shipping revised

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Booking of Shipping Space

The exporter can book shipping space with a carrier or carrier's

agent directly or through a customs broker or forwarder. Inpractice, it is not uncommon for the exporter to select a carrier and

shipping schedule and let the customs broker or forwarder book thespace.

Choosing the Carrier

Unless the importer specifies a carrier, the exporter is free

to choose a shipping company or airline which offers acompetitive rate and can meet the latest date for shipment.

Certain importing countries may prohibit the use of flag

vessels of a hostile country and any vessels that wouldmake a stopover in a hostile country en route to their territory.

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Please see Seaports of the World. Some port names may bespelled differently, for example, Arkhangelsk in the

Russian Federation may appear as Archangels.

The letters after the port names in Australia, Canada

and the U.S.A. represent the state or province where theport is located (please see General References---Abbreviations - Provinces, States and Territories).

Checking the Ocean Shipping Schedules

In many countries, the ocean shipping schedules (bothoutbound and inbound) are published in a major newspaper.

In countries where newspapers do not carry shippingschedules, the exporter may contact the carrier, customs

broker or forwarder for shipping information. Theinformation is also available from private publishers of

shipping schedules.

Carrier - Voyage/Flight No.

The phrase "carrier - voyage/flight no." refers to the name

of the carrier and its voyage number (in the case of oceanand land freight) or flight number (in the case of air

freight).

In ocean freight, the name of a carrier usually is

preceded by letters S/S, SS, S.S., M/V, MV or M.V.. TheS/S, SS or S.S. stands for steamship, while M/V, MV or

M.V. for merchant vessel. The term steamship is stillwidely used despite the fact that modern ships are not

propelled by steam.

ETD (ETS) and ETA

When booking shipping space, the exporter should know

the ETD (ETS) and ETA of the shipment.



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The term ETD is the estimated or expected time of

departure from the port or point of origin; it applies to allmodes of transportation. ETD is shipment on or about.

The term ETS is the estimated or expected time of sailing from the port of origin; it applies to ocean freight.

ETS is sailing on or about.

The term ETA is the estimated or expected time of arrival at the port or point of destination; it applies to all

modes of transportation.

Stopover En Route to Destination

When booking a shipping space, it is important to verifywhether the vessel will stopover in other port(s) to unload

and load other cargoes en route to the destination. Thestopover in certain ports, particularly congested ones, may

extend far beyond the expected time.

Verbal Booking of Space and Dead Freight

In many countries, verbal booking of shipping space is

accepted, except for dangerous goods. Sometimes, thespace booked is not used and the carrier may levy a charge

known as dead freight. The exporter must inform thecustoms broker or forwarder who booked the space on

his/her behalf in advance if the space will not be used, so

that other shippers may use the space and to avoid payingthe dead freight charge.

Dangerous Goods



When shipping dangerous goods, a written application for shipping space is required. If a shipping order is issued for

dangerous goods, it does not mean that the goods will beaccepted for loading on board the vessel. When they arrive

at the designated customs delivery (closing) location, the

goods, shipping order and Dangerous Goods Note aresubmitted to the ship's master for approval before customsclearance and loading.

Transhipments

The prefix "trans-" means over or to the other side of.

Transhipment or transshipment (written with two letter 's')---

transit shipment---means a shipment destined to a port or aninterior point (location or depot) is best reached by connecting

shipment(s) from other port(s) and/or point(s). It is the unloadingand reloading of cargo from one means of conveyance to another,in the same or different modes of transportation, during the course

of carriage from the place of shipment to the place of destinationstipulated in the letter of credit (L/C).

Unless otherwise stipulated in the L/C, transhipment isallowed provided that the entire carriage is covered by one and thesame transport document.

