Importing, Exporting and
Transportation
Course Manual
Importing, Exporting and Transportation Certificate
Index
Part One
1. Procedures for Importing and Exporting
a. Introduction
b. Seaport Procedures
c. Airport Procedures
d. Customs Law and Regulations (Ships)
e. Customs Clearance
f. Export procedures
2. Transportation
a. Choice of Routes
b. Evaluating Costs
3. Multimodal versus Intermodal
a. Intermodal Freight Transport
b. Multimodal Freight Transport
4. Sea Transport
a. International Shipping Industry
b. Trade Routes
c. Processes and Documents
d. Maritime Service Providers
5. Airfreight and Airfreight Terminology
a. Documents
b. Moving Goods by Air
c. Booking Air Freight
d. Export Packing Considerations
e. Air Cargo Handling and Delivery
f. The role of IATA (International Air Transport Association)
Part Two
6. Road Transport
a. Introduction to Road Transportation
b. Highway Regulations
c. Documents
d. Service Options for Truck Transport
e. Less Than and Full Trailer Load shipments
7. Rail Transport
a. Introduction
b. Container stacking
c. Cargo Handling
d. Documents
8. International Documentation
a. Enquiry Documents
a. Costing sheet
b. Pro Forma Invoice
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b. Instruction Documents
a. Shippers Letter of Instruction
b. Bank Instruction
c. Delivery Order
c. Transport Documents
a. Ocean Bill of Lading
b. Multi-modal Transport Document
c. House Bill of Lading
d. Mate’s Receipt / Docks and Warehouse Receipt
e. E-Mail Release of Cargo
f. Sea Waybill
g. Digital Waybill
h. Air Waybill
i. Differences Between Air Waybills and Ocean Bills of Lading
j. Rail Waybills
k. Road Waybills
l. Arrival Notification / Notice of Arrival
m. Delivery Instruction / Delivery Note
n. Certificate of Shipment
d. Insurance Documents
a. Insurance certificate
e. Customs Documents
a. Bill of Entry or Customs Entry
b. Commercial Invoice
c. Destination Control Statement
d. Consular Invoice
e. Carrier Certificate
f. Packing List
g. Licenses
f. Inspection Documents
a. Certificate of Origin
b. Inspection Certificate
c. Phytosanitary Certificate
d. Certificate of Conformity
e. Certificate of Value
f. Certificate of Health
g. Fumigation Certificate
g. Finance Documents
a. Forward Exchange Contract
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Part One
1. Procedure for Importing and Exporting
a. Introduction
This section provides a general description of the usual process for importing,
exporting and transporting goods into countries. It also describes the documents
required for obtaining these authorisations. During a shipment, additional legal forms
and documents will be required in order to comply with international regulations.
Some of these forms are standardised international documents. Others will be self-made
formats recommended for use in particular operations.
Although most international formats are standardised (and hence non-negotiable), it is
possible that some States will ask for specific documents and clearances not
described in this document.
A logistician’s first responsibility will be to identify local procedures and facilitation
measures for importing goods and moving them within the country.
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b. Seaport Procedures
Ports normally have all necessary facilities for handling ships, carrying out customs
inspections and storage of cargo: possessing the necessary equipment and machinery for
loading and unloading operations. There is increasing use of modern transport technology
such as containerisation, cargo often moves inter-modally through a port. The port's
functions then become mainly limited to transit operations whereby cargo moving in unitised
form does not have to be packed or unpacked at the port.
The main formalities connected with the handling of goods by port authorities in the
export or import trade are as follows:
1. Before any cargo is landed, a copy of the cargo manifest must be delivered to the
port authorities.
2. When cargo is discharged from the ship, it must be tallied.
3. The out-turn report, which is prepared based on such tally, is compared with the
vessel's import general manifest to ascertain whether the full manifested cargo has
been discharged. There may be short-landed or over-landed cargo.
4. Wharfage at the prescribed rates is levied on all goods landed and shipped.
5. Goods not removed from the custody of the port authorities within the free storage
period allowed are charged rent at the prescribed rate.
6. Rent may be waived or reduced under the following circumstances.
7. After the expiry of "free time" rent is charged at prescribed rates on cargo that may
ultimately be sold at public auction.
8. Rent is charged on any un-manifested cargo not removed within the prescribed time
after delivery of the "Out-Turn Report.”
9. However, in the case of goods landed in a damaged condition for which a claim is
made against the carrier, some extension of free time may be allowed to enable a
survey of the damaged cargo to be made.
10. A similar concession may also be permitted in the case of goods damaged
subsequent to landing and for which an "Application for Survey" has been received
by the port authorities.
11. No rent is charged on goods detained by the Customs authorities for special
examination, chemical tests, etc.
12. No rent is charged when removal of goods is delayed due to no fault or negligence
on the part of the importers.
13. Areas used for the landing and storage of imported goods must be declared as
Customs Areas under a Customs Act.
14. The discharge of some hazardous cargo may be permitted only in mid-stream into
barges, or at berths or anchorages specially reserved for that purpose. If necessary,
such cargo must be stored in specially designated areas.
15. Examination of cargo by Customs will be permitted only if the consignee or clearing
agent produces to the port authorities the delivery order issued by the shipping agent
together with the Bill of Entry prepared on behalf of the consignee.
16. In the case of containerised cargo, containers may be unstuffed in the port area
before the cargo is presented for examination by Customs. Alternatively, containers
may be taken to an inland container depot, or warehouse, or factory of the consignee
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where they are unstuffed and delivered to the consignee after completing Customs
formalities.
17. Carting or transporting of export cargo, if it is Break Bulk, is permitted at the berth
where the ship is ready to load. In the case of containerised cargo, carting is
permitted to the location assigned to the shipping line by the port authority.
18. Like imports, exports attract demurrage after the expiry of free time but port
authorities sometimes waive this charge in the case of special cargo. Ports may defer
acceptance of export cargo if there is a delay in the arrival of the vessel.
19. When export cargo is taken to an inland clearance depot, Customs formalities are
completed there and the cargo is stuffed into containers, which are then brought to
the port for direct loading onto the ship. The same procedure may also be followed if
containers are stuffed at the factory or warehouse of the shipper.
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c. Airport Procedures
Many airports provide a full range of services to aircraft operators and ground handling
agents to facilitate all aspects of air cargo operations. Typically, airport authorities designate
specific areas - including office and/or warehouse space - for use by aircraft operators,
handling agents and freight forwarders. In order to offer such services, airports not only need
to have the necessary facilities for aircraft maintenance and cargo handling but must also
provide infrastructure for receiving different types of surface transport (e.g. road and rail).
In addition to these services, airports normally provide secure storage for cargo ranging from
perishables and general freight to high-value goods. Major international airports also provide
facilities for Customs authorities to enable the examination of cargo and collection of duties,
taxes and other levies.
The main formalities connected with the handling of export/import cargo by airport
authorities are as follows:
1. The original copy of the cargo manifest should accompany the cargo. This document
must be produced to Customs. A copy should subsequently be given to the airport
authorities if required.
2. After cargo is unloaded from the aircraft, tallying is carried out by the airline staff or
handling agent. The out-turn report prepared on the basis of this tally is then
compared with the airline's manifest to ascertain whether the full manifested cargo
has been discharged. Cargo may be either short-landed or over-landed.
3. A terminal charge at the prescribed rate is levied on all goods landed and shipped.
4. Rent may be levied or waived as follows:
5. Rent will be levied on goods not removed from the custody of airport authorities
within the permitted free storage period, even if this cargo is ultimately sold by public
auction.
6. Rent will be charged on any un-manifested cargo not removed within the prescribed
time after delivery of the out-turn report.
7. Charges may be waived on goods detained by Customs for special examination.
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8. Locations used for the unloading and storage of imported goods must be designated
as Customs Areas under a Customs Act.
9. Storage of hazardous cargo will be permitted only in locations specially designated
for that purpose.
10. Examination of cargo by Customs is permitted only if the consignee or appointed
agent produces to the airport authorities or handling agent the delivery order issued
by the airline or airline's agents, together with the import declaration prepared on
behalf of the consignee.
11. Containerised loads may be unstuffed at the airport before being presented for
Customs examination. Alternatively, they may be taken to an inland container depot
or warehouse nominated by the consignee where they are unstuffed and cleared by
Customs prior to delivery to the consignee.
12. Cargo destined for export may be cleared by Customs and stuffed into containers at
the shipper's factory, warehouse or designated inland depot. The containers are then
taken to the airfield for direct loading onto the aircraft.
13. Larger airports usually provide facilities inside designated Customs Areas for transit
cargo to be de-consolidated and consolidated with local export cargo.
d. Customs Law and Regulations (Ships)
Basic Customs laws or regulations applicable to the arrival and departure of ships and to
imported or exported goods are more or less the same in most countries, although they may
differ in procedural and documentary details. Several countries have enacted strict
legislation for controlling and regulating imports and exports.
Rules or regulations issued under such legislation will have to be followed in obtaining
Customs clearances. Essentially, imports/exports and vessels carrying such goods are
subject to the following procedures:
The main arrival formalities are as follows:
1) A vessel entering a country from overseas must use a designated Customs Port as its
first port of call.
2) A vessel can start unloading goods only after Customs have granted the necessary
permit (called "Entry Inwards") following submission by the Master or Shipping Agent of
an "Import Manifest" containing particulars of the cargo on board in the prescribed
format.
3) The import manifest must be accompanied by other documents as may be required such
as:
a. Certificates of load line.
b. Safety certificates for radiotelegraphy.
c. Certificate of registration.
d. Port clearance from previous port of call.
e. Crew list.
f. Stores list.
g. Declaration of personal property of officers and crew.
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4) In some countries, Customs authorities will accept the cargo manifest even before the
arrival of the vessel under the so-called "pre-entry" procedure (pre-arrival clearance),
final "Entry Inwards" being granted after the vessel has berthed.
e. Customs Clearance
1. All imported cargo must be landed at a designated Customs port and should not be
removed from Customs control without written permission of the Customs authorities.
2. Before permission is given to remove goods from Customs control, the owner or
agent is required to submit a Bill of Entry, Customs Declaration or Inward Permit, as
may be required by law, in the prescribed form to enable Customs authorities to
examine the goods. The Bill of Entry includes details such as value, quantity;
description of goods, name of vessel, port of shipment, and such other particulars as
may be prescribed by the Customs authorities. These particulars must tally with
those contained in the relevant import manifest.
3. The Bill of Entry (Customs Entry) must be accompanied by all supporting documents
required by Customs such as invoices, import licenses, certificates of origin, bills of
lading and marine insurance certificates. When goods are destined for warehousing,
application for permission to warehouse those goods and a bond must accompany
the Bill of Entry (Customs Entry).
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4. Customs authorities are empowered to examine all imported goods. The examination
may be physical (visual inspection, counting, weighing, measuring, chemical test,
etc.) or documentary (involving examination of relevant documents such as invoices,
bankers' notes, insurance policies and forms listing the quantity and description of
goods).
5. If goods are dutiable, either Customs tariffs must be paid at the time or the importer
must give a bond to guarantee payment of the duty.
6. If goods are not removed within the prescribed period after the arrival of the importing
vessel, they are liable to be sold at public auction by the port authorities who will
recover from the sale proceeds all charges due to them, including Customs duty.
7. Customs authorities are entitled to recover from the importer any shortfall in duty
levied or erroneous refund of Customs duty, in accordance with prescribed
procedures.
8. In cases where import licenses are required, Customs authorities will check the
legality of the imported goods against those licenses.
Shipment
Inspection
Held by
Government
Agency
Held by
Customs
Released?
No
Yes
On hold ?
Awaiting
instructions
Data Entry
Goods Received /
Dispatched to ?
On hold for
Clearance
On hold – duty to
be paid
Bonded Warehouse
Inventory
Return to Sender
In & Out Inventory
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f. Export Procedures
1. Export goods can be loaded onto a vessel only after the necessary permit "Entry
Outwards" has been issued by Customs, and after documents duly endorsed by
Customs have been delivered by the exporters to the Master or person in charge of
the ship.
2. A vessel which has brought in imports or has loaded exports can leave the port only
when written permission, known as "Port Clearance,” is granted by the Customs
authorities.
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3. Application for Port Clearance must be made in good time before planned departure.
This application must be accompanied by the Export Manifest showing particulars of
the cargo loaded and such other documents as may be required by Customs.
Examples include the vessel's certificate of registration, load line certificate, safety
certificates for radio telegraphy and safety equipment, inward clearance certificate,
income tax clearance certificate (if proceeding to a foreign port with export cargo)
and certificate of payment of all dues issued by the port authority.
4. In many countries, most goods are freely exportable. Only a limited number of
specified items or commodities are subject to export control.
g. Required Documents
In the field of freight forwarding, there is no international uniformity of documents or
documentary procedures. Nevertheless, efforts have been made by the International
Federation of Freight Forwarders (FIATA) to promote the use of standardised freight
forwarding documents and thereby improve professional standards. FIATA has produced
several documents, which correspond with layouts used by the UN Economic Commission
for Europe (ECE).
In the air transport sector, International Civil Aviation Organisation (ICAO) and
International Air Transport Association (IATA) recommends a series of standardised
documents that are used in most countries.
1.
The Commercial Invoice
This is a document issued by the seller to the buyer of the goods. It is often used by
Customs authorities at the destination to determine the true value of the goods on which
duties will be assessed. It also serves as the basis for consular documentation.
Other documents to be signed by the shipper and handed over to the carrier if needed
include:
2.
3.
4.
5.
Shipper’s Declaration of Dangerous Goods
Shipper’s Certification for Live Animals
Shipper’s Certification for Arms and Ammunition
In addition, there may be other documents required by the Customs authorities of
the exporting and importing countries, which should be submitted with the
Waybill.
h. Documents Received from Customer
1. FIATA Forwarding Instructions (FFI).
The customer passes this document to the forwarder thereby establishing a forwardercustomer contractual relationship for provision of transport from place A to place B. The
customer is expected to furnish all relevant particulars regarding the goods to be
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dispatched and to enclose such documents as may be required.
2. FIATA Declaration for Transport of Dangerous Goods (SDT).
A shipper will complete, sign and hand this document to a forwarder whenever the
transport of dangerous goods is involved. This document provides detailed information
about the classification of dangerous goods according to regulations governing the
transport of such goods.
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i. Documents Issued to Customer
1. FIATA Forwarder's Certificate of Receipt (FCR)
This is an official acknowledgement of goods received by the forwarder. The
forwarder assumes responsibility for the dispatch and delivery to the consignee
named in the document. The FCR should be handed to the consignor (customer)
immediately after the consignment is received by the forwarder.
2. FIATA Combined Transport Bill of Lading (FBL)
This is a through transport document used by international freight forwarders acting
as combined transport or intermodal transport operators. The forwarder assumes
responsibility not only for the performance of the contract but also for the acts and
omissions of any third parties employed by him.
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3. FIATA Warehouse Receipt (FWR)
A warehouse receipt for use in the forwarder's warehousing operations; it is subject
to any national law and applicable to standard trading conditions.
4. House Bill of Lading/House Air Waybill
Usually applicable to consolidation services, the house Bill of Lading is issued in
respect of sea freight while the house Air Waybill is issued in respect of airfreight.
There is no uniformity in the terms and conditions of these documents, which vary
from forwarder to forwarder.
* While the FBL is a negotiable document, the FCR is not negotiable. The FWR is not
negotiable unless marked otherwise. When a document is negotiable, it can be endorsed by
the holder in favour of another party, thereby transferring his right to the goods referred to in
the document.
Above: sample FIATA Warehouse Receipt
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Conclusion
Errors in documentation are very expensive. The first result of a mistake is delay to the
consignment which might be held up in a warehouse under customs control. Wherever the
delay, storage charges will become payable almost immediately, and these have a habit of
rising disproportionately as the delay extends from days to weeks and perhaps even months.
Most customs authorities have the reserve power to seize goods which have not been
cleared of customs within a certain period. The other danger of delay is the loss of
confidence by the customer. In addition, any delay in delivery may lead to a deferment in
settlement of the order, so cash flow is then affected.
Although such events occur every day, there is no need for exporters to expose themselves
to these additional costs. Documentation must all be completed carefully, and checked
before they are despatched. The job is not complete until your customer has physically
received the consignment.
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2. Transportation
a. Choice of Routes
 Road Transport
 Sea Transport
 Rail Transport
 Air Transport
b. Evaluating Costs
Introduction
With an increasing number of medium and large companies engaged in global trading the
freight forwarder/logistics provider has become the man at the centre of door-to-door
freight movements, standing as he is at the point of convergence of all the constituents of
the transport chain, e.g. main transport, pick-up/distribution, logistics, insurance and finance.
Such are the financial implications of moving cargo timely and safely, and of correctly putting
together the constituents of the transport chain that it is difficult to envisage trans-continental
movements of goods without using the services of freight forwarder/logistics provider.
Indeed, such has become their importance and responsibility that shippers now often
delegate to them all matters not relating directly to their manufacturing process and the
delegation now extends to the final choice of transport mode(s).
a.
Choice of Routes
There are four principal routes to overseas customers: road, rail, sea and air. When
you’re mapping out a strategy for transporting your goods, you’ll need to choose one of
these four avenues, or a combination of them. Each form of transport has its own pros and
cons, and you need to be sure that you’re taking the right route every time you ship a
product out of the country.
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Here are seven key considerations to help you decide which is best for your client:
1. Customer wishes. Before you decide how to transport your product, ask your
customer which route they’d prefer – and find out if they have any special
requirements. e.g. cleanliness, hazardous goods or fruit. It’s crucial that you comply
with their wishes.
2. Weight. If you’re transporting bulky goods, you’ll have to tailor your strategy
accordingly – it’s quite difficult to transport vehicles, heavy plant or machinery by air.
This might seem obvious, but people often overlook it!
3. Simplicity. To keep track of your shipment and avoid logistical nightmares, it’s
important to keep your transport plan as simple as possible. For example, if it seems
too complicated to transport your product by sea because of the number of
stoppages and transhipments involved, you may want to make things simpler by
choosing airfreight instead.
4. Speed. Some types of product, such as perishable foods, need to reach the
customer quickly; in such circumstances, a quick plane journey may be preferable to
a long sea voyage. Think about the type of goods you are transporting before you
decide how to send them.
5. Handling. Some forms of transport can involve rough handling; for example,
products transported by ship may be hauled aboard the vessel in a net or sling,
stacked beneath dozens of other goods, and subjected to moisture condensation.
Before you select a particular mode of transport, you need to be sure your product
can handle it.
6. Price. As well as looking after your products, you need to look after your profits. If
you can’t afford to transport your goods by air, then don’t bother doing it; try shipping
them by road or ship instead.
7. Local conditions. Take a look at the country your shipping to – are there any risks
and weaknesses in its transport infrastructure? If the local ports have a bad
reputation, or the road network isn’t up to scratch, you’ll need to tailor your strategy
accordingly.
Elements considered by shippers when selecting a transport mode
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Road Transport
Road transport can be the most flexible option for your international business, especially
within a geographic region. The motorway networks and ease of crossing national borders
varies between regions.
Advantages:




