Shipping Advice is an indispensable and important clause in a sales contract. Its purpose is to clarify the division of responsibilities and risks between the buyer and seller and to jointly coordinate the connection between the ship and the cargo. The main contents of the Shipping Advice under different transaction conditions are as follows.
1. “Goods Ready” Notice
According to the general practice of international trade, when the transaction is made under FOB terms, the seller shall issue a “goods ready” notice to the buyer several days (usually 30 days or 45 days) before the agreed shipment period, so that the buyer can arrange the ship to pick up the goods on time.
2. Notice of Ship Arrival Date
When the transaction is made under FOB terms, after the buyer receives the seller’s notice of goods being ready, he shall notify the seller of the ship’s name, class, age and other ship information and the ship’s arrival date at the agreed time, so that the seller can arrange the shipment of the goods and prepare for loading in time.
3. Shipping Notice
After the goods are loaded (including CFR and CIF terms), the seller shall promptly issue a shipping notice at the agreed time, and inform the buyer by telegraph of the contract number, name of the goods, weight, number of pieces, invoice amount, name of the ship and date of loading, so that the buyer can promptly arrange insurance and make preparations for receiving and unloading the goods, and handle import customs declaration formalities.