COURSE TITLE:

INTERNATIONAL FREIGHT FORWARDING

The following syllabus are to be covered:

 International freight forwarder and freight business

 Interaction between international trade and forwarding activity
 Forwarding services and the legal position of the forwarder
 International commercial terms
 Customs brokerage
 Documentation in forwarding

Forwarders perform all duties necessary for the intermodal transport of

commodities across international borders, on behalf of shippers.
Shippers often outsource supply chain coordination to freight forwarders. In
short, freight forwarders arrange the importing and exporting of goods, but do
not actually move the goods themselves

Features of freight forwarders:

Architects of transport
The freight forwarding industry is represented by the International Federation of
Freight Forwarders Associations (FIATA), a non-governmental organization
serving approximately 40,000 freight forwarding and logistics firms that
collectively employ 8 to 10 million people within 150 countries. FIATA
endearingly (and accurately) refers to its member forwarding and logistics firms
as “architects of transport.”
Customs brokerage experts
Seamless importing and exporting of goods across international borders requires
refined industry know-how. International forwarders possess the necessary
expertise to prepare and process customs documents. Forwarders typically are
tasked with reviewing the following:

 Commercial Invoices
 Shipper’s Export Declarations
 Bills of Lading
 All Other Documents Required by the Carrier or Exporting/Importing
Countries.

Agile planners
International trade almost always mandates more than one mode of
transportation to move a given parcel from its originating country to its final
destination. This may comprise a combination of road, rail, sea, and/or air, all
within a single supply chain. Forwarders book cargo space for shipments
through each stretch of the journey, and coordinate all intermodal requirements
on behalf of the shipper.
Tactful negotiators
Forwarders know the value of a good carrier, and work hard to nurture mutually
beneficial relationships with preferred steamship lines. With or without healthy
working carrier relationships, savvy forwarders will still open their business to
bids from various carriers, to ensure competitive freight rates for their
shipments.
FreightForwarder
Roles&Responsibilities
any labor issues at ports involved with transportation

Plan
for extreme weather that could result in delays

Prepare
insurancecoverage

Provide
warehousing, at home and abroad

Consolidate
Shipments from multiple suppliers

Communicate
any changes in delivery requirements

Ensure
damaged equipment is inspected at the point of loading

Calculate
estimated delivery times at each stage of intermodal transport
Monitor
steamship line notices for disruptions

Track
holidays and government actions in origin country

Share
pertinent information regarding hazardous materials

Responsibilities:
Activities vary depending on the type and size of employer but typically include:

 investigating and planning the most appropriate route for a shipment,

taking into account the perishable or hazardous nature of goods, cost,
transit time and security
 arranging appropriate packing, taking into account the climate, terrain,
weight, cost and nature of goods and also the delivery and warehousing of
goods at their final destination
 negotiating contracts, transportation and handling costs
 obtaining, checking and preparing documentation to meet customs and
insurance requirements, packing specifications, and compliance with
other countries' regulations and fiscal regimes
 offering consolidation services by air, sea and road, ensuring cost-
effective and secure solutions to small shippers who have insufficient
cargo to require their own dedicated units
 arranging insurance and assisting the client in the event of a claim
 offering tailored IT solutions and electronic data interchange (EDI)
connections
  arranging payment of freight and other charges or collection of payment
on behalf of the client
 utilising e-commerce, internet technology and satellite systems to enable
real-time tracking of goods
 arranging air transport for urgent and high-value freight and managing the
risk door-to-door
 acting as broker in customs negotiations worldwide to guide the freight
efficiently through complex procedures
 dealing with special arrangements for transporting delicate cargoes, such
as livestock, food and medical supplies
 arranging courier and specialist hand-carry services
 maintaining communication and control through all phases of the journey,
including the production of management reports and statistical and unit-
cost analysis
 maintaining current knowledge of relevant legislation, political situations
and other factors that could affect the movement of freight.

At more senior levels, the role may also involve managing staff and overseeing
activities within a department or specializing in a particular area, such as sea
freight or air freight.
Export Haulage
 The movement of goods from the shipper’s premises to the freight
forwarders warehouse is called export haulage. This usually takes place
with the help of a truck or the combined efforts of a truck and a train.
Depending on the distance and geographical location it could take
anywhere between a few hours to a few weeks.
Export Customs Clearance
 Before a piece of cargo leaves the country it requires clearance from the
country the goods originated from prior to leaving the country. This
process if performed by licensed customs house brokers. They are
required to submit details about the cargo and any supporting documents
that are needed. It is often agreed between the consignee and shipper who
will be responsible for this step of the process.
Origin Handling
 The origin handling part of the process is made up of a number of
different activities that might be performed by the freight forwarder or
their agents. This begins with the cargo being received and where it up
unloaded etc. The cargo is also validated against the booking details and
the forwarders cargo receipt is then issued.
Import Customs Clearance
 The authorities in the destination country that the goods are being moved
to require to check import customs paperwork. This paperwork acts as a
declaration of the type of goods and the value of the goods being shipped.
 The import customs clearance process can begin before the cargo even
arrives at its destination and is not the same as customs duty. It is the
responsibility of the freight forwarder, their agent or nominated customs
house broker to perform the import customs clearance- just as long as they
have a valid license to do so.
Destination Handling
 Destination handling is a process made up of a number of different
activities that are performed at the destination office of the freight
forwarder. This process involves receiving the documents from the freight
forwarders office or agent at origin, including checking any documents
and submitting the carrier bill etc. It is always the freight forwarder or the
agent working for the freight forwarder that takes care of this part of the
handling process.
Import Haulage
 The movement of the cargo from the warehouse of where the goods are
being imported and where the cargo’s final destination is going is
commonly referred to as import haulage. Import haulage can be
undertaken by the freight forwarder or the consignee can also choose to
collect the cargo themselves.
Fast Track Deliveries
 Something that is greatly beneficial for so many companies who are in
need of last minute freight forwarding services is the ability for
companies like Barrington Freight is the fact that they offer next day
delivery. This means that should you require your goods to be transported
to a European destination within 24 hours, which will be able to be
arranged in an efficient and affordable manner. Get in touch to find out
more about European next day deliveries.

Shipping goods to international markets involves several tasks. Business houses

may have their in-house arrangements to ship goods abroad or they may rely on
freight forwarders to do this for them.

It depends on whether businesses want to focus on their main business activities

or whether they would also prefer to handle non-core activities such as packing,
freight forwarding, etc.

With the growth of the global economy, the shipment of goods both domestic, as
well as international, has increased exponentially. USD 19 trillion worth of
annual exports were recorded in 2019.

Companies have to decide on handling their exports or leaving it to the expertise

of freight forwarders. If they want to handle exports instead of letting outside
agencies do it, then to meet the growth in demand, they must invest in the latest
logistics infrastructure, technology, and skilled manpower to handle the
associated tasks. They have to weigh the costs and benefits of such a move
before taking it forward.