relatively low cost
extensive road networks - there will usually be a suitable route
you can schedule transport to suit you
consignments can be secure and private
Disadvantages





it can take time to travel long distances overland
delays can be caused by traffic
toll charges are high in some countries
complying with road and traffic regulations in some countries
weight restrictions on roads
You can either use your own vehicles, or a carrier. If you operate your own vehicles, you will
need to consider licences, fuel costs, regulations, driver training and tax.
The rules on the international transport of dangerous goods by road are subject to
international legislation. Some countries require drivers of vehicles carrying dangerous
goods to hold a training certificate in the handling of dangerous goods.
Sea Transport
If your client needs to transport large quantities but there is no pressure to deliver quickly,
shipping by sea may be suitable.
Advantages:


you can ship large volumes at low costs - a freight forwarder can consolidate
consignments to reduce costs
you can use containers for multi-modal solutions - e.g. using road or rail for onward
delivery
Disadvantages:







shipping containers by sea can be slow when compared with other transport modes
routes and timetables are usually inflexible
you have to pay port duties and taxes
your goods will require inland transportation to their final destination
basic freight rates are subject to fuel and currency surcharges
stock holding costs
stock obsolescence risks
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If you ship dangerous goods, you must complete a dangerous goods declaration which
includes the Dangerous Goods Note. In most cases this will be in addition to the maritime
transport document that should accompany your shipments.
Rail Transport
Rail transport is a cost-effective and efficient way to move your goods. It offers you the
following advantages:
Advantages:



fast rail links through developed regions
safety and security
it is environmentally friendly compared with other transport modes
Disadvantages



you will be dependent on the routes and timetables available - these may be limited
in remote regions
rail transport can be more expensive than road
mechanical failure or industrial action can disrupt services
If you transport dangerous goods that have a UN dangerous goods code, or that your carrier
considers to be dangerous, you must complete a dangerous goods declaration. Part of this
declaration is the Dangerous Goods Note. If you transport dangerous goods by rail, you
must also follow the international rules for transporting dangerous goods.
Air Transport
Air transport offers numerous advantages for international trade, depending on your
requirements.
Advantages:



deliver items quickly over long distances
gives you high levels of security for sensitive items
be used for a variety of goods
Disadvantages:




air transport can involve higher costs than other options, and is not suitable for all
goods
you will need to pay taxes at each airport you use
fuel and currency surcharges will usually be added to freight costs
you will need to consider onward transport from the destination airport to the
consignee
Make sure that the routes and timetables available for air freight suit your requirements. If
you intend to move dangerous goods by air you must comply with strict International Air
Transport Association (IATA) rules.
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b. Evaluating Costs
Money is a commodity just as in any other product and money which is “locked up” costs
money for the duration of the period during which it is out of use. This is what is meant by
the time cost of money. When goods are in transit the money that the goods represent is
“dead” in the sense that it cannot be put to any other use in the course of trading.
The different freight rates offered by different shipping modes must be evaluated against the
different costs of the money involved resulting from the differing transit times of the modes
being considered. Goods in transit for longer periods may also result in cash flow problems
and dissatisfied customers.
Example – shipping lines
A consignment is valued at
Shipping line A offers a freight rate of
Shipping line B offers a freight rate of
Difference in favour of shipping line B
$ 600 000
$ 4 200
$ 3 000
$ 1 200
Shipping line A has sailing frequency of
Shipping line A has transit time of
Total effective transit time shipping line A
9 days
21 days
30 days
Shipping line B has sailing frequency of
Shipping line B has transit time of
Total effective transit time shipping line B
12 days
35 days
47 days
Difference in effective transit time 47 - 30
17 days
Assume the cost of money is 6% per annum
Then the time cost of dead money if shipping line B is used is $ 600 000 @ 6% per annum for 17 days
$ 600 000 x 6 x 17
100 x 365
= $ 1676.71
It is clear that if the lower freight rate by shipping line B is used then the shipment will cost $
476.71 more ($ 1676.71 - $ 1200) because of the time cost of the dead money. The use of
the cheaper freight rate will prove to be more expensive.
If you now value the consignment at $ 1 200 000 the shipment will cost $ 2153.43 more ($
3353.43 - $ 1200). The higher the value of a consignment the faster its total transit time
should be in order to minimise the time cost of the money which is “dead” during transit.
Example – shipping lines vs. airfreight
A consignment value per unit
Airfreight freight rate per unit
Shipping line offers a freight rate per unit of
Difference in favour of shipping line
$ 50 000
$ 400
$ 40
$ 360
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Client requires 10 units per week for 4 weeks = 40 units
Shipping line has sailing frequency of
Shipping line has transit time of
Total effective transit time shipping line
10 days
30 days
40 days
Airfreight has flying frequency of
Airfreight has transit time of
Total effective transit time shipping line
3 days
2 days
5 days
35 days
Difference in effective transit time 40 - 5
Assume the cost of money is 6% per annum
Shipping Line
Let us assume the client is able to make 10 units per week. The first 10 units will then sit in
his factory for 4 weeks while he manufactures the remainder.
Then the time cost of dead money per unit during manufacturing is week 1: 10 units @ $ 50 000 @ 6% x 1/52 = $ 576.92
week 2: 20 units @ $ 50 000 @ 6% x 1/52 = $ 1153.80
week 3: 30 units @ $ 50 000 @ 6% x 1/52 = $ 1730.70
week 4: 40 units @ $ 50 000 @ 6% x 1/52 = $ 2307.60
The average dead money cost per unit is $ 576.92 + $ 1153.80 + $ 1730.70 + $ 2307.60
40 units
= $ 144.23 per unit
add the time cost of dead money per unit if shipping line is used is $ 50 000 @ 6% per annum for 40 days
$ 50 000 x 6 x 40
100 x 365
= $ 328.77
TOTAL = $ 144.23 + $ 328.77 = $473 per unit
Airfreight
Consider that due to the weekly flying schedule the client can send 10 units per week
instead of shipping all 40 at the same time.
Then the time cost of dead money per unit if airfreight is used is week 1: 10 units @ $ 50 000 @ 6% x 1/52 = $ 576.92
week 1: 10 units @ $ 50 000 @ 6% x 1/52 = $ 576.92
week 1: 10 units @ $ 50 000 @ 6% x 1/52 = $ 576.92
week 1: 10 units @ $ 50 000 @ 6% x 1/52 = $ 576.92
$ 576.92 + $ 576.92 + $ 576.92 + $ 576.92
40 units
= $ 57.69 per unit
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add the time cost of dead money per unit if airfreight is used $ 50 000 @ 6% per annum for 5 days
$ 50 000 x 6 x 5
100 x 365
= $ 41.10 per unit
TOTAL = $57.69 + $41.10 = $ 98.79 per unit
Shipping line cost = $ 40 + $ 473
Airfreight cost = $ 400 + $ 98.79
$ 513.00
$ 498.79
The above illustration which indicates the advantages of airfreight over seafreight is extreme
in that it postulates the movement of goods of a high value with low volume and weight. It
does demonstrate the advantage of shipping high value – low weight items by air and the
advantages to the client of keeping Just-In-Time inventory.
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3. Multimodal versus Intermodal
a. Intermodal Freight transport
b. Multimodal Freight Transport
Intermodal transport is generally defined as a system of transport whereby two or more
modes of transport are used to transport the same loading unit (eg container) in an
integrated manner.
While multimodal is the continuous movement of goods by more than one means of
transport. Multimodal transport is not equivalent to container transport; multimodal transport
is feasible without any form of container.
An example of intermodal is: a common shipping container (20', 40' etc) that is delivered to
a shippers dock, loaded with freight and sealed, the loaded container is released by the
shipper to a transportation company and transported by truck, (rail) truck, to a port where it is
loaded on a ship for marine transport, off loaded at the destination port (customs), and
moved via truck or rail to the final destination where the container is opened and it is
unloaded.
An example of multimodal is: the shipper loads pallets of freight; they are released to a
shipping company, and loaded into a truck. The pallets of freight are delivered to a marine
freight dock where it is loaded onto a ship, it is then carried by the ship across the water to
the destination port where it is off loaded into a warehouse or truck (customs) and delivered
by truck to the receiver.
a. Intermodal Freight Transport
Intermodal freight transport involves the transportation of freight in an intermodal
container (ISO container, International Organisation for Standardisation) or vehicle, using
multiple modes of transportation (rail, ship, and truck), without any handling of the
freight itself when changing modes.
The method reduces cargo handling, and so improves security, reduces damages and
losses, and allows freight to be transported faster. Reduced costs over road trucking is the
key benefit for intracontinental use. This may be offset by reduced timings for road transport
over shorter distances.
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Containers, also known as intermodal containers or ISO containers because the
dimensions have been defined by ISO, are the main type of equipment used in intermodal
transport, particularly when one of the modes of transportation is by ship.
In countries where the railway loading gauge is sufficient, truck trailers are often used.
Variations exist, including open-topped versions covered by a fabric curtain are used to
transport larger loads. A container called a tanktainer, with a tank inside a standard
container frame, carries liquids. Refrigerated containers are used for perishables.
Handling equipment can be designed with intermodality in mind, assisting with
transferring containers between rail, road and sea. These can include:





Transtainers for transferring containers from sea-going vessels onto either trucks or rail
wagons. A transtainer is mounted on rails with a large boom spanning the distance
between the ship's cargo hold and the quay, moving parallel to the ship's side.
Gantry cranes, also known as straddle carriers, are able to straddle rail and road
vehicles, allowing for quick transfer of containers. A spreader beam moves in several
directions allowing accurate positioning of the cargo.
Grappler lift, which is very similar to a gantry crane.
Reach stackers are fitted with lifting arms as well as spreader beams and lift containers
to swap bodies or stack containers on top of each other.
Swap body units are not strong enough to be stacked, but they have folding legs under
their frame and they can be moved between trucks without using a crane.
Transportation Types
Container Ships
Container ships are used to transport containers by sea.
Railways
Containers are often shipped by rail in container well cars.
Trucking
Trucking is frequently used to connect the "line haul" ocean and rail segments of a global
intermodal freight movement. This specialised trucking that runs between ocean ports, rail
terminals, and inland shipping docks, is often called drayage, and is typically provided by
dedicated drayage companies or by the railroads
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Barges
Barges utilising ro-ro and container-stacking techniques transport freight on large inland
waterways such as the Rhine/Danube in Europe and the Mississippi River in the U.S.
Land bridges
The term land bridge is commonly used in the intermodal freight transport sector in
reference to a containerised ocean freight shipment that travels across a large body of
land for a significant part of the trip, en-route to its final destination; of which the land
portion of the trip is referred to as the "land bridge" and the mode of transport used is rail
transport. There are three applications for the term.
Land bridge - An intermodal container shipped by ocean vessel from country A to country
B, land bridges across an entire body of land/country/continent, en-route. For example, a
container shipment from China to Germany, is loaded onto a ship in China, unloads at a Los
Angeles (California) port and travels via rail transport to a New York (New York) port, and
loads on a ship for Hamburg.
Mini Land bridge - An intermodal movement in which the shipment is moved from a foreign
country to the U.S. by water and then moved across the U.S. by railroad to a destination that
is a port city, or vice versa for exports from a U.S. port city.
Micro Land bridge - An intermodal movement in which the shipment is moved from a
foreign country to the U.S. by water and then moved across the U.S. by railroad to an
interior, non-port city, or vice versa for exports from a non-port city.
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The term reverse land bridge refers to a micro land bridge from an east coast port (as
opposed to a west coast port in the previous examples) to an inland destination.
b. Multimodal Freight Transport
Multimodal transport (also known as combined transport) is the transportation of goods
under a single contract, but performed with at least two different means of transport; the
carrier is liable (in a legal sense) for the entire carriage, even though it is performed by
several different modes of transport (by rail, sea and road, for example).
The carrier does not have to possess all the means of transport and in practice usually does
not; the carriage is often performed by sub-carriers (referred to in legal language as "actual
carriers"). The carrier responsible for the entire carriage is referred to as a multimodal
transport operator, or MTO.
In practice, freight forwarders have become important MTO’s (multimodal transport
operators); they have moved away from their traditional role as agents for the sender,
accepting a greater liability as carriers.
Large sea carriers have also evolved into MTO’s; they provide customers with so-called
door-to-door service. The sea carrier offers transport from the sender's premises (usually
located inland) to the receiver's premises (also usually situated inland), rather than offering
traditional tackle-to-tackle or pier-to-pier service.
MTO’s not in the possession of a sea vessel (even though the transport includes a sea leg)
are referred to as Non-Vessel Operating Carriers (NVOC) in common law countries
(especially the United States).
It is important to remember that multimodal transport is not equivalent to container transport;
multimodal transport is feasible without any form of container. The MTO works on
behalf of the supplier; it assures the supplier (and the buyer) that their goods will be
effectively managed and supplied.
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4. Sea Transport
a.
b.
c.
d.
e.
International Shipping Industry
Trade Routes
Freight and Charges
Processes and Documents
Maritime Service Providers
a. International Shipping Industry
The shipping industry is responsible for transporting 90% of the world's trade. The
shipping industry is a truly global community. It is intrinsically international; indeed it was
the very first global industry. Because of the international nature of shipping it is regulated by
United Nations agencies and the International Maritime Organisation (which is based in
London) in particular. Modern shipping involves companies from every nation on the planet
and virtually every nationality is represented in the seafaring population and the industry's
shore-based workforce.
Above : United Nations flag and United Nations Emblem
There are other closely inter-related sectors of the shipping industry, these include:
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





