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Shipdocumentation

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Shipdocumentation

  1. 1. Basic Shipping Documentation
  2. 2. Shipping Documentation <ul><li>An induction on the container transport, and its driving forces. </li></ul><ul><li>Outlines of the parties and sectors who involve in the business. </li></ul><ul><li>Outlines of the operation, and </li></ul><ul><li>Introduction of the various key documents associated with each sector of the business, and their significance. </li></ul>
  3. 3. Who, What is involved, and Why
  4. 4. What documents are produced in facilitating the shipment cycle <ul><li>Apart from the physical transportation of the goods from the buyer to the seller, there are various kinds of documents involved. </li></ul><ul><li>This presentation aims at providing a basic knowledge on the key documents. </li></ul><ul><li>For details on the documents, you may need to refer to the relevant text. </li></ul>
  5. 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. 6. 1. To Identify Prospective Customers <ul><li>Customer nomination e.g. in L/C </li></ul><ul><li>Sales calls & follow up on transport solution for their Sales Contract </li></ul><ul><li>Walk-In customers </li></ul>
  7. 7. What is a L/C ? <ul><li>Definition of a Documentary Credit </li></ul><ul><li>Availability under Documentary Credits </li></ul><ul><li>Guideline for handling Documentary Credit is set in ICC publication No.500 (the UCP500) </li></ul>
  8. 8. Who use the L/C ? DC Issuing and Advising Flow Chart
  9. 9. Why the L/C ? In Export Document Negotiation
  10. 10. What is Sales Contract ?
  11. 11. What are common in the Contract <ul><li>Name and address of seller & buyer </li></ul><ul><li>Reference between the document and the goods themselves </li></ul><ul><li>Number/quantity </li></ul><ul><li>Price </li></ul><ul><li>Delivery Terms ( Incoterm CIF, FOB etc.) </li></ul><ul><li>Payment </li></ul><ul><li>Transport </li></ul><ul><li>Insurance </li></ul><ul><li>Import and export license </li></ul><ul><li>Various contract terms </li></ul>
  12. 12. Definition of INCOTERM <ul><li>INCOTERMS are International Commercial Terms used in shipping documentation which are recognized as the international standard. </li></ul><ul><li>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. </li></ul><ul><li>INCOTERMS are not legal binding subject to acceptance of individual involved with the business transactions </li></ul>
  13. 13. Who facilitate the trade conducts : International Chamber of Commerce <ul><li>It is the World Business Organization which </li></ul><ul><ul><li>promotes international trade, investment and the market economy system worldwide; </li></ul></ul><ul><ul><li>makes rules that govern the conduct of business across borders; </li></ul></ul><ul><ul><ul><li>e.g. the INCOTERMS 2000 </li></ul></ul></ul><ul><ul><li>provides essential services, foremost among them the ICC International Court of Arbitration, the world's leading institution of its kind. </li></ul></ul>
  14. 14. Incoterms 2000 <ul><li>Brings in line with current international trade practice in 2000 after its last issue in 1990. </li></ul><ul><li>Reduces uncertainties, misunderstandings, disputes and litigation on Sales contracts. </li></ul><ul><li>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). </li></ul>
  15. 15. How the INCOTERMS works <ul><li>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 </li></ul><ul><li>To identify </li></ul><ul><ul><li>who is responsible to provide export and import license </li></ul></ul><ul><ul><li>what kind of documents to be provided by seller </li></ul></ul><ul><ul><li>extent of the insurance protection </li></ul></ul><ul><ul><li>duty to notify the order party on any arrangement made </li></ul></ul><ul><ul><li>duty to pack the goods </li></ul></ul>
  16. 16. Increasing seller’s obligation: Structured grouping in INCOTERMS <ul><li>EXW ( Ex W orks) [the “E”-term group] </li></ul><ul><ul><li>Minimum obligation for the seller. The buyer receives the cargo directly from the factory and thereafter arranges shipment, insurance etc. himself. </li></ul></ul><ul><ul><li>Should not use this term if buyer cannot carry out export formalities directly or indirectly. </li></ul></ul><ul><li>FOB ( F ree O n B oard) [the “F”-term group] </li></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>The seller requires to clear the goods for export. </li></ul></ul>
