Your SlideShare is downloading. ×
Shipdocumentation
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Shipdocumentation

3,613
views

Published on

Published in: Business

2 Comments
5 Likes
Statistics
Notes
No Downloads
Views
Total Views
3,613
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
476
Comments
2
Likes
5
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Overland truck transport inter-modal before loading Overland Rail transport inter-modal before loading CFS (Container Freight Station) operation for receiving Less than Container Load cargo (LCL) CY (Container Yard) / Depot operation for receiving Full Container Load box (FCL) Head Office / Agency Offices / Handling Representatives Terminal operation at Port of Load Port of Load Across the Ocean Head Office / Agency Offices / Handling Representatives Port of Discharge Terminal operation at Port of Discharge Overland Rail transport inter-modal after discharging CFS (Container Freight Station) operation for delivery Less than Container Load cargo (LCL) CY (Container Yard) / Depot operation for delivery Full Container Load box (FCL)
  • Throughout the business cycle, you can see there are various kinds of documents being used. Along with the following sections, we will try to explain some of the important documents you may deal with in further detail.
  • Document: L/C Document: Sales Contract
  • Definition of a Documentary Credits It’s a conditional obligation to make payment to a exporter. The payment is conditional upon the exporter’s compliance with the terms & conditions specified in the Letter of Credit (L/C). The exporter needs to present various documents stipulated in the L/C. The bank’s undertaking gives the exporter a promise of payment in exchange for documents that enable the importer to take delivery of goods. Links / brings reader to the screen of Documentary Credit Process Flowchart 2. Documentary Credit (DC) is available by : By Sight Negotiation – the most common type. Issuing bank requires a sight draft to be presented as part of the stipulated documents. Negotiation bank would not pay beneficiary but only to negotiate (means the negotiation bank has the right to recourse back to the beneficiary if not reimbursed by the Issuing bank). Sight payment – nominate the bank to effect payment to the L/C beneficiary against presentation of stipulated documents. Deferred payment - nominate the bank to effect payment to the L/C beneficiary against presentation of stipulated documents in a future date e.g. 60 days from date of Bill of Lading. 3. UCP500 – links and brings reader to the screen of UCP500.
  • Sales Contract – provide short cut links to bring reader (if go forward) to ICC Incoterms. Only L/C Advising bank can be the confirming bank.
  • Beneficiary arranges shipment to buyer. Beneficiary obtains Bill of Lading (OB/L, a title document) from shipping line, and properly endorsed then pass to Negotiation Bank to process. Negotiation bank check documents according to L/C (DC) stipulation. If in order, pays the beneficiary. Negotiation bank pass on the checked documents to Issuing Bank and get reimbursement from Issuing bank. Issuing bank reimburse negotiation bank. Issuing bank release document (incl. Bill of Lading) to Applicant (buyer). Buyer (Applicant) pays the L/C Issuing bank.
  • Provide link to bring reader to the screen of Incoterm 2000
  • ICC - International Chamber of Commerce A Paris-based international forum that aims to facilitate trade. To provide link to bring reader to the screen “ International Chamber of Commerce” Provide links to bring reader to the screen of Functions of the INCOTERMS
  • Document: Booking Acknowledgement
  • A booking acknowledgement (confirmation) is a document used by carrier in confirming the booking status of the booking made. In practice, usually carrier through it : confirms acceptance of the booking made, Advises address of the depot from which shipper can pick up empty container Reminds shipper some important information such as where shipper to return the laden container, customs requirement and or alerts. 2. Provide link to bring reader to a sample of the “Booking Acknowledgement”
  • There are two ways that empty container can be picked from the depot: Under Merchant haulage – the shipper would arrange transport at own costs and risks to pick the empty container. After stuffing container, shipper will return the laden container to loading terminal under its own arrangement & costs. Under Carrier haulage – carrier arrange on behalf of the shipper at shipper’s costs to pick the empty container. After stuffing container by shipper, laden container will be hauled to loading terminal under carrier arrangement. Under this method, carrier will issue a job order to the trucker. 2. Document: Job Order (JO) is a OOCL document which purpose is to keep track and to communicate our shipment handling service request to vendors (e.g. truckers)
  • There are two ways that Laden container dispatch from shipper premises to loading pier / terminal: Under Merchant haulage – the shipper would arrange transport at own costs and risks. Under Carrier haulage – carrier arrange on behalf of the shipper at shipper’s costs. Under this method, trucker performs under a job order issued by carrier. 2. Job Order (JO) is a OOCL document which purpose is to keep track and to communicate our shipment handling service request to vendors (e.g. truckers)
  • Shipper will in its Shipping Instruction (SI) or sometimes called Shipping Master details their shipment information to carrier to produce the Bills of Lading. In order to produce quality Bills of Lading to shipper, they have to provide complete and timely SI. To provide link to bring reader to samples of SI.
