Basic Shipping DocumentationBasic Shipping Documentation

Shipping DocumentationShipping Documentation An induction on the container transport,

and its driving forces. Outlines of the parties and sectors who

involve in the business. Outlines of the operation, and Introduction of the various key

documents associated with each sector of the business, and their significance.

Who, What is involved, and WhyWho, What is involved, and Why

What documents are producedWhat documents are produced in facilitating the shipment cycle in facilitating the shipment cycle

Apart from the physical transportation of the goods from the buyer to the seller, there are various kinds of documents involved.

This presentation aims at providing a basic knowledge on the key documents.

For details on the documents, you may need to refer to the relevant text.

Documents In The OutboundDocuments In The Outbound Business Cycle Business Cycle

LOADCONTAINER

ON SHIP

FREIGHTCHARGE

COLLECTIONRELEASE B/L

TO CUSTOMER

ISSUEBILL OFLADING

(B/L)

IDENTIFYPROSPECTIVECUSTOMERS

BOOKCARGO

AGREE ONPRICE ANDSERVICE WITHCUSTOMER

MARKETING PRICING/SALES CUSTOMER SERVICE

CUSTOMERDELIVERS

THEIR CARGOES

TO WAREHOUSE

DEPOT/TRANSPORT

CFS (Container Freight Station)

MARINEOPERATIONS

CUSTOMER SERVICE

FREIGHT CASHIER

TRANSMITB/L INFO

TODESTINATIONS

DOCUMENTATION

CONTAINERSTUFFINGLOADED

CONTAINER TO

TERMINALOR DEPOT

CARGOCONSOLIDATION

ANDSTUFFING

CUSTOMERPICKS UP EMPTY

CONTAINERAT TERMINAL

OR DEPOT

MEET WITHCUSTOMER

SALES

DISCHARGECOTAINER

DELIVERY ORCUSTOMER

PICK UP

1.1. To Identify Prospective To Identify Prospective CustomersCustomers

Customer nomination e.g. in L/C

Sales calls & follow up on transport solution for their Sales Contract

Walk-In customers

What is a L/C ?What is a L/C ? Definition of a

Documentary Credit Availability under

Documentary Credits Guideline for handling

Documentary Credit is set in ICC publication No.500 (the UCP500)

Who use the L/C ?Who use the L/C ? DC Issuing and Advising Flow ChartDC Issuing and Advising Flow Chart

OK

Why the L/C ?Why the L/C ? In Export Document Negotiation In Export Document Negotiation

OK

What is Sales Contract ?What is Sales Contract ?

What are common in the What are common in the ContractContract

Name and address of seller & buyer Reference between the document and the goods

themselves Number/quantity Price Delivery Terms (Incoterm CIF, FOB etc.) Payment Transport Insurance Import and export license Various contract terms

Definition of INCOTERMDefinition of INCOTERM INCOTERMS are International Commercial Terms used

in shipping documentation which are recognized as the international standard.

INCOTERMS are generally letters or abbreviations that represent a universal understanding of: the parties involved, terms of sale, point of origin, destination, and party responsible given a certain condition.

INCOTERMS are not legal binding subject to acceptance of individual involved with the business transactions

Who facilitate the trade conducts : Who facilitate the trade conducts : International Chamber of Commerce International Chamber of Commerce It is the World Business Organization which

promotes international trade, investment and the market economy system worldwide;

makes rules that govern the conduct of business across borders;

e.g. the INCOTERMS 2000 provides essential services, foremost among them

the ICC International Court of Arbitration, the world's leading institution of its kind.

Incoterms 2000Incoterms 2000 Brings in line with current international trade

practice in 2000 after its last issue in 1990. Reduces uncertainties, misunderstandings, disputes

and litigation on Sales contracts. Implication to transport e.g. if CIF contract then it

cannot perform such contract by other mode than carriage by Sea, needs B/L (or other maritime document) to the buyer, and the kind of document required in a Documentary Credit (L/C).