Some exporters refuse to accept transhipment because of a

belief that it costs more and is slower than a direct shipment. Someimporters have the same belief. Contrary to this belief, by using

transhipment the cost to certain destinations can be lower and it canbe faster than a direct shipment. For instance, the frequency of

sailing to a certain destination in a direct shipment is once everytwo weeks, but by transhipment to the same destination the

frequency of sailing can be once or twice weekly. The point in suchan instance is that the greater the supply the lower the cost and the

earlier the shipment the earlier the importer may receive the goods.In other words, transhipment may save cost and time.

Most ocean freight are containerized in modern shipping.Hence, intermediate reloading of cargo is eliminated in the

transhipment, which reduces the cost and time.



The transhipment charge usually is included in the throughfreight rates, but the shipper must verify with the carrier to ensure

that no additional transhipment charge will be collected from theconsignee.

Multilateral agreements make the transhipment possible. Withworldwide trades and new trading partners on the rise, new routesfor transhipment will emerge. For example, trades between Far

East and CIS (Commonwealth of Independent States of former Eastern Bloc), the shipment traditionally passes through the Black

Sea, but the transit time is shorter by transhipment via the MiddleEast country (e.g. Iran).

Shipments from Asia and Europe to Central and South

America, and vice versa, often require transhipment at ports inNorth America.

Feeder Vessel and Master Ship

In booking the ocean shipping space with a transhipment,

the shipping company provides the names and voyagenumbers of the feeder vessel and master ship. The master

ship sometimes is referred to as the mother ship. Thenames and voyage numbers of the feeder vessel and master

ship are entered in the ocean bill of lading.

Transhipment in Landlocked Countries

Certain countries are landlocked and so are inaccessible by

deep-sea ocean vessels. Import and export goods must betranshipped in other country(ies) by means of truck and/or

rail and/or inland waterway (river, canal or lake) transports.Please see some of the landlocked countries in the

Landlocked Countries and Transhipping Points.

Shipping Order (S/O)



The shipping order---shipping permit---is issued by the shipping

company to a shipper with a confirmed space booking, authorizing

the receiving clerk (cargo checker) at the container terminal or

dock to receive a specified amount of goods from the namedshipper.

A shipping order (S/O) typically contains the space bookingnumber, names and addresses of the shipper and customs broker or

forwarder, vessel and voyage number, sailing time, delivery dateand location, customs closing date, and number and type of

packages.

The customs broker or forwarder usually requires the packing

list of a consignment in order to book the shipping space and to

obtain the S/O and/or to prepare the dock receipt (shipping note).In some cases, the presentation of the packing list and a validexport permit is required to obtain the S/O.

The S/O accompanies the dock receipt and the deliverer of the

goods presents these two and other documents that may be requiredin the delivery to the receiving clerk (cargo checker) at the closing

location. In certain countries, only the space booking number isneeded instead of a formal S/O, since the information in an S/O is

found in the dock receipt.



Export Documentation and Export Shipping

Source: Small Business Management

When preparing for Export Documentation and Export Shipping, the exporter needs tobe aware of packing, labeling, documentation, and insurance requirements. Because thegoods are being shipped by unknown carriers to distant customers, the new exportermust be sure to follow all shipping requirements to help ensure that the merchandise is

y packed correctly so that it arrives in good condition;y labeled correctly to ensure that the goods are handled properly and arrive on time

and at the right place;y

documented correctly to meet local and foreign government requirements as wellas proper collection standards; andy insured against damage, loss, and pilferage and, in some cases, delay.

Because of the variety of considerations involved in the physical Export

Documentation and Export Shipping process, most exporters, both new

and experienced, rely on an international freight forwarder to perform these services.

FREIGHT FORWARDERS

The international freight forwarder acts as an agent for the exporter in moving cargo tothe overseas destination. These agents are familiar with the import rules and regulationsof foreign countries, methods of shipping, government export regulations, and thedocuments connected with foreign trade.