Most organizations these days prefer to let third-party operators take care of
their company’s non-core functions so that they can concentrate their resources
on increasing their core business.

Freight forwarders specialize in getting lower costs without sacrificing on the

quality of the job. They help with the logistics of moving goods from point A to
point B in the most cost-effective manner.

Freight forwarders are the intermediary between the consignor of goods and the
point of distribution, such as the destination port. They arrange the inland
transport, port and customs documentation, the shipping on board ocean vessels,
and other supplementary activities.

Because of their rapport with government and other service agencies, they are
able to get work done smoothly, besides getting favourable rates, schedules, etc.

Established freight forwarders are reliable and help in the planning,

coordinating, and movement of your cargo to their destination efficiently.

As can be seen, the main responsibilities of a freight forwarder are to arrange for
shipping the cargo and process its export documentation.

Freight forwarders are essentially Non-vessel Operating Common Carriers

(NVOCCs) though there are some differences between the two. The main
difference being that an NVOCC issues its own Bill of Lading known as the
House Bill of Lading (HBL).

Freight forwarders may or may not own warehouse space, a transport fleet, or
other assets that are required for the successful export of cargo to its overseas
destination.

When they do not own such infrastructure, they lease or hire them from other
service providers. Freight forwarders are examples of second-party logistics
providers.

Second-party Logistics Provider?

A second-party logistics provider (2PL) handles the transport part of the

movement of goods. They move cargo from one point to the other in their own
transport such as trucks, ocean vessels, etc. If they do not have their own
transport then, they lease or charter them from other service providers.

Having briefly looked at second-party logistics, let us see what 1PL, 3PL, 4PL,
and 5PL do. Barring 1PL, the rest are all service providers. They store goods,
manage the inventory, pick them according to order requirements, and pack and
ship them to the customer. They even manage your resources and technology. A
freight forwarder may approach a 2PL or a 3 PL for his requirements.

First-party Logistics

First-party logistics (1PL) refers to the business or organization that manages its
cargo, transport, and other arrangements for sea freight on its own. 1PL is the
consignor who sends cargo to his customer overseas by organizing inland
transport, labour, customs documentation, and shipping. There are no outside
parties involved here and all arrangements are made by the business that exports
the cargo.

Second-party Logistics Provider

A second-party logistics provider (2PL) handles the transport part of the

movement of goods. They move cargo from one point to the other in their own
transport such as trucks, ocean vessels, etc. These are also leased or chartered.

Third-party Logistics Provider

A third-party logistics provider manages inventory, storage, and also the

fulfilment of orders for their customers. 3PL service providers help
organizations focus on their core business activities.

Fourth-party Logistics Provider

Fourth-party logistics providers (4PL) are ahead of 3PL providers by managing

an organization’s technology as well as infrastructure besides inventory, storage,
and order fulfilment. A 4PL usually employs a manager to take care of
operations and manage the supply chain of their clients. They provide
consultation to their clients on all the logistics aspects.

Fifth-party Logistics Provider

Fifth-party logistics (5PL) lays emphasis on e-business solutions and support

multiple clients. They hire other service providers to construct and implement
logistics infrastructure and strategic technologies for their clients. They work
closely with their clients in achieving these objectives. This is a fairly new
 concept that is catching up fast, thanks to the growth of e-business and
technology.

Exporting cargo is a specialized task that calls for good knowledge of the
exporting country’s export laws and Customs rules and regulations.

Freight forwarders should be experts at organizing the tasks required for the
smooth export of cargo from one point to the other. These days, when most
governments and Customs use Electronic Data Interchange (EDI) systems for
their daily transactions and documentation processes, freight forwarders have to
be tech-savvy.

The two main steps in freight forwarding include transportation of the

customer’s goods to the port for loading onboard the ship and customs
documentation.

Freight Forwarding Processes

The services provided by freight forwarders include the negotiation of freight

charges with the ocean carrier on behalf of the shipper, booking of cargo space
onboard ocean vessels, arranging cargo insurance, arranging transport and
labour, inland haulage of goods from the customer’s warehouse to the port,
temporary storage if necessary, cargo consolidation, preparation of shipping and
customs documentation, and export papers.

They may also be required to liaise with different government agencies

depending on the type of cargo that is to be exported, examples being restricted
items, certain types of food products, etc.

Freight forwarders should keep themselves abreast of laws, rules, and

regulations in the importing country as well. For this, they need to have a good
communication network with the government and other related agencies of both
the exporting and the importing countries.

 Step 1

The Purchase

o Find a suitable international supplier.

 o Negotiate transaction/payment terms (Letter of
Credit or others).
o Buyer and seller agree upon terms of sale.

 Step 2

OrderAwarded&Initiated
Buyer issues a purchase order to the supplier.

 Step 3

Determine & Agree Upon an Anticipated Date of Completion

 Step 4

Goods Are Manufactured

Supplier drafts a packing list.

 Step 5

Shipment Is Prepared for Export

Supplier creates commercial invoice and prepares export documents required by
origin country, including:

o Export Declaration
o Commercial Invoice
o Certificate of Insurance (COI)
o Permit

 Step 6

Vendor Contacts the Buyer Or Freight Forwarder

 Step 7

Freight Forwarder Arranges Cargo Transportation with the Carrier(s)

 Step 8

Cargo Is Loaded Onto Vessel or Aircraft & Begins Its Journey to Importing
Country
Carrier Transportation Waybill

 Step 9

Customs Broker Submits All Necessary Customs Documents

o Commercial Invoice
o Customs Invoice
o Copy of Carrier Waybill
o Certificate of Origin
o Permits

 Step 10

Customs Broker Is Notified When the Shipment Arrives at Its Destination Port

 Step 11

Shipment Is Tendered for Final Delivery

o Receiving Report
o Inventory Report
o PaymentIssued
o Entered in the General Ledger
o Customs Compliance Check Conducted

 Step 12

Shipment Is Cleared for Import Duties & Taxes Paid

Freight forwarding reduces the stress of international shipping. It's an ideal role
for an IT-literate graduate in business, geography or languages
A freight forwarder is an agent who acts on behalf of importers, exporters or
other companies to organise the safe, efficient and cost-effective transportation
of goods.
You'll use computer systems to arrange the best means of transport, taking into
account the type of goods and the customer's delivery requirements. You'll use
the services of shipping lines, airlines and road and rail freight operators.
In some cases, the freight forwarding company itself provides the service.
Companies vary in size and type, from those operating on a national and
international basis to smaller, more specialised firms, which deal with particular
types of goods or operate within particular geographical areas.

Forwarding documentation

 Export Documentation

Several documents are required for the export of cargo and the requirements
may vary between countries. Though the format and name of these documents
may differ, the information that is required to be input is more or less the same.

