What Is Date of Shipment?
The Date of Shipment refers to the exact day a seller hands over goods to the carrier for transport. It serves as a formal timestamp showing when the cargo officially begins its journey. In logistics, this date is essential for tracking, documentation, compliance, and determining contractual obligations.
Key Points
Acts as a reference point for shipment timelines and delivery commitments.
Often used to verify whether a seller met the agreed shipping schedule stated in a purchase contract.
Determines the start of transit time calculations for freight forwarders and buyers.
Required for customs, insurance, and export documentation.
Typically shown on the Bill of Lading, Air Waybill, Commercial Invoice, and Packing List.
Influences payment terms like LC, where banks verify if the shipment occurred within the allowed dates.
Benefits and Challenges
Benefits
Helps track milestones and ensure on-time delivery.
Supports accurate documentation and reduces the risk of disputes.
Essential for triggering payment terms for buyers and sellers.
Allows insurance companies to confirm coverage validity.
Challenges
Different carriers may record the shipment date at slightly different stages, causing confusion.
Mistakes in documentation can delay customs clearance or LC payments.
Unexpected port congestion can shift the actual loading date, affecting contractual commitments.
Example Scenario
A buyer in Dubai places an order for textile machinery from a supplier in Coimbatore. The sales contract states that the goods must be shipped on or before 15 July.
Step-by-step:
The supplier hands over the cargo to the nominated carrier on 12 July.
The carrier issues a Bill of Lading showing the Date of Shipment as 12 July.
The buyer’s bank reviews the documents and confirms that the shipment was made within the contractual timeframe.
The machinery begins transit, and all tracking and insurance coverage start from this date.
The shipment reached the destination without delays because all documents were accurate.
Conclusion
The Date of Shipment is a simple yet powerful marker that keeps the entire logistics cycle synchronised. It protects both buyers and sellers by offering proof of dispatch, aligning timelines, and ensuring smooth documentation flow. Knowing how to read and verify this date helps avoid disputes and keeps shipments compliant.
Frequently Asked Questions (FAQs)
1. Where can I find the Date of Shipment?
It appears on documents such as the Bill of Lading, Air Waybill, and Commercial Invoice.
2. Is the Date of Shipment the same as the Bill of Lading issue date?
Not always. The B/L issue date can differ depending on the carrier's process.
3. Why is the Date of Shipment important for LCs?
Banks check it to ensure the seller shipped within the allowed timeframe.
4. Can the Date of Shipment affect insurance?
Yes. Insurance coverage usually becomes active once the shipment date is recorded.
5. Does the Date of Shipment start the delivery countdown?
Yes. Transit times and delivery commitments are often calculated from this date.