What is ETD in shipping?

Article reviewed by Tomas Pernias - Market Intelligence Analyst

Estimated Time of Departure (ETD) is a term used in shipping and logistics to refer to the time and date a vessel is expected to leave its port of origin.

Understanding ETD shipping and its role in the supply chain

In the world of logistics and freight shipping, precise timing is essential. Because transporting goods often involves more than just one country, standardized terms are used to ensure the smooth operation of international trade.

Estimated Time of Departure (ETD) is one of these terms, referring to the estimated date and time when a vessel is expected to leave its port or terminal of origin. ETD is used by shipping companies, freight forwarders, and businesses to track the timeline and progress of a shipment.

For example, if a cargo ship is scheduled to depart from Singapore on February 5, the ETD would be recorded as February 5.

ETD is typically established in a prior contract between the owner of the transported goods and the shipping company, however it can fluctuate depending on unforeseen circumstances or disruptions. For example, factors like port congestion, vessel availability, adverse weather conditions, and carrier schedules can all lead to ETD delays.

In supply chain planning, ETD plays an important role by allowing businesses to plan inventory levels, manage production schedules, and ensure timely deliveries. Freight forwarders and logistics providers rely on ETD to align shipping schedules with other transportation modes so that cargo moves smoothly from origin to destination. Delays in ETD can lead to increased supply chain costs due to additional storage fees, demurrage charges, or missed delivery windows.

What is the difference between ETD and ETA in logistics?

While ETD refers to the estimated time of departure, Estimated Time of Arrival (ETA) refers to when a vehicle, cargo ship, or other mode of transportation is expected to reach its final destination. This estimate helps logistics providers and customers plan for arrival and subsequent steps in the shipping process.

The key difference between ETD and ETA is:

• Estimated Time of Departure (ETD) is when a shipment is expected to leave its point of origin.
• Estimated Time of Arrival (ETA) is when a shipment is expected to reach its final destination.

While ETD typically refers to Estimated Time of Departure, some logistics providers use ETD to mean Estimated Time of Delivery in the context of last-mile delivery services. However, this usage is less common in global freight shipping.

Note that delivery estimates are not the same as arrival estimates. For example, a delivery truck may arrive at a distribution center at 1:00 PM (ETA), however the actual delivery to various businesses within that center might not occur until 1:30 PM (ETD in the delivery sense).

Why is ETD important for businesses in the shipping industry?

Businesses across the shipping industry rely on ETD estimates for efficient planning, scheduling, and operations. Here’s how ETD is used by different stakeholders:

Suppliers

Tracking ETD can help suppliers optimize delivery schedules, avoid additional storage fees, and prevent delays in production lines.

Freight forwarders

ETD allows freight forwarders to plan the most efficient routes and minimize delays for timely deliveries.

Consignees

Knowing ETD helps consignees prepare for cargo arrival, manage equipment for unloading, and predict delays to avoid unnecessary fees

Port operators

ETD data helps port operators streamline vessel departures and arrivals to reduce port congestion and reduce delays.

Customs brokers

ETD tracking can help customs brokers prepare documentation for smooth and timely customs clearance.

What are the key differences between ATA, ATD, ETD, and ETA in shipping?

ETD is just one of many logistical terms used in maritime transport. Other terms include ETA, ATD, and ATA, all of which are used by businesses to coordinate inventory, manage production schedules, and ensure timely deliveries.

Let’s look at what each of these abbreviations mean in shipping and logistics:

• Estimated Time of Departure (ETD): ETD is the estimated date or time when a vessel, truck, or aircraft is scheduled to leave its origin. This signals that a shipment has started its freight journey, allowing logistics companies and customers to track its movements.
• Estimated Time of Arrival (ETA): ETA is the estimated date and time when a shipment is expected to reach its destination. It allows consignees to prepare for their shipment’s arrival by calculating how much longer a vessel has left in its journey.
• Actual Time of Departure (ATD): ATD is the precise timestamp of when a ship, aircraft, or vehicle left its point of origin. Unlike ETD, which is an estimate, ATD is the actual point in time that a vessel began moving.
• Actual Time of Arrival (ATA): ATA is the exact moment a shipment arrives at its final destination.