liner agents,
chartering brokers,
port agents,
sale and purchase brokers,
maritime insurers and
ship surveyors,
as well as import/export brokers and a wide range of ancillary industries.
Above : Container ships carrying containerised cargo and a Dry Bulk Carrier which
transports raw material such as iron ore and coal
Above : Tankers, transporting crude oil, chemicals, and petroleum products.
The World Merchant Fleet
The world merchant fleet consists of approximately 90 000 ships aggregating 560 million
GT (Gross tonnes), if ships of 100 GT and upwards are counted.
Because of its complexity and diversification it is difficult to get a snapshot of the size and
significance of the shipping industry.
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One way to view the industry is to look at its two major components.
There is the commercial component that involves managing ships, agency representations
of ships, and services to shipping such as industry bodies, marine insurance, maritime law,
maritime education and ship broking and equipment leasing.
There is the logistics and operations component that involves cargo services such as
packing cargo, loading and unloading ships, storage and movement of goods before they
are released into industry generally. The nature of services in the maritime industry varies
with the types of ships and cargoes involved, such as dry bulk cargoes, tanker cargoes,
unitised cargoes and containerised trades.
Another way of looking at the maritime industry is to break the cargo that moves into major
commodity groups and look at the volumes and values of the cargoes and the ports that
service those cargoes and ships.
Bulk
The term “bulk” is a reference to homogeneous cargoes; usually dry cargoes, such as
cereal grains, coal, ores and wood chip. The ships are usually loaded via shore based
conveyor belts and discharged by shore-based grabs. Bulk ships may be very large and
carry up to 300 thousand deadweight tonnes.
Ships engaged in bulk trades are often chartered (leased) for one or more voyages to move
large consignments of product between a small number of ports. Goods carried in bulk
trades tend to be low value added products.
Tanker and Gas Carriers
Liquid cargoes such as crude oil and petroleum product are carried in special tanker ships.
Modern tankers are double hulled and usually have two longitudinal divisions and many
transverse divisions to create a number of cargo tanks. Because of the nature of the cargoes
carried stringent fire safety precautions are adopted on tankers.
Like dry bulk ships, tankers commonly operate on charter arrangements.
In addition to larger ships in the order of 2 – 300 thousand tonnes deadweight capacity
involved in the import of overseas crude oil a number of smaller vessels of approximately 80
thousand tonnes deadweight capacity are used to distribute petroleum products to refineries.
Unitised Ships
Some ships are designed to carry unitised cargo and break bulk cargo. Unitised cargo
usually consists of cargo packs that have been made up from smaller packages for
efficiency of handling eg motor engines on pallets, paper reels on pallets etc. Often these
ships are loaded by the roll on roll off method using a ramp that connects them to the wharf
when in port and large forklifts and truck trailers to load and discharge the cargo. These
ships often carry containerised cargo as well as break bulk cargo such as machinery or
newsprint rolls.
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Specialised Ships
There are a limited number of ships built to carry particularly heavy, large or awkward lifts.
Included in this class of ships are some that can submerge their main deck in order to load
their usually once off cargo.
Other ships are modified or purpose built for the carriage of livestock.
A common example of a specialised ship is the car carrier. These have been likened to
floating multi story car parks and might carry up to 6 000 sedan cars or mixes of sedan cars,
light commercial vehicles and partially built up vehicles.
Liner Services
Liner ships are vessels that are engaged in servicing a fixed repeated route, usually on a
scheduled basis. Increasingly since the 1960’s and now almost exclusively, these ships
carry containers. Mostly they rely on shore based portainer cranes to load and discharge
their containers at dedicated container terminals.
The cargoes carried in containers tend not to be homogeneous bulk cargoes but rather
higher value added manufactured products and foodstuffs and primary products.
Specialised containers allow for the carriage of hard frozen and chilled cargoes and other
products that might need a purpose-designed container.
A feature of liner shipping is that ship operators usually cannot afford sufficient vessels on
their own to give the importing and exporting market the frequency of sailings that the market
needs. To accommodate the market ship operators tend to need to co-operate with each
other in cross chartering of container space arrangements so that each operator is able to
offer to the market the number of sailings shippers demand.
b. Trade Routes
A trade route is a logistical network identified as a series of pathways and stoppages used
for the commercial transport of cargo. Allowing goods to reach distant markets, a single
trade route contains long distance arteries which may further be connected to several
smaller networks of commercial and non commercial transportation.
Shipping Route
A shipping route is a trade route used by merchant ships.
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Above : Main maritime shipping routes
There are approximately 400 liner shipping services providing regularly scheduled service
(usually weekly), that enable goods to move between ports along the many trade routes of
the world.
ROUTE
SERVICES
West Coast of North America – Asia
68
East Coast of North America – Asia
22
North America - Northern Europe
17
North America – Mediterranean
20
Asia - North Europe
35
Asia – Mediterranean
40
North America - East Coast of South America
8
North America - West Coast of South America
16
North America - North Coast of South America
26
Europe - East Coast of South America
10
Europe - West Coast of South America
8
Europe - North Coast of South America
10
Asia - East Coast of South America
8
Asia - West Coast of South America
13
South Africa – Europe
5
South Africa - North America
2
South Africa – Asia
19
West Africa – Europe
37
West Africa - North America
3
West Africa – Asia
18
Total
385
c. Freight and Charges
Freight and Charges – Introduction
The total price of a container shipment consists of different charges. Some are quoted in
USD and some are quoted in local currency.
The price paid by the customer to the carrier for the transport of a container between two
ports is referred to as the Freight Rate. It is typically quoted in USD.
On top of the freight rate, a carrier may be entitled in some trades to add so-called BAF
and/or CAF because it is customary within shipping that the customer carries part of the
burden of fluctuating oil prices (bunker prices) and fluctuating currency exchange rates.
BAF means Bunker Adjustment Factor.
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CAF means Currency Adjustment Factor.
Additionally, the carrier will charge the customer fees that are specific to the local services
provided at origin and destination, e.g. documentation, haulage (trucking) and terminal
handling charges. The additional charges are usually quoted in local currency and depend
on local costs and market practices.
Other surcharges are also used, for example: toll and canal fees, equipment cleaning
charges, security fees, and many more depending on the particular shipment.
Freight and Charges – Payment
It can be either the shipper or the consignee who pays all the applicable charges for a
shipment, or they agree how to split the charges between them. Therefore, carriers may
issue invoices and collect payments both at origin and destination.
Unless the customer has signed a credit agreement with the carrier, payment must take
place before the shipping documents or cargo are released by the carrier to the
shipper/consignee.
Prepaid / Collect charges
Prepaid Charges are the charges that are paid by the shipper at origin, usually before the
goods are shipped or before the carrier releases the shipping documents to the shipper.
Collect Charges are charges that are paid by the consignee at destination, usually before the
goods are released by the carrier to the consignee.
It is quite common that the shipper pays the local origin charges and the consignee pays the
local destination charges (but it is not a definite rule). So, the local origin charges are often
invoiced on pre-paid basis to the shipper and local destination charges are often invoiced on
collect basis to the consignee. Whether the ocean freight is prepaid or collect depends on
the agreement between the shipper and the consignee. They must advise the carrier of the
agreed terms at time of booking.
Freight and Charges – Tariff / Service Contract
Most shipping lines maintain tariffs (lists) of standard rates and charges that apply to all
shipments in a particular corridor. The tariffs are used when new and existing customers
request price quotes for future shipments and are updated regularly in accordance with
market developments.
In some cases, the shipping line negotiates special rates with strategically important
clients. If so, these rates are documented in so-called Service Contracts.
Tariffs
The tariff is a carrier’s list of standard rates and charges to be applied for shipments in a
specific corridor. The tariff is adjusted frequently in accordance with the changes in the
container market.
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The tariffs form the basis for all rate quotations. Even if the shipping line decides to negotiate
special rates with some customers, the tariff will be the guideline / starting point.
Service Contracts
If a carrier agrees special rates and charges with a customer, they are documented in a
Service Contract. Service Contracts are primarily negotiated with large, strategically
important customers, usually on an annual basis.
The carrier and the customer commit to using the agreed rates and charges for a period of
time regardless of how the container market develops. In other words, the rates are “locked”
which provides cost reliability for the customer and income reliability for the carrier.
Signing a service contract is an advantage for the carrier if the general market rates
decrease but an advantage for the customer if the general market rates increase.
Freight and Charges – Quotation
The basic starting point for a rate quotation is the standard tariff which is based on the
general market rate levels and the carrier’s pricing strategy.
A number of elements influence the rate levels that the carrier offers or is willing to negotiate
with the customer. Sometimes the rate offered deviates from the standard tariff.
Corridor
A very basic factor that influences the freight rate and charges is the corridor.
The carrier’s operating expenses, and therefore also the rates and charges that the
customer must pay for the carriage, depend on where from and where to the customer wants
to ship his cargo. Furthermore, competition, market practice and the supply/demand
situation within the corridor and trade lane influence the rates and charges.
Volume (TEU/FFE)
Large customers who ship many containers (TEU/FFE) per year will typically expect the
carrier to be willing to negotiate better rates than those that are quoted by the carrier to small
customers. And as in any other business, carriers may be willing to negotiate “volume
discounts” with large, regular and strategically important customers.
Service Requirements
Different customers also have different requirements and expectations when it comes to
what they want to receive from the carrier in exchange for their payment. So pricing
sometimes needs to be adjusted according to the customer’s service requirements. Service
requirements vary from customer to customer. Some customers want top service, vessel
space guarantees, quality containers and fast transit times – and are willing to pay for it.
Others just want the lowest rates possible and are willing to accept lower service levels
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Commodity
Typically, shippers of high-value commodities such as reefer cargo are generally willing to
pay higher rates than shippers of low-value cargoes (such as metal scrap or waste paper).
So the commodity type may also influence the rate quotation.
Freight and Charges – Conferences
In connection with rates and charges, you should be familiar with the concept of
Conferences and Discussion Agreements.
A shipping conference is an arrangement between a group of shipping lines to serve a
particular trade. Members meet to discuss changing market conditions and take
appropriate actions regarding tariffs and policies in order to secure a stable market.
In some trades, the carriers even publish and follow a common tariff with uniform freight
rates and surcharges for a specified range of loading and unloading ports.
In addition to the tariff rates, the individual carriers offer shippers independently negotiated
service contracts.
In US trades, “Discussion Agreements” have taken over. Rate making is voluntary and each
member publishes its own tariff.
Today, there are about 150 conferences in the world covering virtually every trade, for
example:
 Trans Atlantic Conference Agreement, TACA
 Far Eastern Freight Conference, FEFC
 US Australasia Discussion Agreement, USADA
 Europe Middle East Rate Agreement, EMERA
 West Coast South American Discussion Agreement, WCSADA
Not every liner operator in a certain trade is a member of a conference or agreement. Some
carriers decide not to be part of conferences and some conferences are closed and a
prospective new member would require an invitation to join from the existing members.
Competition / Anti Trust Laws
Both the US and EU competition laws (antitrust laws) do not allow two or more competing
companies to meet and fix prices. However, unique to the industry, conferences and
discussion agreements between shipping lines have so far been exempted from the antitrust
laws under certain conditions. The practice is regularly discussed and disputed by various
parties such as shippers, legislators and competing shipping lines.
A reason why conferences and discussion agreements are allowed to exist in some form is a
desire to create confidence that transport will always be available at relatively stable prices
and terms to both “easy” and “difficult”, small and large ports, within a larger geographical
scope than could be provided by individual lines.
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d. Processes and Documents
Processes and Documents – Introduction
This section introduces the key processes and documents used for container shipping in
the shipping process, at origin (at time of export) and at destination (at time of import).
Processes and Documents – Sailing Schedule
One of the first parts of the shipping process is for the customer – or the carrier on his behalf
- to identify when goods must be shipped from origin for them to arrive at destination at the
desired time.
Carriers publish their vessel sailing schedules on the internet, making it easy for customers
to access the information.
Sailing schedules show ETD (Estimated Time of Departure) and ETA (Estimated Time of
Arrival). Given the nature of shipping, exact departure and arrival times are not guaranteed
but punctuality is a key service element for shipping lines.
Voyage
A liner vessel will sail according to a fixed schedule in a rotation between a number of fixed
ports. Each round trip is called a “voyage” and is given a “voyage number” to avoid any
confusion regarding which exact vessel sailing the carrier, customers and other parties in the
shipping process are referring to, e.g. during the booking process.
Cut-off
To make sure that vessels depart on time, carriers will stipulate a so-called “Cut-off time” to
the customers. The Cut-off or Closing time is the deadline before which a shipper must
deliver his cargo to the carrier’s terminal or depot prior to departure. In some cases, a
shipper may contact the carrier to ask if he can deliver the container after the cut-off time
due to a delay at the factory or on the way to the terminal. If the carrier agrees to accept the
container after the official cut-off time, it is referred to as a “Late gate”. “Late gates” are only
agreed to in some cases as they may cause inefficient operations and delays.
Processes and Documents – Origin Flow
A booking is the first step in the shipping process. Carriers will take bookings from
customers in various ways, e.g. via email, telephone, fax or internet. After the booking, a
number of other activities follow at origin until the container is finally shipped.
Here’s a walkthrough of the main activities:
1. Booking: customer needs transport and contacts the shipping line, advising details of the
shipment to be moved.
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2. Booking Confirmation: the shipping line checks equipment and vessel space availability
and advises if the shipping line accepts the shipment.
3. Empty Dispatch: the shipping line allocates an empty container. Shipper loads the
container and it is taken to the port or carrier yard.
4. Receipt: the shipping line confirms that the container has been received at the port
terminal or container yard.
5. Shipping Instructions: shipper advises details to the shipping line of cargo loaded in the
container and confirms shipping information.
6. Invoice preparation: shipping line prepares documentation for the shipper and advises
prepaid charges.
7. Vessel Manifest: shipping line prepares documentation and submits details to Customs
about the containers planned for loading.
8. Vessel Departure: container is loaded and the vessel departs. The shipper pays prepaid
charges to the shipping line and the Bill of Lading (B/L) is released.
Processes and Documents – Origin Documents
Documents and other messages that transfer information between the carrier, the
customer and other parties play important roles in the shipping process and you are likely to
hear them referred to by colleagues and customers often, if not daily. Here’s a walkthrough
of some of the major documents/messages in the process:
Booking
A booking is a request/message from the customer to the carrier via internet, email, fax or
telephone that he would like to ship a container at a specified time. The booking lists origin,
destination, equipment requirements, cargo type, shipper name, consignee name (receiver
of cargo), etc.
Booking Confirmation
The booking confirmation is a message sent by email or fax by the carrier to the customer,
advising that his booking has been accepted. The booking confirmation re-states the
booking details such as ETD, vessel sailing, origin, destination, equipment size, etc.
Dock Receipt
A Dock Receipt is a document, stamp or message issued by the carrier or terminal operator
to confirm that the container has arrived at the terminal or container yard (“the dock”). The
dock receipt states the time of arrival to the terminal and confirms that the container was
received in good order and condition (if not, carrier must make sure to make notation on the
receipt).
Shipping Instructions
Shipping Instructions (S/I) is information provided by the customer to the carrier about the
shipment, in particular a description of the goods (type, volume, etc.) and a confirmation of
the container and seal number as well as the final sender/receiver name and address. The
information is included in official shipping documents.
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Vessel Manifest
The Vessel Manifest is an official document submitted by the carrier to Customs authorities
before vessel departure, advising what will be or has been loaded onboard the vessel. The
manifest provides details of cargo types and shipper/consignee details and is prepared by
the agent in the port of loading.
Invoice – Prepaid Charges
At origin, the carrier will prepare an invoice to the shipper covering the relevant prepaid
charges. An invoice is a formal demand for payment and includes payment terms,
description of cargo and breakdown of charges.
Bill of Lading (B/L)
The Bill of Lading (B/L) is a very central document in the shipping process. It is a cargo
receipt issued by the carrier to the shipper when the container has been received or shipped
and confirms the date of receipt/shipment and the quantity and condition of the container at
the time when the carrier took custody of it. Bill of Lading is discussed in more detail under
International Documents
Sea Waybill (SWB)
If the shipper requests it, the carrier may issue a Sea Waybill (SWB) instead of a Bill of
Lading (B/L). The Sea Waybill works much the same way as the B/L but it is not a document
of title. In practical terms this means that goods shipped on a Sea Waybill can only be
released to the consignee that is listed on the document. In other words: as long as a person
can present proper identification that he/she represents the consignee named in the Sea
Waybill, the goods will be released to that person at destination (whereas on a B/L, goods
are released to the person who presents an endorsed original B/L document to the carrier at
destination). The Sea Waybill is discussed in more detail under International Documents
Processes and Documents – Destination Flow
When the container is about to arrive at its destination and after it has arrived, important
processes take place to make sure that the container is delivered to the correct receiver.
When goods have been shipped on a Bill of Lading, the consignee must submit an original
B/L document to the carrier before the cargo can be released. The carrier also wants to
make sure that all outstanding charges are paid (unless credit has been agreed).
Additionally, the carrier may be obliged to ensure that the customer is authorised by
Customs to move the goods into the country.
Here’s a walkthrough of the main activities at destination:
1. Arrival Notice: 3-7 days before vessel arrival, the shipping line advises its customers that
their containers are about to arrive.
2. Manifest preparation: the shipping line declares cargo and vessel details to Customs.
3. Invoice preparation: the shipping line advises the consignee of collect charges.
4. B/L and Payment: consignee submits an original B/L and pays outstanding charges to the
shipping line.
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5. Customs Release: the shipping line receives notification from Customs or proof from
Consignee that goods are customs cleared.
6. Cargo Release: the shipping line releases the cargo to consignee when all paperwork is in
order and collect charges have been paid.
7. Delivery: container is taken to the consignee’s premises.
8. Empty Return: consignee unloads cargo and the empty container returns to the terminal.
Note that if the container was shipped on a Sea Waybill instead of a Bill of Lading, the
consignee does not have to submit a document to the shipping line (but will of course still
have to pay the outstanding charges).If the consignee has a credit agreement with the
shipping line, payment may take place after container release / delivery.
Processes and Documents – Destination Documents
Here’s a walkthrough of some of the major documents/messages used during the
destination process:
Arrival Notice (ANF)
The Arrival Notice is an email or fax notification to consignee containing arrival information
such as: Vessel name and voyage, Bill of Lading number and details, ETA, Container
number, Seal number and Charges due.
Vessel Manifest
The Vessel Manifest is an official document submitted by the carrier to Customs authorities
prior to vessel arrival, advising details of cargo onboard and containers to be discharged.
The manifest provides details of e.g. cargo types and shipper/consignee details and is
prepared by the agent in the port of discharge.
Invoice – collect charges
At destination, the carrier prepares an invoice to the consignee covering the charges for the
shipment that must be paid to the carrier at destination before the cargo is released (unless
credit has been agreed).
Bill of Lading (B/L)
The cargo receipt that was issued to the shipper at time of shipment is the “key to the cargo”
and an original B/L must be submitted to the carrier as proof that the person who collects the
cargo represents the correct consignee.
Cargo Release
Cargo release is a term used to describe the confirmation by the carrier that the container
can be released to the consignee. The cargo release is issued when outstanding charges
have been paid and the consignee has submitted a duly endorsed original B/L to the carrier
at destination.
In some parts of the world, a physical document is issued (sometimes called a Delivery
Order). In other parts of the world, it is not a document as such but could be a message via
email or fax to the terminal operator, a check mark in an IT system that confirms release, or
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a pin number given to the consignee that allows him/her to collect the container at the
terminal.
Processes and Documents – Free Time
After arrival at the port of discharge, the customer must collect his container from the
terminal within an agreed number of days, referred to as “Free time”.
Typical free time is 2 to 5 days but the shipping line may agree with some customers to
extend this period.
Demurrage
If the container is still at the terminal after expiry of the free time, the customer will be liable
to pay so-called “Demurrage” charges to compensate the carrier for the cost of storing the
container at the terminal.
Detention / Per Diem
When the customer takes delivery of the container at destination, he must unload the
container so it can be returned to the carrier and used for a new shipment. If the container is
not returned with the agreed free time, the customer may be required to pay so-called
“Detention” or “Per Diem” charges for each day the container is in his custody. (Per Diem is
the term commonly used in the USA while Detention is the term commonly used in many
other places).Detention/Per Diem is an “equipment rental charge” which compensates the
carrier for not being able to generate income by using the container for a new shipment right
away.
It is important to remember that the container cannot leave the carrier’s terminal or
container yard at destination for delivery to the consignee until the consignee has
submitted an original Bill of Lading and paid freight and charges to the carrier.
Customs may also need to release the goods before the container will be allowed to exit the
terminal.
It is the customer’s responsibility to arrange for customs clearance, payment and B/L
submission within the free time or he will be liable to pay demurrage.
Processes and Documents – Intermodal
Shipping lines not only transport containers between sea ports but also offer their customers
the option to transport the container to/from inland locations in connection with the ocean
carriage. This is commonly referred to as intermodal transportation and takes place using
rail, barge or road transport.
Common concepts related to intermodal include:
Pre-carriage
The carriage of containers by any transport mode from place of receipt to the port of loading.
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On-carriage
The carriage of containers by any transport mode from port of discharge to final place of
delivery.
Mini-landbridge
A movement of cargo from one sea port to another sea portover land, using road or rail
transport.
Haulage
A term commonly used to describe trucking but may in some cases also cover other
intermodal modes of transport.
Chassis
A wheeled unit, which can be detached from the truck head, on which a container is placed
for transport by road.
Tri-axle chassis
A chassis with an extra set of wheels to support additional weight when carrying heavy
containers by road.
e. Maritime Service Providers
Insurance
It is not compulsory to insure goods in transit, but obviously desirable to do so. When
merchants insure their goods in transit this is commonly referred to a “marine insurance”.
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5. Airfreight
a.
b.
c.
d.
e.
Documents
Moving Goods by Air
Booking Air Freight
Export Packing Considerations
Air Cargo Handling and Delivery
Introduction
Since the late 1940's, the airfreight industry has witnessed steady growth in response to
innovations in aircraft design, an increasing demand for speedy transit times and the
widespread growth of wide-bodied jets and all-cargo aircraft options for commercial cargo
shipments.
With growing industry expectations for quick delivery times and the preference for the
kind of personal attention to cargo shipments now offered by air carriers, many companies,
large and small, are willing to take on the added expense of air cargo for their international
shipments. In fact, increasingly, airfreight can provide a highly economical, cost-effective
means of shipping goods to international markets.
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a. Documents
Domestic airfreight shipments are generally accompanied by a packing list and an air
waybill. International airfreight shipments may require some, or all, of the documentation set
out below:





