Navigating International Shipping with an SLI

In the complex world of international shipping, the Shipper’s Letter of Instruction (SLI) plays a pivotal role. Let’s explore the essentials of this document, understand its purpose, find out who uses it, and highlight the benefits of a well-crafted SLI.

What Is an SLI?  

An SLI is a crucial document prepared by the shipper for their appointed freight forwarder. It explains how, when, and where to route the cargo and is an important component of building a seamless shipping process. Here’s what you need to know:  

Purpose of the SLI  

• Clear Communication: The SLI bridges the gap between the shipper, freight forwarder, and other involved parties. It outlines responsibilities, terms, and conditions to minimize miscommunication and potential errors.  
• Authorization: By issuing the SLI, the shipper authorizes the freight forwarder to act on their behalf for transportation and documentation purposes. 

Components of the SLI  

• Shipper Information: Provide accurate contact details (name, address, phone, email) to facilitate effective communication.   
• Consignee Information: Include complete consignee details (name and address, contact person, phone, email, consignee type) to ensure goods reach the correct destination and the right recipient.  
• Miscellaneous: Specify information (whether there are related parties, routed export transactions, or hazardous materials) required for all shipments.  
• Description of Goods: Detail the shipped goods comprehensively to prevent confusion and aid safe transportation:   Type of goods  Quantity  Weight  Dimensions  Special handling requirements

• Freight Charges: To ensure clarity regarding financial responsibilities in international trade contracts, it is essential to explicitly define who bears the freight charges (shipper or consignee). This is typically determined by adhering to Incoterms, a globally recognized set of rules outlining the obligations of buyers and sellers in international transactions. 
• Document Instructions: Specify required documents (e.g., commercial invoices, packing lists, certificates of origin) to prevent delays at customs or other regulatory checkpoints.  
• Other fields: Conditional information, license information, transportation method, and other special instructions and insurance information may be required depending on the shipment. 

Read the full article to learn what the SLI is and how to effectively streamline your international shipping process.

Grow your supply chain knowledge. Check out other Horizon newsletter articles:

Data-Driven Decisions to Optimize Global Trade

Sustainable Trade From Rotterdam

Expeditors Brings Electric Delivery to Brazil