  • To provide link to bring reader to OOCL standard B/L form.
  • Issuance onboard B/L only upon Payment of prepaid amounts (unless customer is on approved credit term with OOCL), and cargo is loaded on board.
  • To provide link to the OOCL Standard B/L Terms & Conditions – http://www.oocl.com/BL/Terms_P1.htm
  • The face of your OOCL Bill of Lading consists of many fields. All fields are to be completed with information provided by you or your freight forwarder except for field nos. 5, 26, 27, 28 and 29 which will be completed by Orient Overseas Container Line and or its Agents ("OOCL"). Fields: Shipper (1) Consignee (2) Notify Party (3) Identify the Shipper, Consignee, and Notify Party in the proper boxes by providing the full name and address of each. NOTE: in many countries notices cannot be delivered to Post Office Box addresses. COMPLETE NAMES AND STREET ADDRESSES, THEREFORE, ARE ESSENTIAL TO EFFECT DELIVERY OF ARRIVAL NOTICES. Field (4): Booking Number If booking numbers are used in your local area, insert the actual booking number given by OOCL to you or your forwarder for each shipment booked. Field (5): Bill of Lading Number OOCL will insert the Bill of Lading number to identify your shipment. The Booking No. and Bill of Lading No. may be the same depending on the practice in your local area. Field (6): Export Reference To be used only when needed by you or your consignee (or your banks) for reference to an order number, letter of credit, governmental requirements, etc. Otherwise, this field may be left blank. Field (7): Forwarding Agent (References) If you use a forwarder, this field is for insertion of your forwarder's name, address, and license number, if any. Field (8): Point and Country of Origin of Goods If required by law or local practice, you must insert the city and state where the cargo originated, NOT the city and state where OOCL receives your shipment. Fields (9) Also Notify Party - Routing & Instructions; (10) Loading Pier/Terminal; (11) Type of Movement; and (12) Originals to be Released At You can use these fields to identify additional parties or enter supplemental information, such as the pier or ocean terminal where your shipment is to be loaded on the exporting vessel, type of cargo movement (e.g. CY/CY, CY/CFS, CFS/CY, or CFS/CFS) and/or the place where the original Bill of Lading is to be released. If more than one type of cargo movement is involved, then insert "Mixed Move" in Field (9) and proceed to Field (19) where each movement should be inserted after each container number listed. Field (13): Pre-carriage By DO NOT COMPLETE THIS FIELD FOR SHIPMENTS BETWEEN FAR EASTERN PORTS AND EUROPEAN PORTS (IN EITHER DIRECTION). This Field is also not to be used for port to port movements. For all other movements, complete this Field by inserting the name of the PARTICIPATING CARRIER accepting your shipment. See the definition of "PARTICIPATING CARRIER" and other capitalized terms in Clause 2 of the sample Bill of Lading form. Field (14): Place of Receipt by Participating Carrier / Carrier Insert the place where your shipment is accepted by the PARTICIPATING CARRIER or OOCL for the first leg of the transportation. Field (15): Intended Vessel/Voyage/Flag Insert the Intended Vessel, the voyage number and flag of the vessel . If you require an "On Board Bill of Lading, OOCL will strike the word 'intended'." Information necessary to complete this field is available from your forwarder or OOCL or its agents. Field (16): Port of Loading Insert the port where your shipment is to be received by OOCL for loading aboard the intended Vessel. Field (17): Port of Discharge The port where your shipment is to be discharged from OOCL's vessel. This information may be obtained from OOCL or its agents. Field (18): Place of Delivery