Commercial Invoice
Packing List, if available (not mandatory)
Certificate of Origin (if required by country legislation)
Export/ Import Permits, if required
Air Waybill
Mistakes in commercial invoicing can lead to fines or excess duties; therefore exporters
should ensure that export invoicing contains the following details:













Shipper
Consignee (IRS # mandatory for USA Consignees)
Description
Marks/ Numbers
Net/Gross Weights & Dimensions
Unit/Extended Price
Reason for Export
Freight, Insurance, Packaging
Terms of Delivery/Payment
Certification Clauses, Import Licenses
HS Code (Mandatory)
Country of Origin (NOT country of export, but country of manufacture)
A Certificate of Origin signed/stamped by the Board of Trade and/or the
Consulate/Embassy of the country of import may be required.
Packing lists and carrier waybills must also correspond to all other documents
accompanying the shipment.
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The Cargo Control Documents
The Air Waybill
As the bill of lading for goods being shipped by air, the air waybill is the most important
cargo control document issued by the airline, carrier or agent when shipping commercial
goods. It serves the following functions:






to document the contract of carriage
to prove receipt of goods for shipment
certificate of insurance (if goods insured under carrier policy)
it serves as a customs declaration
it is a waybill (i.e. it guides carrier personnel in the handling and delivery of the
goods)
The contract of carriage commences when the air waybill is signed by the shipper and
the carrier and expires when the shipment is delivered to the consignee. It is the Shipper's
responsibility to prepare the air waybill. The shipper is ultimately responsible for the
correctness of particulars and statements made on the air waybill and will be liable for any
damages which might result from inaccuracies therein.
As such, your air waybill should always be prepared carefully and legibly. As a customs
compliance issue, you should also check for consistency of the information included on the
air waybill against your letter of instruction, commercial invoice, packing lists, certificates,
permits, etc. as any discrepancies may result in search and seizure, costly fines or delays.
Shippers Letter of Instruction
The shipper's responsibility for providing accurate information for the air waybill is generally
carried out by way of a Shipper's Letter of Instruction, prepared by the shipper and
forwarded to the carrier, which must include the following 17 items:
1.
2.
3.
4.
5.
6.
Shipper
Consignee
Airport of departure
Airport of destination
Requested routing/ booking
Marks and numbers
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7. Number and kind of packages
8. Description of goods
9. Gross weight
10. Measurement
11. Air Freight and Charges/ Other charges at origin (i.e.: prepaid or collect)
12. Declared Value for Carriage
13. Declared Value for Customs
14. Insurance amount requested
15. Handling Information and remarks (i.e. notification instructions etc)
16. Date completed
17. Signature
In addition, where required, the following documents should accompany the shipper's
letter of instruction:




Certification for dangerous goods
Certification for live animals
Vendor's commercial invoice for any international shipments between IATA zone
1, 2 and 3, as follows
 Zone 1 North America, South America and Greenland
 Zone 2 Europe and Africa
 Zone 3 Asia and Australia
On the following page is a copy of the standard air waybill, detailing key information required
for completion by the shipper. The carrier generally completes the balance:
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Sample of an Air Waybill
b. Moving Goods by Air
Some key considerations for your transportation strategy in terms of airfreight shipments are
set out below:
The Size of Your Shipment: Before you consider airfreight as an option, you will have to
assess the size and weight of the goods being shipped. Due to the obvious limitations of
aircraft in terms of loading capacity, the actual size and weight of the shipment is a vital
concern. If your shipment is too large or heavy to be placed on the aircraft, it cannot be
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shipped by regular airfreight. Distribution of weight is of further concern for dense shipments
that may need to be palletised so as not to place dangerous stress on the aircraft.
Additionally, the dimensions of your packages will have to conform to the configurations of
the Unit Load Device (ULD) employed by the aircraft. "Unit Load Device" describes the full
range of air cargo loading equipment used to group shipments together (unitisation):
containers, aircraft pallets (with nets or igloo-like structures) and specialised containers (e.g.
horse stalls).
ULD’s offer air cargo shippers major advantages when it comes to efficiently grouping,
assembling, moving, disassembling and redistributing packages with a wide variety of
shapes. Air transport efficiency is greatly improved through the appropriate use of ULD’s.
Benefits include easier handling of shipments on arrival, in close cooperation with
consignees.
The following chart provides the weight capacity and dimensions of standard Unit Load
Devices for most aircraft:
Volume indicated is internal volume.
Linear dimensions
(base width / overall width × depth ×
height)
Container type
Volume
LD1
4.90 m (173 cu ft)
156 / 234 × 153 × 163 cm
(61.5 / 92 × 60.4 × 64 in)
contoured, half
width
LD2
3.40 m3 (120 cu ft)
119 / 156 × 153 × 163 cm
(47 / 61.5 × 60.4 × 64 in)
contoured, half
width
156 / 201 × 153 × 163 cm
(61.5 / 79 × 60.4 × 64 in)
contoured, half
width, dimension
according to IATA;
available at 45"
height for loading
on Airbus A320
family
318 / 407 × 153 × 163 cm
(125 / 160 × 60.4 × 64 in)
contoured, full
width, equivalent
to 2 LD3s
244 / 318 × 153 × 163 cm
(96 / 125 × 60.4 × 64 in)
contoured, full
width, equivalent
to 2 LD2s; DQFprefix
3
LD3
4.50 m3 (159 cu ft)
LD6
8.95 m (316 cu ft)
3
3
Remarks
LD8
6.88 m (243 cu ft)
LD11
7.16 m (253 cu ft)
318 × 153 × 163 cm
(125 × 60.4 × 64 in)
same as LD-6 but
without contours;
rectangular
Pallet type
Volume
Linear dimensions
Remarks
3
3
LD8
6.88 m (243 cu ft)
LD11
7.16 m (253 cu ft)
3
153 × 244 cm
(60 × 96 in)
same floor
dimensions as
container variant;
FQA-prefix
153 × 318 cm
same floor
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3
LD7
10.8 m (381 cu ft)
(2 pallet variants) 11.52 m3 (407 cu ft)
(60.4 × 125 in)
dimensions as
container variant;
FLA- and PLAprefixes
224 × 318 cm
(88 × 125 in)
244 × 318 cm
(96 × 125 in)
PAG- and P1Pprefixes
PMC- and P6Pprefixes
Pallet volumes shown are built 64 in tall for lower deck loading. Height limit for main deck depends on
aircraft type.
Each aircraft may have unique configurations and requirements, especially in terms of the
limitations of dimensions so that packages can pass through cargo doors, so it is
recommended that you contact your air carrier for the specific capacity issues you will face
for the particular type of cargo aircraft you will have to deal with.
Labelling and Marking: Because the weight of goods is such an important consideration for
airfreight shipments, the risk of having your shipment split is highest in airfreight. It is
therefore recommended that you label each and every package of airfreight clearly and
legibly. Your label should contain the following:







Air Waybill No
Destination
Total No of Pieces
Total Weight of Consignment
Weight this piece
Handling Information
Transfer stations (i.e. any airport(s) through which the shipment passes en route to
its ultimate destination)
Special labels should be affixed for dangerous goods, in accordance with International Air
Transport Association (IATA) standards. IATA standard labels are also available for special
consignments such as live animals and perishables.
Security: Security for air cargo is of increasing concern to airlines and passengers alike.
The following security issues must be considered before you ship:
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






Unknown Shipper Regulations: since September 11, 2001, airlines no longer accept
cargo from what they deem to be an "unknown shipper". If a US shipper/vendor has
not contracted to do business with the designated Freight Forwarder in the last
twelve months, the shipper/vendor is classified by the airlines and freight forwarder
as an “Unknown Shipper.” The cargo tendered cannot be carried on a passenger
aircraft from the USA.
Containers loaded by the shipper (single shipments, not consolidations) should have
a non-reusable seal attached by the shipper to verify that the goods have not been
tampered with.
Often, air shipments will be stored in warehouses and transfer docks, increasing
exposure to theft, pilferage and handling damage. Always insist on prompt pickup
and delivery of your shipment.
Be prepared for the increased possibility that air cargo will be subject to x-ray,
security searches, etc.
Security rooms and security areas cannot be used as extended storage areas.
Pickup and delivery times must be scheduled to minimise the length of time your
goods remain on airport premises.
For your own security when shipping valuable goods, advise the airline of valuable
shipments and ask what special security measures are available to you.
Be aware of airline liability limits and what your compensation will be in the result of
loss or damage.
Temperature and Altitude Variations
Airlines provide refrigerated storage and, in some cases heated vehicles for delivering
perishables in cold weather. Make sure you are aware of any temperature considerations
that may affect your shipments and always advise the airline of any special instructions for
storing perishable goods. Additionally, certain liquid cargoes may be adversely affected by
changes in cabin pressure. It is therefore vital to ensure that such goods are allowed
adequate room for expansion and are properly sealed.
c. Booking Air Freight
Be prepared to supply the following information to the airline to book your shipment:



The Air waybill number
Number of Packages
Weights, dimensions and volume of the Shipment
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






The Nature of the Goods
Airport of departure/ destination
Requested Routing
Special considerations, such as:
The presence of restricted goods requiring special marking, docs, load limits, etc
Valuable cargo requiring special handling, security, etc
Special concerns relative to shipping perishables, live animals, live produce, etc.
Shippers should be aware that advance arrangements with the airline will always be required
when shipping any of the following:







Valuable Cargo
Pieces of Unusual Shape and Size
Live Animals
Human remains, other than ashes
Perishables
Consignments requiring Special Care
Dangerous Goods
Types of Cargo Rates:
The following hierarchy of cargo rates applies to the various classes of air cargo rates, with
top precedence indicated first:



Specific Commodity Rates (SCR)
Class rates (CR)
General Cargo Rates (GCR)
The only exception occurs when the quantity rate for a certain weight breakpoint is lower
than the specific commodity rate, in which case the lower of the 2 rates is applied.
The following describes the types of cargo rates applicable to airfreight:






Minimum Charges - charges for any shipment shall be no less than this charge
GCR General Cargo Rates - normally apply to shipments up to 45kg, depending
upon country of shipment
SCR Specific Commodity Rates - lower than GCR, available for specific commodities
and specific destinations, points of origin
Class Rates - exception to GCR offering discounts or surcharges, depending on
commodity
Unit Load Device Rates (ULD) - for shipment loaded by the shipper on the aircraft
ULD and delivered by shipper to the airline at airport of departure. Apply only when
shipment carried entire journey on ULD
Basic Rate per Kilogram - available between selected points
Other rates to anticipate when booking Air Cargo include

Service Fees
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



Fuel Surcharges
A.I.S. (Airline Insurance Security)
Add-on amounts such as terminal fees, etc.
Airport Improvement Fees
d. Export Packaging Considerations
The International Air Transport Association (IATA) for the packaging of air cargo has
established the following guidelines:
1. Cargo shall be packed so as not to injure or damage any persons, cargo or other
properties and to ensure safe carriage with ordinary care in handling
2. Dangerous goods shall be packed in accordance with the IATA Dangerous Goods
regulations
3. Liquids shall be packed in containers strong enough to prevent any leakage or
breakage caused by temperature or altitude, filled so as to provide adequate room for
expansion and securely closed
4. Valuables shall be packed so that the contents cannot be removed without leaving
visible evidence thereof
When preparing your goods for shipment by air, you will likely choose a packaging solution
to minimise weight; however you should try to make sure that in so doing, you do not expose
your shipment to damage risks during the flight and when the goods are moving overland to
and from the airport. Most cargo will be delivered to and from the airport by truck, so it is vital
to ensure packaging is adequate. Packaging can only be reduced if you are able to pack the
airfreight container and your customer unpacks it.
Your goods must be packaged to prevent deterioration or the potential for them to damage
other goods being stowed on the aircraft.
Good packaging practices will marry material handling considerations in terms of load
stability with the particular mode of transport chosen.
Assess your cargoes and choose optimal packaging materials, bearing in mind the three
levels of packaging used, "from the outside, in", as follows:
1. The Shipping Container: corrugated box, cargo cage, van, container, truck, covered
hopper, tank car, etc.
2. Inner containers:
 Cardboard boxes (solid or corrugated)
 Nailed wooden boxes*
 Crates*
 Wire Bound Boxes or Crates*
 Cleated Plywood boxes
 Steel Drums
 Fireboard Drums
 Barrels, Casks or Kegs
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


Multi Wall Shipping sacks
Bales
Alternative storage systems
*When preparing wooden packaging, exporters should note any restrictions for wood
packaging. Ensure that your packaging supplier is aware of these regulations and that any
wood packaging shipped is prepared by a certified packaging company.
3. Insulating materials (consider your needs in terms of shock absorbency, resilience,
texture and workability, cleanliness, absorbency, etc)
 Non Cellular materials, such as fibreboard, cellulose wadding, excelsior fill,
corrugated inserts, etc
 Cellular materials such as Air bubble wrap Polyethylene foam, Polystyrene, loose
fill, foam, etc
4. Individual Consumer Packages
 Packaging materials used for the final consumer product, boxes, plastic wrap,
bags, bottles, etc
The optimal export packaging for your goods will combine service, cost and convenience
and should always provide for the safest, most efficient means of storing your goods.
e. Air Cargo Handling and Delivery
Air Cargo Handling Services
When selecting an air cargo carrier to handle your air cargo shipments, consider your
requirements in terms of the following services and make carrier selection based on the
range of services that will meet your requirements:
Import Air Freight
Export Air Freight
Receipt and check-in of shipments
Breakdown of unitised cargo
Storage of shipments
Receipt and check-in of shipments
Inspection of shipping documents
Certified personnel for accept dangerous
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Document handling
Collection services
Record keeping
Knowledge of Compliance issues,
regulations
Ability to handle perishables
Convenient Scheduling
Tracking and Tracing
Consolidation Services
Small Parcel Services
Notification upon arrival
goods
Cargo labelling services
Palletise/unitise shipments for air carriage
Air waybill/ flight manifest preparation
Airline equipment storage and inventory
maintenance
Scheduling and interlining considerations
Ability to handle perishables
Tracking and Tracing
Consolidation Services
Small Parcel Services
Notification to consignees upon arrival
Air Cargo Handling Equipment
A variety of equipment is available through your air cargo carrier for moving and weighing
ULD pallets and containers. The following chart demonstrates the range of conveying
systems and ramp equipment used to convey goods on and off the aircraft:
Conveying systems










dock lifts
powered conveyors
gravity conveyors
elevating conveyors
ball mats
right angle transfer decks
turntables
workstations
scales
control systems
Ramp Equipment


aircraft loaders
fly-away loader adapters
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

cargo trailers
cargo baggage carts
Cartage and Delivery to/from Air Carrier
Depending on your access to an international air cargo terminal or local airport, your
transportation logistics should consider the handling and delivery of air cargo to and from the
airports of departure and arrival for the goods.
Types of Vehicles
When considering a carrier to handle and deliver your airfreight shipments to the air carrier's
premises, you should consider the range of vehicles at your disposal, such as:




Tractor/Trailers - tractors, combined with closed trailers, plus roller- & flat-bed
configurations, provide a highly flexible fleet for the majority of shipments
Straight Trucks - long bodies; may be required if access is too tight for
Tractor/Trailers
Cube Vans - may be specified if access too tight for tractor trailers or straight trucks
Mini-Trucks - with caps to handle small parcel runs, especially in downtown areas.
Special Equipment and Service Options






Power Lift gates - For pickup or delivery of heavy or bulky freight when no truckheight dock or forklift assistance will be
2-Person Crews - For pickup or delivery of heavy or bulky freight when no customer
help will be available.
Residential or Inside Service - For pickups or deliveries involving handling beyond
the normal truck-to-loading-dock range (includes multi-story office buildings).
Special Service Vehicles /Special Delivery Times for shipment requirements outside
normal delivery schedules and scope
Exclusive-Use Vehicles - For expedited, dedicated pickup or delivery of one
customer's freight by itself.
Multi-Shipment Assistance - For special logistics requirements such as collecting
multiple vendors' shipments (e.g., a combination of import and domestic air import
arrivals) for one consolidated delivery to your door.
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f. The role of IATA (International Air Transport Association)
IATA stands for the International Air Transport Association and is the official trade
organisation for the world's airlines (more than 85 participating nations).
For air carriers, IATA provides a polled resource for scheduling, traffic and routes,
standardising services and the creation of a worldwide public service for the air industry.
For consumers, IATA sets the international standard for services and business practices
amongst member airlines.
As an example, the three-digit airport codes used internationally are an IATA convention.
Additionally, IATA aims to achieve the following mandate:





To promote safe, regular and economic air transport
To foster air commerce
To study problems connected with the airline industry
To provide a means of collaborating between air transport companies and agencies
To co-operate with other international air transportation organisations
Essentially, IATA is airlines working together to standardise and improve service
internationally
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Part Two
6. Road Transport
a.
b.
c.
d.
e.
f.
Introduction to Road Transportation
Highway Regulations
Documents
Truck Types
Service Options for Truck Transport
Less Than and Full Trailer Load shipments
a. Introduction to Road Transportation
Road transportation is transport on roads of passengers or goods. Transport on roads can
be roughly grouped into two categories:


transportation of goods and
transportation of people
In many countries licensing requirements and safety regulations ensure a separation of the
two industries.
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The nature of road transportation of goods depends, apart from the degree of development
of the local infrastructure, on the distance the goods are transported by road, the weight
and volume of the individual shipment and the type of goods transported. For short
distances and light, small shipments a van or pickup truck may be used. For large shipments
even if less than a full truckload (Less than truckload) a truck is more appropriate. In some
countries cargo is transported by road in horse-drawn carriages, donkey carts or other nonmotorised mode.
Trucking companies or haulers/hauliers accept cargo for road transport. Truck drivers
operate either independently working directly for the client or through freight carriers or
shipping agents. Some big companies (e.g. grocery store chains) operate their own internal
trucking operations.
Many truckers own their truck, and are known as owner-operators. Some road
transportation is done on regular routes or for only one consignee per run, while others
transport goods from many different loading stations/shippers to various consignees. On
some long runs only cargo for one lag of the route (to) is known when the cargo is loaded.
Truckers may have to wait at the destination for the return cargo (from).
Advantages
Many advantages are available to manufacturers and exporters by moving their shipments
via road transport. One advantage is the availability of a wide variety of trucking options,
carriers and specialised equipment, capable of handling many different cargoes.
Truck transport links with all other modes, so moving goods intermodally, from truck to
ocean to truck (ro/ro, etc.), from air to truck or from truck to rail ("piggy backs") etc. creates a
considerable variety of choices for door-to-door shipping. In terms of meeting scheduling
demands, trucks are generally available to move your goods with flexible scheduling and fast
delivery timeframes. In addition, trucks are able to get your goods to your buyer's door,
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regardless of whether that destination is served by rail, air or water transport, along a free
choice of routes.
Disadvantages
While the advantages are certainly considerable, truck transport has some inherent
disadvantages, too. These include the fact that licensing and other regulations governing
truck transport are imposed differently from country to country. Additionally, goods moved by
truck are at higher risk of damage and delay resulting from the frequency of highway
accidents. Weather is certainly a delay factor, too. Finally, trucks are limited in terms of the
size of shipments they can carry and are not generally suited to carry oversized and bulk
cargo.
b. Highway Regulations
North America has no unified regulatory control of its trucking industry, unlike the European
model, in which one set of rules governs all EU countries. The results can be confusing and
frustrating for shippers who have to consider allowable routings, licensing requirements as
well as vehicle weight, height and length limitations for each state, en route to the ultimate
destination. Due to variations in allowable weights and lengths, a trailer loaded in country A
for example, might be allowed to unload in country C, but not allowed to pass through
country B on route.
Road transport regulations are constantly evolving; therefore, it is highly recommended
that you ensure that your truck shipments are compliant with all applicable provincial
legislative limitations and regulations for axles, oversized loads, licensing, weights and
lengths, etc. Permits may be required to move oversize loads, trucks may be prevented from
moving under or over certain bridges, vehicles may be stopped at weigh scales or truck
inspection stations along the highway and serious delays may result from non-compliance in
this regard.
c. Documents
Like air freight and ocean freight shipments, the standard package of commercial
documentation is required when you ship your goods internationally by truck.
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Commercial Invoice (or Customs Invoice for Imported Goods)
Packing List, if available (not mandatory)
Certificate of Origin (if required by foreign legislation)
Export/ Import Permits, if required
Revenue Services Export Documents, if required
The Truck Bill of Lading (TB/L)
The other key document for truck transport is the Truck Bill of Lading.
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A Bill of Lading issued by the shipper provides the basic document for road freight. On
cross-border transportation the trucker will present the cargo and documentation provided by
the shipper to customs for inspection. This also applies to shipments that are transported out
of a Free port.
As stated above, there are many different licensing laws which regulate not only licensing,
but the form and content of Truck Bills of Lading (TB/L) as well. While each TB/L issued by
different carriers may look somewhat different, the following sample TB/L contains all
required fields.
The TB/L constitutes a receipt of goods for shipment and a contract of carriage. Unlike
the Ocean Bill of Lading, however, the T B/L does not confer title of ownership. Additionally,
due to the higher liability factors faced by the trucking industry, the TB/L will differ from the
Ocean Bill of Lading and the Air Waybill in the standard terms and conditions of carriage and
other liability considerations. One vital best practice for shippers involves closely reviewing
the terms of truck transport contracts to ensure adequate protection from liability risk.
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Sample: Truck Bill of Lading
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d. Service options for Truck Transport
Highway carriers provide a variety of service options, depending on your particular freight
requirements. Here are some examples:
Specialty Shipments: Some carrier companies will have special departments dedicated to
the movement of specialised cargo which is unusual in size, requires heavy lift, or has
awkward handling requirements.
Expedited or Rush Deliveries: offers a speedy service for urgently required cargo or "rush"
shipments. Rates for these services are usually based on weight with fair minimum prices to
enable the trucking company to compete with air courier services.
Small Parcel Service: To create competition with courier companies, some trucking
companies offer small parcel service and will use either expedited ground freight or a
combination of ground and airfreight for small packages and parcels.
Make sure to factor in ferry scheduling, seasonality and waiting times when scheduling your
truck shipments.
Shipping Dangerous Goods by Truck
For transport of hazardous materials truckers need a license, which usually requires them
to pass an exam. They have to make sure they affix proper labels for the respective
hazard(s) to their vehicle. Liquid goods are transported by road in tank trucks or tanker
lorries (also road-tankers) or special tank containers for intermodal transport. For
unpackaged goods and liquids weigh stations confirm weight after loading and before
delivery. For transportation of live animals special requirements have to be met in many
countries to prevent cruelty to animals. For fresh and frozen goods refrigerator trucks or
reefer containers are used.
As is the case for dangerous goods being carried by air or ocean freight, the responsibility
for identifying, classifying and documenting dangerous goods shipments rests with the
Shipper. When arranging carriage of dangerous goods, the Shipper MUST:
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Prepare all documentation for dangerous goods, including:
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Shipper's Dangerous Goods Declaration
Material Safety Data Sheet
Emergency Response Form
Pre-alert carrier that dangerous goods are being shipped
Sign and date the Truck Bill of Lading
Supply dangerous goods placards*
Ensure all cartons, packages, etc are marked, labelled and packaged properly in
accordance with Dangerous Goods regulations
* Generally, the trucking company will supply placards, but the shipper must pay associated
fees.
e. Less than trailer load (LTL) and full trailer load (FTL)
shipments
LTL and FTL shipments will be priced differently under carrier's tariffs, with greater savings
to be realised by shipping higher volumes. Wherever possible, exporters and manufacturers
are encouraged to consolidate truck shipments to take advantage of the significant savings
that may be realised. Less than Truck Load (LTL) shipments can be pooled through
inbound or outbound consolidation hubs or combined into multi-stop truckload shipments.
Truckload shipments can be moved intermodally or, in some cases, they can be linked to
national rail transportation on the mainland. The savings to be realised through freight
consolidations are considerable. As an example, the cost of shipping a single cubic meter
crate on its own can exceed 4 times the cost of shipping the same crate within a
consolidated container load.
By consulting with your transporter prior to booking, you may be able to take advantage of
special one-time options and discounts based on availability, as when a carrier's urgent
need to "fill a trailer" on an empty truck returning to or leaving, coincides with your particular
volume and timing requirements.
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Trucking Rates and Tariffs
Truck rates can be negotiated in either of two ways, as follows:
1. The One-Time Freight Rate, in which you call your freight forwarder or trucking
company and request a rate for a specific shipment moving to a specific destination
at a specific time. Your rate will be provided, together with a written quotation, if
required.
Freight forwarders will generally quote a comprehensive, start-to-finish price for
the overall freight movement, whereas carriers will generally quote one-time freight
rates in cents per cwt over 500 lbs and broken down into the following weight breaks,
with rate per cwt decreasing as the volume being shipped increases.
Standard Weight Breaks for Truck Shipments, in lbs:
2. 500
3. 1,000
4. 2,000
5. 5,000
6. 10,000
7. 20,000
8. 30,000
9. 40,000
For shipments of up to 20 feet of trailer length, rates are usually based on 10lbs/cu ft.
For shipments over 20' of trailer length, rates are based on 1,000 lbs per lineal foot of
trailer.
2. The Published Tariff: Highway Carriers will generally have a published tariff
outlining specific routings, weight breakdowns and commodities. Each commodity will
be assigned its own commodity number and different areas of the country will have
different tariffs.
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7. Rail Transport
a.
b.
c.
d.
Introduction
Container stacking
Cargo Handling
Documents
a. Introduction
Rail transport is a means of conveyance of passengers and goods by way of wheeled
vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a
prepared surface, rail vehicles are also directionally guided by the tracks they run on. Track
usually consists of steel rails installed on sleepers/ties and ballast, on which the rolling stock,
usually fitted with metal wheels, moves. However, other variations are also possible, such as
slab track where the rails are fastened to a concrete foundation resting on a prepared
subsurface.
Rolling stock in railway transport systems generally has lower frictional resistance when
compared with highway vehicles and the passenger and freight cars (carriages and wagons)
can be coupled into longer trains. The operation is carried out by a railway company,
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providing transport between train stations or freight customer facilities. Power is
provided by locomotives which either draw electrical power from a railway electrification
system or produce their own power, usually by diesel engines. Railways are a safe land
transport system when compared to other forms of transport. Railway transport is capable of
high levels of passenger and cargo utilisation and energy efficiency, but is often less
flexible and more capital-intensive than highway transport is, when lower traffic levels are
considered.
A freight train or goods train is a group of freight cars or goods wagons hauled by one or
more locomotives on a railway, ultimately transporting cargo between two points as part of
the logistics chain. Trains may haul bulk material, intermodal containers, general freight
or specialised freight in purpose-designed cars.
In general, rail transport is an option used more frequently for commodities such as wheat
and grains and mined products such as coal, sulphur, copper, nickel and iron ores, sand and
stone and container traffic.
When considered in terms of ton-miles (tonne-kilometres) hauled per unit of consumed
energy, rail transport is more efficient than other means of transportation. Additional
economies are often realised with bulk commodities (e.g. coal), especially when hauled over
long distances.
However, rail freight is often subject to transhipment costs, which may exceed that of
operating the train itself.
Bulk shipments are less affected by transhipment costs, with distances as short as 30
kilometres (18.6 mi) sufficient to make rail transport economically viable. However, shipment
by rail is not as flexible as by highway, which has resulted in much freight being hauled by
truck, even over long distances.
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b. Container Stacking
Double-stacked container transport
Above : Double stacked containers
Since 1984, a mechanism for intermodal shipping known as double-stack rail transport
has become increasingly common. Rising to the rate of nearly 70% of United States
intermodal shipments, it transports more than one million containers per year. The doublestack rail cars design significantly reduces damage in transit and provides greater cargo
security by cradling the lower containers so their doors cannot be opened. A succession of
large, new domestic container sizes was introduced to increase shipping productivity. In
Europe the more restricted loading gauge has limited the adoption of double-stack cars.
However, in 2007 the Betuweroute was completed, a railway from Rotterdam to the
German industrial heartland, which may accommodate double stacked containers in the
future. Other countries, like New Zealand, have numerous low tunnels and bridges, which
limits expansion for economic reasons.
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Since electrification generally predated double stacking, the overhead wiring was too low to
accommodate it. However, India is building some freight only corridors with the overhead
wiring at 7.45 m above rail, which is high enough.
Above : Containers being transported by rail in the UK, passing Northampton on 18 February
2008.
In North America, containers are often shipped by rail in container well cars. These cars
resemble flatcars but the newer ones have a container-sized depression, or well, in the
middle (between the bogies or "trucks") of the car. This depression allows for sufficient
clearance to allow two containers to be loaded in the car in a "double stack" arrangement.
The newer container cars are also specifically built as a small articulated "unit", most
commonly in components of three or five, whereby two components are connected by a
single bogie as opposed to two bogies, one on each car. Double stacking is also used in
parts of Australia. On some older railways, particularly in the United Kingdom, the use of well
cars is necessary to carry single stacked large containers within the loading gauge.
It is also common in North America to transport semi-trailers on railway flatcars or spine
cars, an arrangement called "piggyback" or TOFC (trailer on flatcar) to distinguish it from
container on flatcar (COFC). Some flatcars are designed with collapsible trailer hitches so
they can be used for trailer or container service. Such designs allow trailers to be rolled on
from one end, though lifting trailers on and off flatcars by specialised loaders is more
common. TOFC terminals typically have large areas for storing trailers pending loading or
pickup.
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Above : a semi-trailer on a railway flatcar
c. Cargo Handling
Bulk cargo of minerals
A freight train hauls cargo using freight cars specialised for the type of goods. Freight
trains are very efficient, with economy of scale and high energy efficiency. However, their
use can be reduced by lack of flexibility, if there is need of transshipment at both ends of
the trip due to lack of tracks to the points of pick-up and delivery. Authorities often encourage
the use of cargo rail transport due to its environmental profile.
Container trains have become the dominant type in the US for non-bulk haulage.
Containers can easily be transshipped to other modes, such as ships and trucks, using
cranes. This has succeeded the boxcar (wagon-load), where the cargo had to be loaded and
unloaded into the train manually. In Europe, the sliding wall wagon has largely superseded
the ordinary covered wagons. Other types of cars include refrigerator cars, stock cars for
livestock and autoracks for road vehicles. When rail is combined with road transport, a
roadrailer will allow trailers to be driven onto the train, allowing for easy transition between
road and rail.
Above : a container train
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Bulk handling represents a key advantage for rail transport. Low or even zero
transshipment costs combined with energy efficiency and low inventory costs allow trains to
handle bulk much cheaper than by road. Typical bulk cargo includes coal, ore, grains and
liquids. Bulk is transported in open-topped cars and tank cars.
Bulk cargo is commodity cargo that is transported unpackaged in large quantities. These
cargos are usually dropped or poured, with a spout or shovel bucket, as a liquid or solid, into
a bulk carrier's hold, railroad car, or tanker truck/trailer/semi-trailer body. Bulk cargoes are
classified as liquid or dry, but only the latter are normally transported as bulk on rail, the
former being freighted in tank cars.
Hopper cars are freight cars used to transport loose bulk commodities such as coal, ore,
grain, track ballast, and the like. This type of car is distinguished from a gondola car or
open wagon in that it has opening doors on the underside or on the sides to discharge its
cargo. The development of the hopper car went along with the development of automated
handling of such commodities, with automated loading and unloading facilities. There are
two main types of hopper car: open and covered; Covered hopper cars are used for
cargo that must be protected from the elements (chiefly rain) such as grain, sugar, and
fertilizer. Open cars are used for commodities such as coal, which can get wet and dry out
with less harmful effect. Hopper cars have been used by railways worldwide whenever
automated cargo handling has been desired. Rotary car dumpers simply invert the car to
unload it, and have become the preferred unloading technology, especially in North America;
they permit the use of simpler, tougher, and more compact (because sloping ends are not
required) gondola cars instead of hoppers.
Several types of cargo are not suited for containerisation or bulk; these are transported in
special cars custom designed for the cargo.
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Automobiles are stacked in open or closed autoracks, the vehicles being driven on
or off the carriers.
Steel plates are transported in modified gondolas called coil cars.
Goods that require certain temperatures during transportation can be transported in
refrigerator cars (or reefers - US) or refrigerated vans (UIC), but refrigerated
containers are becoming more dominant.
Liquids, such as petroleum, chemicals and gases, are often transported in tank cars.
Moving Dangerous Goods by Rail
Dangerous goods moving by rail must travel in cars especially designed and coded to carry
dangerous goods. When arranging carriage of dangerous goods, Shippers must co-ordinate
the transport with the specialised Dangerous Goods handlers at the railway line well in
advance of arranging the shipment.
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Over Dimensional and Heavy Lift Cargo
If you have to ship loads that are exceptionally high, wide, long or heavy, such as special
offshore rig components, turbines or other oversized or heavy lift project cargoes, railways
have special "Dimensional Loads" departments to accommodate this kind of equipment.
Your rail carrier can offer solutions to plan the best routing, consideration of safety and
special handling requirements and all government and regulatory restrictions to
accommodate such shipments.
d. Documents
Bill of Lading (B/L)
Many railways now offer services enabling shippers and forwarders to complete the Bill of
Lading online. The following fields must be completed in this document:
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Shipper
Consignee
Description of goods
HS Tariff Code
Piece Count
Package type
Hazardous Goods
Weights and Dimensions
Unit Price
Value
Intermodal service type
Origin
Destination
Routing
You may also need to supply the following details to complete the booking.
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Shipment pick-up date and time
Contract # tariff quotation # steamship booking # (to ensure you pay the right
charges)
Bill of Lading or Shipper's reference number
Bill Freight Charges to:
Prepaid or Collect
For Customs Purposes
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Importer Name
Broker Name
Country of Origin
Port of Exit
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Currency
Destination Port and Country
IRS / Revenue Service info
Customs Entry Type
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For destination country
Foreign goods transiting through country A for export to country B
Foreign goods moving from first port of entry to a second entry point in the country
8. International Documents
a. Enquiry Documents
a. Costing sheet
b. Pro Forma Invoice
b. Instruction Documents
a. Shippers Letter of Instruction
b. Bank Instruction
c. Delivery Order
c. Transport Documents
a. Ocean Bill of Lading
b. Multimodal Transport Document
c. House Bill of Lading
d. Mate’s Receipt / Docks and Warehouse Receipt
e. E-Mail Release of Cargo
f. Sea Waybill
g. Digital Waybill
h. Air Waybill
i. Differences Between Air Waybills and Ocean Bills of Lading
j. Rail Waybills
k. Road Waybills
l. Arrival Notification / Notice of Arrival
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m. Delivery Instruction / Delivery Note
n. Certificate of Shipment
d. Insurance Documents
a. Insurance certificate
e. Customs Documents
a. Bill of Entry or Customs entry
b. Commercial Invoice
c. Destination Control Statement
d. Consular Invoice
e. Carrier Certificate
f. Packing List
g. Licenses
f. Inspection Documents
a. Certificate of Origin
b. Inspection Certificate
c. Phytosanitary Certificate
d. Certificate of Conformity
e. Certificate of Value
f. Certificate of Health
g. Fumigation Certificate
g. Finance Documents
a. Forward Exchange Contract
International documentation is very complex as each country has its own specifications
and requirements. The most widely used documents are listed below, please note this
section is not country specific and you would need to check each countries local
requirements:
a. Enquiry Documents
Costing Sheet
A costing sheet enables an exporter to:
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Check that every expense has been covered in arriving at the export price. (Please
note that the costing sheet is a guide only. We cannot be held responsible should