 ProForma Invoice
 Customs Packing List
 Country of Origin or COO Certificate
 Commercial Invoice
 Shipping Bill
 Bill of Lading or Airway Bill
 Bill of Sight
 Letter of Credit
 Bill of Exchange
 Export License
 Warehouse Receipt
 Health Certificates
 Hazardous cargo declaration (if applicable)

Imports documents for Customs Clearance

 Bill of Entry
 Commercial Invoice
 Bill of Lading or Airway Bill
  Import License
 Certificate of Insurance
 Letter of Credit or LC
 Technical Write-up or Literature (Only required for specific goods)
 Industrial License (for specific goods)
 Test Report (If any)
 RCMC Registration cum Membership Certificate
 GATT/DGFT declaration
 DEEC/DEPB/ECGC License for duty benefits
You can understand what these documents mean from their explanation as
given below.

Pro Forma Invoice

The Pro Forma Invoice  documents the intention of the exporter to sell a

predetermined quantity of goods or products. This invoice is generated as per
the outlined terms and conditions agreed upon between the exporter and the
importer, through a recognised medium of communication such as email, fax,
telephone or in person. It is similar to a ‘Purchase Order’, which is issued prior
to completing the sales transaction.

Customs Packing List

The customs packing list states the list of items included in the shipment that
can be matched against the pro forma invoice by any concerned party involved
in the transaction. This list is sent along with the international shipment and is
especially convenient for transportation companies as they know exactly what
is being shipped. Individual customs packing lists are secured outside each
individual container to minimise the risk of exporting incorrect cargo
internationally.

Country of Origin or COO Certificate

The Country of Origin Certificate  is a declaration issued by the exporter that

certifies that the goods being shipped have been completely acquired,
produced, manufactured or processed in a particular country.

Commercial Invoice

A commercial invoice is a mandatory document for any export trade. The

customs clearance department will ask for this document first as it contains
information about the order, including details such as description, selling price,
quantity, packaging costs, weight or volume of the goods to determine customs
import value at the destination port, freight insurance, terms of delivery and
payment, etc. A customs representative will match this information with the
order and decide whether to clear this for forwarding or not.

Shipping Bill

A shipping bill is a traditional report where the downside is asserted and

primarily serves as a measurable record. This can be submitted through a
custom online software system (ICEGATE). To obtain the shipping bill , the
exporter will need the following documents:
 GR Forms for shipment to all the countries
 Packing list (with various details such as information about the content,
quantity, the gross and net weight of each package)
 Export License
 Indent
 Acceptance of Contract
 Invoices (with all relevant information such as the number of packages,
quantity, price, correct specification of goods, etc.)
 Purchase Order
 Letter of Credit
 AR4 and Invoice
 Examination or QC Certificate
 Port Trust document

Bill of Lading

Bill of Lading is a legal document issued by the carrier to the shipper. It acts as
evidence of the contract for transport for goods and products, mentioned in the
bill provided by the carrier. It also includes product information such as type,
quantity, and destination that the goods are being carried to. This bill can also
be treated as a shipment receipt at the port of destination where it must be
produced to the customs official for clearance by the exporter. Regardless of
the form of transportation, this is a must-have document that should
accompany the goods and must be duly signed by the authorised representative
from the carrier, shipper, and receiver. The Bill of Lading comes in handy if
there is any asset theft.

Bill of Sight

Bill of Sight is a declaration from the exporter made to the customs department
in case the receiver is unsure of the nature of goods being shipped. The Bill of
Sight permits the receiver of goods to inspect them before making payments
towards applicable duties. Applying for a bill of sight becomes necessary as it
acts as a substitute document if the exporter does not have all the must-have
information and documents needed for the bill of entry. Along with the bill of
sight, the exporter also needs to submit a letter that allows for the clearance of
goods by customs.

Letter of Credit

Letter of credit is shared by the importer’s bank, stating that the importer will
honour payment to the exporter of the sum specified to complete the
transaction. Depending on the terms of payment between the exporter and
importer, the order is dispatched only after the exporter has this letter of credit.

Bill of Exchange

Bill of Exchange is an alternative payment option where the importer is to

clear payments for goods received from the exporter either on-demand or at a
fixed or determinable future. It is similar to promissory notes that can be drawn
by banks or individuals. You can even transfer a Bill of Exchange by
endorsement.

Export License

Businesses must have an export license that they can provide to customs in

order to export or forward any products. This only needs to be produced when
the shipper is exporting goods to an international destination for the very first
time. This type of license may vary depending on the type of export you intend
to make. This can be done by applying with the licensing authority, and the
permit is eventually issued by the Chief Controller of Exports and Imports.

Warehouse Receipt

Warehouse Receipt receipt is generated once the exporter has cleared all
relevant export duties and freight charges post customs clearance. This is
needed only when an ICD in involved.

Health Certificates

Health Certificate is applicable only when there are food products that are of
animal or non-animal origin involved in international trade. The document
certifies that the food contained in the shipment is fit for consumption by
humans and has been vetted to meet all standards of safety, rules and
regulations prior to exporting. This certificate is issued by authorised
governmental organisations from where the shipment originates.

Bill of Entry
A bill of entry is a legal document to be filled & duly signed by an
importer/CHA/carrier. After filing a bill of entry along with the other necessary
documents, assessment and examination of goods are carried out by concerned
authorities. Once the process is completed, an importer can avail for ITC claim
on goods.

Import License

There are certain items that cannot be freely imported in India, an import
license is a permission granted by the government to undertake import
activities for restricted goods. In order to avail the benefits, one must file an
application to the licensing authority.

Insurance certificate

An Insurance Certificate is a document required for import customs clearance.

This certificate helps the authorities to verify the shipment, in terms of whether
the selling price contains the insurance or not. Also, it helps determine the
precise value which eventually decides the import duty aggregate.

RCMC Registration cum Membership Certificate

RCMC is a certificate issued by Export Promotion Councils  of India. If an

exporter or importer wants to avail any benefits under any schemes  governed
by FTP or any of the EPCs then he has to submit his RCMC as well at the time
of customs clearance.

GATT/DGFT declaration

Every importer has to file a GATT and DGFT declaration while completing

customs clearance formalities for imports. It has to be filed as per the terms
stated in General Agreement on Tariff and Trade. Following are some of the
requirements for filing this document.
 Customs Valuation for imported goods subjected to duties & Taxes.
 Three copies of the declaration to be maintained
 two copies are for customs administration
 and one copy is for the declarant
 The Form should be kept with the detailed customs declaration for a
period of 3 years
 The declarant is obliged to accurately and fully fill the form in detail.