Freight forwarders can assist with an order from the start by advising the exporter of thefreight costs, port charges, consular fees, cost of special documentation, and insurancecosts as well as their handling fees - all of which help in preparing price quotations.Freight forwarders may also recommend the type of packing for best protecting themerchandise in transit; they can arrange to have the merchandise packed at the port orcontainerized. The cost for their services is a legitimate export cost that should be figuredinto the price charged to the customer.

When the order is ready to ship, freight forwarders should be able to review the letter of

credit, commercial invoices, packing list, and so on to ensure that everything is in order.They can also reserve the necessary space on board an ocean vessel, if the exporterdesires.

If the cargo arrives at the port of export and the exporter has not already done so,freight forwarders may make the necessary arrangements with customs brokers toensure that the goods comply with customs export documentation regulations. Inaddition, they may have the goods delivered to the carrier in time for loading. They mayalso prepare the bill of lading and any special required documentation. After shipment,



they forward all documents directly to the customer or to the paying bank if desired.

To Export Documentation and Export Shipping - Top

PACKING

In packing an item for export, the shipper should be aware of the demands thatexporting puts on a package. Four problems must be kept in mind when an exportshipping crate is being designed: breakage, weight, moisture, and pilferage.

Most general cargo is carried in containers, but some is still shipped as breakbulk cargo.Besides the normal handling encountered in domestic transportation, a breakbulkshipment moving by ocean freight may be loaded aboard vessels in a net or by a sling,conveyor, chute, or other method, putting added strain on the package. In the ship'shold, goods may be stacked on top of one another or come into violent contact with othergoods during the voyage. Overseas, handling facilities may be less sophisticated than inyour country and the cargo may be dragged, pushed, rolled, or dropped duringunloading, while moving through customs, or in transit to the final destination.

Moisture is a constant problem because cargo is subject to condensation even in the holdof a ship equipped with air conditioning and a dehumidifier. The cargo may also beunloaded in the rain, and some foreign ports do not have covered storage facilities. Inaddition, unless the cargo is adequately protected, theft and pilferage are constantthreats.

Since proper packing is essential in exporting, often the buyer specifies packingrequirements. If the buyer does not so specify, be sure the goods are prepared with thefollowing considerations in mind:

y Pack in strong containers, adequately sealed and filled when possible.y To provide proper bracing in the container, regardless of size, make sure the

weight is evenly distributed.y Goods should be packed in oceangoing containers, if possible, or on pallets to

ensure greater ease in handling. Packages and packing filler should be made of moisture-resistant material.

y To avoid pilferage, avoid mentioning contents or brand names on packages. Inaddition, strapping, seals, and shrink wrapping are effective means of deterringtheft.

One popular method of shipment is the use of containers obtained from carriers orprivate leasing concerns. These containers vary in size, material, and construction andcan accommodate most cargo, but they are best suited for standard package sizes and

shapes. Some containers are no more than semi-truck trailers lifted off their wheels andplaced on a vessel at the port of export. They are then transferred to another set of wheels at the port of import for movement to an inland destination. Refrigerated andliquid bulk containers are readily available.

Normally, air shipments require less heavy packing than ocean shipments, but they muststill be adequately protected, especially if highly pilferable items are packed in domesticcontainers. In many instances, standard domestic packing is acceptable, especially if theproduct is durable and there is no concern for display packaging. In other instances,



high-test (at least 250 pounds per square inch) cardboard or tri-wall construction boxesare more than adequate.

For both ocean and air shipments, freight forwarders and carriers can advise on the bestpackaging. Marine insurance companies are also available for consultation. It isrecommended that a professional firm be hired to package for export if the exporter is

not equipped for the task. This service is usually provided at a moderate cost.

Finally, because transportation costs are determined by volume and weight, specialreinforced and lightweight packing materials have been devised for exporting. Care inpacking goods to minimize volume and weight while giving strength may well savemoney while ensuring that goods are properly packed.


LABELING

Specific marking and labeling is used on export shipping cartons and containers to

y meet shipping regulations,y ensure proper handling,y conceal the identity of the contents, andy help receivers identify shipments.