you neglect to include a cost that is important to your export price. For this reason,
we recommend that you sit down with your accountant or with a business partner and
carefully consider all the costs that may impact upon your export price!)
Provide a detailed record of the terms that have been quoted to the foreign buyer.
Pro Forma Invoice
Many export transactions, particularly initial export transactions, begin with the receipt of an
inquiry from abroad that is followed by a request for a quotation. The preferred method for
export is a pro forma invoice, which is a quotation prepared in invoice format. It notes
the kind and quantity of goods, their value, and other important information such as weight
and transportation charges. Pro forma invoices are commonly used as preliminary invoices
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with a quotation, or for customs purposes in importation. They differ from a normal invoice in
not being a demand or request for payment.
Details pertinent to the proforma invoice
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A complete and clear description of the goods
The quantity of goods in question including the number and kinds of packaging
involved
The total price of the goods (and unit price where applicable)
The currency in which the goods will be sold (e.g.US dollars)
The likely delivery schedule and delivery terms
The physical addresses of both the exporter (referred to as the shipper) and importer
(sometimes referred to as the consignee)
The payment methods, for example cash in advance or Letter of Credit (L/C)
The payment terms, for example 30 days on sight
The Incoterm (International Commercial Terms) you have selected
Who is responsible for the banking fees and other related costs
(Insurance and freight costs are covered by the Incoterm in question).
The exporter's banking details
The country of origin of the goods
The expected country of final destination
Any freight details such as the port of loading and discharge
Any transhipment requirements
Any other information relevant to the order
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b. Instruction Documents
Shipper’s letter of instruction
The shipper’s letter of instruction is a letter from the shipper / exporter instructing the
freight forwarder on how and where to send the shipment. The information provided in this
form enables the freight forwarder to process the shipment and prepare the required
documentation. It also outlines the details of the agreement between the exporter and the
importer for the specific shipment.
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Bank Instruction
When the exporter is selling on the basis of a Letter of Credit (L/C), the instructions
stipulated in the letter of credit must be followed.
However, if the exporter is selling on the basis of Documents against Payment (D/P) or
Documents against Acceptance (D/A) under documentary collection, bank instructions
must be generated to secure payment for the goods. Information supplied would include
description of cargo, name of vessel, date of shipment etc; a detailed list of all documents
submitted; payment method etc
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Delivery Order (D/O)
Delivery Order is a document from a consignor, a shipper, or an owner of freight which
orders the release of the transportation of cargo to another party. Usually the written
order permits the direct delivery of goods to a warehouseman, carrier or other person who in
the course of their ordinary business issues warehouse receipts or Bills of Lading.
According to the Uniform Commercial Code (UCC) a delivery order refers to an "order given
by an owner of goods to a person in possession of them (the carrier or warehouseman)
directing that person to deliver the goods to a person named in the order."
A Delivery Order which is used for the import of cargo should not to be confused with
delivery instructions. Delivery Instructions provides specific information to the inland carrier
concerning the arrangement made by the forwarder to deliver the merchandise to the
particular pier or vessel.
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Above: sample Delivery Order
c. Transport Documents
Ocean Bill of Lading
Bills of Lading are best understood if considered as bills of loading. A Bill of Lading (BL sometimes referred to as BOL or B/L) is a document issued by a carrier to a shipper,
acknowledging that specified goods have been received on board as cargo for
conveyance to a named place for delivery to the consignee who is usually identified.
The Bill of Lading is a contract between the owner of the goods and the carrier of the goods.
A through Bill of Lading involves the use of at least two different modes of transport from
road, rail, air, and sea. The term derives from the verb "to lade" which means to load a cargo
onto a ship or other form of transportation.
Three main functions of a Bill of Lading
1. As Receipt for the cargo – originated as a record of what was loaded, with
containerisation practically the Seller will not see the Buyer and wants receipt that
goods have been shipped.
2. As Evidence of a contract of carriage – carrier should be bound by certain
obligations concerning custody of the goods. These terms of carriage will not be in a
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charter party between the shipper and the Carrier so the bill is evidence of the
contractual terms. Trite law that whilst it is evidence it is not necessarily the contract
itself.
3. As a Document of Title – goods sold in normal face to face business transactions
allow for actual exchanges of goods for payment whereas shipping by its nature
distances the Seller and Buyers. Seller wants quick payment especially FOB and CIF.
Buyer wants to ensure goods match description before he parts with money. Bill of
Lading provides alternative to actual transfer of goods – payment is exchanged for the
document.
A Bill of Lading can be used as a traded object. The standard short form Bill of Lading is
evidence of the contract of carriage of goods and it serves a number of purposes:
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It is evidence that a valid contract of carriage, or a chartering contract, exists, and it
may incorporate the full terms of the contract between the consignor and the carrier
by reference (i.e. the short form simply refers to the main contract as an existing
document, whereas the long form of a Bill of Lading (connaissement intégral) issued
by the carrier sets out all the terms of the contract of carriage);
It is a receipt signed by the carrier confirming whether goods matching the contract
description have been received in good condition (a bill will be described as clean if
the goods have been received on board in apparent good condition and stowed ready
for transport); and
It is also a document of transfer, being freely transferable but not a negotiable
instrument in the legal sense, i.e. it governs all the legal aspects of physical carriage,
and, like a cheque or other negotiable instrument, it may be endorsed affecting
ownership of the goods actually being carried. This matches everyday experience in
that the contract a person might make with a commercial carrier like FedEx for mostly
airway parcels, is separate from any contract for the sale of the goods to be carried;
however, it binds the carrier to its terms, irrespectively of who the actual holder of the
B/L, and owner of the goods, may be at a specific moment.
What does a Bill of Lading regulate?
In short the carrier has three main areas of responsibility under the Bill of Lading:
1. The carrier’s responsibility for correct description of the goods – B/L are an
essential part of most international trading of goods and any third party buyer will
purchase in reliance to the description of the goods in the B/L. In effect a transfer of title
is the equivalent of a transfer of the goods themselves
2. The carrier’s responsibility to release the goods to the proper entitled party and at
the proper location – whoever presents a duly and properly endorsed B/L at the B/L
destination (and assuming nothing else suggest bad faith) is prima facie entitled to take
delivery of the goods. Release of cargo without receipt of a properly endorsed B/L
compromised the carrier’s position against the true owner of the goods.
3. The carrier’s responsibility to care for the cargo while it is in his custody – the duty
to care of the goods is both regulated in law and follows from common sense.
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Above: sample Bill of Lading
As a Negotiable document
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Bills of Lading are transferable
Control over and ownership of the goods passes with the handing over of a Bill of
Lading, i.e. transfer of ownership = negotiability
A Bill of Lading is strictly not a negotiable instrument in the legal sense, i.e.
equivalent to money; it represents the goods/cargo.
There are two types of Negotiable Bills of Lading,
1. Order Bills of Lading
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Most bills used in International trade are Order Bills
On the front of the bill there is a box where the name of the Consignee should be
provided or alternatively the instruction
When Seller has not yet sold the goods he may indicate the “Notify Party” as the
consignee and mark it “To Order of”, or leave it to his, “the Shipper”, order
The Bill can then be signed at the back by that party endorsing it in favour of another
or to that parties order. If the bill is merely negotiated by signing the back of the bill
this equates to a blank endorsement. This converts an order bill into a bearer bill.
2. Bearer Bill of Lading (to order)
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This document allows the goods to be delivered to the holder of the bill.
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The name of the consignee may be stated as 'bearer' or a 'to order' bill may be
negotiated in blank or an ordinary Bill of Lading may be endorsed in blank, in other
words without identifying to whom the cargo would be delivered.
Combined Transport / Through Transport Bill
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The Bill has the possibility to be converted into a combined transport bill.
The Carrier maintains liability throughout and subcontracts, Carrier Haulage
International and local laws and conventions apply where applicable, Hague Visby
Rules
The Bill of Lading must contain the following information:
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Name of the shipping company,
Flag of nationality,
Shipper's name,
Order and notify party,
Description of goods,
Gross, net, tare weight; and
Freight rate, measurements and weight of goods, total freight
A Bill of Lading may be consigned to “the order of the shipper”. Where the word order
appears in the consignee box, the shipper may endorse it in blank or to a named
transferee. A Bill of Lading endorsed in blank is transferable by delivery. Once the goods
arrive at the destination they will be released to the bearer or the endorsee of the original
Bill of Lading. The carrier's duty is to deliver goods to the first person who presents any
one of the original Bills of Lading. The carrier need not require all originals to be
submitted before delivery. It is therefore essential that the exporter retains control over the
full set of the originals until payment is effected or a bill of exchange is accepted or some
other assurance for payment has been made to him. In general, the importer's name is not
shown as consignee. The Bill of Lading has also provision for incorporating notify party. This
is the person whom the shipping company will notify on arrival of the goods at destination.
The Bill of Lading also contains other details such as the name of the carrying vessel and its
flag of nationality, the marks and numbers on the packages in which the goods are packed,
a brief description of the goods, the number of packages, their weight and measurement,
whether freight costs have been paid or whether payment of freight is due on arrival at the
destination. The particulars of the container in which goods are stuffed are also mentioned in
case of containerised cargo. The document is dated and signed by the carrier or its agent.
The date of the Bill of Lading is deemed to be the date of shipment. If the date on which the
goods are loaded on board is different from the date of the Bill of Lading then the actual date
of loading on board will be evidenced by a notation on the Bill of Lading. In certain cases a
carrier may issue a separate on board certificate to the shipper.
Main types of bill
Straight Bill of Lading
In this importer/consignee/agent is named in the Bill of Lading, it is called straight Bill of
Lading. It is a document, in which a seller agrees to use a certain transportation to ship a
good to a certain location, where the bill is assigned to a certain party. It details to the quality
and quantity of goods.
Order Bill of Lading
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This bill uses express words to make the bill negotiable, e.g. it states that delivery is to
be made to the further order of the consignee using words such as "delivery to A Ltd. or to
order or assigns". Consequently, it can be indorsed (legal spelling of endorse, maintained in
all statute, including Bills of Exchange Act 1909 (CTH)) by A Ltd. or the right to take delivery
can be transferred by physical delivery of the bill accompanied by adequate evidence of A
Ltd.'s intention to transfer.
Bearer Bill of Lading
This bill states that delivery shall be made to whosoever holds the bill. Such bill may be
created explicitly or it is an order bill that fails to nominate the consignee whether in its
original form or through an endorsement in blank. A bearer bill can be negotiated by physical
delivery.
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Multi-modal Transport Documents
Sea transportation brought about many innovations in international transportation of goods.
Multi-modal or combined transport is one such innovation. Cargo today can be moved
from an inland freight station in the exporting country to an inland destination in the importing
country. Goods may be picked up and transported using different modes of transport. E.g. a
consignment of garments may be containerised at a factory in Mysore, customs cleared at
ICD Bangalore, moved by rail to Cochin, by sea to Dubai, by air to Frankfurt and road to
Düsseldorf, all under a single transport document.
In such an operation, involving one or more land legs and/or air or sea legs, one carrier
makes itself responsible for the entire transport operation. The contracting carrier is referred
to as a multi-modal or a combined transport operator (MTO). He is liable in contract to
the shipper if the goods are damaged at any stage of the carriage. The multi-modal
transportation document may be issued either in non-negotiable or negotiable form. The
multi-modal transportation document (MTD), whether negotiable or non-negotiable, is
prima facie evidence of the MTO taking charge of the goods for transportation.
MTDs are of two types, the COMBIDOC evolved by the Baltic International Maritime
Council (BIMCO) and FBL or FIATA MT Bill of Lading evolved by the International
Federation of Freight Forwarders' Associations (FIATA). This document (FBL) has been
approved by the International Chamber of Commerce (ICC) for the purpose of documentary
credit. FIATA has evolved specific norms for the use of FBLs.
House Bill of Lading
A House Bill of Lading is a B/L issued by a freight forwarder to a shipper as a receipt for
the goods being shipped with other cargo as one consignment (usually as a full container
load). The shipping company's (carrier's) B/L shows the forwarder as the consignor, and the
name of forwarder's agent at the port of destination as the consignee. Although it is not a
complete document of title, a house B/L has a legal standing similar to that of a normal
(carrier's) B/L. If not specifically prohibited, it is capable of being negotiated and of
acceptance by the importer's bank for payment under a letter of credit. Also called a
forwarder's Bill of Lading.
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Above: sample House Bill of Lading
Mate’s Receipt / Docks and Warehouse Receipt
A Mate’s Receipt is a document signed by an officer of a vessel evidencing receipt of a
shipment onboard the vessel. It is not a document of title and is issued as an interim
measure until a proper Bill of Lading can be issued.
The dock and warehouse receipt is a receipt to transfer accountability after the goods have
been delivered by the domestic carrier to the port of shipment and left with the international
carrier (vessel) for export. This receipt is issued by the international shipping company after
the goods have been delivered by the ground carrier to the dock.
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Above: sample Mate’s receipt
E-Mail Release of Cargo
Cargo may be released via e-mail release (historical reference was telex release), if
a Customer requests his cargo to be released at destination and hands in his original Bills of
Lading, duly endorsed, at another shipping line office than the destination office needs an
email release notice from the office that received the original Bills of Lading.
Sea Waybill
A sea waybill is a non-negotiable receipt issued by the carrier. Where the cargo is likely to
arrive before the formal documents or where the shipper does not insist on separate bills for
every item of cargo carried (e.g. because this is one of a series of loads being delivered to
the same consignee). Delivery is made to the consignee who identifies himself. It is
customary in transactions where the shipper and consignee are the same person in law
making the rigid production of documents unnecessary.
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A sea waybill is identical to a Bill of Lading, however it is also fundamentally different on a
few, important points. A Waybill of Lading is a document issued to a shipper in exchange for
his cargo. A Waybill is not negotiable and therefore cargo can only be delivered to a named
consignee nominated by the shipper.
The Sea Waybill holds two functions:
1. Evidence of a contract of carriage
2. Receipt for cargo
A waybill or consignment note is a document issued by a carrier giving details and
instructions relating to the shipment of a consignment of goods. Typically it will show the
names of the consignor and consignee, the point of origin of the consignment, its
destination, route, and method of shipment, and the amount charged for carriage. Unlike a
Bill of Lading, which includes much of the same information, a waybill is not a document of
title. Most Freight Forwarders and Trucking Companies use an in-house waybill called a
House Bill. These typically contain 'Conditions of Contract of Carriage' terms on the back of
the form. These terms cover limits to liability and other terms and conditions.
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Above: sample Sea Waybill
Who uses waybills?
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Head offices shipping to group companies
Where transfer time is short and goods will arrive before bill can move between
shipper/bank/consignee
Where sale operates on open account basis i.e. large suppliers or customers
Non commercial transactions i.e. household effects, exhibits for museums
Electronic Data Interchange (EDI) transactions
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Why would they use a waybill?
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No need to issue sets of certified copies
No need for consignee to produce the Waybill to obtain delivery, the consignee only
has to produce evidence of identity, pay the freight and other charges and take
delivery
Prevents fraud
Digital Waybill
A digital waybill is an electronic version of a waybill, which has become very common as
many shipments are ordered through the internet. The driving force behind the movement to
the Digital Waybill has been the lowering of printing costs for shipping companies. The
market has also benefited from cost savings through the reduction in telephone and fax
costs due to the increased usage of the digital waybill. In some regions, it has been referred
to as an e-Waybill however this is not the industry standard.
Air Waybill
The air waybill is the contract for carriage (bill of lading) for shipments made by airfreight. It
is a nonnegotiable document, issued by the air carrier that specifies the terms under which
the air carrier will be transporting the goods to their destination.
The air waybill is normally issued by a freight forwarder acting as the agent for the airline
who transports the goods, or an airfreight consolidator, who may use the airline to transport
the goods of several companies under its own master bill of lading. The airline air waybill is
known as the “master air waybill” or “Mawb.” If your shipment is consolidated with other
cargo, the forwarder will issue his “house” air waybill. The house bills are then consolidated
into the master air waybill.
The most important things to know about the air waybill are:
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If you consign the air waybill directly to the buyer in the foreign country, the buyer can
clear the goods immediately upon arrival at the destination port. If the air waybill is
consigned to a third party (normally the buyer’s bank), you can control possession of
the goods until the buyer pays or signs a promissory note, or time draft, to pay at a
later date.
A minimum cost per kilo will be charged based on either weight or volume,
depending on the density of the cargo.
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Difference between an Air Waybill and an Ocean Bill of Lading
The primary difference between air waybills and ocean bills of lading is that ocean bills
of lading can be made negotiable and air waybills cannot. Negotiable bills of lading are a
common practice in international trade, designed to protect the seller by allowing them to
consign the document to their “order,” instead of the consignee, or buyer. In this case, the
seller may transfer the document to or through a third party, usually a bank, who then would
collect the funds from the buyer before turning the documents over to them. The transit time
in ocean freight may allow the bill of lading to be bought and resold, which in a sense, gives
the document a distinct value. If you consign a bill of lading to the buyer directly, you have in
a sense turned title to the goods over to them, which is not advisable unless you have been
paid already or have assurance you will be paid. A negotiable bill of lading is most often
used when a letter of credit is the payment mechanism. In other cases, ocean bills of lading
may be consigned to the buyer’s bank, if not negotiable, in order to control title to the goods.
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An air waybill is not negotiable, and is mostly consigned directly to the consignee. It is not
negotiable or transferable because of the rather limited transit time. There is no time to
transfer the title between parties in the limited amount of time it takes for the goods to arrive.
Rail Waybills
A rail waybill is a receipt issued that indicates to the customer that his/her goods have been
received and have been passed on for freight by railway. Rail waybills often include tracking
numbers so that the customer can check the status of the shipment.
Road Waybills
There is no standard transport document for road haulage. Road hauliers usually design
their own waybills which serve as evidence of a contract of carriage and as receipts for
consignment of goods. Shippers must ensure that hauliers are carefully instructed in the
completion of waybills.
Arrival Notification (ANF) / Notice of Arrival
