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Unit 13 Shipment Teaching Objectives:  Knowledge Requirements:

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1 Unit 13 Shipment Teaching Objectives:  Knowledge Requirements: 1 To enable students to master shipping instructions, shipping advice and shipping documents 2 To help students to learn and master how to write a business letter about shipment  Competence Requirements: To help students skillfully write business letters about shipment according to the useful words, expressions and sentences

2 Part One Introduction Shipment, which means the act of shipping goods, is a very important part in foreign trade because goods sold by the seller have to be delivered to the buyer abroad. There are several means of transport in foreign trade, by ship, by truck, by train, or by airplane. As about 98% of world trade is covered by sea transport, exporters and importers are more concerned with transport by sea than in other ways. Transport by air is, however, increasing in scope and is the best method for certain types of export and import and under emergency circumstances, though its limitations are obvious. The modern way of transportation is that the cargo is transported by container ships. The shipment clause is an integral and important part of a contract signed between buyers and sellers. It mainly involves the time of shipment, rate of shipment, the ports of loading and destination, means of transport, the shipping documents, etc. Export transportation involves much procedure. Before the goods are to be dispatched, the shipping instructions, shipping advice, shipping documents, etc. should be seen to.

3 Shipping instructions is a kind of document given by the buyer to the seller before the shipment for the requirement and instruction of the goods about its mode of packing, the stencil of the shipping mark and mode of transportation and so on. Shipping advice is a kind of notice given by the buyer to the seller after the shipment which contains the number of the contract and the relative L/C, the statements of the description of products, quality of goods, the number of packages, total quantity shipped, amount of money, name of the vessel and its sailing date. The sellers usually send a Shipping Advice to the buyers as soon as the goods are loaded on board the ship, advising them of the shipment, especially under FOB or CFR terms. Shipping documents should be given by the exporter or the seller to the bank for negotiating the payment of the goods after shipment in foreign trade. And sometimes when sending the shipment advice to the buyer for getting ready for the acceptance of the shipment, the copies or duplicates of these documents should be given, too. When we talk about it strictly, we say shipping documents only refer to bill of lading (B/L), insurance policy and commercial invoice along with the export bill of exchange. Although other documents like consult’s invoice, laboratory test report, certificate of origin, certificate of inspection, warehouse receipt will be sent along with the draft, they are not necessary documents, so shipping documents only include documents of the ownership, not all export documents. Shipments covers rather a wide range of work; besides those mentioned above, it also includes reserving shipping space, chartering a vessel, making the customs declaration, amending shipping terms and so on. In this unit, many specimen letters have been selected for preliminary study.

4 Part Two Shipment and Sample Letters
2.1 Structural Parts of Shipment Letter Analysis of Letter of Shipment

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6 Upon the above analysis, we may come to the impression and conclusion that:
Structural parts of letters of shipment generally consist of the following sections: Section 1: Identify the reference to the shipment; Section 2: Reasons for new and strict shipping instructions; Section 3: Making detailed requests about shipping instructions; Section 4: Politely urge its counterpart’s acceptance of the instructions.

7 2.2 Sample Letters of Shipment
Sample Shipping Advice (1) Dear Sirs, We are pleased to inform you that all the goods you ordered in No.588 of March 18 have now been shipped yesterday and is due to arrive at Sydney on the 18th April. Enclosed are copies of Invoice No.118 in duplicate, the Bill of lading, one copy of Insurance Policy and Packing list in triplicate. We look forward to your reply informing us that the goods have arrived safely and in good order. Yours truly, (signature)

8 Sample 2 Shipping Advice (2)
Dear Sirs, We are pleased to inform you that the following four orders have now been shipped by S.S. EAST WIND sailing tomorrow from Dalian to London. Order No W-0211 Order No W-0212 Order No W-0213 Order No W-0214 Enclosed please find one set of the shipping documents covering these consignments, as follows: 1) One non-negotiable copy of B/L 2) Invoice in duplicate 3) Packing list in triplicate 4) One copy of Manufacturers’ Certificate of Quality 5) One copy of Insurance Policy We hope the shipment will turn out to your satisfaction. Yours faithfully, (signature)