How the INCOTERMS worksHow the INCOTERMS works To determine at what point the seller has fulfilled his

obligations so that the goods in legal sense could be said to have been delivered to the buyer

To identify– who is responsible to provide export and import license– what kind of documents to be provided by seller– extent of the insurance protection– duty to notify the order party on any arrangement made– duty to pack the goods

Increasing seller’s obligation:Increasing seller’s obligation: Structured Structured grouping in INCOTERMSgrouping in INCOTERMS

EXW (Ex Works) [the “E”-term group]– Minimum obligation for the seller. The buyer

receives the cargo directly from the factory and thereafter arranges shipment, insurance etc. himself.

– Should not use this term if buyer cannot carry out export formalities directly or indirectly.

FOB (Free On Board) [the “F”-term group]– The seller has to arrange delivery to the vessel

including trucking and insurance up to the vessel, thereafter the buyer arranges for the freight to the shipping line as well as any further insurance.

– The seller requires to clear the goods for export.

[continue][continue] CFR (Cost and Freight) [the “C”-term group]

– Same as CIF except the buyer arranges his own insurance.

CIF (Cost, Insurance and Freight) [the “C”-term group]– are all paid by the seller who is then in control of

the shipment until it is discharged and delivered to the buyer.

– Seller only need to clear the goods for export.

Reason in Using INCOTERMS:Reason in Using INCOTERMS: Benefits Benefits

Gives consistency to the interpretation of international trade terms;

Brings certainty to international transactions; Defines the method of delivery of the goods; Indicates the calculation of the purchase price

and incidental charges which are included

OOCL .. May I help You ..Do you have schedule to London

next week … Just a minutes, let me check

2.2. To Understand Customer’s To Understand Customer’s Requirement Requirement

Okay .. Thank you

Its approved, US$1500

33. Commit . Commit RequirementRequirement

Please make Booking to Customer

4.4. Book Cargo Book Cargo

Booking

Acknowledgement

Booking Booking AcknowledgementAcknowledgement

Sample Sample Booking Booking AcknowledgementAcknowledgement

5.5. Picks up empty container: Picks up empty container: from designated depot from designated depot

Sample Sample

Job Job OrderOrder

6.6. Factory Stuffing Factory Stuffing

9. 9. Laden Container to Laden Container to TerminalTerminal

10.10. Load container onboard Load container onboard shipship

Customer & Shipment Details: * Shipper * Consignee * POR * POL POD * FND

Cargo Details:

……. etc

11.11. Bills Of Lading Preparation Bills Of Lading Preparation

Samples of Shipping InstructionSamples of Shipping Instruction

Documentationsissue

BL

Bills Of Lading IssuanceBills Of Lading Issuance

BL

What is the Bill of Lading?What is the Bill of Lading?

The Bill of Lading (B/L) is a document issued by the carrier serving as a legal document between the shipper and the carrier by which both parties accept the carriage to be bound as stipulated on Terms and Conditions of the B/L

Functions of the Bill of Functions of the Bill of LadingLading

It is the shipping line’s Receipt of the cargo which includes description of the cargo and other particulars declared by the shipper.

It is an written evidence of Contract of Carriage that the vessel will transport the goods from a named place of receipt to a named place of delivery.

It is a Document of Title which means that it can be sold or otherwise transferred. The owner of the B/L has the right of ownership of the cargo.

Why the Bill of Lading is important Why the Bill of Lading is important to the shipper (consignor)? to the shipper (consignor)?

The consignor (shipper) having obtained the Bill of Lading issued by the carrier will serve as an evidence signifying their fulfillment of their part of the sales contract between the buyer. The shipper can then collect their payment for the sales of the goods with the presentation of the Bill of Lading

B/L also governs the liabilities of carrier on the reimbursement of cargo claims and general average

How to draw up Content How to draw up Content of a Bill of Lading ? of a Bill of Lading ?

