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Glossary

Trade Finance Glossary and Export Import Terms

Home > Finance Glossary > Shippers Letter of Instruction

What is Shippers Letter of Instruction?

Shippers Letter of Instruction is a document provided by the exporter to a freight forwarder containing detailed instructions for handling and shipping goods.

How It Works:

  • The exporter prepares shipment instructions.
  • Details include destination, carrier preferences, and documentation.
  • The document is given to the freight forwarder.
  • The forwarder executes the shipment accordingly.

Benefits:

  • Ensures accurate execution of shipment requirements and documentation
  • Reduces operational errors in logistics handling
  • Enhances coordination between exporter and logistics provider
  • Supports compliance with export regulations and buyer requirements

Example:

An exporter provides detailed shipping instructions to a freight forwarder to ensure correct delivery and documentation.

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