by Participating Carrier / Carrier Insert the place where your shipment is to be delivered by OOCL or PARTICIPATING CARRIER on the last mode of through transportation. Field (19): Enter Nos. w/Seal Nos., Marks and Numbers Insert the identifying marks and numbers as shown on the individual containers, packages or customary packaging units shipped. If the customary packaging unit(s) has no marks, you should state "No Marks". The CONTAINER number, including the alpha prefix (e.g. "OOLU"), serial number and check digits, plus seal(s) or other identification numbers affixed to the CONTAINER, should be shown in this field. For each CONTAINER, the type of cargo movement (e.g. CY/CY, CY/CFS, CFS/CY, or CFS/CFS) should be shown after the seal number(s). These terms are defined below. Field (20): Number of Packages For each CONTAINER and for GOODS not shipped in CONTAINERS, you must insert the number of customary packaging units shipped, their measurement and weight after the seal number(s) or type of cargo movement. Unitized packages are considered CONTAINERS for purposes of the Bill of Lading, so when you are shipping skids, pallets, sleds or GOODS on cradles, state the number of individual packages within. This will facilitate unstuffing and/or delivery, and obtaining a customs release. IF YOU DO NOT INSERT THE ACTUAL NUMBER OF PACKAGES, THE CONTAINER COULD BE DEEMED TO BE ON PACKAGE FOR PURPOSES OF PACKAGE LIMITATION. Field (20a): Hazardous Material To identify any hazardous material ("HM"), insert an "X" in this column next to the description of the GOODS. You must further describe the hazardous material in plain language in Field (21) and certify that the Goods, comprising the Hazardous material, such have been properly packaged, secured and otherwise prepared for the intended transportation in accordance with IMO and/or U.S. Department of Transportation regulations and/or U.S. Coast Guard regulations or such other appropriate body. Field (21): Description of Packages and Goods Insert in plain language the nature of the Goods sufficient to identify them for the OOCL's care and freight rating purposes, and for Customs and statistical purposes. Field (22): Gross Weight Insert the actual gross weight in pounds or kilograms for each commodity shipped, including packaging (but excluding the weight of the OOCL's equipment, e.g. containers, chassis, flatbeds, low-loaders, etc.) Field (23): Measurement Insert the actual cubic measurement in meters or feet for each commodity, including packaging, (but excluding the volume of OOCL's equipment, e.g. containers, chassis, flatbeds, low-loaders, etc.) Field (24): Shipper's Declared Value COGSA and the Bill of Lading terms governing your shipment's movement to and from the United States of America give OOCL the right to limit its liability to $500 per package or per customary freight unit. If you wish to increase OOCL's liability in excess of that provided by COGSA and/or the Bill of Lading, use Field (24) to declare a higher value. Should you make such an ad valorem declaration, OOCL must impose a higher freight charge based on applicable tariffs and rate agreements. Field (25): Freight and Charges Payable At/By Insert the OOCL office where you, your forwarder or, in the case of a Collect Bill of Lading, the consignee, will pay the freight charges and the name of the party who will be making payment. This will assist OOCL in facilitating the release of your shipment. Field (26): Service Contract No. If you and OOCL, either directly or through a freight conference or shipper's association, have entered into a service contract, insert the contract number. Field (27): Route Code To be completed by OOCL. Field (28): Commodity Code To be completed by OOCL. Field (29): Exchange Rates To be completed by OOCL.