Customer information (Shipper, Consignee, Notify Party) furnished by shipper

Shipment start & end places (POR/POL/POD/FND)

Cargo particulars furnished by shipper: Cargo Description, Marks & Numbers, weight / measurements, cargo package and quantity etc)

Name of the vessel and her voyage number Key Dates & Places: e.g. Onboard Date Freight details (optional) Signature

Sample Sample Bill of Bill of LadingLading

Please double click Please double click the form if you would the form if you would like to see the detailslike to see the details

UCP500UCP500 It’s ICC Uniform Customs

and Practice for Documentary Credits

UCP 500, published by ICC in 1993 is the new version revised from UCP 400

A set of Rules to facilitate the Documentary Credit undertakings.

Standard for examination of Documents by banks

Some Common types Some Common types of B/L in shipping of B/L in shipping

Marine / Ocean Bill of Lading Straight Bill of Lading To Order negotiable Bill of Lading Original Bill of Lading Sea Waybill (or Express B/L) Shipped Bill of Lading

The Sea WaybillThe Sea Waybill

Definition of the Sea Definition of the Sea WaybillWaybill

It is a document issued to a shipper in exchange for his cargo. A Sea Waybill is not negotiable and therefore cargo can only be delivered to a named consignee nominated by the shipper. It is possible for a shipper to vary his instructions and any request to change consignee should always be made in writing.

Usage of The Sea WaybillUsage of The Sea Waybill Due to the increased speed and turn around of container

vessels, the Bills of Lading issued to the shippers may not have reached the consignees by the time they wish to take delivery from the vessel, hence it may be desirable to issue a Sea Waybill.

It is also useful for companies that trade internationally with themselves between geographical areas where payment for exports is not a problem.

Hence, a Sea Waybill can be sent forward with the goods allowing the consignee to take immediate delivery.

Disadvantages of The Sea Disadvantages of The Sea WaybillWaybill

It is a high risk business transaction. Delivery - The carrier shall be under no liability for wrong delivery if

he can prove that he has exercised reasonable care to ascertain that the party claiming to be the consignee is in fact that party.

Right of Control – Unless shipper expressly noted on the Sea Waybill, he shall be the only party entitled to give the carrier instructions in relation to the contract of carriage. Unless prohibited by the applicable law, he shall be entitled to change the name of the consignee at any time up to the consignee claiming delivery of the goods after their arrival at destination.

It is not possible for shipper to change the cargo entity after Sea Waybill is issued.

Prohibited Liability Clauses on Prohibited Liability Clauses on B/LB/L

Clause that increase carrier’s risk exposure and beyond the Club’s insurance covers are generally prohibited.

Shipped clean onboard Clean onboard To be stowed or shipped below deck or water line To be stowed away from boiler or engines To be carried at temperature Transshipment prohibited or not allowed Cool stowage Protected from freezing Ventilated container

What is new in todayWhat is new in today B/L Printing ? via Internet B/L Printing ? via Internet

OOCL leads the container transport industry in technological innovation by offering access to original Bills of Lading via the Internet.

Customers can now print their Bills of Lading via the Internet in their own offices saving time and the cost of collecting documents in person.

Features of Internet Bill of LadingFeatures of Internet Bill of Lading

The Bill of Lading from the Internet can be printed at the location of shipper’s choice and time is saved because customer is not required to collect the document in person or to use costly courier services.

Shippers can transfer the right to print the Bill of Lading to their counterparts so that there is no need for them to forward a hard copy.

Shippers can use our system to internally distribute Bills of Lading to different departments or regions. If the shippers transfer the printing rights to consignee, forwarder and/or bank, they may also internally distribute the Bill of Lading to their various counterparts.

