basic shipping documentation
TRANSCRIPT
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Basic Shipping DocumentationBasic Shipping Documentation
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Shipping DocumentationShipping Documentation An induction on the container transport,
and its driving forces. Outlines of the parties and sectors who
involve in the business. Outlines of the operation, and Introduction of the various key
documents associated with each sector of the business, and their significance.
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Who, What is involved, and WhyWho, What is involved, and Why
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What documents are producedWhat documents are produced in facilitating the shipment cycle in facilitating the shipment cycle
Apart from the physical transportation of the goods from the buyer to the seller, there are various kinds of documents involved.
This presentation aims at providing a basic knowledge on the key documents.
For details on the documents, you may need to refer to the relevant text.
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Documents In The OutboundDocuments In The Outbound Business Cycle Business Cycle
LOADCONTAINER
ON SHIP
FREIGHTCHARGE
COLLECTIONRELEASE B/L
TO CUSTOMER
ISSUEBILL OFLADING
(B/L)
IDENTIFYPROSPECTIVECUSTOMERS
BOOKCARGO
AGREE ONPRICE ANDSERVICE WITHCUSTOMER
MARKETING PRICING/SALES CUSTOMER SERVICE
CUSTOMERDELIVERS
THEIR CARGOES
TO WAREHOUSE
DEPOT/TRANSPORT
CFS (Container Freight Station)
MARINEOPERATIONS
CUSTOMER SERVICE
FREIGHT CASHIER
TRANSMITB/L INFO
TODESTINATIONS
DOCUMENTATION
CONTAINERSTUFFINGLOADED
CONTAINER TO
TERMINALOR DEPOT
CARGOCONSOLIDATION
ANDSTUFFING
CUSTOMERPICKS UP EMPTY
CONTAINERAT TERMINAL
OR DEPOT
MEET WITHCUSTOMER
SALES
DISCHARGECOTAINER
DELIVERY ORCUSTOMER
PICK UP
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1.1. To Identify Prospective To Identify Prospective CustomersCustomers
Customer nomination e.g. in L/C
Sales calls & follow up on transport solution for their Sales Contract
Walk-In customers
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What is a L/C ?What is a L/C ? Definition of a
Documentary Credit Availability under
Documentary Credits Guideline for handling
Documentary Credit is set in ICC publication No.500 (the UCP500)
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Who use the L/C ?Who use the L/C ? DC Issuing and Advising Flow ChartDC Issuing and Advising Flow Chart
OK
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Why the L/C ?Why the L/C ? In Export Document Negotiation In Export Document Negotiation
OK
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What is Sales Contract ?What is Sales Contract ?
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What are common in the What are common in the ContractContract
Name and address of seller & buyer Reference between the document and the goods
themselves Number/quantity Price Delivery Terms (Incoterm CIF, FOB etc.) Payment Transport Insurance Import and export license Various contract terms
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Definition of INCOTERMDefinition of INCOTERM INCOTERMS are International Commercial Terms used
in shipping documentation which are recognized as the international standard.
INCOTERMS are generally letters or abbreviations that represent a universal understanding of: the parties involved, terms of sale, point of origin, destination, and party responsible given a certain condition.
INCOTERMS are not legal binding subject to acceptance of individual involved with the business transactions
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Who facilitate the trade conducts : Who facilitate the trade conducts : International Chamber of Commerce International Chamber of Commerce It is the World Business Organization which
promotes international trade, investment and the market economy system worldwide;
makes rules that govern the conduct of business across borders;
e.g. the INCOTERMS 2000 provides essential services, foremost among them
the ICC International Court of Arbitration, the world's leading institution of its kind.
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Incoterms 2000Incoterms 2000 Brings in line with current international trade
practice in 2000 after its last issue in 1990. Reduces uncertainties, misunderstandings, disputes
and litigation on Sales contracts. Implication to transport e.g. if CIF contract then it
cannot perform such contract by other mode than carriage by Sea, needs B/L (or other maritime document) to the buyer, and the kind of document required in a Documentary Credit (L/C).
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How the INCOTERMS worksHow the INCOTERMS works To determine at what point the seller has fulfilled his
obligations so that the goods in legal sense could be said to have been delivered to the buyer
To identify– who is responsible to provide export and import license– what kind of documents to be provided by seller– extent of the insurance protection– duty to notify the order party on any arrangement made– duty to pack the goods
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Increasing seller’s obligation:Increasing seller’s obligation: Structured Structured grouping in INCOTERMSgrouping in INCOTERMS
EXW (Ex Works) [the “E”-term group]– Minimum obligation for the seller. The buyer
receives the cargo directly from the factory and thereafter arranges shipment, insurance etc. himself.
