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Sea Shipment Flow Explained! - Each Step of FCL Process For Logistics

This document outlines the 16 main steps in the full container load (FCL) logistics process for sea shipment. It begins with product manufacturing and a customer booking request. A forwarder then arranges transportation including vessels, customs clearance, and necessary documents. The empty container is picked up, loaded with cargo, and transported by sea to the destination port where customs clearance is completed. Bills of lading are issued and marine transportation occurs. Upon arrival, customs clearance is done and delivery of the cargo concludes the process.

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197 views2 pages

Sea Shipment Flow Explained! - Each Step of FCL Process For Logistics

This document outlines the 16 main steps in the full container load (FCL) logistics process for sea shipment. It begins with product manufacturing and a customer booking request. A forwarder then arranges transportation including vessels, customs clearance, and necessary documents. The empty container is picked up, loaded with cargo, and transported by sea to the destination port where customs clearance is completed. Bills of lading are issued and marine transportation occurs. Upon arrival, customs clearance is done and delivery of the cargo concludes the process.

Uploaded by

alice
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Sea Shipment Flow Explained!

– Each step of FCL process for Logistics


1. A product is made in the factory.

2. There is a booking request from a customer.


- Once the QC of a completed product is done, a factory’s shipping representative send a
booking to a forwarder.
- At this time, the followings are informed; type and number of containers, pick-up date,
loading place, Cut Off、ETD、ETA、unloading place, Cut Off, ETD, ETA, free time.

3. A forwarder arranges all logistics.


- Based on the information, the forwarder prepares vessels, trucks, custom clearance, and
confirms necessary documents.

4. All required documents are checked.


- If any of information is wrong, a cargo cannot pass through custom clearance properly
nor board a vessel.
- If a certificate of origin has a mistake, a cargo is not allowed for duty reduction

5. An empty container is picked up.


- To pick up a cargo, we visit a container depot to pick up an empty container
- Container depots are also referred to as container vanpools.
- A poor quality container is sometimes assigned even though we have booked a container
grade A.

6. An empty container is delivered to a customer and a cargo is picked up.


- A large scale customer may use dozens of containers a day.
- We calculate the time to load and also manages truck’s delivery schedule.
- The container may shake greatly at sea, so it is important that cargo is not moved inside.
It must also be lashed firmly.

7. The cargo arrives at a port. At this time, we have to go through VGM and export custom
clearance.
- The container arrives at a port, where it is loaded onto a vessel. The term “Cut Off” is
used for dead line of container “gate in” at the port.
- In addition, Container Return means that it has to go back to port to be loaded on a
vessel. Before the container is loaded on a vessel.
・AFR (to Japan: advance declaration of exports – 24 hours before ETD)
・VGM (mandatory declaration of the total weight of the container)
and export custom clearance have to be completed.
- Cut Off must be kept because enough time for loading and unloading in a port is necessary.

8. The container is loaded onto a vessel.


- When a container is loaded onto a vessel, it is lifted and loaded by a large crane called a gantry
crane. The total weight of the container is a major issue since it is being lifted.
- Some costumers inquire whether a 40 feet container can carry twice the weight of a 20 feet
container, but it can’t. Keep in mind that cargo weigh is roughly limited to about 25 tons,
whether 20 feet or 40 feet.
- There is a limit of the space on a vessel as you see the picture. Depending on the season, it can
be difficult to keep a space

9. B/L is issued when the vessel leaves the port.


- B/L is issued by a forwarder, and it is sent to Shipper.
During the time, payment for goods is made between Shipper and Consignee.
For Original B/L, Shipper will send the original B/L to Consignee by a courier service such as
DHL or Fedex.
- Thus, Consignee must obtain B/L to pick up D/O.

10. Marine transportation is done.


- Marine transportation can take a few days to arrive if it’s the close ocean, but it may take up to
two months if it’s a long route like Japan-Europe.
- This is where we move on to the import step. Arrival Notice is issued 2 to 3 days before the
vessel arrives at a port.

11. Arrival Notice is issued.


- Before vessel arrive to the port, Arrival Notice is issued and sent by an importer’s forwarder to
Consignee.

12. An importer pays Arrival Notice and also submits B/L.


- Arrival Notice has a number of costs, such as Terminal Handling charge and D/O fees, which
an importer has to pay.
- An importer must obtain D/O, which is a delivery note. So, the amount of money that is
written on Arrival Notice is paid to a forwarder.
- If it’s an original B/L, the original document is submitted, and if it’s Surrendered B/L, a copy
is submitted to a forwarder.

13. D/O is released from forwarder to importer.


- In exchange for Arrival Notice payments and B/L submission, an importer’s forwarder
releases D/O to Consignee.

14. We must also clear import custom clearance.


- In order for an importer to pick up a container, not only D/O but also import custom clearance
must be completed.
- Documents such as Invoice, Packing List, and Certificate of Origin are entered into the
system, and a shipping person declares the import.
- If there is no problem with the declaration, they issue an import permit, but if not, an
inspection will be required.

15. D/O is submitted in a yard and the cargos is released.


- Having obtained D/O and completed import clearance, Consignee can submit D/O to container
yard and they pick up the container from the yard.

16. The cargo is being delivered.


- A trailer arrives at the destination, and a cargo is unloaded. This is the end of delivery.

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