12.12. Shipper Collect B/L Shipper Collect B/L

13.13. Complete Voyage Data to Complete Voyage Data to enable destination inbound enable destination inbound

process to start process to start

Complete Export Authority Complete Export Authority Formalities Formalities

The ManifestThe Manifest

Sample ManifestSample ManifestPlease double click the form if you would like to see the detailsPlease double click the form if you would like to see the details

Definition of the ManifestDefinition of the Manifest It is a document that lists in detail all the bills

of lading issued by a vessel or its agent or master i.e., a detailed summary of the total cargo of a vessel. It is used principally for customs purposes. It is also called summary of Bills of lading.

Purpose of the ManifestPurpose of the Manifest For submission to customs in connection with clearance of the vessel

to and from certain ports By the shipping agent as a record of the shipments made and as a

reference document for numerous purposes in the day to day operation. By the ship as a record of cargo loaded on board, by destination. By the agent in the discharging port as a check list from which he can

contact customers regarding the delivery of their cargo and also ascertain whether freight must be collected before delivery

By the ship owner to check the agent’s commissions and to ascertain from where he can expect payment of fright to be credited to his current account

Manifest is also utilized by terminal or port authority to charge wharfage or other port charges

In Sea TransitIn Sea Transit

Shipper send the Original BL to Consignee

B/L Transactions by customersB/L Transactions by customers

DOCUMENTATION

DEPOT/TRANSPORT

EDITINBOUNDINFORMATION

RECEIVEMANIFEST

INFORMATION

DOCUMENTATION DOCUMENTATION

STORECONTAINERIN TERMINAL

FOR CUSTOMERPICK-UP

MARINEOPERATIONS

TRANSPORT

CUSTOMERPICKS UP

CONTAINER ANDUNLOADS CARGO

TRANSPORT/WAREHOUSE

INTERMODALCONNECTION

STORE CONTAINER IN

INLANDCONTAINER

YARD

DISCHARGECONTAINER

SEND ARRIVALNOTICE TOCUSTOMER

FREIGHT CASHIER

COLLECTFREIGHT

CHARGES/AUTHORIZE

RELEASE

CUSTOMERRETURNS

EMPTYCONTAINERTO DEPOT

SUBMIT MANIFEST TO GOVT. AGENCIES FORREVIEW &ACCEPTANCE

Documents In The Inbound BusinessDocuments In The Inbound BusinessCycleCycle

When the ship arrive at the destination, inbound cycle starts :(1) Receive manifest information(2) Edit inbound information(3) Submit Manifest to Government Agencies for review and acceptance(4) Send arrival notice to customer(5) Discharge container(6) Store container in terminal for customer picks up or dispatch containers to Inland point or Buyer’s facilities(7) Issue authorized release documents(8) Customer picks up container and unload cargo(9) Customer return empty container to depot

The Business Cycle at InboundThe Business Cycle at Inbound

14.14. Start Process Inbound Start Process Inbound Voyage DataVoyage Data

15.15. Complete Inbound Complete Inbound FormalitiesFormalities

16.16. The Manifest Submission The Manifest Submission

Sample Sample ManifestManifest

Please double click the form if you would like to see the detailsPlease double click the form if you would like to see the details

Arrival date

Vessel Information

Container Details

Freight/Surcharg

17.17. Notification on Cargo Arrival Notification on Cargo Arrival (Arrival Notice) (Arrival Notice)

Sample Sample Arrival Arrival NoticeNotice

18.18. Container Discharge Container Discharge

19.19. Store Container On Dock Store Container On Dock for Customer Pick Up for Customer Pick Up

20. Inter-modal Connection:20. Inter-modal Connection: From Terminal to From Terminal to

CustomerCustomer

21. Inter-modal Connection:21. Inter-modal Connection: From Terminal to Inland From Terminal to Inland

DepotDepot

Sample Sample

Job Job OrderOrder

22.22. Cargo Release against Cargo Release against Document & Payment Document & Payment

Sample Sample InvoiceInvoice

Sample Sample

Bank Bank GuaranteeGuarantee

23. 23. Take Delivery of Laden Take Delivery of Laden ContainerContainer

Sample Sample Release Release

OrderOrder

24. 24. Return Empty ContainerReturn Empty Container

EndEnd