Shippers Letter of Instruction

A Shipper's Letter of Instruction is a document provided by the exporter to their freight forwarder that provides transportation and documentation instructions for a shipment. It acts as the primary authorization for the forwarder to act on the shipper's behalf, particularly concerning the filing of Electronic Export Information (EEI) to the Automated Export System (AES). Modern digital air cargo processes, including the e-AWB (Electronic Air Waybill), rely heavily on the data provided in the SLI. An SLI for air shipments typically includes specific IATA-related data, such as airport codes, cargo type, and necessary declarations for dangerous goods.

FedEx Express (AWB prefix 023) receives an SLI from a shipper in New York (JFK) authorizing the forwarder to prepare an AWB 023-12345678 for a technology equipment shipment to Frankfurt (FRA), including hazmat declarations for lithium batteries. A second example: Lufthansa Cargo (AWB prefix 020) processes an SLI for AWB 020-87654321 shipping automotive parts from Detroit (DTW) to Munich (MUC), where the SLI specifies routing instructions and authorizes AES filing for the $15,000 declared value.

• SLI
• shipping instructions

When is a Shipper's Letter of Instruction required for air cargo shipments?

Although all export shipments departing the United States require an SLI, filing electronically through the AES system is only required for products exceeding $2,500 in value. For air cargo shipments, the SLI also includes required TSA consent to search under 49 CFR regulations.

What liability limits apply to air cargo when using a Shipper's Letter of Instruction?

If the shipper does not declare value for carriage, the carrier's liability is limited to the actual value of goods lost or damaged up to a maximum of U.S. $9.07 per lb. For international carriage under the Montreal Convention, the liability limitation is 22 SDRs per kilogram unless a higher value is declared.