9 Sample 3 Urging Early Shipment
Dear Sirs, We refer to Contract No.1234 signed between us on 11th March, 2002 for 1,000 cases of socks, which is stipulated for shipment in July, However, up to now we have not received from you any information about the order. As the contracted time of delivery is rapidly falling due, it is imperative that you inform us of the delivery time without any further delay. No doubt there must have been some reasons for the delay in shipping and we are going to extend the Letter of Credit to the end of August. We are awaiting your early reply. Yours faithfully, (signature)

10 Sample 4 Urging Shipment
Dear Sirs, Our Order No.0316 covering 3000 Male Shirts As it is more than one week since we opened a letter of credit in your favor, we wish to draw your attention to its expiration date—16 March. Since the season is approaching, male shirts will be on sale. We would like you to effect shipment as soon as possible, thus enabling them to catch the brisk reason in business. We would like to emphasize that any delay in shipping or booked order will undoubtedly involve us in trouble. Please look into the matter and give us your definite reply without further delay. Yours faithfully, (signature)

11 Sample 5 Asking for Partial Shipment
Dear Sirs, We regret to inform you that a terrible earthquake rocked our area, which made our factory suffer serious damages, so it is impossible for us to ship the 3000 pieces of male shirt of your order No.0316 in one lot. Therefore we informed you by yesterday, asking you to allow us partial shipment, that is 1,500 pieces within the contracted time and the remainders (1,500) pieces in March and we hope you will agree to extend the credit till April 16. We are sorry for it and we are doing everything in our power to recover our factory. We should be obliged if you would kindly understand the situation and you would grant our request. Yours faithfully, (signature)

12 Sample 6 Confirming Shipment
Dear Sirs, Order No.0316 for Male Shirts We wish to confirm our cable of today, which reads as follow: “ORDER 0316 MALE SHIRT 3000 PIECES SHIPPED SSNIMROD SAILING 11/5” The above cable is self-explanatory. We now have much pleasure in sending you herewith our invoice covering the above shipment which went forward on S.S. Nimrod against your Order No of 16th March. We trust the goods will reach you in due course and give you entire satisfaction, the quality being equal to, if not better than, that of former shipments. As desired, we have drawn upon you for the net amount of USD at sight through the Midland Bank, and would ask you to give our draft your kind protection as usual. We hope to receive your repeat orders but wish to inform you that, owing to the advance in the cost of cotton, we shall very probably be compelled to raise our prices in the immediate future for these shirts. We await your reply. Yours faithfully, (signature)

13 Sample 7 an Inquiry for Container Shipping Service
Dear Sirs, Thank you for your inquiry of 20 March. The shipping containers we provide are of two sizes, namely 10 ft. and 20ft. They can be opened at both ends, thus making it possible to load and unload at the same time. For carrying goods liable to be spoiled by damp or water they have the advantage of being both water-tight and air-tight. Containers can be loaded and locked at the factory, if necessary. When separate consignments are carried in one container if their port of destination is same, there will be a saving on freight charges; and an additional saving on insurance because of the lower premium charges for container-shipped goods. We enclose a copy of our tariff and look forward to receiving your instructions. Yours faithfully, (signature)

14 Sample 8 Shipping Instructions (1)
Dear Sirs, We regret to inform you that of the 100 cardboard cartons of screws you shipped to Seattle on 18 March, eight were delivered damaged. In order to avoid a similar incident, we feel necessary to clarify the concrete stipulation for our future dealings. The packing for Seattle should be in wooden cases of 112 Lbs net, each containing 7 Lbs×16 packets. For Honolulu, we should like you to have the goods packed in double gunny bags of 50 kilos each. As for the Quebec market, our buyers prefer 25-kilo cardboard cartons. Please let us know whether the requirements could be met. Yours faithfully, (signature)