Technical write up, literature

A Technical Write up is a document only required for some specific goods. It
describes the features/usage of the product, mostly done for better handling of
goods. This helps the authorities to better define the product and understand
the value-added cost under it.

Industrial License

An industrial license may be required for importing specific commodities. If an

importer wants to avail any import duty benefit, an industrial license can be
used as proof to avail the benefit. In this particular case, a copy of industrial
license also becomes one of the customs clearance documents required for
importing the goods.

Hazardous Cargo Declaration

If the goods to be exported come under the hazardous cargo classification of the
government, then the freight forwarder has to ensure that the export
documentation includes the hazardous cargo declaration. Such goods include
combustible solids and liquids, corrosive materials, radioactive materials, etc.

INTERNATIONAL ORGANIZATIONS

International Federation of Freight Forwarders Association (FIATA)

Freight forwarders worldwide are represented by the International Federation of

Freight Forwarders Association (FIATA). This organization comprises 109
association members and about 5,500 individual memberships.

The main objectives of FIATA are to unite, represent, promote and protect,
standardize, and assist the freight forwarding fraternity of the world. It achieves
this by engaging actively with the World Trade Organization (WTO) and other
international trade and transport organizations, and the various governments.

FIATA is recognized by most governments, government as well as major private

bodies. It is a consultant to bodies like the UNESC (United Nations Economic
and Social Council), the United Nations Commission on International Trade
Laws, etc. FIATA also provides vocational training to freight forwarders that
would help them to discharge their duties professionally and in a standardized
manner.
  Important Projects Of FIATA

Some important projects of FIATA to help in achieving its mission and goals are
as follows:

- Online Registry of Digital Identity Profile of Members

The project to create an online registry of the digital identity profiles of all its
members is in the pipeline. Once completed, it would help in establishing the
validity and trustworthiness of its members.

- Standardization of Trade Documents

To remove the confusion caused by several versions of the same trade

documents, FIATA has undertaken to standardize these trade documents. An
example being the FIATA Bill of Lading.

FIATA was founded in 1926 in Vienna, Austria. Its headquarters are in Geneva,
Switzerland.

 Leading Freight forwarders

The leading freight forwarders of the world according to surveys and market
research are given below based on Gross revenue (in US Dollar Millions).

Most leading freight forwarding companies build a good rapport with their
clients that these clients seldom think of switching loyalties.

Value addition is something that attracts and retains customers to their

principals.

While it may be difficult for large organizations to tweak their policies now and
then to meet the individual demands of their customers, small to medium freight
forwarding organizations can easily do this to attract and retain customers.

 The Global Scenario and Outlook of Freight Forwarding Industry

The global freight forwarding market is driven by worldwide trade volumes.

Trade pacts and agreements between nations play a key role in increasing trade
volumes.The global recession during 2007-2009 had a negative impact on trade
in general and the freight forwarding industry but since then it has seen a steady
rise in these activities.Again, as with most other global activities, the latter half
of 2019 and the whole of 2020 saw a drastic dip in freight forwarding activities
due to the COVID-19 pandemic.
 Types of freight forwarders

Freight forwarders in the Philippines have become one of the most popular

forms of logistics services in the country as they are able to deliver important
cargo on time efficiently. These services utilize a number of services to be able
to deliver their supplies and products across different parts of the world.
There are a number of services at the disposal of a freight forwarder. It is
important to know each one of them to see how they are able to deliver all
products and supplies efficiently. Here are some of the most popular types of
services and how they work.
 

 Rail Freight Service

One of the most efficient forms of land transportation, rail freight services
allow cargo to be transported across massive distances across vast rail networks.
An advantage of this service is that railroad networks are rarely interrupted,
providing an operation that is able to travel for multiple hours at a time, only
needing to stop to drop off cargo and refuel. One of the few issues with rail
freight services is the limited amount of space for wider cars, which can become
an issue for larger and heavier loads.
Most countries have their own railroad systems. Freight forwarders make use of
these networks to transport supplies and goods across these regions, ensuring
that they will be able to arrive safely.

 Sea Freight Service

One of the largest freight operations around the world involves the use of cargo
ships, which are some of the largest sea vessels in the world. These cargo ships
carry millions of tons of cargo on a daily basis, traversing oceans and seas in
order to reach their destination.
This is one of the most cost-efficient methods of transporting bulk goods and
supplies across different regions and countries. You will be able to transport
more items due to the amount of goods cargo ships are allowed to hold. There
are two types of sea delivery services, namely:

- Less Than Container Load (LCL) – Used for smaller types of goods
and supplies, these pieces of cargo do not take up the whole container
space, only charging you for the amount of space taken in a single
container.
- Full Container Load (FCL) – This service is for items that can fill up a
single shipping container. This is the best option for bulk orders as it is
more cost-efficient than other forms of freight services.
 

 Air Freight Service

For the most part, this is the fastest freight service. Air freight services are able
to deliver goods and supplies farther than ships and trains, as they are able to
travel thousands of miles non-stop. While this may be one of the costlier options
for sending goods and supplies, you will be able to save a great amount of time,
allowing you to beat deadlines and deliver everything on time.
Another area of concern with air freight services is the weight limit on certain
items, as cargo planes can only carry a certain number of materials. If you are
looking to transport your goods and supplies in the shortest amount of time
possible, it is best to go to an air freight service.

 Road Freight Service

The most common freight method, road freight services are commonly the last
mode of transportation that delivers goods and supplies to their intended
customers. Delivery trucks and vans are in charge of transporting these goods,
which can take from a few minutes to a number of hours depending on the
traffic and road conditions.
Road freight is usually the end-point for many supplies. While the amount of
time can be inconsistent, these are the most abundant forms of freight
forwarding services around. If you are looking to transport your goods and
supplies within provinces and cities, road freight services are your best option.

 Customs Broker

A customs broker is a service, in the form of an individual or a firm, that is able

to process different kinds of shipment through customs in the most efficient
fashion. These brokers make sure that goods would be provided with the
necessary documents and clearances in order for the transporting process to
proceed smoothly. This means that they have to adhere to various rules and
regulations from a number of different countries — a challenging feat without
the right skills and documentation. From government regulations to international
tax laws, a customs broker has the ability to smoothen out the delivery process
and save more time overall.

Customs Brokerage

If you want to succeed in today’s global market, you have to master the art

of International trade. That includes knowing your way around the complexities
of customs clearance. Alternatively, you can simply outsource all of the
stress and use the services of quality customs brokerage experts.

What does customs brokerage involve?

Doing export and import is by no means a simple endeavor. There are
documents to be collected and e-forms to be filled. Depending on the nature of
the goods, there are various taxes, duties and excises to be paid. Also,
international trade is governed by a whole host of regulations. To maximize
compliance, importers/exporters need to be familiar with all applicable laws.
As experts in the field, customs brokers help you navigate the sea of changing
regulations and understand import specifics related to particular commodities.
They are highly knowledgeable in all entry procedures, admissibility
requirements, classification, valuation, and the duties and taxes imposed on
imported goods.
Customs brokers can do their job as employees or associates of freight
forwarders, independent businesses, shipping lines, importers, exporters and
customs brokerage firms.