The overseas buyer usually specifies export marks that should appear on the cargo foreasy identification by receivers. Many markings may be needed for shipment. Exportersneed to put the following markings on cartons to be shipped:

y Shipper's mark.y Country of origin (exporters¶ country).y Weight marking (in pounds and in kilograms).y Number of packages and size of cases (in inches and centimeters).y Handling marks (international pictorial symbols).y Cautionary markings, such as "This Side Up" or "Use No Hooks" (in English and in

the language of the country of destination).y Port of entry.y Labels for hazardous materials (universal symbols adapted by the International

Maritime Organization).

Legibility is extremely important to prevent misunderstandings and delays in shipping.Letters are generally stenciled onto packages and containers in waterproof ink. Markingsshould appear on three faces of the container, preferably on the top and on the two ends

or the two sides. Old markings must be completely removed.

In addition to port marks, customer identification code, and indication of origin, themarks should include the package number, gross and net weights, and dimensions. If more than one package is being shipped, the total number of packages in the shipmentshould be included in the markings. The exporter should also include any special handlinginstructions on the package. It is a good idea to repeat these instructions in the languageof the country of destination. Standard international shipping and handling symbols



should also be used.

Exporters may find that customs regulations regarding freight labeling are strictlyenforced; for example, most countries require that the country of origin be clearly labeledon each imported package. Most freight forwarders and export packing specialists cansupply necessary information regarding specific regulations.


DOCUMENTATION

Exporters should seriously consider having the freight forwarder handle the formidableamount of documentation that exporting requires; freight forwarders are specialists inthis process. The following documents are commonly used in exporting; which of themare actually used in each case depends on the requirements of both our government andthe government of the importing country.

*Commercial invoice. As in a domestic transaction, the commercial invoice is a bill forthe goods from the buyer to the seller. A commercial invoice should include basic

information about the transaction, including a description of the goods, the address of the shipper and seller, and the delivery and payment terms. The buyer needs the invoiceto prove ownership and to arrange payment. Some governments use the commercialinvoice to assess customs duties.

* Bill of lading. Bills of lading are contracts between the owner of the goods and thecarrier (as with domestic shipments). There are two types. A straight bill of lading isnonnegotiable. A negotiable or shipper's order bill of lading can be bought, sold, ortraded while goods are in transit and is used for letter-of-credit transactions. Thecustomer usually needs the original or a copy as proof of ownership to take possession of the goods.

* Consular invoice. Certain nations require a consular invoice, which is used to controland identify goods. The invoice must be purchased from the consulate of the country towhich the goods are being shipped and usually must be prepared in the language of thatcountry.

* Certificate of origin. Certain nations require a signed statement as to the origin of the export item. Such certificates are usually obtained through a semiofficial organizationsuch as a local chamber of commerce. A certificate may be required even though thecommercial invoice contains the information.

* Inspection certification. Some purchasers and countries may require a certificate of

inspection attesting to the specifications of the goods shipped, usually performed by athird party. Inspection certificates are often obtained from independent testingorganizations.

* Dock receipt and warehouse receipt. These receipts are used to transferaccountability when the export item is moved by the domestic carrier to the port of embarkation and left with the international carrier for export.

* Destination control statement. This statement appears on the commercial invoice,



ocean or air waybill of lading, and SED to notify the carrier and all foreign parties that theitem may be exported only to certain destinations.

* Insurance certificate. If the seller provides insurance, the insurance certificate statesthe type and amount of coverage. This instrument is negotiable.

* Export license. (when needed).