  • The face of your OOCL Bill of Lading consists of many fields. All fields are to be completed with information provided by you or your freight forwarder except for field nos. 5, 26, 27, 28 and 29 which will be completed by Orient Overseas Container Line and or its Agents ("OOCL"). Fields: Shipper (1) Consignee (2) Notify Party (3) Identify the Shipper, Consignee, and Notify Party in the proper boxes by providing the full name and address of each. NOTE: in many countries notices cannot be delivered to Post Office Box addresses. COMPLETE NAMES AND STREET ADDRESSES, THEREFORE, ARE ESSENTIAL TO EFFECT DELIVERY OF ARRIVAL NOTICES. Field (4): Booking Number If booking numbers are used in your local area, insert the actual booking number given by OOCL to you or your forwarder for each shipment booked. Field (5): Bill of Lading Number OOCL will insert the Bill of Lading number to identify your shipment. The Booking No. and Bill of Lading No. may be the same depending on the practice in your local area. Field (6): Export Reference To be used only when needed by you or your consignee (or your banks) for reference to an order number, letter of credit, governmental requirements, etc. Otherwise, this field may be left blank. Field (7): Forwarding Agent (References) If you use a forwarder, this field is for insertion of your forwarder's name, address, and license number, if any. Field (8): Point and Country of Origin of Goods If required by law or local practice, you must insert the city and state where the cargo originated, NOT the city and state where OOCL receives your shipment. Fields (9) Also Notify Party - Routing & Instructions; (10) Loading Pier/Terminal; (11) Type of Movement; and (12) Originals to be Released At You can use these fields to identify additional parties or enter supplemental information, such as the pier or ocean terminal where your shipment is to be loaded on the exporting vessel, type of cargo movement (e.g. CY/CY, CY/CFS, CFS/CY, or CFS/CFS) and/or the place where the original Bill of Lading is to be released. If more than one type of cargo movement is involved, then insert "Mixed Move" in Field (9) and proceed to Field (19) where each movement should be inserted after each container number listed. Field (13): Pre-carriage By DO NOT COMPLETE THIS FIELD FOR SHIPMENTS BETWEEN FAR EASTERN PORTS AND EUROPEAN PORTS (IN EITHER DIRECTION). This Field is also not to be used for port to port movements. For all other movements, complete this Field by inserting the name of the PARTICIPATING CARRIER accepting your shipment. See the definition of "PARTICIPATING CARRIER" and other capitalized terms in Clause 2 of the sample Bill of Lading form. Field (14): Place of Receipt by Participating Carrier / Carrier Insert the place where your shipment is accepted by the PARTICIPATING CARRIER or OOCL for the first leg of the transportation. Field (15): Intended Vessel/Voyage/Flag Insert the Intended Vessel, the voyage number and flag of the vessel . If you require an "On Board Bill of Lading, OOCL will strike the word 'intended'." Information necessary to complete this field is available from your forwarder or OOCL or its agents. Field (16): Port of Loading Insert the port where your shipment is to be received by OOCL for loading aboard the intended Vessel. Field (17): Port of Discharge The port where your shipment is to be discharged from OOCL's vessel. This information may be obtained from OOCL or its agents. Field (18): Place of Delivery by Participating Carrier / Carrier Insert the place where your shipment is to be delivered by OOCL or PARTICIPATING CARRIER on the last mode of through transportation. Field (19): Enter Nos. w/Seal Nos., Marks and Numbers Insert the identifying marks and numbers as shown on the individual containers, packages or customary packaging units shipped. If the customary packaging unit(s) has no marks, you should state "No Marks". The CONTAINER number, including the alpha prefix (e.g. "OOLU"), serial number and check digits, plus seal(s) or other identification numbers affixed to the CONTAINER, should be shown in this field. For each CONTAINER, the type of cargo movement (e.g. CY/CY, CY/CFS, CFS/CY, or CFS/CFS) should be shown after the seal number(s). These terms are defined below. Field (20): Number of Packages For each CONTAINER and for GOODS not shipped in CONTAINERS, you must insert the number of customary packaging units shipped, their measurement and weight after the seal number(s) or type of cargo movement. Unitized packages are considered CONTAINERS for purposes of the Bill of Lading, so when you are shipping skids, pallets, sleds or GOODS on cradles, state the number of individual packages within. This will facilitate unstuffing and/or delivery, and obtaining a customs release. IF YOU DO NOT INSERT THE ACTUAL NUMBER OF PACKAGES, THE CONTAINER COULD BE DEEMED TO BE ON PACKAGE FOR PURPOSES OF PACKAGE LIMITATION. Field (20a): Hazardous Material To identify any hazardous material ("HM"), insert an "X" in this column next to the description of the GOODS. You must further describe the hazardous material in plain language in