To engage in the customs business, companies must have a broker license. This
means that they have to employ at least one individually licensed officer, partner
or associate. As a client, you grant your customs broker the authority to act on
your behalf.

Things your customs broker can do for you

The job of your customs broker is simply to help you clear your shipments at
the border. But, this is by no means a simple task.
In the scope of achieving this for you, a customs broker will:
 Help your goods meet state requirements governing import and export and
act as liaison between you and the relevant agencies
 Prepare and submit necessary information and payments to the Customs
authorities on your behalf (country of origin and destination, suppliers,
routings, intended use of goods, etc)
 Assess commercial documents to see if they are compliant with regulatory
requirements, prior to their submission
 Make sure your goods are correctly classified so duties and taxes can be
properly determined
 Use their expertise to help you spread your business to new markets. If
you’re interested in reaching customers across the border, a customs broker
with presence at both sides of the border can make sure your goods reach
your customers quickly and safely.
 Provide personalized advice – all enterprises have specific business needs,
especially small-size businesses with lower export/import volumes. A good
broker will pay due attention to your particular needs and contribute to your
business success.

Reason for using a customs broker

There are many reasons why you should consider using customs brokerage
services, and it depends on your particular business. What follows are the main
reasons that are likely to resonate with your particular needs.
1. Knowledge in complex regulatory requirements

Some businesses can’t afford personnel versed in the complex regulatory

requirements governing the transport of goods across borders. In this case, they
can outsource this business hassle and hire a customs brokerage company.

Good companies offer a complete portfolio of import/export services, including

logistics, freight forwarding, warehouse and distribution, so you can rest assured
your business is fully taken care of.

2. Skills to facilitate the customs clearance process

Customs brokers make sure your shipments cross the border and reach their
intended destination safely. They have the skills to facilitate the entire customs
clearance process, regardless of the port of entry.

3. Help in avoiding unnecessary costs

Rules and regulations in cross-border transactions keep changing. As experts in

the requirements for each type of goods, customs brokers can help you avoid
costly delays, fines, confiscation of the merchandise and other penalties.

4. Verification of declarations

Another thing to keep in mind is that you are legally responsible for all customs
declarations prepared on your behalf. As faulty declarations can result in audits,
fines and even sanctions for your business, make sure to have your declarations
verified by a licensed customs broker.

5. Convenient paperwork

Although you’re not required by law to use the services of a customs broker,
many companies prefer to work with one. This is because of the convenience
in entrusting all the paperwork and communication with relevant agencies to an
expert. Even more importantly, their expertise in the field can save you from
making costly mistakes.

6. Correct identification of goods

Customs brokers are well versed in the Harmonized Tariff Schedule – a
compilation of duties or taxes levied on goods as they enter a country. Each
good receives a specific classification number and they are divided into major
groups and sub-groups to allow correct and easy identification for the purposes
of charging customs duty.
7. Easy clearance of shipments with formal entry

Some commodities automatically require a formal entry (formal declaration of

specific information on the imported goods). This applies to food and
pharmaceutical products, cosmetics, chemicals, biological materials for research
and medical use, as well as agricultural and dairy products. 

The Basic Flow of Freight Forwarding

For many shippers, finding how much ocean freight rates are can be difficult,
especially if they do not have a dedicated shipping partner. These are basic
freight charges for the movement of containers from Port A to Port B. In this
article, we will break down how ocean freight rates are normally calculated.

Understanding Ocean Freight Rates vs Freight Quotations

An ocean freight rate is the costs of transporting shipments directly by the sea.
Freight quotations are the estimated summary of charges during the entire
transportation process, including pick-ups, trucking, warehousing…etc. Not all
shipments are multimodal, but when shippers ask for a freight quote everything
will be included.

Freight quotations may be divided into three sub-groups. They are pre-carriage,
carriage, and on-carriage. Each group possesses its own list of common fees.
The mode of transport can be Door-to-Door, Port-to-Port and other associated
services. This may lead to shippers or consignees paying for many other
services.

Ocean freight charges normally apply to the “carriage” process but can also
include the pre- and on-carriage stages.

The pre-carriage process refers to any inland movement that takes prior to
loading up a shipping container at a port. This can occur at the same location of
the port or somewhere close.
On-carriage refers to any charges applied during the movement that takes place
after the container is discharged at a port. This process can be carried out by
carriers using road or rail modes, or by a merchant. A major service charge
applied to both is customs clearance. This is usually handled by a customs
broker.

Below we will dive into the Carriage charges – the charges applied and
calculated together for the ocean freight rates.

List of Carriage Charges Contributing to Ocean Freight Rates

There are hundreds of carriers around the world offering ocean freight services.
Depending on the contract of carriage and the service type mutually agreed on,
each carrier will have their own charges for the carriage process. The final rates
are sometimes quite similar for services but can be influenced by many factors
including pricing competitiveness, long-time partnerships, and newly adopted
technology.

Below are some of the main factors contributing to the overall ocean freight
rates.

a- Bunker Adjustment Factor (BAF)

This charge is used to compensate steamships for the ever-fluctuating fuel costs.
This can also be referred to as “Fuel Adjustment Factor” or FAF.

b- Low Sulphur Surcharge

Charge for the use of fuel that has lower emissions.

c- Bill of Lading Fee

Exactly how it sounds, this fee is applied for the processing of the Bill of Lading
on behalf of the client.

d- Export Service

Service fees that may be charged by the exporting agent.

e- Equipment Imbalance Surcharge (EIS)

This surcharge is imposed by shipping lines to recover costs related to removing
empty containers from the destination country. When a country has no use for
these imported containers, they must be removed to recover space.

f- Equipment Repositioning Surcharge (ERS)

This fee is imposed when a shipper’s request for carriers to make empty
containers available to be moved from one location to another.

g- Piracy Surcharge

This charge is applied to compensate shipping companies for the ever increasing
costs for avoiding and regulating piracy & hijacking.

h- Terminal Handling Charges – Destination

These charges are applied to the handling of shipments at the destination port.

i- Terminal Handling Charges – Origin

These charges are applied to the handling of shipments at the origin port.

Shipping Containers

Charges for shipping containers vary by sizes, how much of the container is
being used, and if they are going local or international travel. Sizes vary by 20-
feet or 40-feet normally but can see upwards to 56-feet. This is all dependent on
what is needed to be shipped.

Shipping containers range in size and charged by usage, loading/unloading and

removal from port after delivery.

