Basics of Freight forwarding Business, Process and important documentation

1. Prepared by
Nitin Rajan

2. Process
Enquiry Quotation
Approval of the
quote
Domestic
forwarder
CFSDocumentation
Customs Approval Loading in Vessel
Unloading at
destination and
dispatch

3. Enquiry
 If the client is interested in doing business with
Monatne then they will as for a Quote where in all the
pricing is mentioned in a systematic manner.
 Enquiry is made based on the needs of the customer
 For Example: Destination, No. of goods and packages
etc.

4. Quotation
 Based on the enquiry made we prepare quotation and then
send it to our client.
 Price mentioned in the quote is negotiable based on the
approach of the client.
Payment modes:
 FOB(Free On Board): Exporter pays expenses till the goods
are loaded into the career, responsibility will be transferred
to importer after that.
 COB(Cost on Board):
 PrePaid: All the payments are made by the importer
 Ex-Works: All Expenses bared by the Importer

5. Approval of the Quote
 Once the Quotation is approved, we can move forward
with the process of receiving goods.
 Based on which Container booking has to be done.

6. Domestic Forwarder
 A domestic forwarder is appointed in order to make
sure the goods from the door of the exporter is
transported to CFS(Container Freight Station).

7. CFS(Container Freight
Station)
 Once the goods Arrive at CFS its our responsibility to
handle the goods and make sure the goods are in good
condition
 CFS are privately owned spaces used as a go-down
where in goods are brought inn,stored, inspected,
stuffed into the container and send to the harbor.

8. Documentation
 Documentation is the most important aspect in shipping
business and there is no margin for error in this area of
action
 Once the goods are transported from the door of the
exporter, Commercial Invoice and Package List is
prepared based on which further documentation is done
 Based on the documents above Shipping Bill, Bill of
lading(B/L), AMS(Advanced Manifest System), Certificate
of Origin, Shippers Declaration Form, Form
13/EIR(Equipment interchange receipt),ISF(Importers
Security Filing)

9. Generating & purpose of
Documents Cont…
 Shipping Bill: Is made based on Invoice, Used in CFS
 B/L: Its made based on Invoice and used at various stages in export. For
Eg: Delivery, issues in shipment
 AMS: Its made based on invoice used when goods are transferred to
main liner
 Certificate of Origin: Its Issued by chamber of commerce used for
clearance of goods at destination
 Shippers Declaration Form: Its needed when your transporting
dangerous goods as per IATA(International Air Transportation
Association)
 Form 13: Its given by the liner at the time of picking up the container.
 ISF: Its made by the consignee used for inspection at the customs at
destination.

10. Customs Approval
 Customs Sanction is mandatory before cargo is loaded
into the carrier
 Custom officers dispatch a “let shipment order” or “out
of charge” once this documents are received, goods are
sealed by the customs known as custom seal and liners
as well known as liner seal, these seals cannot broken
or tampered with.
 Once these process is completed
then the cargo is ready to be loaded
into the ship

11. Loading into the Vessel
 Every destination has their own route where in the
feeder ships collect the cargo from the ports and taken
to the another port where Main Vessel or Mother
vessel would take the goods to the final destination
MOTHER VESSEL
FEEDER
VESSEL

12. Unloading &Dispatch
 Once the goods reach the destination, there would a
custom check and on the submission of B/L the goods
would be dispatched to the agent or the importers
directly in some cases.