How to Create and Download a Shipper’s Letter of Instruction Document

A Shipper’s Letter of Instruction (SLI) is a legal document/contract that tells your freight forwarder how your goods should be handled from start to finish. It is prepared by the exporter and passed to the company arranging the shipment. 

The SLI includes all the important details like who is involved, what is being shipped, and where it needs to go. In many cases, it also acts as a limited power of attorney, giving your forwarder the authority to lodge export paperwork and file documents on your behalf.

Download the Shipper’s Letter of Instruction template for free.

What to Include in a Shipper’s Letter of Instruction:

Shipper and Consignee

The shipper will confirm the details of the exporting company (shipper) and the company overseas that is receiving the cargo (the consignee).  This requires the company name, address, contact phone number, email address etc.

Notify Party

If the consignee works with another 3rd party in the country of import, that company’s details can be added as a Notify Party.  Again, the notify party will also include company name, address, contact phone number, email address etc.

Forwarding Agent

The forwarding agent is the freight company that is nominated to arrange the logistics of the shipment.  The freight company will require their company details, logo and their specific terms and conditions.

Cargo & Product details and descriptions

The SLI will require detailed fields on the products and packaging details.  These details include description of goods, number and kind of packages, Gross weights (kg), measurements (m3), shipping marks & numbers.

Shippers must declare if the shipment includes any Hazardous / Dangerous goods and if the shipment is under a Letter of Credit contract.  In addition, any other special instructions or additional information can be added.

Departure and Destination details

The port of loading and port of discharge for the shipment (airport or seaport).

Shipment Type & Pickup Details

The Method of Dispatch (Sea, Air, Road, Rail), Type of shipment (FCL, LCL, Breakbulk etc).  Confirmation if the freight is required to be picked up from the shipper’s address.

Freight Charges

The shipper will declare which party is paying for the freight charges (Freight Collect, or Freight Prepaid).  This depends on the Incoterm® that is agreed between the buyer and seller.  It will also detail document instructions.

Signatory Company

The shipper must declare the signatory company, name and date of authorized signatory to complete the document.

Shippers Details (Sender)

Consignee Details (Receiver)

Notify Party (3rd party, if Required)

Shipper’s Reference Number

Shipment Type

Requires pickup

Incoterm®

Port of Loading

Port of Discharge

Vessel Name

Voyage Number

Container Number

Seal Number

ISPM Packing details

Country and State of Origin (product)

Value of goods sold

Currency

Hazardous Cargo – if Yes, UN#, Class, Packing Group

Shipment under Letter of Credit

Shipment insured

Shipping Marks

Documentation Instructions

Total Number of Packages

Total Gross Weight (kgs / lbs)

Total Packing Size (cbm / cuft)

Commodity / Nature of Goods

Special Instructions

Signed Declaration – Signatory company, name and date of authorized signatory

When Is an SLI Used for Export Compliance?

In some cases, a Shipper’s Letter of Instruction is not just used for logistics. It can also act as a formal authorisation for your freight forwarder to submit export information to government systems. In the United States, for example, certain shipments must be reported through the Automated Export System (AES) by filing what is called Electronic Export Information (EEI). This is usually required when the value of any single commodity in the shipment exceeds 2,500 USD, or if the goods need an export licence or fall under specific export controls.

By including a clause in the SLI that grants permission to your forwarder, you make it clear they are allowed to file this information on your behalf. This is important for avoiding errors, late filings, or customs holds. It also keeps your export records in order if you are ever audited. Many U.S. exporters use the SLI as a way to formally hand over this responsibility while keeping proof of what was authorised and when.

How to create a Shipper’s Letter of Instruction template for multiple freight companies.

When shippers deal with multiple freight forwarding companies they must complete a shippers letter of instruction document for each freight company.  Each of these freight companies will request that shippers complete an SLI document to their own specific layout or template that specifically includes their logo and terms and conditions.

On top of that, each freight company will have their own unique layout for the SLI, which is time consuming to complete each time.  At IncoDocs, we’ve created a Universal SLI that can be used for all freight forwarding companies.  It uses a Universal template that allows you to save a freight forwarder’s details (including their logo and terms and conditions).

This allows shippers to simply select a freight forwarder from the list and finish completing the SLI document.  Create your SLI document here.

What is a Forwarding Instruction?

A Forwarding Instruction document is similar to the shippers letter of instruction. This is used when the shipper is dealing directly with the actual shipping line, to give instructions to correctly arrange the shipment.