How to Get the Best Out of Ocean Freight Rates

When a freight quotation is sent out, it is up the shipper to determine if they

want to agree and begin a contract with the shipping company. Normally there
will be no room for additional dispute because the carriers are very clear in their
offering.

Therefore, it is extremely important for a shipper to read and understand all the
terms and conditions set by the carrier. This will help ensure all charges for
ocean freight rates are agreed on and no additional costs will accumulate.
If a shipper understands the full scope of the carriage charges and how the ocean
freight rate came to be, then there will be no ambiguity. It is prudent for shippers
to go through each and every item of the freight quote to understand the costs,
especially for international transport.

Remember, shippers are choosing the carrier, so they are entitled to ask them
and explain all charges in detail if need be.

INTERNATIONAL COMMERCIAL TERMS

The Incoterms are a set of commercial/trade rules established by the

International Chamber of Commerce (“ICC”) that are used in international sale
contracts. The Incoterms are not mandatory rules – for them to receive legal
effect, they must be explicitly incorporated by the parties into their contract. In
the following paragraphs, after outlining the classification of Incoterms, we will
describe basic features of Incoterms used for all modes of transport, as well as of
those used only for sea and inland waterway transport. We will also describe
changes in the Incoterms 2020 rules.

Classification of Incoterms

The Incoterms are divided into four principal categories: E, F, C and D.

Category E (Departure), which contains only one trade term, i.e. EXW (Ex
Works).

Category F (Main Carriage Unpaid), which contains three trade terms:

 FCA (Free Carrier)

 FAS (Free Alongside Ship)
 FOB (Free on Board)

Category C (Main Carriage Paid), which contains four trade terms:

 CPT (Carriage paid to)

 CIP (Carriage and Insurance paid to)
 CFR (Cost and Freight)
 CIF (Cost, Insurance and Freight)

Category D (Arrival), which contains three trade terms:

 DAP (Delivered at Place)

 DPU (Delivered at Place Unloaded)
  DDP (Delivered Duty Paid)

The four above-mentioned categories can also be classified as per the means of
transportation:

 Incoterms for any mode of transport: EXW, FCA, CPT, CIP, DPU, DAP
and DDP;
 Incoterms only for sea and inland waterway transport: FAS, FOB, CFR
and CIF.

Each Incoterm contains a set of rules of interpretation for the obligations of both
the seller (A1-A10) and the buyer (B1-B10) covering the following issues:

 A1/B1 – General Obligations,

 A2/B2 – Delivery,
 A3/B3 – Transfer of risks,
 A4/B4 – Carriage,
 A5/B5 – Insurance,
 A6/B6 – Delivery/transport document,
 A7/B7 – Export/import clearance,
 A8/B8 – Checking/packaging/marking,
 A9/B9 – Allocation of costs, and
 A10/B10 – Notices.

Basic Features of Incoterms Used for All Modes of Transport

EXW Incoterm (Ex Works)

The EXW Incoterm imposes only minimum obligations on the seller. More
particularly, the seller is simply required to deliver the goods to the buyer at a
named place of delivery which is usually the seller’s place of business, but can
be any particular location such as a warehouse, factory, etc., and within the
agreed time specified in the contract. It is not required for the seller to load the
goods on any specific vehicle or to clear the goods for export. If the place of
delivery is not specified in the contract, or if several place of delivery can be
envisaged, “the seller may select the point that best suits its purpose.” In
principle, until the goods have not been delivered as specified in the sale
contract, the seller bears all risks of loss or damage to the goods. Once
delivered, such risk is automatically shifted to the buyer. The same is true for
any costs relating to the goods – until the delivery of the goods, the costs are to
be borne by the seller; after their delivery, by the buyer.
Several authors suggest that the EXW Incoterm is better suited for domestic
(and not international) trade and point out that it is “commonly used in courier
shipments when the courier picks up the shipment from client’s premises and
loads courier’s own truck. Payment terms for EXW transactions are generally
cash in advance and open account.”

As mentioned in the ICC Guide to Incoterms 2010, parties sometimes insert a

term “loaded” following the reference to EXW Incoterm, i.e., EXW loaded, into
their sales contract. Such an addition is normally intended to extend
responsibility to loading operations. However, without further clarification, it is
rather difficult to say whether such a term means “loaded at seller’s risk” or
“loaded at buyer’s risk” and is subject to interpretation in case of dispute. In this
respect, if “loaded” is meant to extend the liability to the seller, the parties may
consider inserting the FCA Incoterm (see below), and not EXW, into their
contract. However, they should bear in mind that the FCA Incoterm requires that
the obligation to clear the goods for export be borne by the seller as well.

FCA Incoterm (Free Carrier)

Under the FCA Incoterm, the delivery of goods occurs as follows:

 When the named place of delivery is the seller’s premises, the goods are
deemed to be delivered when they are loaded on the transportation vehicle
arranged by the buyer;
 When the named place of delivery is elsewhere, e.g., a warehouse or
factory, etc., the goods are deemed to be delivered when the following
requirements are met: after having been loaded on the seller’s
transportation vehicle, they reach the named place, are ready for
unloading from the seller’s transportation vehicle and are placed at the
disposal of the carrier nominated by the buyer.
Regarding the carrier, it is usually “a firm that itself transports goods or
passengers for hire, rather than simply arranging for such transport. Examples
are a shipping line, airline trucking firm, or railway. In the FCA term, however,
the carrier can by any person who by contract ‘undertakes to perform or
procure’ such services”.

In 2020, several new obligations were added to the FCA Incoterm. For example,
the parties may agree that the buyer instructs the carrier to issue the transport
document (bill of landing) with the on-board notation to the seller. In turn, the
seller undertakes to send this document to the buyer, “who will need the bill of
landing in order to obtain discharge of the goods from the carrier.”

The FCA Incoterm further requires the seller to clear the goods for export,
where applicable. However, the seller has no obligation to clear the goods for
import. No insurance obligation is placed either on the seller or the buyer.

CPT Incoterm (Carriage Paid to)

Under the CPT Incoterm, the delivery of the goods occurs when they are
delivered by the seller to the carrier at the agreed place or are procured by the
seller so delivered. In this respect, the seller has an obligation to contract, at its
expense, for the carriage of the goods from the point of delivery to the place of
destination of the goods. The existence of the contract of carriage has no impact
on the transfer of risk from the seller to the buyer which occurs at the point of
delivery, i.e., by handing over the goods to the carrier.[11] However, if the seller
incurs costs relating to unloading of goods at the place of destination under the
contract of carriage, it must bear them, unless otherwise agreed.

The CPT Incoterm also requires that the seller clear the goods for export, where
applicable, and assume all risk related thereto. However, the seller has no such
obligation for import. Neither the seller, nor the buyer, is required to conclude
an insurance contract.

