SI · pdf-lib

Shipping instructions generator

Build the shipping instructions document the freight forwarder uses to issue the BL. Set BL terms, freight payment, cargo description verbatim. The tool generates a branded PDF ready to send.

Last updated 2026-05-09. Math runs in your browser, no data leaves your computer.

General guidance only, not legal or professional engineering advice. Verify against the cited primary sources (IMDG, REACH, ChAFTA, RCEP, Customs Tariff Act, supplier SDS, etc.) before committing to a shipment, declaration, or contract. Sourzi assumes no liability for outcomes based on these calculators.

The SI is the document that turns booking confirmation into a BL. Get the cargo description, BL terms, and freight payment terms right; mismatches against the LC trigger document discrepancies and delayed payment.

Parties

BL terms

Cargo and routing

Match the LC cargo description exactly. Banks reject on small variations like CITRIC ACID vs Citric Acid.

Document header

SI is the moment to spec the BL exactly to the LC

Under a Letter of Credit, the bank examines documents against the LC text. The cargo description on the BL must match the LC; the shipper and consignee names must match the LC; the BL endorsement must follow the LC instruction; the freight payment term must match the LC. A 1-letter typo on cargo description triggers a discrepancy. The bank holds the LC payment, requests an amendment, and the seller waits 5 to 14 days while paperwork goes back and forth.

The shipping instructions are the moment to get this right. The forwarder fills in the BL from the SI; the SI is the seller-controlled document where the cargo wording, the endorsement language, and the freight payment term are stated explicitly. If the SI matches the LC, the BL matches the LC, and the bank pays without question. If the SI is vague or assumes the forwarder will pull from past shipments, the BL drifts and the discrepancy lands.

BL type matters for working capital. Express release (also called sea waybill) means no physical original BL is printed; the consignee can pick up cargo with just the booking reference. Cheapest, fastest, but unusable for LC presentations because banks need a transferable original. Telex release means the original BL is issued at origin and surrendered to the carrier; the carrier then telex-releases at destination. Original BL with three originals is the LC standard; the seller couriers the originals to the buyer bank for examination.

Freight payment term affects who carries credit risk. Freight prepaid (seller pays the carrier upfront) means the seller has the cash committed but the BL says PREPAID, which the bank likes. Freight collect (consignee pays at destination) means the seller does not commit cash but the BL says COLLECT, which most LCs do not allow. CIF and CFR contracts are always FREIGHT PREPAID; FOB is usually FREIGHT COLLECT but the buyer can request prepaid if their carrier contract requires it.

Worked example. The cargo-description discrepancy

The booking. A US distributor opens an LC for 25 tonnes of "Citric Acid Monohydrate FCC Grade USP-NF" against a Shandong supplier. The supplier sends shipping instructions to the forwarder saying cargo is "Citric Acid 99.5%". Forwarder issues BL with "Citric Acid 99.5%". Looks fine on paper.

The failure. Bank examines the BL against the LC. "Citric Acid Monohydrate FCC Grade USP-NF" does not match "Citric Acid 99.5%". Bank flags discrepancy and refuses payment until either the BL is reissued or the LC is amended. Reissuing the BL costs 200 USD and takes 3 days; amending the LC costs 250 USD and takes 5 days. The supplier waits 8 days for the 30,000 USD LC payment, which means 8 days of working capital tied up plus an annoyed buyer customer.

The fix. On the next shipment the supplier writes the SI cargo description verbatim from the LC: "Citric Acid Monohydrate FCC Grade USP-NF". Forwarder issues BL with the same wording. Bank matches and pays the LC within 3 days of presentation. The 8-day delay disappears. The cost of the fix is 30 seconds of copy-paste at SI time.

Frequently asked

What are shipping instructions and who needs them?

Shipping instructions (SI) are the document the shipper sends to the freight forwarder telling them how to fill in the bill of lading. The forwarder uses the SI to instruct the carrier on shipper, consignee, notify party, BL terms (telex / express / original), incoterm, freight payment (prepaid or collect), and any special handling. Without SI, the forwarder either guesses or escalates back to the shipper, slowing the BL process.

What is the difference between shipping instructions and a booking request?

A booking request reserves the vessel slot before cargo loads. Shipping instructions are issued after cargo loads and tell the forwarder how to issue the BL. The booking request is forward-looking; the SI is transactional. Same shipper, same consignee usually, but the documents serve different stages of the workflow.

When should I send shipping instructions?

Within 24 to 48 hours of cargo arriving at the origin terminal, ideally before the carrier BL cut-off (which is typically 24 to 48 hours before vessel sailing). Late SI delays BL issuance, which delays document presentation to the bank under LC terms, which delays the seller getting paid.

What goes on the SI but not on the booking?

BL terms (express release, telex release, or original BL with negotiable copies), freight payment terms (prepaid means seller pays the carrier, collect means consignee pays at destination), exact wording for the cargo description that will appear on the BL, and any LC-specific clauses the bank requires.

Why do banks care about the SI?

Under an LC, the bank examines documents against the LC terms. Cargo description, shipper, consignee, BL endorsement language must all match the LC exactly. A small mismatch (CITRIC ACID vs Citric Acid, or missing the Incoterm) triggers an LC discrepancy, which delays payment by 5 to 14 days while the bank requests an amendment. The SI is the moment to spec the BL exactly to the LC.

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