Shipping Certificate

This Issue in United States

Concept of Shipping Certificate in Futures Trading

In this context of financial law, the following is a definition of Shipping Certificate: A negotiable instrument used as the futures delivery instrument for certain physical commodities. The shipping certificate is issued by exchange-approved facilities and represents a commitment by the facility to deliver the commodity to the holder of the certificate under the terms specified therein. Unlike an issuer of a warehouse receipt, who has physical product in store, the issuer of a shipping certificate may honor its obligation from current production or through-put as well as from inventories.