CIP Incoterm (Carriage and Insurance Paid to)

Under the CIP Incoterm, the seller has the same obligations as under the CPT
Incoterm, i.e., to hand over the goods to the carrier contracted by the seller and
to clear the goods for export, with the addition of an obligation to contract for
insurance in order to cover against the buyer’s risk/damage to the goods from
the place of delivery to, at least, the place of destination.
Regarding insurance, it shall be made in conformity with Clauses (A) of the
Institute Cargo Clauses, or similar clauses, and shall cover, at a minimum, the
contractual price plus 10%. Prior to the 2020 revision of the Incoterms, only a
minimum insurance coverage pursuant to Clauses (C) of the Institute Cargo
Clauses was required.[13] However, even today, the parties can agree on a lower
coverage.[14] Once contracted, the seller has an obligation to provide the
insurance policy or certificate to the buyer.

DAP Incoterm (Delivered at Place)

This Incoterm is normally used in cases when the parties do not wish that the
seller bear the risk and cost of unloading, contrary to the DPU Incoterm (see
below). Under the DAP Incoterm, the goods are deemed delivered by the seller
to the buyer when they are put at the disposal of the buyer on the transportation
vehicle ready for unloading at the place of destination or an agreed point within
such place, if any.[15] Contrary to the CPT/CIP Incoterms, the place of delivery
and the place of destination are the same under the DAP Incoterm. Therefore,
the seller bears the risk until it has put the goods at the disposal of the buyer at
the place of destination as described above.

Although it has an obligation to conclude a contract of carriage or arrange at its

costs for the carriage of the goods and to clear the goods for export (not import),
the seller is not required to unload the goods from the transportation vehicle at
the place of destination. In addition, neither the seller, nor the buyer, is required
to subscribe an insurance contract.

DPU Incoterm (Delivered at Place Unloaded)

The DPU Incoterm represents a new feature of the 2020 Incoterms which has
replaced the DAT Incoterm (Delivered at Terminal) established under the 2010
Incoterms which, in turn, had replaced DEQ Incoterm (Delivered ex Quay)
established under the 2000 Incoterms.[16]
According to the DPU Incoterm, the delivery of the goods by the seller to the
buyer occurs when the goods are unloaded from the transportation vehicle and
put at the disposal of the buyer at the place of destination or at the agreed point
within the place of destination, if any. It is the only Incoterm “that requires the
seller to unload goods at destination.”[17] Again, the place of delivery and the
place of destination are the same under the DPU Incoterm. Therefore, the seller
bears the risk until it has unloaded the goods at the place of destination.

In addition, the seller undertakes to conclude a contract for carriage or arrange

carriage at its own expense. It also has an obligation to clear the goods for
export.  However, no such obligation is imposed for import. The buyer is
required to assist the seller in obtaining relevant documentation for export
clearance formalities, at the seller’s expenses.

Contrary to the CIP Incoterm, the seller (or the buyer) has no obligation to
contract insurance under the DPU Incoterm.

DDP Incoterm (Delivered Duty Paid)

Under the DDP Incoterm, the goods are supposed to be delivered by the seller to
the buyer if they are placed at the disposal of the buyer, cleared for import, on
the arriving transportation vehicle, ready for unloading at the place of
destination or an agreed point within such place, if any.[18] The DDP Incoterm
imposes the maximum responsibility on the seller as it is the only Incoterm
requiring import clearance by the seller.[19]
As in the case of the other Incoterms, the DDP Incoterm requires that the seller
conclude the contract of carriage or otherwise arrange the carriage at its
expense. No insurance contract is, however, required from the seller/the buyer.

Basic Features of Incoterms Used for Sea and Inland Waterway Transport

FAS Incoterm (Free Alongside Ship)

According to the FAS Incoterm, the seller delivers the goods when it either
places them alongside the ship/vessel nominated by the buyer at the named port
of shipment or it procures the goods so delivered. The risk/damage to the goods
is transferred from the seller to the buyer when the goods are alongside the ship.
The seller undertakes to clear the goods for export, not import.

The seller is under no obligation to conclude a contract of carriage. In turn, it is

the buyer who bears all expenses regarding the carriage of the goods from the
named port of shipment. Consequently, the FAS Incoterm is not suited for cases
when the goods are only to be handed over to the carrier, e.g., at a container
terminal, before they are placed alongside the ship. For this scenario, the above-
mentioned FAS Incoterm is more appropriate.[21]
Furthermore, the seller has an obligation to clear the goods for export (not
import). It is not required to conclude any insurance.

FOB Incoterm (Free on Board)

Under the FOB Incoterm, the goods are deemed to be delivered by the seller to
the buyer when they are delivered on board the ship nominated by the buyer at
the named port of shipment or the seller procures the goods so delivered.[22]
Therefore, the risk of loss/damage to the goods is shifted onto the buyer once the
goods are placed on board the ship. The seller shall clear the goods for export,
not import.

As in the case of the FSA Incoterm, the seller has no obligation to conclude a
contract of carriage. All expenses regarding the carriage of the goods from the
named port of shipment shall be borne by the buyer.

No insurance is required under the FOB Incoterm to be concluded by the seller

or the buyer.

CFR Incoterm (Cost and Freight)

According to the CFR Incoterm, the seller delivers the goods to the buyer by
placing them on board the ship or procuring them so delivered.[23] Therefore,
the risk of loss of/damage to goods is shifted on the buyer when the goods are
place on board of vessel at the port of delivery, and not the port of destination as
in the case of the above-referenced FOB Incoterm.
Regardless of the transfer of risk at the port of delivery, the seller has an
obligation to conclude a contract of carriage of the goods until the port of
destination. The seller also must bear all costs related to unloading at the port of
destination resulting from the the contract of carriage, unless agreed otherwise.
It also has an obligation to clear the goods for export, not import. No insurance
contract is required from the seller or the buyer.

CIF Incoterm (Cost, Insurance and Freight)

The regime of the CIF Incoterm is very similar to the one under the CFR
Incoterm:

 the goods are to be delivered under the CIF Incoterm when the seller
places them on board the ship or procures them so delivered;[24]
 although the transfer of risk takes place at the port of delivery, the seller
has an obligation to conclude a contract of carriage of the goods until the
port of destination;
 the seller  must bear all costs related to unloading at the port of
destination resulting from the the contract of carriage, unless agreed
otherwise;
 the seller has an obligation to clear the goods for export, not import.
The principal difference between CIF and CFR resides in the requirement under
the CIF Incoterm for the seller to conclude insurance covering against the
buyer’s risk of loss of/damage to the goods from the port of shipment to, at least,
the port of destination. However, contrary to the CIP Incoterm (see above), the
seller is required to obtain a minimum insurance according to Clauses (C) of the
Institute Cargo Clauses, or other clause (not Clauses (A) of the Institute Cargo
Clauses as required for the CIP Incoterm).[25]

Conclusion

The use of Incoterms in international trade is a widespread phenomenon, and

disputes frequently arise due to confusion concerning them. Prior to inserting an
Incoterm into a contract, it is essential for the parties to make sure that the
Incoterm meets all their expectations and needs regarding the following issues:

 Is transport to be made by sea/inland waterway means or not?