Field (21) and certify that the Goods, comprising the Hazardous material, such have been properly packaged, secured and otherwise prepared for the intended transportation in accordance with IMO and/or U.S. Department of Transportation regulations and/or U.S. Coast Guard regulations or such other appropriate body. Field (21): Description of Packages and Goods Insert in plain language the nature of the Goods sufficient to identify them for the OOCL's care and freight rating purposes, and for Customs and statistical purposes. Field (22): Gross Weight Insert the actual gross weight in pounds or kilograms for each commodity shipped, including packaging (but excluding the weight of the OOCL's equipment, e.g. containers, chassis, flatbeds, low-loaders, etc.) Field (23): Measurement Insert the actual cubic measurement in meters or feet for each commodity, including packaging, (but excluding the volume of OOCL's equipment, e.g. containers, chassis, flatbeds, low-loaders, etc.) Field (24): Shipper's Declared Value COGSA and the Bill of Lading terms governing your shipment's movement to and from the United States of America give OOCL the right to limit its liability to $500 per package or per customary freight unit. If you wish to increase OOCL's liability in excess of that provided by COGSA and/or the Bill of Lading, use Field (24) to declare a higher value. Should you make such an ad valorem declaration, OOCL must impose a higher freight charge based on applicable tariffs and rate agreements. Field (25): Freight and Charges Payable At/By Insert the OOCL office where you, your forwarder or, in the case of a Collect Bill of Lading, the consignee, will pay the freight charges and the name of the party who will be making payment. This will assist OOCL in facilitating the release of your shipment. Field (26): Service Contract No. If you and OOCL, either directly or through a freight conference or shipper's association, have entered into a service contract, insert the contract number. Field (27): DOC Form No. To be completed by OOCL. Field (28): Commodity Code To be completed by OOCL. Field (29): Exchange Rates To be completed by OOCL.
  • Ocean Bill of Lading (Ocean B/L)   - Document indicating that the exporter will consign a shipment to an international carrier for transportation to a specified foreign market. Unlike an inland B/L, the ocean B/L also serves as a collection document. Straight Bill of Lading – When an Ocean B/L is a Straight B/L the foreign buyer can obtain the shipment from the carrier by simply showing proof of identity. We cannot use Straight B/L to transfer cargo ownership. Negotiable Bill of Lading – When an Ocean B/L is a negotiable B/L (drawn under “ To Order ” consignee), it can be used to transfer the cargo ownership. Original Bill of Lading (OBL) - A document which requires proper signatures for consummating carriage of contract. Sea Waybill (or Express B/L) - A special facility granted by carrier under guarantees from shipper/consignee to release cargo without presenting original B/L. Shipped Bill of Lading – Also known as Shipped on Board B/L. A bill of lading issued only after the goods have actually been shipped on board the vessel, as distinguished from the received for shipment bill of lading.
  • CMI (The Comite Maritime International) – It is a non-governmental international organization. Its objective is to contribute by all appropriate means and activities to the unification of maritime law in all its aspect.
  • OOCL starts offering the internet B/L print through the OOCL.COM in 1998. Coming offering of the internet Shipping Instruction / Internet Bill of Lading print will be conducted through the multiple carrier portal “CargoSmart”.
  • Prepaid means payment by shipper against carrier’s release of B/L. To provide link to bring user to Bills of Lading screen.
  • Export Customs Declaration Two ways: Hardcopy (e.g. manifests) [To provide link to bring reader to Manifest screen] EDI (Electronic Data Interchange) 3. EDI    - Electronic Data Interchange. The transfer of structured data from one computer system to another.
  • From Port of Load to Port of Discharge Sometimes, cargo will be transshipped at a transshipment port (relay hub) onto a different vessel for final discharge port Transit time – the time lapse between one place (e.g. port) to another place (e.g. port)
  • Two ways of B/L dispatch : Shipper sends to consignee, in registered speed posts, if shipper need not to process through bank, or Shipper sends to Bank for subsequent bank transactions under Documentary Credit.
  • Provide link to bring reader to the Manifest screen.
  • Arrival notice    - Advice that carrier sends to consignee advising of goods coming forward for delivery. Pertinent information such as BL number, container number and total charges due from consignee ..etc are included and sent to consignee prior to vessel arrival. This is done gratuitously by carrier to ensure smooth delivery but there is no obligation by carrier to do so and the responsibility to monitor transit and present himself to take timely delivery still rest with the consignee.
