Why Forwarders Should Receive Shipper Change Instructions by Email

Overview

In forwarding practice, shippers often give instructions to change delivery destinations, delivery dates, B/L details, surrender status, cargo insurance arrangements, customs information or other shipment conditions.

A change instruction is not merely an administrative message. It may change the original quotation conditions, booking details, delivery conditions, B/L information, insurance position and responsibility allocation.

If such instructions are handled only by telephone or verbally, disputes may later arise over additional costs, delivery delay, misdelivery, B/L errors, uninsured cargo or the scope of responsibility.

This article explains why forwarders should keep email records when receiving change instructions from shippers, which types of instructions should always be confirmed in writing, and how forwarders should handle such instructions in daily practice.

A Change Instruction Is a New Agreement

A change instruction from the shipper is often more than a simple notice. In many cases, it becomes a new agreement that changes the original quotation, booking arrangement, delivery condition, B/L content or insurance arrangement.

For example, if the delivery destination is changed, the delivery distance, vehicle requirements, receiving hours, waiting charges and re-delivery costs may change. If the Consignee on the B/L is changed, cargo release, payment settlement, cargo insurance claims and subrogation may be affected.

In other words, a change instruction is not merely a minor correction. It may change the assumptions on which cost and responsibility were based.

For this reason, change instructions should not be handled only by telephone. They should be recorded by email or other written means.

Change Instructions That Should Be Confirmed by Email

Not every communication needs to become a long email. However, the following types of change instructions should always be confirmed by email or in writing:

• Change of delivery destination.
• Change of delivery date or delivery time.
• Change of delivery method or vehicle requirements.
• Change of Shipper, Consignee or Notify Party on a B/L.
• Switch to surrendered B/L or Sea Waybill.
• Change of customs clearance party or importer of record.
• Change of cargo description, quantity, weight, value or country of origin information.
• Instruction to arrange cargo insurance or instruction that cargo insurance is not required.
• Change of conditions relating to dangerous goods or temperature-controlled cargo.
• Urgent arrangement, change of intended vessel or switch to air freight.
• Change of packing method, stowage method or handling conditions.

These are items that may later become disputed if a problem occurs. The key question will be who gave the instruction and under what conditions the change was made.

Why Change Instructions Should Be Kept by Email

The purpose of keeping change instructions by email is not only internal administration.

If a cargo accident or additional cost dispute occurs, the shipper, insurer, carrier, NVOCC, lawyer or other related party may review what instructions were given before the accident or cost occurred.

At that time, the important evidence is not the memory of the person in charge. It is objective material such as emails, quotations, booking confirmations, B/L drafts, written instructions and internal records.

If emails remain, the forwarder can more easily explain that the change was made based on the shipper’s instruction, that the possibility of additional costs was notified in advance, or that no formal instruction for cargo insurance arrangement had been received.

Without records, the issue may become a dispute of “we said” versus “we did not hear,” and the forwarder’s ability to explain its position becomes weaker.

Delivery Destination Changes

Changing the delivery destination is a common instruction in forwarding practice.

However, if the delivery destination changes, not only the distance but also vehicle restrictions, unloading conditions, receiving hours, forklift availability, waiting charges, return transport and re-delivery costs may change.

If the forwarder simply proceeds after receiving a telephone instruction to “change the delivery address,” the shipper may later say that it was not told the cost would change so much.

When receiving a delivery destination change, the forwarder should confirm the new address, requested delivery date, receiving hours, vehicle conditions, unloading conditions and possibility of additional costs by email.

B/L Corrections and Surrender Changes Require Particular Care

B/L corrections and switches to surrendered B/L should not be handled only by oral instruction.

Details such as Shipper, Consignee, Notify Party, cargo description, quantity, shipment date, freight indication and surrender status may affect cargo release, L/C settlement, D/O exchange, cargo insurance claims and subrogation.

In particular, changes to Consignee or Notify Party are not merely display corrections. They relate to the authority to receive cargo and the party to be notified.

For B/L corrections, the forwarder should receive the correction details from the shipper by email, send the revised B/L draft for review, and obtain the shipper’s approval before issuing or correcting the document.

Proceeding based only on what was heard by telephone is highly risky if a cargo release dispute or post-accident problem later arises.

Cargo Insurance Change Instructions

Instructions relating to cargo insurance should also always be confirmed by email.

If the insured amount, insured party, transport section, insurance conditions, shipment date or cargo description changes, the insurance arrangement may be affected.

If the shipper says that cargo insurance is not required, this should also be recorded by email.

This is important because, after an accident, the shipper may later say that it thought insurance had been arranged or that it never instructed the forwarder not to arrange insurance.

Useful wording includes:

“We understand that cargo insurance is not required for this shipment based on your instruction.”

Another useful expression is:

“As of this email, we have not received any formal instruction to arrange cargo insurance for this shipment.”