– Should not use this term if buyer cannot carry out export formalities directly or indirectly.
FOB (Free On Board) [the “F”-term group]– The seller has to arrange delivery to the vessel
including trucking and insurance up to the vessel, thereafter the buyer arranges for the freight to the shipping line as well as any further insurance.
– The seller requires to clear the goods for export.
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[continue][continue] CFR (Cost and Freight) [the “C”-term group]
– Same as CIF except the buyer arranges his own insurance.
CIF (Cost, Insurance and Freight) [the “C”-term group]– are all paid by the seller who is then in control of
the shipment until it is discharged and delivered to the buyer.
– Seller only need to clear the goods for export.
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Reason in Using INCOTERMS:Reason in Using INCOTERMS: Benefits Benefits
Gives consistency to the interpretation of international trade terms;
Brings certainty to international transactions; Defines the method of delivery of the goods; Indicates the calculation of the purchase price
and incidental charges which are included
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OOCL .. May I help You ..Do you have schedule to London
next week … Just a minutes, let me check
2.2. To Understand Customer’s To Understand Customer’s Requirement Requirement
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Okay .. Thank you
Its approved, US$1500
33. Commit . Commit RequirementRequirement
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Please make Booking to Customer
4.4. Book Cargo Book Cargo
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Booking
Acknowledgement
Booking Booking AcknowledgementAcknowledgement
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Sample Sample Booking Booking AcknowledgementAcknowledgement
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5.5. Picks up empty container: Picks up empty container: from designated depot from designated depot
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Sample Sample
Job Job OrderOrder
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6.6. Factory Stuffing Factory Stuffing
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9. 9. Laden Container to Laden Container to TerminalTerminal
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10.10. Load container onboard Load container onboard shipship
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Customer & Shipment Details: * Shipper * Consignee * POR * POL POD * FND
Cargo Details:
……. etc
11.11. Bills Of Lading Preparation Bills Of Lading Preparation
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Samples of Shipping InstructionSamples of Shipping Instruction
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Documentationsissue
BL
Bills Of Lading IssuanceBills Of Lading Issuance
BL
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What is the Bill of Lading?What is the Bill of Lading?
The Bill of Lading (B/L) is a document issued by the carrier serving as a legal document between the shipper and the carrier by which both parties accept the carriage to be bound as stipulated on Terms and Conditions of the B/L
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Functions of the Bill of Functions of the Bill of LadingLading
It is the shipping line’s Receipt of the cargo which includes description of the cargo and other particulars declared by the shipper.
It is an written evidence of Contract of Carriage that the vessel will transport the goods from a named place of receipt to a named place of delivery.
It is a Document of Title which means that it can be sold or otherwise transferred. The owner of the B/L has the right of ownership of the cargo.
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Why the Bill of Lading is important Why the Bill of Lading is important to the shipper (consignor)? to the shipper (consignor)?
The consignor (shipper) having obtained the Bill of Lading issued by the carrier will serve as an evidence signifying their fulfillment of their part of the sales contract between the buyer. The shipper can then collect their payment for the sales of the goods with the presentation of the Bill of Lading
B/L also governs the liabilities of carrier on the reimbursement of cargo claims and general average
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How to draw up Content How to draw up Content of a Bill of Lading ? of a Bill of Lading ?
Customer information (Shipper, Consignee, Notify Party) furnished by shipper
Shipment start & end places (POR/POL/POD/FND)
Cargo particulars furnished by shipper: Cargo Description, Marks & Numbers, weight / measurements, cargo package and quantity etc)
Name of the vessel and her voyage number Key Dates & Places: e.g. Onboard Date Freight details (optional) Signature
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Sample Sample Bill of Bill of LadingLading
Please double click Please double click the form if you would the form if you would like to see the detailslike to see the details
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UCP500UCP500 It’s ICC Uniform Customs
and Practice for Documentary Credits
UCP 500, published by ICC in 1993 is the new version revised from UCP 400
A set of Rules to facilitate the Documentary Credit undertakings.