  • There are two ways that Laden container dispatch from shipper premises to loading pier / terminal: Under Merchant haulage – the shipper would arrange transport at own costs and risks. Under Carrier haulage – carrier arrange on behalf of the shipper at shipper’s costs. Under this method, trucker performs under a job order issued by carrier. 2. Job Order (JO) is a OOCL document which purpose is to keep track and to communicate our shipment handling service request to vendors (e.g. truckers)
  • There are two ways that Laden container dispatch from shipper premises to loading pier / terminal: Under Merchant haulage – the shipper would arrange transport at own costs and risks. Under Carrier haulage – carrier arrange on behalf of the shipper at shipper’s costs. Under this method, trucker performs under a job order issued by carrier. 2. Job Order (JO) is a OOCL document which purpose is to keep track and to communicate our shipment handling service request to vendors (e.g. truckers)
  • Cargo Release against: payment of Collect amounts (or consignee having approved credit term with OOCL) Surrender of OB/L properly endorsed, or applicable Bank guarantee or Company Guarantee in lieu of OB/L Customs cleared
  • Common charge name : Ocean Freight, BAF, CAF, THC/THD, etc Provide link to OOCL charge table / description : http://elibple/IRIS-2/_download/SURCHARGES.xls We use Invoice to confirm the amount due from customer in relation to their shipment directly, or indirectly under certain criteria. Invoice usually has an invoice number and the due date besides the amounts. In certain countries, this document is required for payment and deal with authority such as Tax Authority.
  • Bank guarantee    - Guarantee issued by a bank to a carrier to release cargo in lieu of original bill of lading.
  • Consignee has to take delivery of the laden container within the free time under the published tariff. Taken delivery beyond free time is subject to Demurrage charge. Demurrage (Dem.)   - Charge raised for detaining FCL container/trailer for longer period than provided in a tariff. Also known as Wharf Storage in Australia.
  • Delivery Order    - A document authorizing delivery to a nominated party of goods in the care of a third party. Can be issued by a carrier on surrender of a bill of lading and then used by merchant to transfer title by endorsement.
  • Consignee has to return the empty container within free time under tariffs. Return after free time is subject to detention charge payable to carrier. Detention    - Charges raised for detaining container/trailer at customer ’ s premises for longer period than provided in Tariff.
  • Transcript

    • 1. Basic Shipping Documentation
    • 2. Shipping 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.
    • 3. Who, What is involved, and Why
    • 4. What documents are produced 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.
    • 5. Documents In The Outbound Business Cycle LOAD CONTAINER ON SHIP FREIGHT CHARGE COLLECTION RELEASE B/L TO CUSTOMER ISSUE BILL OF LADING (B/L) IDENTIFY PROSPECTIVE CUSTOMERS BOOK CARGO AGREE ON PRICE AND SERVICE WITH CUSTOMER MARKETING PRICING/SALES CUSTOMER SERVICE CUSTOMER DELIVERS THEIR CARGOES TO WAREHOUSE DEPOT/TRANSPORT CFS (Container Freight Station) MARINE OPERATIONS CUSTOMER SERVICE FREIGHT CASHIER TRANSMIT B/L INFO TO DESTINATIONS DOCUMENTATION CONTAINER STUFFING LOADED CONTAINER TO TERMINAL OR DEPOT CARGO CONSOLIDATION AND STUFFING CUSTOMER PICKS UP EMPTY CONTAINER AT TERMINAL OR DEPOT MEET WITH CUSTOMER SALES DISCHARGE COTAINER DELIVERY OR CUSTOMER PICK UP
    • 6. 1. To Identify Prospective Customers
      • Customer nomination e.g. in L/C
      • Sales calls & follow up on transport solution for their Sales Contract
      • Walk-In customers
    • 7. 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)
    • 8. Who use the L/C ? DC Issuing and Advising Flow Chart
    • 9. Why the L/C ? In Export Document Negotiation
    • 10. What is Sales Contract ?
    • 11. What are common in the Contract
      • 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
    • 12. Definition 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
    • 13. Who facilitate the trade conducts : 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.
    • 14. Incoterms 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).
    • 15. How 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
    • 16. Increasing seller’s obligation: Structured grouping in INCOTERMS
      • EXW ( Ex W orks) [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 ( F ree O n B oard) [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.
