What is a shipping order?
A shipping order is a document issued by a shipping line to confirm a freight shipment's booking on a vessel. Carriers issue a shipping order to confirm that equipment and space on a shipping line vessel are available for a shipment's transport. Import and export shippers present shipping orders to customs officials during international transportation to authorize the release of cargo to the shipper.
In transportation management systems (TMS), a shipping order represents the record of a request for freight to be moved. In the course of TMS execution, one or more shipping orders are placed on an execution load—the record of what carriers are hired to move. The details in this entry generally relate to shipping orders as they are used in ocean transportation.
A shipping order is an inventory control document that identifies space booked on a vessel. Shipping orders identify goods included in the freight shipment and detail the shipment destination. In certain countries, a shipping order is referred to as a Container Release Order or Authority to Withdraw. Shipping orders are compiled into a shipping manifest presented to an ocean-going carrier completing the vessel voyage.
Who issues a shipping order?
Carriers entrusted with transporting a freight shipment issue the shipping order when the cargo has been scheduled for dispatch. After cargo transportation is completed, the carrier issues a shipping order to the consignee to confirm that a shipment has occurred.
Ocean-going vessel operators can issue shipping orders, or a shipping order can be issued by an agent recognized as a carrier's representative.
What information is in a shipping order?
Shipping order information varies by carrier. Generally, shipping orders include specific freight cargo details, shipper information, the location of the shipment on a vessel, the origin and destination, and other shipment tracking information.
A shipping order typically includes:
Shipper details
Freight forwarder information, if applicable
Cargo information and commodity type
Bill of lading (BOL) number of the carrier
Place of receipt for the empty container
Port of loading where the container will be loaded on the vessel
Port of discharge where the carrier will deliver the goods
Transshipment port where containers may be transferred from smaller to larger vessels
Vessel name and voyage number
Equipment type for the containers required for shipment
Empty pickup location where haulers will pick up empty containers
Full return location where the loaded container needs to be returned
Document cut-off for when shipping instructions need to be sent to the carrier
Verified gross mass (VGM) cut-off—the deadline to submit a shipment's VGM information
Who needs a shipping order?
Most commercial shipments require a shipping order for cargo release following customs inspection at a port of entry. In some cases, a shipping order can be redundant to other trade documents. There is no standard shipping order template.
Shipping order number vs purchase order number vs tracking number
A carrier issues a shipping order to confirm a shipment's space on a vessel. Shipping orders can be identified by a number assigned by the carrier.
A purchase order identifies a buyer's order or purchase. Purchase order numbers are assigned to keep track of the transaction. A seller can use a purchase order to record shipment details, payment terms or shipment status.
The tracking number is assigned to each shipment before transportation. Tracking numbers are unique identification codes that allow shipment tracking from departure at a warehouse or freight hub to the final delivery destination.
Understand what customs expects at the port of entry
How technology supports shipping orders
Technology in TMS and global trade management platforms supports the management of shipping orders by:
Creating and storing shipping orders electronically within the TMS for quick access and retrieval
Linking shipping orders to corresponding bills of lading and shipping manifests for complete documentation management
Supporting real-time visibility into vessel schedules, booking confirmations and shipment status
Automating the compilation of shipping orders into vessel manifests for port submission
Integrating with customs platforms for electronic document submission and cargo release management