Standard for examination of Documents by banks
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Some Common types Some Common types of B/L in shipping of B/L in shipping
Marine / Ocean Bill of Lading Straight Bill of Lading To Order negotiable Bill of Lading Original Bill of Lading Sea Waybill (or Express B/L) Shipped Bill of Lading
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The Sea WaybillThe Sea Waybill
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Definition of the Sea Definition of the Sea WaybillWaybill
It is a document issued to a shipper in exchange for his cargo. A Sea Waybill is not negotiable and therefore cargo can only be delivered to a named consignee nominated by the shipper. It is possible for a shipper to vary his instructions and any request to change consignee should always be made in writing.
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Usage of The Sea WaybillUsage of The Sea Waybill Due to the increased speed and turn around of container
vessels, the Bills of Lading issued to the shippers may not have reached the consignees by the time they wish to take delivery from the vessel, hence it may be desirable to issue a Sea Waybill.
It is also useful for companies that trade internationally with themselves between geographical areas where payment for exports is not a problem.
Hence, a Sea Waybill can be sent forward with the goods allowing the consignee to take immediate delivery.
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Disadvantages of The Sea Disadvantages of The Sea WaybillWaybill
It is a high risk business transaction. Delivery - The carrier shall be under no liability for wrong delivery if
he can prove that he has exercised reasonable care to ascertain that the party claiming to be the consignee is in fact that party.
Right of Control – Unless shipper expressly noted on the Sea Waybill, he shall be the only party entitled to give the carrier instructions in relation to the contract of carriage. Unless prohibited by the applicable law, he shall be entitled to change the name of the consignee at any time up to the consignee claiming delivery of the goods after their arrival at destination.
It is not possible for shipper to change the cargo entity after Sea Waybill is issued.
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Prohibited Liability Clauses on Prohibited Liability Clauses on B/LB/L
Clause that increase carrier’s risk exposure and beyond the Club’s insurance covers are generally prohibited.
Shipped clean onboard Clean onboard To be stowed or shipped below deck or water line To be stowed away from boiler or engines To be carried at temperature Transshipment prohibited or not allowed Cool stowage Protected from freezing Ventilated container
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What is new in todayWhat is new in today B/L Printing ? via Internet B/L Printing ? via Internet
OOCL leads the container transport industry in technological innovation by offering access to original Bills of Lading via the Internet.
Customers can now print their Bills of Lading via the Internet in their own offices saving time and the cost of collecting documents in person.
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Features of Internet Bill of LadingFeatures of Internet Bill of Lading
The Bill of Lading from the Internet can be printed at the location of shipper’s choice and time is saved because customer is not required to collect the document in person or to use costly courier services.
Shippers can transfer the right to print the Bill of Lading to their counterparts so that there is no need for them to forward a hard copy.
Shippers can use our system to internally distribute Bills of Lading to different departments or regions. If the shippers transfer the printing rights to consignee, forwarder and/or bank, they may also internally distribute the Bill of Lading to their various counterparts.
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12.12. Shipper Collect B/L Shipper Collect B/L
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13.13. Complete Voyage Data to Complete Voyage Data to enable destination inbound enable destination inbound
process to start process to start
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Complete Export Authority Complete Export Authority Formalities Formalities
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The ManifestThe Manifest
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Sample ManifestSample ManifestPlease double click the form if you would like to see the detailsPlease double click the form if you would like to see the details
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Definition of the ManifestDefinition of the Manifest It is a document that lists in detail all the bills
of lading issued by a vessel or its agent or master i.e., a detailed summary of the total cargo of a vessel. It is used principally for customs purposes. It is also called summary of Bills of lading.
