Shipping Advice: When Should You Send It?

Send the shipping advice as soon as the goods are loaded on board, so the buyer can insure, track and clear the cargo. Incoterms 2020 requires the seller to give the buyer sufficient notice of delivery, and under CFR, where the buyer arranges insurance, a late notice can leave the cargo uninsured and start a dispute over who bears the loss.

Key takeaways

• Under Incoterms 2020 the notice duties sit in article A10 (Notices) of each rule. Under the C rules (CFR, CIF, CPT, CIP) the seller must notify the buyer that the goods have been delivered and give any notice the buyer needs to take delivery.
• Under CFR, risk passes to the buyer when the goods are on board, but the buyer buys the insurance. A late notice can leave a window in which the cargo is uninsured.
• A typical advice lists the vessel and voyage, B/L number, on-board date, goods and quantity, invoice value, ports, and ETD/ETA.

What is a shipping advice?

A shipping advice (also called a shipment advice or advice of shipment) tells the buyer that the goods have been shipped and gives the shipment details. There is no mandatory format, but its details must match the commercial invoice, packing list and bill of lading.

Most Korean exporters send it by email, and when a letter of credit calls for it, a copy goes in with the negotiation documents. Do not confuse it with the shipping instruction, which goes to the carrier before loading; see shipping instructions and cut-offs. For the full set of rules, see the Incoterms 2020 summary.

What notice does the seller owe under Incoterms?

Incoterms 2020 places each party’s notice duties in articles A10 and B10 (Notices). Under the C rules the seller must notify the buyer that the goods have been delivered and give any notice the buyer needs to take the measures normally required to receive them.

Under CFR (Cost and Freight) the seller pays the freight to the destination port, but risk passes to the buyer once the goods are on board at the port of shipment. The seller has no duty to insure, so the buyer needs the vessel name and loading date quickly to place cargo cover.

Under CIF the seller must obtain minimum cover on Institute Cargo Clauses (C) terms, and under CIP the default is the wider Clauses (A). The notice duty still applies in both.

What happens if the notice is late under CFR?

If the cargo is damaged before the buyer can insure it, the seller may end up bearing the loss even though risk had formally passed. An ICC Academy commentary notes that a CFR seller who fails to give timely notice after loading may carry the risk of loss in transit.

The same commentary gives a hypothetical case. Loading under a CFR contract finished on a Friday, but the salesperson did not send the notice over the weekend. That night a fire on the vessel damaged the cargo, and the buyer only insured it after the weekend. The author’s view is that the seller may bear the transit risk because it had not given the buyer the vessel details needed for insurance.

What should a shipping advice include?

Include enough for the buyer to insure, track and prepare customs clearance straight away. If the contract or letter of credit lists required items, those come first.

Common items:

• Contract or L/C number
• Commercial invoice number and value
• Description and quantity (number of packages)
• Vessel name and voyage number
• B/L number
• Port of loading and port of discharge
• On-board date, ETD and ETA
• Container and seal numbers, when applicable

Worked example (made-up values)

Electronic parts, 500 cartons, shipped CFR from Busan to Los Angeles. The vessel name, B/L number and amounts are invented for illustration.

Subject: Shipping Advice - Contract No. SC-2026-001

Vessel / Voyage: SAMPLE STAR / 001E
On board date: 2026-11-02
B/L No.: SAMPLEBL0001
Port of loading: Busan / Port of discharge: Los Angeles
Goods: Electronic parts, 500 cartons
Invoice No. / Value: INV-001 / USD 48,500
ETD: 2026-11-02 / ETA: (per carrier schedule)

For ETD and ETA, see ETD and ETA in shipping schedules; for B/L types, see bill of lading vs sea waybill.

When and how should you send it?

Send it without delay once loading on board is confirmed, and meet any deadline in the contract or letter of credit. Incoterms itself sets no number of hours, only “sufficient notice”, so under CFR it is safer to write the deadline into the contract.

If an L/C says, for example, “Shipping advice must be sent within 2 days after shipment,” follow that wording and keep proof of sending, such as a copy of the email. The usual method is an email with the key details in the body and a PDF copy of the B/L attached; if the original B/Ls travel by courier, add the tracking number.

What mistakes do exporters make with shipping advices?

The most common mistakes are leaving out details the buyer needs for insurance and tracking, and figures that do not match the other documents. Under CFR, simply putting the notice off is itself a risk.

• Omitting the vessel name or B/L number, so the buyer cannot insure or track the cargo
• Amounts or quantities that differ from the commercial invoice or B/L
• Delaying the notice under CFR over a weekend or holiday, leaving an insurance gap
• Ignoring the L/C’s wording, deadline or sending method, creating a discrepancy

FAQ

Is a shipping advice mandatory?

No law requires it as such, but it is mandatory when the sales contract or letter of credit calls for it. Even without that, the seller’s notice duty under Incoterms A10 makes it standard practice.

Does the notice duty differ between CFR and CIF?

The basic duty is the same. Under CFR it matters more in practice because the buyer must arrange insurance, so a late notice can leave a coverage gap. Under CIF the seller already holds minimum Clauses (C) cover.

Must a copy be presented under a letter of credit?

Only if the letter of credit lists it as a required document. In that case, word it exactly as the L/C requires and keep proof of sending. For the document flow, see how a letter of credit works.

Is a shipping advice used for air shipments?

Yes. It lists the air waybill number, flight number and departure date instead of vessel details. The purpose is the same.

Sources

• ICC, Incoterms® 2020 rules: https://iccwbo.org/business-solutions/incoterms-rules/
• ICC Academy, “CFR & CIF Incoterms® 2020 explained: Key differences” (21 August 2024; CFR notice duty, Clauses (C) cover, hypothetical case): https://academy.iccwbo.org/incoterms/article/incoterms-2020-cfr-or-cif/