15 Sample 9 Shipping Instructions (2)
Dear Sirs, Thank you for your letter of Feb.12, we are glad to inform you that we have opened an irrevocable L/C this morning with the Standard Chartered Bank here for 1,200 kilograms of tea. The required shipping space has been booked on S.S. “East Wind” which is due to sail from Shanghai to our port at the end of next month. Please try your best to have the goods ready and ship them by that vessel without any delay. Regarding packing, the tea should be packed in polybags of 500 grams each, 5 polybags to a tea box, 24 boxes on a pallet and 50 pallets in an FCL container with our shipping marks on the outer packing. We trust the above is clear to you and look forward to your shipping advice. Yours faithfully, (signature)

16 Sample 10 Requesting Explanations for Postponed Shipment
Gentlemen: In regard to the first shipment against our Contract No.1234, we wrote you on 7th instant that part of the goods was not in conformity with the contracted specifications. We requested you to give us explanations and advise us how you would deal with the matter, but up to now we have not yet received any reply. So we regret to say that we can not bind ourselves to accept the second lot of goods. We have to request that you should postpone shipment of this shipment for the time being. It goes without saying that we have no obligations whatever in this matter. We are looking forward to your reply. Yours faithfully, (signature)

17 Sample 11 the Request for Prompt Delivery of the Consignment
Dear Sirs, Thank you for your letter of 8th instant, notifying us that the crockery ordered on May 15 for our client in Mansura is now ready for collection. We are glad to learn that all items ordered have been included in the consignment. Please arrange to send the consignment by road to London to be shipped by S. S. Western Star, due to sail for Sydney on June 25 and to load at No. 7 Dock as from the 20th, and ensure that all cases are clearly marked and numbered as shown in our official order. Invoices, in triplicate, and your account for transport charges, should be sent to us. You will note from our order that prompt delivery is most important and we rely upon you to make sure that the consignment is delivered to the docks in good time. We have made all necessary arrangements with the shipping company. Yours faithfully, (signature)

18 Summary Shipment is very important in foreign trade because goods sold by the seller have to be delivered to the buyer abroad. There are several means of transport in foreign trade. As about 98% of world trade is covered by sea transport, exporters and importers are more concerned with transport by sea than in other ways. Transport by air is, however, increasing in scope and is the best method for certain types of export and import and under emergency circumstances, though its limitations are obvious. The modern way of transportation is that the cargo is transported by container ships. After making shipment, the seller should promptly advise the buyer of its effectuation, no matter whether the transaction is concluded on FOB, CFR or CIF basis. Shipments covers rather a wide range of work; besides shipping advice, shipping instructions, etc. mentioned above, it also includes reserving shipping space, chartering a vessel, making the customs declaration, amending shipping terms and so on. In this unit, many specimen letters have been selected for preliminary study.

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20 Exercises 1. Translate the following terms into Chinese.
1) Cardboard cartons 2) Container hire 3) Shipping space 4) Shipping advice 5) Shipping instructions 6) S/S     7) Clean B/L      8) Bearer B/L 9) Transshipment B/L 10) Booking note

21 (1) 纸板箱 (2)集装箱租金 (3) 舱位 (4)发货通知 (5)装运(船)指示 (6) 轮船 (7)清洁提单 (8)不记名提单
Answer: (1) 纸板箱 (2)集装箱租金 (3) 舱位 (4)发货通知 (5)装运(船)指示 (6) 轮船 (7)清洁提单 (8)不记名提单 (9)转船提单 (10) 订舱单

22 2. Translate the following sentences into Chinese.
(1)As the goods are urgently needed, we should be glad if you would dispatch them without further delay. (2)Please cable us an offer immediately, stating the earliest date of shipment. (3)Your failure to deliver the goods within the stipulated time has greatly inconvenienced us. (4)There is no direct steamer available this month, this first available streamer is in May. (5)I’m afraid the cardboard boxes are not strong enough for ocean transportation. (6)What is your specific transport requirement? (7)The two sides finally reached an agreement on the mode of transportation. (8)We can effect shipment in December or early next year at the latest.