How does ETD affect freight planning for B2B operations?

ETD plays a crucial role in freight planning for B2B operations by helping businesses manage inventory, streamline logistics, and optimize costs. By knowing when a shipment is expected to leave and arrive, companies can plan stock levels, production schedules, and distribution processes, ultimately improving cash flow by reducing unnecessary storage costs and optimizing working capital.

For example, ETD can be used for:

• Inventory management: Accurate ETD helps businesses prevent overstocking or stock shortages by aligning inventory replenishment with shipment schedules.
• Supply chain coordination: Logistics companies can use ETD to organize loading, routing, and delivery times to minimize delays.
• Cost optimization: Companies can better allocate resources, such as labor and commodity transportation services, to minimize storage costs and avoid penalties from delays.
• Timely deliveries: ETD can help companies ensure on-time delivery to maintain trust and strengthen B2B relationships.

How do shipping companies calculate ETD and adjust for delays?

Below are the steps shipping companies take to calculate ETD and adjust for potential delays:

1. Assess vessel and port readiness

First, companies determine the vessel’s current location and status within the port. They then check the progress of cargo loading, bunkering (fueling), provisioning, and any crew changes.

2. Review port operations

Next, they review the port’s operational hours, congestion levels, berth availability, and tidal restrictions. Port authorities are consulted to confirm clearance processes, including customs documentation, cargo inspections, and immigration formalities.

3. Consider weather factors

After that, companies check weather forecasts and sea conditions to anticipate potential delays. Tidal and current data are examined to find an optimal departure time for safety and fuel efficiency.

4. Confirm readiness with stakeholders

Communication is made with the ship’s captain, local maritime agents, and port officials to confirm readiness and agree on the departure schedule. At this stage, the crew completes safety checks and briefings.

5. Calculate transit times

Maritime navigation tools are used to calculate estimated travel time to the next port, taking into account speed restrictions, exclusion zones, and maritime traffic.

6. Add a buffer time

A buffer time is added to accommodate unforeseen delays, such as slow cargo loading or the need for last-minute maintenance.

7. Dynamic updates

The ETD is continuously adjusted based on real-time circumstances and changing conditions. Updates are communicated to all relevant parties, including crew, cargo owners, and logistics partners.

Despite best efforts, ETDs are still estimates and may change due to various factors, including:

• Unexpected delays: Weather conditions, rough seas, port congestion, accidents.
• Customs clearance: Lengthy security checks or document processing.
• Loading & unloading times: Slower or faster cargo loading can affect ETDs.

What is the relationship between ETD, ATD, and actual time of delivery?

ETD stands for Estimated Time of Departure. This is the projected time that a vessel, aircraft, or truck is expected to leave its point of origin. ETD can change due to various factors, including weather conditions and unforeseen delays.

ATD stands for Actual Time of Departure, or the date and time that a vessel left its origin. Unlike ETD, ATD is not an estimate but refers to the actual point in time that freight began its journey.

Actual Time of Delivery refers to the exact time when a shipment is delivered to the consignee or final destination. This is different from Actual Time of Arrival (ATA), which is when the vessel or transport mode reaches its destination, but may not have completed unloading or final delivery.

Unlike ETD and ATD, which refer to departure times, the Actual Time of Delivery tracks when a shipment is handed over to the consignee. Companies can compare the Actual Time of Delivery with original estimated times to assess the reliability of their logistics operations.

How do changes in ETD impact global trade logistics?

ETD plays an important role in commodity supply chain management, and any changes can have a rippling effect across global trade logistics. For example, delays in ETD can affect inventory planning and lead to missed production deadlines or increased storage costs.

On the other hand, earlier-than-expected ETDs might require businesses to adjust warehousing and distribution schedules with little notice. ETD changes can also affect multimodal transport coordination and customs clearance processes.

This material is for informational purposes only and should not be considered as an investment recommendation or a personal recommendation.