Do Not Skip Email Confirmation Even in Urgent Cases

In urgent cases, the shipper may say, “Please proceed first. We will send the email later.”

Even in such cases, the forwarder should send a short confirmation email from its side.

For example:

“Based on our telephone conversation, we will start the arrangement under the details below. Please contact us immediately if any of the following details are incorrect.”

This at least records the forwarder’s understanding of the instruction.

Urgent cases are often the cases where cost and responsibility become unclear. The correct approach is not to omit records because the matter is urgent. Rather, because the matter is urgent, the forwarder should leave a short written record.

Sample Confirmation Emails to the Shipper

When receiving a change instruction from the shipper, the following email wording may be useful in practice:

“Regarding the instruction given by telephone, we will proceed with the change arrangement based on the details below. Please contact us immediately if there is any discrepancy.”

“Please note that this change may result in additional costs, schedule change, vehicle change, waiting charges or other re-arrangement charges. Any such costs shall be charged separately as actual costs when incurred.”

“We have received your instruction to correct the B/L as stated below. Please review the revised draft and reply with your approval if there is no issue.”

“As of this email, we have not received any formal instruction to arrange cargo insurance. If insurance arrangement is required, please provide the insured amount, insured party, transport section and insurance conditions.”

These emails do not need to be long. The important point is to record the change details and the related risk.

Useful English Confirmation Phrases

When receiving change instructions from overseas shippers or overseas agents, the following expressions may be used.

For general change instructions:

“As instructed, we will proceed with the change based on the details below. Please confirm immediately if any of the following details are incorrect.”

To explain possible additional costs:

“Please note that any additional costs, delay, re-arrangement charges, waiting charges, storage, demurrage or detention arising from this change shall be charged separately at actual cost.”

For B/L correction:

“Please review the revised B/L draft carefully and confirm your approval before issuance. We will proceed based on your written confirmation.”

For cargo insurance:

“Cargo insurance is not included unless we receive your written instruction with the required details for insurance arrangement.”

How Change Instruction Emails Are Used After an Accident

If a cargo accident or additional cost dispute occurs, change instruction emails can become important defensive materials.

For example, if the delivery destination was changed based on the shipper’s instruction and small truck transfer costs or waiting charges arose as a result, the email confirming the change and possible additional costs helps explain why the shipper should bear those costs.

If the Consignee on the B/L was changed based on the shipper’s instruction and a cargo release dispute later occurs, the email record helps show who instructed the change.

For cargo insurance, if the shipper responded by email that insurance was not required, the forwarder can reduce the risk of a later dispute over uninsured cargo.

A change instruction email is not merely an administrative message. After an accident, it becomes important evidence showing what scope of work the forwarder undertook and on whose instruction.

Internal Rules Forwarders Should Establish

If the handling of change instructions is left entirely to individual staff members, practices may differ from case to case.

Forwarding companies should establish internal rules requiring email confirmation for important change instructions, including:

• B/L corrections.
• Change of Consignee or Notify Party.
• Switch to surrendered B/L or Sea Waybill.
• Change of delivery destination.
• Change of delivery date or time.
• Instruction to arrange cargo insurance or instruction that insurance is not required.
• Change of conditions for dangerous goods or temperature-controlled cargo.
• Change of customs clearance party or importer of record.
• Any change that may result in additional costs.

It is also useful to require management approval for changes involving important documents or additional costs above a certain amount, rather than allowing front-line staff to decide alone.

Case Example: B/L Correction Based Only on Oral Instruction

In one export shipment, the shipper telephoned the forwarder and asked for the Consignee on the B/L to be changed. The staff member considered the matter urgent and proceeded with the B/L correction without obtaining email confirmation.

Afterward, the cargo was released at destination based on the corrected B/L. Later, within the shipper’s organization, it became an issue that the name change had not been formally approved.

The forwarder explained that it had received a telephone instruction from the shipper’s staff member. However, there was no email confirming the instruction and no email approval of the revised B/L draft.

As a result, although the forwarder’s legal liability was not immediately determined, considerable time was required to deal with the shipper relationship, internal explanations and coordination with the destination side.

In this case, the dispute could have been greatly reduced if the forwarder had sent an email after the call stating:

“We understand that you instructed us to change the Consignee as stated below. Please review the revised draft and reply with your approval.”

Key Takeaway

A shipper’s change instruction is not merely a casual message. It is an important instruction that may change the original arrangement conditions and the scope of responsibility.

Changes to delivery destination, B/L details, cargo insurance, customs party, delivery conditions and other key matters should always be recorded by email or in writing.

If change instructions are kept by email, they become important explanatory materials in disputes involving additional costs, cargo accidents, cargo release, uninsured cargo and subrogation.

The purpose is not to distrust the shipper. The purpose is to convert the shipper’s instruction into a form that can be explained later.

For forwarders, this is one of the most basic and practical risk management measures.