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Purpose of the ManifestPurpose of the Manifest For submission to customs in connection with clearance of the vessel
to and from certain ports By the shipping agent as a record of the shipments made and as a
reference document for numerous purposes in the day to day operation. By the ship as a record of cargo loaded on board, by destination. By the agent in the discharging port as a check list from which he can
contact customers regarding the delivery of their cargo and also ascertain whether freight must be collected before delivery
By the ship owner to check the agent’s commissions and to ascertain from where he can expect payment of fright to be credited to his current account
Manifest is also utilized by terminal or port authority to charge wharfage or other port charges
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In Sea TransitIn Sea Transit
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Shipper send the Original BL to Consignee
B/L Transactions by customersB/L Transactions by customers
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DOCUMENTATION
DEPOT/TRANSPORT
EDITINBOUNDINFORMATION
RECEIVEMANIFEST
INFORMATION
DOCUMENTATION DOCUMENTATION
STORECONTAINERIN TERMINAL
FOR CUSTOMERPICK-UP
MARINEOPERATIONS
TRANSPORT
CUSTOMERPICKS UP
CONTAINER ANDUNLOADS CARGO
TRANSPORT/WAREHOUSE
INTERMODALCONNECTION
STORE CONTAINER IN
INLANDCONTAINER
YARD
DISCHARGECONTAINER
SEND ARRIVALNOTICE TOCUSTOMER
FREIGHT CASHIER
COLLECTFREIGHT
CHARGES/AUTHORIZE
RELEASE
CUSTOMERRETURNS
EMPTYCONTAINERTO DEPOT
SUBMIT MANIFEST TO GOVT. AGENCIES FORREVIEW &ACCEPTANCE
Documents In The Inbound BusinessDocuments In The Inbound BusinessCycleCycle
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When the ship arrive at the destination, inbound cycle starts :(1) Receive manifest information(2) Edit inbound information(3) Submit Manifest to Government Agencies for review and acceptance(4) Send arrival notice to customer(5) Discharge container(6) Store container in terminal for customer picks up or dispatch containers to Inland point or Buyer’s facilities(7) Issue authorized release documents(8) Customer picks up container and unload cargo(9) Customer return empty container to depot
The Business Cycle at InboundThe Business Cycle at Inbound
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14.14. Start Process Inbound Start Process Inbound Voyage DataVoyage Data
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15.15. Complete Inbound Complete Inbound FormalitiesFormalities
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16.16. The Manifest Submission The Manifest Submission
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Sample Sample ManifestManifest
Please double click the form if you would like to see the detailsPlease double click the form if you would like to see the details
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Arrival date
Vessel Information
Container Details
Freight/Surcharg
17.17. Notification on Cargo Arrival Notification on Cargo Arrival (Arrival Notice) (Arrival Notice)
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Sample Sample Arrival Arrival NoticeNotice
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18.18. Container Discharge Container Discharge
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19.19. Store Container On Dock Store Container On Dock for Customer Pick Up for Customer Pick Up
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20. Inter-modal Connection:20. Inter-modal Connection: From Terminal to From Terminal to
CustomerCustomer
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21. Inter-modal Connection:21. Inter-modal Connection: From Terminal to Inland From Terminal to Inland
DepotDepot
![Page 67: Basic Shipping Documentation](https://reader035.vdocuments.mx/reader035/viewer/2022062503/58715b0b1a28ab8e5b8b63e7/html5/thumbnails/67.jpg)
Sample Sample
Job Job OrderOrder
![Page 68: Basic Shipping Documentation](https://reader035.vdocuments.mx/reader035/viewer/2022062503/58715b0b1a28ab8e5b8b63e7/html5/thumbnails/68.jpg)
22.22. Cargo Release against Cargo Release against Document & Payment Document & Payment
![Page 69: Basic Shipping Documentation](https://reader035.vdocuments.mx/reader035/viewer/2022062503/58715b0b1a28ab8e5b8b63e7/html5/thumbnails/69.jpg)
Sample Sample InvoiceInvoice
![Page 70: Basic Shipping Documentation](https://reader035.vdocuments.mx/reader035/viewer/2022062503/58715b0b1a28ab8e5b8b63e7/html5/thumbnails/70.jpg)
Sample Sample
Bank Bank GuaranteeGuarantee
![Page 71: Basic Shipping Documentation](https://reader035.vdocuments.mx/reader035/viewer/2022062503/58715b0b1a28ab8e5b8b63e7/html5/thumbnails/71.jpg)
23. 23. Take Delivery of Laden Take Delivery of Laden ContainerContainer
![Page 72: Basic Shipping Documentation](https://reader035.vdocuments.mx/reader035/viewer/2022062503/58715b0b1a28ab8e5b8b63e7/html5/thumbnails/72.jpg)
Sample Sample Release Release
OrderOrder
![Page 73: Basic Shipping Documentation](https://reader035.vdocuments.mx/reader035/viewer/2022062503/58715b0b1a28ab8e5b8b63e7/html5/thumbnails/73.jpg)
24. 24. Return Empty ContainerReturn Empty Container
![Page 74: Basic Shipping Documentation](https://reader035.vdocuments.mx/reader035/viewer/2022062503/58715b0b1a28ab8e5b8b63e7/html5/thumbnails/74.jpg)
EndEnd