    • 17. [continue]
      • CFR ( C ost and F r eight ) [the “C”-term group]
        • Same as CIF except the buyer arranges his own insurance.
      • CIF ( C ost, I nsurance and F reight) [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.
    • 18. Reason in Using INCOTERMS: 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
    • 19. 2. To Understand Customer’s Requirement OOCL .. May I help You .. Do you have schedule to London next week … Just a minutes, let me check
    • 20. 3 . Commit Requirement Okay .. Thank you Its approved, US$ 1500
    • 21. 4. Book Cargo Please make Booking to Customer
    • 22. Booking Acknowledgement Booking Acknowledgement
    • 23. Sample Booking Acknowledgement
    • 24. 5. Picks up empty container: from designated depot
    • 25. Sample Job Order
    • 26. 6. Factory Stuffing
    • 27. 9. Laden Container to Terminal
    • 28. 10. Load container onboard ship
    • 29. 11. Bills Of Lading Preparation Customer & Shipment Details: * Shipper * Consignee * POR * POL POD * FND C argo Details: …… . etc
    • 30. Samples of Shipping Instruction
    • 31. Bills Of Lading Issuance Documentations issue BL BL
    • 32. 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
    • 33. Functions of the Bill of Lading
      • 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.
    • 34. Why the Bill of Lading is important 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
    • 35. How to draw up Content 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
    • 36. Sample Bill of Lading Please double click the form if you would like to see the details
    • 37. UCP500
      • It’s ICC U niform C ustoms and P ractice 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
    • 38. Some Common types 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
    • 39. The Sea Waybill
    • 40. Definition of the Sea Waybill
      • 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.
    • 41. Usage 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.
    • 42. Disadvantages of The Sea Waybill
      • 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.
    • 43. Prohibited Liability Clauses on B/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
    • 44. What is new in today 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.
    • 45. Features 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.
    • 46. 12. Shipper Collect B/L
    • 47. 13. Complete Voyage Data to enable destination inbound process to start
    • 48. Complete Export Authority Formalities
    • 49. The Manifest
    • 50. Sample Manifest Please double click the form if you would like to see the details
    • 51. Definition 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.
    • 52. Purpose 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
    • 53. In Sea Transit
    • 54. B/L Transactions by customers Shipper send the Original BL to Consignee
    • 55. Documents In The Inbound Business Cycle DOCUMENTATION DEPOT/TRANSPORT EDIT INBOUND INFORMATION RECEIVE MANIFEST INFORMATION DOCUMENTATION DOCUMENTATION STORE CONTAINER IN TERMINAL FOR CUSTOMER PICK-UP MARINE OPERATIONS TRANSPORT CUSTOMER PICKS UP CONTAINER AND UNLOADS CARGO TRANSPORT/ WAREHOUSE INTERMODAL CONNECTION STORE CONTAINER IN INLAND CONTAINER YARD DISCHARGE CONTAINER SEND ARRIVAL NOTICE TO CUSTOMER FREIGHT CASHIER COLLECT FREIGHT CHARGES/ AUTHORIZE RELEASE CUSTOMER RETURNS EMPTY CONTAINER TO DEPOT SUBMIT MANIFEST TO GOVT. AGENCIES FOR REVIEW & ACCEPTANCE
    • 56. The Business Cycle at Inbound 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
    • 57. 14. Start Process Inbound Voyage Data
    • 58. 15. Complete Inbound Formalities
    • 59. 16. The Manifest Submission
    • 60. Sample Manifest Please double click the form if you would like to see the details
    • 61. 17. Notification on Cargo Arrival (Arrival Notice) Arrival date Vessel Information Container Details Freight/Surcharg
    • 62. Sample Arrival Notice
    • 63. 18. Container Discharge
    • 64. 19. Store Container On Dock for Customer Pick Up
    • 65. 20. Inter-modal Connection: From Terminal to Customer
    • 66. 21. Inter-modal Connection: From Terminal to Inland Depot
    • 67. Sample Job Order
    • 68. 22. Cargo Release against Document & Payment
    • 69. Sample Invoice
    • 70. Sample Bank Guarantee
    • 71. 23. Take Delivery of Laden Container
    • 72. Sample Release Order
    • 73. 24. Return Empty Container
    • 74. End