When businesses ship goods by sea, they need to keep track of their cargo at all times. To keep shipments organized and records accurate, they rely on Electronic Data Interchange (EDI), a system that replaces traditional paper-based documents with standardized digital transactions. One key document in this process is the EDI 310, also known as the Freight Receipt and Invoice (Ocean).
With the EDI 310, shippers can track their cargo in real time and send necessary documents automatically. This helps ensure that shipments stay on schedule and that all required paperwork is handled correctly.
In this guide, we’ll explain how the EDI 310 transaction set works, including its various elements, and how it helps businesses move goods from port to port with ease.
What Is EDI 310?
The EDI 310 transaction set is a digital document that maritime carriers send to shippers to request payment for transporting goods. In some cases, it can also replace a traditional paper bill of lading, an important document in freight shipping that outlines the details of a shipment.
The EDI 310 is one of the most widely used standards in the freight industry because it facilitates efficient communication between shippers and carriers. By automating the exchange of payment and shipment details, the EDI 310 reduces paperwork, minimizes errors, and speeds up transactions.
EDI 310 Specification and Components
The EDI 310 document contains two main components: an invoice and a receipt. The invoice provides a breakdown of the total amount due, including all transportation costs, fees, and surcharges. Meanwhile, the receipt lists key shipment details, such as the items being transported, their destination, associated costs, and any applicable taxes. Together, these elements ensure that all financial and logistical information is clearly documented, making the shipping process smoother and more reliable.
EDI 310 Sample Document
Here’s an example of the EDI 310 document showing how its various components, including its segments and elements, appear in code:
ISA*00* *00* *ZZ*SENDERID *ZZ*RECEIVERID *240225*1705*U*00401*000000001*0*T*>
GS*IN*SENDERID*RECEIVERID*20240225*1705*1*X*004010
ST*310*0001
B3B*123456*SCAC*20240220**12345.67*USD
N9*BM*INV123456
N1*SH*Shipper Name*92*SHIPPER123
N3*123 Shipping Lane
N4*Los Angeles*CA*90001*US
N1*CN*Consignee Name*92*CONSIGNEE456
N3*456 Delivery Road
N4*New York*NY*10001*US
C3*USD
LX*1
L5*1*Ocean Freight Charge*FAK
L0*1***20000*LB**40*CN
L1*1*1000.00*FA*LB
L1*2*500.00*FS*LB
L1*3*250.00*BA*LB
SE*14*0001
GE*1*1
IEA*1*000000001
Technical Aspects of the EDI 310 Specification
The EDI 310 transaction set follows a hierarchical format that's structured into interchanges, segments, and elements, according to the ANSI X12 standard. Developed by the Accredited Standards Committee (ASC) X12, this standard provides a uniform framework for all electronic data exchange. It ensures compatibility and consistency between businesses that use EDI across various industries, including logistics and transportation.
Key Elements of the EDI 310
The EDI 310 transaction set is made up of structured components that allow computer systems to read, process, and verify freight invoices automatically. These elements ensure that shipping information is communicated accurately and securely between ocean carriers and shippers.
1. Transaction Set Identifiers (ST and SE Segments)
Just like a receipt number on a store purchase, EDI transactions use unique control numbers to track and organize electronic documents. These numbers help make sure data isn’t lost, duplicated, or processed incorrectly:
ST (Transaction Set Header) and SE (Transaction Set Trailer): The ST segment marks the start of the EDI 310 document and includes a Transaction Set Identifier (310) to define it as an ocean freight invoice. The Control Number links the ST segment to the SE segment, which appears at the end of the document to confirm that all data was received correctly.
ISA (Interchange Control Number): This tracks the entire transmission between trading partners.
GS/GE (Functional Group Control Numbers): This groups related EDI documents together for easier processing.
2. Data Segment Descriptors
Each segment in an EDI 310 document represents a specific type of information that allow businesses to keep track of their transactions:
B3 (Billing Information): This segment identifies the invoice date, shipment details, and total charges.
N1 (Party Identification): This defines the sender (shipper), receiver (consignee), and carrier.
IT1 (Line Item Details): This segment contains information about individual freight charges or services.
3. Logistics Data
The logistics section provides key shipping, cargo, and routing details, ensuring that shipments follow the correct path and arrive on time without delays or miscommunication.