 Who should bear the majority of the risk of loss/damage to the goods –
the seller or the buyer? At what point in time in the delivery to the place
of destination should risk be shifted from the seller onto the buyer?
 Is there a need to use the services of a carrier? If so, who should have an
obligation to conclude a contract of carriage – the seller or the buyer?
 Should the seller be responsible for the unloading of the goods?
 Is there a need to subscribe an insurance contract?
 How to make booking of Ocean Export Cargo to Forwarder?
Explained the procedure of FCL Sea Shipment

When you want to export a cargo to overseas by sea shipment, how do you
proceed the shipment? You may have an experiences of sending a small cargo
by courier service such as EMS or DHL, but there is not so much opportunity to
send a cargo by sea shipment at the individual level.

This time we will explain procedures and cargo flow when we export a cargo by
sea shipment. Be noted it is describe for FCL shipment.

Animation movie Lgistics Flow by Sea Shipment

1. Send Booking Request to Forwarder

If you want to export a cargo overseas, you should inform the Forwarder of the
reservation. Basically the booking request should be informed by e-mail.
However, in the case of emergency booking, we can accept the request by LINE
chat or requested by telephone, we will ask you to send the formal request by e-
mail later for the booking record.

Required information for Booking Request

1. Cargo: name & type (general cargo, dangerous goods cargo, refrigerated
cargo)
 2. Place of Loading
 3. Place of Destination
 4. Container type (20 ft, 40 ft, 40 HC)
5. Number of containers
 6. Cargo weight
 7. Schedule desired
 8. Desired shipping company
 9. Other Special Requests

Example of Booking Request to Forwarder

 1. Cargo: Car Parts

 2. POL: Bangkok
 3. POD: Tokyo
 4 & 5. Container: 40HC x 2, 20dry x 4
 6. Cargo Weight: about 15ton / container
 7. Schedule: ETD BKK 24th Mar
 8. Carrier: TS Line
 9. Remark: free time 21days
Please write down the points briefly in this way and contact us by e-mail. As for
the vessel schedule, please contact the forwarder in advance.

 2. Forwarder makes booking to Shipping Line

Based on the information that the Shipper makes booking, the Forwarder send
the booking request to the Shipping Line. In this case, the space on the vessel is
important. If it is not the urgent shipment, it may not be a big problem. But it
will be a big problem for the case of urgent shipment and no space on the vessel.

The importance of getting space is described in this article

How to find Good Forwarder?

3. Receive Booking Confirmation

If the Forwarder can get the space of the vessel, the booking is confirmed by the
Shipping Line. Please check the Booking Confirmation example.

Booking Confirmation shows

・Shipper Name
・Cnee Name
・Vessel Name
・Container Size and Quantity
・ETD/ETA
・POL/POD
・CY Date
・CY Cut Off Date(Closing Date)
・Shipping Line Name
・Remarks

And Booking Confirmation is sent from the Forwarder to the Shipper. The ship
space is not committed until we issue the Booking Confirmation.

4. Submit the official booking document to the forwarder

We take the above procedures for managing the logistics which is urgent
booking case and uncertain booking case but the official booking request is
required with the following documents.

· Shipping Instruction (Called “S.I”)

· Invoice
· Packing List

5. Request custom clearance and Truck arrangement

Export Custom Clearance

When exporting cargo by sea shipment, it is necessary to do “export custom

clearance”. Forwarder has to prepare customs clearance in advance since the
export permission or some official documents from Thai government are
required depending on the cargo. If we do not prepare the right documents, the
cargo cannot be exported or the cargo will not pass the import custom clearance
at the destination.

It is better to inform the Forwarder in the case if you export the cargo first time.
Forwarder will check the required documents for export and import custom
clearance in advance.

Booking Trailer

In addition to arranging the custom clearance, a trailer is also required in order

to bring containers to the factory. We have to manage the time of cut off and the
actual loading time.
6. Arrange the empty container

Before the empty containers arrive at the customer at the requested date and
time, Forwarder arrange to take the empty container from the container depot in
advance. In the case of the loading in the morning, Forwarder pick up an empty
container on the evening of the previous day and it heads to the customer’s
factory on the next morning.

In the container depot, a container is allocated, but sometimes the quality of the
container may not be good (hole on the roof, dirty, rust etc.). If bad quality
containers is allocated, the truck driver refuses to pick up and go back behind
the line of the cue to pick up a new container again.

If the containers do not arrive at the factory on time, this kind of problems in the
container depots is supposed to occur.

7. Load cargo
Generally cargo loading is conducted by the Shipper since the Loading method
differs from the customer’s cargo. Truck driver will not load the cargo on behalf
of the Shipper except the special request.

Trailer loading time

Trailer over time charge may occur if cargo loading takes so long time. Free
loading time of trailer is basically 2 to 4 hours but it depend on the truck
supplier. We are providing with 4 hours free loading time.

Submit VGM (Verified Gross Mass)

VGM is a rule to report the correct gross weight of cargo to Shipping Line.
There is a deadline to submit VGM, and the customer have to inform the
forwarder of the actual weight of the cargo by the deadline.

The method of VGM submission is different from the Shipping Lines. Some
Shipping Lines require the signature of the Shipper in a specific form. And other
Shipping Lines accept Forwarder to enter the gross weight in the system.

8. Delivery container to Terminal

We carry the container that has loaded the cargo to the port.

CY Cut (Cut off /Return /Closing)

The terminal for the container delivery is called CY (Container Yard), and there
is a deadline of delivery the cargo to CY. It is called “CY Cut”. The cargo has to
arrive at the CY in advance to be loaded on the booked vessel. It is like a
deadline for boarding reservation time of an airplane. CY Cut is also used in the
words “Cut off”, “Return” and “Closing”.

CY Cut is “extendable” for some of the special case. we cannot guarantee to

extend it every time. Sometimes, it may take long time to loading the cargo into
the container. And Sometimes, it may get the caught up in the traffic to the port.
If you find that it is difficult to return the cargo on time, please ask the
Forwarder to extend the cut off.

Please note if the container arrives after the Cut Off deadline without informing
the forwarder, the container will not be accepted to be loaded.

9. The vessel leaves port

The vessel carrying the cargo will depart from the port of Thailand.

10. B/L is issued

After the vessel departs from the port, B/L will be issued from the Shipping
Line. It will be issued basically the next day after departure date or two days
later. If you are in a hurry to receive B/L, please inform the forwarder in
advance.