23 (1)因为急需这批货物,望即刻发货不再拖延。
(2)请即电报发盘,说明最早装运期。 (3)你方未在规定时间内交货已使我们非常不便。 (4)本月无直达船,第一艘可供装运的轮船在五月份。 (5)我担心远洋运输用纸箱不结实。 (6)你们的运输条件是什么? (7)双方就运输方式达成了协议。 (8)我们最晚在今年12月份或明年初交货。

24 3. Translate the following short passages into English.
(1) 货物早已备妥待运,但是由于你方信用证延迟到达,货物不能按期装运。 (2) 装运应从六月份开始,分三次平均装,在悉尼装船。 (3) 允许转船。 (4) 由于没有直达船,货物只好用非直达船装运,在厦门转船。 (5) 我方已及时收到你方的信用证,现正在为货物订舱位。 (6) 我方装船条件是收到信用证之后3个月内装运。 (7) 如果你方要求提前装运,我们只能于7月份分批装运其中的50吨小麦,其余50吨将于8月装运。 (8) 由于预订轮船迟到,我方未能在信用证的有效期内完成装运。请你方将信用证的装船期延长一个月,使我们能尽快着手装运。

25 (1) The goods have long been ready for shipment, but owing to the late arrival of your L/C, shipment cannot be effected as stipulated. (2) Shipment is to be made in three equal lots beginning from June, with transshipment at Sydney. (3) Transshipment is allowed. (4) As there is no direct steamer, shipment has to be made by an indirect steamer with transshipment at Xiamen. (5) We have duly received your L/C and are booking shipping space for the shipment. (6) Our shipment terms are shipment within three months after receipt of L/C. (7) If your desire earlier delivery, we can only make a partial shipment of 50 tons of wheat in July and the balance of 50 tons in August. (8) Owing to the delayed arrival of the scheduled steamer, we have failed to effect shipment within the L/C validity. Would you please extend the shipment of the L/C for one month enabling us to proceed with shipment as quickly as possible?

26 4. Multiple Choices (1) Passenger liners often take a certain amount of _____. A. cargoes B. shipments C. cargo D. deliveries (2) Shipping agents will ____ the goods to be shipped. A. arrange B. arrange for C. see to it D. see that (3) A check of the ____ revealed shortage of fifty shirts. A. package B. content C. packages D. contents (4) For ____ commodities as oil, sand and timber, rail is cheaper than road. A. unpacked B. bulk C. unpackaged D. large quantities of (5) The introduction of containers in transport greatly ____ carriage of goods. A. facilitate B. speeds C. facilitates D. economizes (6) Before deciding which form of transport to use, a ____ will take into account the factors of cost, speed and safety. A. consignor B. shipper C. consignee D. ship-owner (7) When the goods are ready, the shipping agent will ____ and ____ them to the docks. A. deliver, collect B. collect, deliver C. deliver, send D. collect, send (8) When the exporter arranges shipment through a forwarding agent, the agent ____ the whole transaction. A. handles B. does C. manages D. makes Answer: (1)C (2)B (3)D (4)B (5 )C (6)A (7)D (8)A

27 5. Translate the following letter into Chinese
Dear Sirs, The violent flood has caused a delay in the shipment of your order NO.5684 of May 24. Your order was to be dispatched from here a week before the guaranteed time, and the goods are in Berlin port awaiting shipment. To execute your shipment as soon as possible, we are making special arrangements to ship and will be able to catch the next vessel, which is to set sail on June 15. We apologize for this unfortunate delay and are doing our utmost to execute shipment as quickly as possible. Yours faithfully, ***

28 Answer: 敬启者: 猛烈的洪水已造成贵方5月24日第5684号订单货品延迟装船。您订购的货品原定在规定时间前一周于本地装运,但现仍在柏林港等待装船。 为了尽快履行贵公司的装船事宜,我们正在做特殊的安排,将可以赶上定于6月15日起航的下一班航班。 对这次不幸的延误,深感抱歉。我方当尽全力迅速履行装运。                            您忠诚的 ×××


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