An arrival notification (ANF) is a notice sent by a carrier or agent to the consignee (and
to the notify party, if any) to inform about the arrival of the shipment and number of
packages, description of goods, their weight, and collection charges (if any).
This allows the consignee to prepare his documents for clearance in advance. This however
is not a requirement of the shipping line to notify the consignee, the shipper is responsible
for notifying the consignee.
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Above: sample Arrival Notification
Delivery Instruction / Delivery Note
A Delivery Instruction or Delivery Note is a document accompanying a shipment of goods
that lists the description, and quantity of the goods delivered. A copy of the delivery note,
signed by the buyer or consignee, is returned to the seller or consignor as a proof of
delivery.
Certificate of Shipment
A certificate of shipment is a document issued by a freight forwarder with the following
purpose:
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confirmation that the goods have been despatched overseas
fulfilment of proof of despatch requirements for VAT purposes
The certificate of shipment contains details of the consignment including:
a. name and address of shipper and consignee
b. receiving or clearing agent at destination
c. (in some cases) routeing name of vessel, ports of loading and discharge and final
destination
d. terms of delivery (Incoterms)
e. description of the goods marks, weight and measurement
f. exporters invoice number and date
The certificate of shipment is used particularly for trade within Europe. It has value for the
exporter, but is not a replacement for the standard transport documents such as a bill of
lading or air way bill.
d. Insurance Documents
Insurance Certificate
An Insurance Certificate is proof of Insurance. Insurance is a risk-transfer mechanism
that ensures full or partial financial compensation for the loss or damage caused by event(s)
beyond the control of the insured party. Under an insurance contract, a party (the insurer)
indemnifies the other party (the insured) against a specified amount of loss, occurring from
specified eventualities within a specified period, provided a fee called premium is paid.
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Above : sample Certificate of Insurance
e. Customs Documents
Bill of Entry (B/E) or Customs Entry
A bill of entry (B/E) is a formal declaration describing goods which are being imported or
exported. The bill of entry is examined by customs officials to confirm that the contents of a
shipment conform with the law, and to determine which taxes, tariffs, and restrictions may
apply to the shipment. This document must be prepared by the importer or exporter, with
many companies hiring a clerk specifically to handle the process of preparing bills of entry.
A typical bill of entry includes a description of the goods in the shipment, including details
and the quantity of the goods, along with an estimate of their value. Customs officials
reserve the right to inspect the shipment to determine whether or not it is consistent with the
bill of entry, and discrepancies can be grounds for legal proceedings. Once a bill of entry has
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been reviewed and the shipment has been inspected, it can be cleared for sale or transfer. If
there is a problem, customs may opt to confiscate the goods.
Many nations have specific laws about how bills of entry should be formatted and presented.
It is important to have accurate documentation, or goods can be held up in customs. This
can cause an inconvenience in some cases, and spoilage or destruction of the goods in
others; a shipment of fruit, for example, will not hold up through a lengthy retention by
customs while details of the shipment are worked out.
Main types of entry are:
1. Consumption entry: for goods to be offered for sale (consumption) in the importing
country,
2. Formal entry: that is required to be covered by an entry bond because its aggregate
value exceeds a certain amount,
3. Informal entry: that is not required to be covered under an entry bond because its value
is less than a certain amount,
4. In-transit entry: for the movement of goods from the port of unloading to the port of
destination under a Customs bond,
5. Mail entry: for goods entering through post office or courier service and below a certain
value,
6. Personal baggage entry: for goods brought imported as personal baggage,
7. Transportation and exportation entry: for goods passing through a country en-route to
another country, and
8. Warehouse entry: for the goods stored in a bonded warehouse. Also called customs
declaration, duty entry, or just entry.
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Commercial Invoice
A Commercial Invoice is a document required by customs to determine true value of the
imported goods, for assessment of duties and taxes.
While there is no international standard for the contents of invoices they should include:
1. Full name of seller, including address and telephone number, on letterhead or printed
form.
2. Full name of buyer and buyer’s address (or, if not a sale, the consignee).
3. The place of delivery (for example, Ex Works, FOB port of export, CIF).
4. The sale price and grand total for each item, which includes all charges to the place
of delivery. “Assists,” royalties, proceeds of subsequent resale or use of the products,
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and indirect payments, if any, must also be included in the sale price. If it is not a
sale, list the fair market value, a statement that it is not a sale, and that the value
stated is “For Customs Purposes Only.”
5. A description of the product(s) sufficiently detailed for the foreign Customs authorities
to be able to confirm the correct Harmonised Tariff classification, including the quality
or grade.
6. The quantities (and/or weights) of each product.
7. A date for the invoice (on or around the date of export).
8. The currency of the sale price (or value) (U.S.$ or foreign).
9. The marks, numbers, and symbols on the packages.
10. The cost of packaging, cases, packing, and containers, if paid for by the seller, which
is not included in the sales price and being billed to the buyer.
11. All charges paid by the seller, separately identified and itemised, including freight
(inland and international), insurance, and commissions, etc., which is not included in
the price and being billed to the buyer.
12. The country of origin (manufacture).
13. Shipper’s signature and date.
14. CHECK WITH THE BUYER OR IMPORTER BEFORE FINALISING THE INVOICE
TO CONFIRM THAT NO OTHER INFORMATION IS REQUIRED.
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Above: sample Commercial Invoice
Destination Control Statement
The exporter is required to place the destination control statement on the commercial
invoice, on the ocean or air waybill of lading, and the shipper’s export declaration. The
destination control statement can be as simple as “These goods are licensed by (the country
of origin) for export to (name of country).
Consular Invoice
Certain countries require a consular invoice to control and identify goods. A consular
invoice is usually prepared from the information in the commercial invoice, but it must be
signed by a representative of the country of destination stationed at that country’s embassy
or consulate located in the exporting country. One reason for requiring such invoices is that
the country of destination may deduct certain charges from the price of the goods in order to
determine the value for customs duties. If the commercial invoice does not contain all of the
information necessary, the foreign customs service would be unable to complete the duty
assessment. The consular invoice lists the specific items about which that country requires
information. The consul charges a fee for this service.
Carrier Certificate
A carrier certificate is an official document drawn by a shipper stating its intent to transport
goods across borders. The certificate assigns legal custody of such goods to an individual or
entity that is presented to customs authorities.
Packing List
The packing list is a document that lists the materials found in each package.
It indicates:
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The type of package
The net weight (the actual weight of the goods)
The legal weight (the weight of the goods plus any immediate wrappings that are sold
with the goods)
The tare weight (the weight of a container and / or packing materials without the weight
of the goods it contains)
The gross weight (the full weight of the shipment, including goods and packaging)
The package’s measurements (length, width and height)
Also shows the references, the buyer’s purchase order number and the sellers
order/invoice number assigned by the buyer and seller.
Prepared by the shipper and sent to the consignee for accurate tallying of the delivered
goods. Also called a bill of parcels, packing slip, or unpacking note.
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The Packing List is used to identify the parcels as belonging to the particular consignment
under the said Invoice.
Above : sample Packing List
Licenses
Countries levy Import and Export Duties on specific items and also based on countries of
origin. The management of duties and tariffs is managed through Trade Laws and Policies.
Besides imposing duties, countries also restrict and manage the import and export of items
with the help of Licenses to Import and Export.
Types of Licenses
1. Open General Licensed Items
Normal items and traded goods like textiles, consumer durables, handicrafts, electronic
items, food articles, drugs etc are generally allowed to be imported and exported by all
countries freely without restrictions.
2. Imports against Specific Import Licenses
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Many items like second hand capital equipment, plant and machinery, engines etc are
traded, transferred and imported normally by developing and under developed
economies.
Such second hand machinery and goods are allowed to be imported into the receiving
countries only through specific licenses obtained for the said purpose. Such license
would set forth conditions required to be met by the importer to prove the residual life of
the machinery etc.
Import of Fire Arms and Ammunitions are always covered under specific licenses in most
of the countries.
3. Import - Quantity Restrictions or Quota
Some countries like USA do allocate quantity restrictions for import of items like textiles
on certain countries and exporters would have to adhere to the quota norms, which are
periodically reviewed and amended as required.
4. Export Licenses
A license that a government issues to an exporter granting permission to sell certain
goods to a given country. Because countries have different trade agreements with other
governments, and sometimes do not allow any trade with some nations, export licenses
ensure that exporters are adhering to all applicable laws.
5. Negative List
Most countries maintain a negative list of items which prohibit import and export of
certain items like animal hides and other wildlife, precious wild life, live stock, narcotics
and many more sensitive items.
f. Inspection Documents
Relevant Transport and Inspection Documents
Transport and inspection documents may be requested by customs as required. These
will typically include the Bill of Lading / Air Waybill and Certificate of Origin amongst others.
Certificate of Origin
A Certificate of Origin is a document that certifies a shipment's country of origin. It is
used between members of a trading block or where special privileges are granted to goods
produced in certain countries. Certificate of origin is commonly issued by a trade promotion
office, or a chamber of commerce in the exporting country. This is signed by the exporter,
and, the agency that is used to performing this service (again, for a fee) and certifies to the
best of its knowledge that the products are products of the country specified by the exporter.
Certificates of origin must be distinguished from country of origin marking. Many countries
re-quire that both the products themselves and the labels on the packages specify the
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country of origin. The country of origin certificate may be in addition to or in lieu of that
requirement. Also called a declaration of origin.
Inspection Certificate
Some importers may require that the goods be inspected by an independent inspection
company prior to shipment. The purpose of the inspection is to attest that goods are what
the exporter is specifying they are. Inspection certificates are issued by and obtained from
the independent testing organisation.
If a customer requests this document, agree to it - but see that they cover the administrative
and inspection fee. Also, ask them to recommend an independent inspection agency to
perform the review at your end. If they don't have one, refer to your import/export team (e.g.,
banker, logistics expert, accountant and lawyer) for a suitable contact.
An inspection certificate can be furnished directly to a buyer, a buyer’s government or
direct to a buyer’s bank. In the case of presenting to a buyer’s bank, that is precipitated by
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the request of a Letter of Credit payment transaction that spells out specifically an inspection
certificate is required in order to fulfil payment obligations. Generally, a manufacturer
furnishes the certificate or the report.
A number of countries’ governments have ongoing relationships with international
inspection companies to verify the quantity, quality, and price of shipments imported into
their countries. Countries requesting or requiring pre-shipment inspection certificates (PSIs)
vary year to year and are based on a shipment above a certain value. In some countries,
however, an inspection certificate is required regardless of the value – be sure to enquire.
If a disagreement arises with the outcome of the inspection process, a resolution should be
negotiated with the inspection company. In some instances, the exporter and inspection
company must work together to resolve the issue.
Phytosanitary Certificate
Many countries require these certificates for the import of plant and plant products e.g.
seeds, bulbs, cut flowers, etc. If a phytosanitary certificate is required, the necessary
arrangements must be made e.g. field inspections carried out on plants during the growing
season.
Phytosanitary certification is used to attest that consignments meet phytosanitary import
requirements and is undertaken by an NPPO (National Plant Protection Organisation). A
phytosanitary certificate for export or for re-export can be issued only by a public officer who
is technically qualified and duly authorised by an NPPO.
A phytosanitary certificate for export is usually issued by the NPPO of the country where
the plants, plant products or regulated articles were grown or processed. Phytosanitary
certificates are issued to indicate that consignments of plants, plant products or other
regulated articles meet specified phytosanitary import requirements and are in conformity
with the certifying statement of the appropriate model certificate
Certificate of Conformity
Some countries demand that all goods require a certificate of conformity. The certificate of
conformity confirms that the goods comply with standards issued by the importing country.
Features of a certificate of conformity are (a) The certificate has to be obtained prior to
shipment. (b) Many countries appoint an exclusive organisation worldwide to issue
certificates of conformity.
These organisations frequently verify consignments before issuing a certificate of conformity.
(c) Goods arriving at a frontier without a certificate of conformity are likely to be impounded
or confiscated. Russia, Belarus, Kazakhstan, Moldova and Romania all require certificates of
conformity.
Exporters should remember that the certification companies charge for this service, and
should allow for these costs when preparing quotations.
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Certificate of Value
The exporter confirms that the certificate containing the true and full statement of the price
for the goods and that there is no other understanding between the exporter and the
importer about the purchase price. (Many countries depend on import duties for a large part
of their national revenue and may insist on a certificate of value.)
Certificate of Health / Health Certificate
For shipment of live animals and animal products (processed foodstuffs, poultry, meat, fish,
seafood, dairy products, and eggs and egg products) a health certificate is required. Some
countries require that health certificates be notarised or certified by a chamber and legalised
by a consulate. Normally these certificates are issued by the Department of Health.
Fumigation Certificate
This document is required as proof that the packing materials e.g. wooden crates, wood,
wool etc, second-hand clothing or certain commodities have been fumigated or sterilised.
Certificates are issued by specialists containing details such as purpose of treatment,
articles concerned, temperature range used, chemicals and concentration used etc.
g. Finance Documents
Forward Exchange Contract
What is it?
A forward exchange contract - also called a forward currency contract - is an agreement
between you and your bank in which the bank agrees to buy or sell a certain amount in a
foreign currency at a fixed rate of exchange on, or during a period up to, a particular date.
As an exporter entering an export contract in a foreign currency, a forward exchange
contract allows you to determine at the time you sign the contract the exchange rate which
will apply to future payments from your buyer.
How does it work?
In a forward exchange contract, your bank quotes a forward exchange rate for buying a
specified foreign currency from you and for paying you in your local currency.
A fixed forward exchange contract states the type and amount of foreign currency the
bank will buy the agreed exchange rate and the specific date on which you’ll pay the foreign
currency to the bank.
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A forward option contract states a period of time, rather than a specific date, during which
the bank will exchange the foreign currency for local currency.
In conclusion:
This course covered the Export and Import Processes relevant to Logistics, the various
Transportation modes available to Logistics and rounded it off with the International
Documents required by Logistics.
The purpose of this course was to give you an understanding of the Import and Export
process and the important documents and transportation related to this.
End of course notes.
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Thank you for completing the Importing, Exporting and Transportation Certificate course with
ShippingCollege.
The course can be completed as a standalone certificate course or may be used as credits
towards obtaining your Global Logistics Diploma.
Students who have completed the Importing, Exporting and Transportation Certificate course
may choose to continue with the Global Logistics Diploma.
The Global Logistics Diploma consists of 11 Pilot Certificates which includes Importing,
Exporting and Transportation Certificate.
To further your Global Logistics knowledge obtained in Importing, Exporting and Transportation
Certificate we suggest you consider enrolling for the Warehousing and Inventory Management
Certificate course. The course includes the following modules:
1. Warehousing
a. Introduction
b. Types of warehouses
c. Location of warehouse
d. Functions of the warehouse
e. Warehouse operations – centralised and decentralised
f. Storage systems
g. Automated storage and retrieval systems
h. The principles and performance measures of material handling systems
i. Materials handling equipment
j. Tracking inventory
2. Inventory Management and Control
a. Introduction
b. Inventory functions
c. Types of inventory
d. Inventory cost
e. Holding inventory
f. Mechanics of inventory control
g. Selective inventory control
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Global Logistics Pilot Certificate courses
These courses will cover the global logistics industry with a particular focus on supply chain and
international trade and payments. All our courses are online courses.
Complete all 11 Pilot Certificates and you may write your Global Logistics Diploma.
You may either complete your Diploma as a single course (at a lower cost) or complete the Pilot
Certificate courses individually to accumulate all your credits to attain your Diploma over a longer
period. If you intend to obtain your Diploma we recommend you attempt the Pilot Certificate courses
in the order they are listed below.
1. Logistics Terminology Certificate
- Glossary of industry terms
Over 70 pages of industry terminology.
Read more and Register
2. Logistics and Global Trade Certificate - USD60
- Origins of Logistics, Global Logistics, Global Trade Routes, International rules and regulations for
importing and exporting, Importance of Global Trade, World Trade Policies.
Read more and Register
3. International Trade Law and Sales Contracts Certificate - USD60
- What is International Trade, Law in International Trade, Preparing an International Sales Contract,
Model Sales Contract.
Read more and Register
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4. Incoterms Certificate - USD60
- Introductions to Incoterms, Selecting Terms, 2010 revision, Terminology, Rules for any Mode or
Modes of Transport, Rules for Sea and Inland Waterway Transport.
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5. International Payments Certificate - USD60
- Methods of Payment, Documentary Collection, Letter of Credit, Uniform Customs and Procedures
(UCP 600).
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6. Logistics in the Economy and Organisation Certificate - USD60
- The importance of Logistics, The Role of Logistics in the Economy, The Role of Logistics in the
Organisation, Green Logistics, Future Challenges and Opportunities for Logistics.
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7. Importing, Exporting and Transportation Certificate - USD60
- Procedures for Importing and Exporting, Transportation, Multimodal versus Intermodal, Sea
Transport, Airfreight and Airfreight Terminology, Road Transport, Rail Transport, International
Documentation.
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Read more and Register
8. Warehousing and Inventory Management Certificate - USD60
- Warehousing - types of warehouses, location of warehouses, functions of warehouses and more,
Inventory Management - inventory functions, types of inventory, holding inventory and more.
Read more and Register
9. Purchasing and Materials Flow Management Certificate - USD60
- Purchasing in the Supply Chain - purchasing activities, purchasing research and planning,
purchasing cost management and more, Materials Flow Management - packaging and more.
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10. Management and Control of Logistics Certificate - USD60
- Information Systems for Logistics - customer order cycle, advanced order processing and more,
Logistics Efficiency, Logistics Performance Control - importance of accurate cost data, total cost
analysis and more.
Read more and Register
11. Supply Chain Management Certificate - USD60
- Supply Chain Management, Implementing Logistics Strategy, Supply Chain Security.
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Read more and Register
To view our other courses please click here
Please contact us on info@shippingcollege.co.uk should you have any questions.
Kind regards
The Shipping College Team
www.shippingcollege.com
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