How to Tell if a Seller Is Delaying Shipment After Receiving a Letter of Credit

In international trade of used construction machinery, a Letter of Credit (L/C) is one of the most secure payment methods. Once an L/C is issued, the buyer expects the seller to proceed with shipment promptly. There is no doubt that delays can occur. Sometimes it is due to unavoidable factors or the seller is stalling. If we want to recognize whether the seller is intentionally delaying shipment, it is essential to understand what a normal timeline looks like from the moment an L/C is received until the goods are loaded on board.

 

Typical Timeline from L/C to Shipment When Exporting from Changsha

L/C Review and Confirmation (1–2 Days)

When the seller receives the Letter of Credit, the first step is for the bank to examine its terms. This review ensures all conditions are consistent with the contract. Normally, this stage takes only one to two days. Any delay beyond this might indicate that the seller has not accepted the terms or is being slow in responding.

Booking the Vessel and Signing the Shipping Contract (3–5 Days)

After confirming the L/C, the seller must arrange space with a shipping company. Vessel booking and the conclusion of a shipping contract usually require three to five working days. This step sets the foundation for the entire export schedule.

Inland Transportation to the Port (2–3 Days)

For machinery located inland, such as in Changsha, the goods need to be transported to a major domestic port like Shanghai or Guangzhou. Depending on distance and logistics, this typically takes two to three days.

Vessel Berthing and Waiting Period (Around 10 Days)

Once the goods arrive at the port, they may not be loaded immediately. Vessels often have a scheduled berthing and loading period, during which containers and cargo wait for their turn. On average, this waiting period lasts around ten days, although it may vary depending on how busy the port is.

Loading and Customs Clearance (About 7 Days)

The final stage before shipment involves actual loading, documentation, and customs clearance. These operations take about one week to complete. Any major delay here should be closely monitored, as it may point to missing paperwork or coordination issues on the seller’s side.

Possible Delays Due to External Factors

The above stages outline a standard process, but unforeseen factors can create delays. Severe weather or sudden changes in shipping schedules may extend the timeline. Buyers should differentiate between legitimate external causes and mistakes attributable to the seller.

A Typical Cycle from Receiving the L/C to Final Loading at the Port

When combining all the above steps, a typical cycle from receiving the L/C to final loading at the port usually falls between 23 and 27 days. This timeframe is widely considered normal under standard shipping conditions. If the process extends far beyond this range without a clear explanation, the buyer should question whether the seller is intentionally holding back shipment.

The standard timeline from Letter of Credit issuance to shipment is the best way to determine whether a seller is acting responsibly. Any deviation without reasonable cause could be a red flag. Keeping track of each step and staying updated helps buyers spot any delays early on.