Sea Shipment Flow Explained!

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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– Each step of FCL process for Logistics

2. There is a booking request from a customer.

3. A forwarder arranges all logistics.

4. All required documents are checked.

5. An empty container is picked up.

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

8. The container is loaded onto a vessel.

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

10. Marine transportation is done.

11. Arrival Notice is issued.

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

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

14. We must also clear import custom clearance.

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

16. The cargo is being delivered.

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