A supercargo's letter of instruction sets out in writing which cargo the representative will follow and under what rules, what they may approve, whom they report to and how often, and when they must wait for head office. Clear instructions reduce arguments on site and allow the supercargo to act consistently with the vessel, terminal and agent.
Why does the letter of instruction matter so much?
A supercargo's influence comes less from personal experience than from the clearly expressed will of the principal. When instructions are vague, the representative either refers every question back to head office, slowing the operation, or acts on their own interpretation and risks being second-guessed later.
Written instructions are also a reference for the ship and the terminal. When a supercargo can point to a document behind a request, the other side understands more easily what is being asked and why. Bear in mind that the role itself is defined differently from one contract to another.
The letter also lays the groundwork for any later review. If a dispute arises after completion, the simplest way to understand what the supercargo did and why is to set the instructions beside the report, and that comparison only works when the instructions were written and clear.
What should the operation and cargo section include?
The opening section must describe exactly what the supercargo is there to follow. The more detail it contains, the fewer misunderstandings arise between site and office.
As a minimum, it should include the following.
- Vessel name, IMO number, port and expected time of arrival
- Parcel list: receiver, bill of lading, pieces, weight and marks
- Cargo characteristics and handling sensitivities
- Discharge ports and port rotation
- Any approved preliminary stowage plan and hold allocation
- A summary of relevant charter party, sales contract or credit terms
How should stowage and handling instructions be worded?
General phrases such as "cargo to be stowed carefully" invite different interpretations on site. Specific, checkable instructions work better: which parcel goes in which hold, how many tiers may be stacked, which lots must not be stowed next to each other.
This section should also cover the type and quantity of dunnage and separation material, rules for rain stoppages, handling methods that are not acceptable and the stages to be photographed. It should state plainly that the master retains the final decision on matters of ship safety.
How should limits of authority be defined?
Limits of authority are the most important part of the letter. List what the supercargo may approve on the spot, what they should only report and what requires written approval from the principal.
Minor changes to hatch sequence might be accepted on site, for example, while moving a parcel to another hold or accepting a remark on a mate's receipt might be reserved for head office. Authority to sign documents, issue letters of protest or agree anything with the terminal that creates cost should also be addressed explicitly.
Site rules deserve a mention as well. The letter can remind the supercargo to follow the terminal's safety rules, personal protective equipment requirements and the access procedures that apply under the ISPS Code.
How should reporting and communication be organised?
Decide to whom the supercargo reports, through which channel and how often. A three-layer pattern is common: a daily status report, immediate notice of significant events and a closing report at completion.
The contact list should include the principal's responsible staff, the agent, terminal planning and any receivers' representatives. The letter should also name someone who can be reached outside office hours when a decision cannot wait.
Agreeing the report format in advance saves time. Details such as what goes into the daily report, how photographs are named and which time zone is used ensure that teams in different countries read the report the same way. Stating that times are recorded in local time also makes comparison with the statement of facts easier.
What are the most common mistakes in letters of instruction?
Most problems with instructions come from haste rather than bad intent. A letter sent at the last minute, as the vessel is about to berth, may carry an incomplete parcel list or an outdated stowage plan.
Another frequent issue is conflicting instructions from different people. Sales may want one parcel loaded first while logistics asks for a different sequence, leaving the supercargo unsure which to follow. Instructions should therefore come from a single authorised source.
Gaps seen most often on site include:
- No limits of authority, or only vague wording about them
- Marks on the parcel list that do not match the cargo
- Discharge sequence or port rotation left out
- No named contact for decisions outside office hours
- Photo and reporting expectations never stated
- Conflicting instructions from different departments left unresolved
How do you give the letter a final check?
Before sending it, ask whether someone with no knowledge of the operation could read it and know what to do. Every unclear point tends to come back later as a phone call or an argument on the quay.
Reviewing the letter with the supercargo before the vessel arrives allows gaps to be closed early. In its supercargo service from Gemlik, Karan Gözetim agrees the instructions and limits of authority with the principal at the quotation stage.
Frequently asked questions
What language should the letter of instruction be in?
Because parts of it may need to be shared with the vessel and terminal, English is usually the practical choice. A local-language summary can be prepared for internal use, provided the two versions do not contradict each other.
Can instructions be changed during the operation?
Yes, but changes should be sent in writing with a date and time. Verbal instructions are hard to verify afterwards, which makes it difficult to show which instruction the supercargo was following if a dispute arises.
Should a copy of the letter be given to the vessel?
That is the principal's choice. Sharing the stowage and handling sections, which contain no commercial data, often makes cooperation easier, while prices and contract details are usually kept confidential.
Topics
- supercargo letter of instruction
- supercargo instructions
- appointing a supercargo
- loading instructions
- stowage instructions
- supercargo checklist