Explanation of EDI 310: Freight Receipt and Invoice (Ocean)

Posted by Brooke Lester on Sep 28, 2022 11:15 AM

truckThe Electronic Data Interchange (EDI) standard is a set of rules for transmitting and exchanging business documents, such as orders and invoices. This technology has been used since the 1960s, but it has become relevant again with the rise of e-commerce and omnichannel retailing.

Companies can use the EDI standard to send messages back and forth in real-time over an electronic network like the internet, which allows businesses to communicate quickly without relying on fax machines or phone calls. For instance, suppose you buy something online from Macy's or another retailer that uses EDI standards. In that case, the retailer will use this technology to send a purchase order back to its warehouse so that it can ship your item immediately—thereby reducing shipping costs by not having to deal with multiple daily shipments.

Companies use EDI to send and receive specific business-related data in a standard format. It's the electronic equivalent of sending purchase orders via post or fax—except it's done over the internet, which makes it much easier for businesses to communicate with each other.

What is the EDI 310 Freight Receipt and Invoice?

EDI 310 uses the Electronic Data Interchange Standard for Transportation (SDT). EDI 310 can be used as the receipt for a shipment, or it can be used to substitute for a paper bill of lading if both parties agree that a paper bill of lading is not necessary.

The EDI 310 Freight Receipt and Invoice is one of the most common standards in the freight industry. It's used to exchange freight information between shippers and carriers and consists of two documents: A receipt and an invoice.

The receipt also includes details about what was shipped when it left your warehouse or facility, where it was going, how much you paid for it, and taxes associated with your purchase (like VAT). The invoice tells you how much money was due from your customer at the end of their billing cycle based on what they purchased from you during their last billing period.

How is the EDI 310 Freight Receipt and Invoice used?

The EDI 310 freight receipt and invoice is a standard used to send information about your shipment to the receiving party.

The EDI 310 freight receipt and invoice contain these pieces of data:

  • Sender identification number (SID) - identifies who sent this message.
  • Receiver identification number (RID) - identifies who received this message/
  • File identifier (FID) - helps identify which file this message belongs to.
  • File status indicator (FSI) - tells you whether or not there are problems with the file being sent.
  • Date-time group (DTG), Time zone code, UTC Offset - tells you when the message was sent out.
  • Purpose code (PC) - tells you what kind of message this is.
  • Transaction set count (TSC) - tells you how many EDI transactions are included in this file. These pieces of data can help shipping and logistics companies keep track of their shipments when they're out on the road. They also make it easier for you to get answers about your shipment if something goes wrong.

It's also known as the Shipment Status Message or SPM. Shipping companies and freight forwarders use this format to transmit shipment information. There are three main types of messages in this format:

  • Descriptive Messages
  • Inquiry Messages
  • Transaction Messages

The EDI 310 Standard

The EDI 310 is the standard for ocean freight. The EDI 310 Standard is an XML-based standard that allows for the exchange of commercial shipping documents, including freight receipts, freight invoices, and other documents related to ocean freight. It was developed by ANSI X12 and used X12 as its identifier. In addition, the EDI 310 is used across many industries—from healthcare services to manufacturing—and can be used for various purposes, from processing orders to transferring client records.

If you've ever seen a bill of lading, then you understand how important this is. The bill of lading is what contains all of the information about your shipment (and it's not just for cargo ships anymore—it's also used for airfreight), including where it came from, where it's going, who shipped it, and more.

The interface comprises two components: The EDI 310 Receipt, which is sent from the ocean carrier (the sender), and the EDI 310 Invoice, which is sent from a freight forwarder (the receiver). Each component contains specific data about an ocean shipment, such as its weight, dimensions, shipping point, destination country, and more.

What are the Benefits of EDI 310 for Ocean Freight?

The benefits of EDI 310 for ocean freight are many and varied. Let's take a look at some of the top perks of this standardized data format:

  • Speed. The real-time nature of EDI 310 messages means that you can expect your goods to be moved faster than ever before, reducing transit times, costs, and paperwork.
  • Accuracy. With the elimination or reduction of manual data entry, it becomes much less likely that errors will occur in communication between parties involved in the supply chain process—and even if they do arise, it's more accessible to correct them before damage is done than after.
  • Cost savings/profitability improvement opportunities through increased efficiency and reduced labor costs resulted from time savings due to faster processing times for customs clearance procedures at each endpoint (i.e., shipping port vs. destination country warehouse location).
  • Improved efficiency. The same goes for processing these documents: No more waiting around for people at other firms who may or may not be on vacation or working late (or even worse: not working at all). Your workflows go much smoother when everyone is on board with the electronic methodologies being used across the industry; this means fewer bottlenecks in your business processes overall.

Conclusion

The EDI standard is an international standard that allows businesses to exchange data electronically. It is used by companies worldwide as well as governments and nonprofit organizations. The EDI standard is used to exchange information between trading partners in different industries and countries, making it easier for them to do business together.

If shipping with a carrier, you must know how to use the EDI 310 Freight Receipt and Invoice. This will ensure that your shipment is tracked and the proper documentation is sent to you on time. It also helps eliminate any mistakes or misunderstandings between parties involved in shipping goods by sea.

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