* Export packing list. Considerably more detailed and informative than a standarddomestic packing list, an export packing list itemizes the material in each individualpackage and indicates the type of package: box, crate, drum, carton, and so on. It showsthe individual net, legal, tare, and gross weights and measurements for each package .Package markings should be shown along with the shipper's and buyer's references. Thepacking list should be attached to the outside of a package in a waterproof envelopemarked "packing list enclosed." The list is used by the shipper or forwarding agent todetermine (1) the total shipment weight and volume and (2) whether the correct cargo isbeing shipped. In addition, customs officials (both local and foreign) may use the list tocheck the cargo.


Documentation must be precise. Slight discrepancies or omissions may preventmerchandise from being exported, result in exporting firms not getting paid, or evenresult in the seizure of the exporter's goods by local or foreign government customs.Collection documents are subject to precise time limits and may not be honored by abank if out of date. Much of the documentation is routine for freight forwarders orcustoms brokers acting on the firm's behalf, but the exporter is ultimately responsible forthe accuracy of the documentation.

The number of documents the exporter must deal with varies depending on the

destination of the shipment. Because each country has different import regulations, theexporter must be careful to provide proper documentation. If the exporter does not relyon the services of a freight forwarder, there are several methods of obtaining informationon foreign import restrictions:

y Foreign government embassies and consulates can often provide information onimport regulations.

y The Air Cargo Tariff Guidebook lists country-by-country regulations affecting airshipments. Other information includes tariff rules and rates, transportationcharges, air waybill information, and special carrier regulations. Contact the AirCargo Tariff, P.O. Box 7627, 1117 ZJ Schiphol Airport, Netherlands.

y The National Council on International Trade Documentation (NCITD) providesseveral low-cost publications that contain information on specific documentationcommonly used in international trade. NCITD provides a free listing of itspublications. Contact National Council on International Trade Documentation, 350Broadway, Suite 1200, New York, NY 10013; telephone 212-925-1400.

EXPORT IMPORT SHIPPING

The handling of transportation is similar for domestic orders and export orders. Theexport marks should be added to the standard information shown on a domestic bill of



lading and should show the name of the exporting carrier and the latest allowed arrivaldate at the port of export. The exporter should also include instructions for the inlandcarrier to notify the international freight forwarder by telephone on arrival.

International shipments are increasingly being made on a through bill of lading under amultimodal contract. The multimodal transport operator (frequently one of the modal

carriers) takes charge of and responsibility for the entire movement from factory to thefinal destination.

When determining the method of international shipping, the exporter may find it useful toconsult with a freight forwarder. Since carriers are often used for large and bulkyshipments, the exporter should reserve space on the carrier well before actual shipmentdate (this reservation is called the booking contract).

The exporter should consider the cost of shipment, delivery schedule, and accessibility tothe shipped product by the foreign buyer when determining the method of internationalshipping. Although air carriers are more expensive, their cost may be offset by lowerdomestic shipping costs (because they may use a local airport instead of a coastal

seaport) and quicker delivery times. These factors may give the exporter an edge overother competitors, whose service to their accounts may be less timely.

Before shipping, the firm should be sure to check with the foreign buyer about thedestination of the goods. Buyers often wish the goods to be shipped to a free-trade zoneor a free port where goods are exempt from import duties.

EXPORT IMPORT INSURANCE

Export shipments are usually insured against loss, damage, and delay in transit by cargoinsurance. For international shipments, the carrier's liability is frequently limited byinternational agreements and the coverage is substantially different from domestic

coverage. Arrangements for cargo insurance may be made by either the buyer or theseller, depending on the terms of sale. Exporters are advised to consult with internationalinsurance carriers or freight forwarders for more information.

Damaging weather conditions, rough handling by carriers, and other common hazards tocargo make marine insurance important protection for exporters. If the terms of salemake the firm responsible for insurance, it should either obtain its own policy or insurecargo under a freight forwarder's policy for a fee. If the terms of sale make the foreignbuyer responsible, the exporter should not assume (or even take the buyer's word) thatadequate insurance has been obtained. If the buyer neglects to obtain coverage orobtains too little, damage to the cargo may cause a major financial loss to the exporter.


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