LX (Line Sequence Number): This organizes individual charges or shipment details in order.
L5 (Freight Description): This segment describes the type of goods being shipped.
N7 (Equipment Details): This lists the containers, trailers, or vessels used for transportation.
4. Financial Information
The financial section of the EDI 310 outlines all costs, discounts, and payment terms so that businesses know exactly how much they owe and why.
TDS (Total Invoice Amount): This denotes the total amount due for the shipment.
SAC (Allowance and Charge Details): This lists any extra fees, such as fuel surcharges or discounts.
AMT (Monetary Amount): This breaks down any other specific charges, such as customs fees or port costs.
How Is the EDI 310 Used?
After a shipment is delivered, the ocean carrier generates and sends an EDI 310 to the shipper that outlines the total charges, shipment details, and payment terms. To confirm receipt of the invoice, the shipper sends back an EDI 997 (Functional Acknowledgment). This doesn't mean the invoice was approved — only that it was successfully received.
Once the shipper reviews and verifies the charges, they process payment based on the agreed terms. In some cases, they also send an EDI 820 (Payment Order) to notify the carrier that payment has been issued and provide details like the amount and payment method. (Not all businesses use EDI 820, however — some prefer direct bank transfers or manual payments.)
Here’s a more detailed look at the key steps involved in the EDI 310 process:
1. Shipment and Delivery
Before invoicing begins, the carrier and shipper agree on shipment details like destination, cargo type, and weight. Once the shipment is transported and delivered, the final invoice process begins.
Sometimes, shippers also request routing instructions before the shipment moves. This can be done using an EDI 204 or 211 document, which helps ensure the shipment follows the correct route and meets delivery requirements.
2. EDI 310 Transmission
After delivery, the ocean carrier creates and transmits an EDI 310 invoice to the shipper or third-party logistics provider (3PL). The invoice includes freight charges (total cost of shipping), shipment details (container numbers, weight, destination), and payment terms (due dates and conditions for payment).
3. Acknowledgment
Once the EDI 310 document is received, the shipper or 3PL sends back an EDI 997 Functional Acknowledgment. This is a simple confirmation that the invoice was successfully received.
Again, the EDI 997 does not approve or reject the invoice — it only confirms that the document was delivered properly. If there is a mistake, the shipper must contact the carrier to fix the issue before sending payment.
4. Payment Processing
Once the invoice is reviewed and verified, the shipper processes payment based on the agreed terms. Payments can be made manually (bank transfer, wire deposit, or check) or electronically using EDI 820. If an EDI 820 Payment Order is used, it sends payment details directly to the carrier, including the total amount paid, any discounts or deductions, and the payment method.
Once payment is received, the transaction is officially complete.
4 Benefits of EDI 310
Handling invoices for ocean shipping isn’t always simple, but the EDI 310 helps make the process quicker, more secure, and easier for ocean carriers and shippers to manage. Here are four key benefits:
1. Stronger Security
EDI uses advanced security protocols like AS2 (Applicability Statement 2) and encryption to protect sensitive shipping and payment data. These security measures are key to preventing unauthorized access and ensuring that invoices and financial information are safe during transmission.
2. Faster and More Efficient Processing
Since EDI 310 replaces paper invoices with digital documents and automates manual processes, it speeds up the entire billing process. Digitized invoices are automatically generated, sent, and processed instantly. In other words, partners get paid faster.
3. Fewer Errors and More Accuracy
EDI automatically formats and verifies all invoice data, minimizing the risk of human errors like incorrect charges or missing details. Because all documents follow a standardized structure, trading partners can be confident that the information they contain is accurate and complete.
4. Better Business Relationships
EDI gives real-time updates on invoice processing, payment status, and order fulfillment. This improves transparency between ocean carriers and shippers, which results in stronger partnerships, fewer disputes, and improved trust between trading partners.
Streamline Shipping Processes with Cloud-Based EDI
The EDI 310 is just one way Electronic Data Interchange helps ocean carriers and shippers stay on top of shipments and paperwork. When handled manually, these processes can lead to delays and costly mistakes. But cloud-based EDI solutions make the process faster and more reliable, cutting down errors, speeding up transactions, and ensuring smooth sailing for you and your trading partners.
Connect with an EDI expert today to learn how a cloud-based EDI solution can transform your supply chain.