain Consistency Across Documents

Information on the S/I must match:

• Commercial Invoice
• Packing List
• VGM
• Booking Confirmation

Any discrepancy may result in B/L amendments or Manifest corrections.

Provide Detailed Cargo Descriptions

Avoid vague descriptions such as:

• General Cargo
• Spare Parts
• Accessories

Instead, clearly specify:

• Product name
• Intended use/function
• HS Code (if required)

Detailed cargo descriptions help reduce the risk of customs inquiries and requests for additional information at destination.

Conclusion

Although the Shipping Instruction (S/I) is simply a shipping instruction document, it plays a fundamental role throughout the entire ocean export process. An accurate S/I enables the timely issuance of the Bill of Lading, proper Manifest filing, and significant reduction of unnecessary costs.

To avoid risks such as late S/I penalties, B/L amendment fees, Manifest violations, and cargo rollovers, exporters should establish a robust document control process and maintain close coordination with their freight forwarders from the booking stage onward.

If you need assistance with Shipping Instruction preparation, export document verification, or handling FCL and LCL shipments, please contact SongWin Logistics for fast and professional support.

SONGWIN INTERNATIONAL LOGISTICS VIETNAM CO., LTD.

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