  17. 17. [continue] <ul><li>CFR ( C ost and F r eight ) [the “C”-term group] </li></ul><ul><ul><li>Same as CIF except the buyer arranges his own insurance. </li></ul></ul><ul><li>CIF ( C ost, I nsurance and F reight) [the “C”-term group] </li></ul><ul><ul><li>are all paid by the seller who is then in control of the shipment until it is discharged and delivered to the buyer. </li></ul></ul><ul><ul><li>Seller only need to clear the goods for export. </li></ul></ul>
  18. 18. Reason in Using INCOTERMS: Benefits <ul><li>Gives consistency to the interpretation of international trade terms; </li></ul><ul><li>Brings certainty to international transactions; </li></ul><ul><li>Defines the method of delivery of the goods; </li></ul><ul><li>Indicates the calculation of the purchase price and incidental charges which are included </li></ul>
  19. 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. 20. 3 . Commit Requirement Okay .. Thank you Its approved, US$ 1500
  21. 21. 4. Book Cargo Please make Booking to Customer
  22. 22. Booking Acknowledgement Booking Acknowledgement
  23. 23. Sample Booking Acknowledgement
  24. 24. 5. Picks up empty container: from designated depot
  25. 25. Sample Job Order
  26. 26. 6. Factory Stuffing
  27. 27. 9. Laden Container to Terminal
  28. 28. 10. Load container onboard ship
  29. 29. 11. Bills Of Lading Preparation Customer & Shipment Details: * Shipper * Consignee * POR * POL POD * FND C argo Details: …… . etc
  30. 30. Samples of Shipping Instruction
  31. 31. Bills Of Lading Issuance Documentations issue BL BL
  32. 32. What is the Bill of Lading? <ul><li>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 </li></ul>
  33. 33. Functions of the Bill of Lading <ul><li>It is the shipping line’s Receipt of the cargo which includes description of the cargo and other particulars declared by the shipper. </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul>
  34. 34. Why the Bill of Lading is important to the shipper (consignor)? <ul><li>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 </li></ul><ul><li>B/L also governs the liabilities of carrier on the reimbursement of cargo claims and general average </li></ul>
  35. 35. How to draw up Content of a Bill of Lading ? <ul><li>Customer information (Shipper, Consignee, Notify Party) furnished by shipper </li></ul><ul><li>Shipment start & end places (POR/POL/POD/FND) </li></ul><ul><li>Cargo particulars furnished by shipper: Cargo Description, Marks & Numbers, weight / measurements, cargo package and quantity etc) </li></ul><ul><li>Name of the vessel and her voyage number </li></ul><ul><li>Key Dates & Places: e.g. Onboard Date </li></ul><ul><li>Freight details (optional) </li></ul><ul><li>Signature </li></ul>
  36. 36. Sample Bill of Lading Please double click the form if you would like to see the details
  37. 37. UCP500 <ul><li>It’s ICC U niform C ustoms and P ractice for Documentary Credits </li></ul><ul><li>UCP 500, published by ICC in 1993 is the new version revised from UCP 400 </li></ul><ul><li>A set of Rules to facilitate the Documentary Credit undertakings. </li></ul><ul><li>Standard for examination of Documents by banks </li></ul>
  38. 38. Some Common types of B/L in shipping <ul><li>Marine / Ocean Bill of Lading </li></ul><ul><li>Straight Bill of Lading </li></ul><ul><li>To Order negotiable Bill of Lading </li></ul><ul><li>Original Bill of Lading </li></ul><ul><li>Sea Waybill (or Express B/L) </li></ul><ul><li>Shipped Bill of Lading </li></ul>
  39. 39. The Sea Waybill
  40. 40. Definition of the Sea Waybill <ul><li>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. </li></ul>
  41. 41. Usage of The Sea Waybill <ul><li>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. </li></ul><ul><li>It is also useful for companies that trade internationally with themselves between geographical areas where payment for exports is not a problem. </li></ul><ul><li>Hence, a Sea Waybill can be sent forward with the goods allowing the consignee to take immediate delivery. </li></ul>
  42. 42. Disadvantages of The Sea Waybill <ul><li>It is a high risk business transaction. </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul><ul><li>It is not possible for shipper to change the cargo entity after Sea </li></ul><ul><li>Waybill is issued. </li></ul>
  43. 43. Prohibited Liability Clauses on B/L <ul><li>Clause that increase carrier’s risk exposure and beyond the Club’s insurance covers are generally prohibited. </li></ul><ul><li>Shipped clean onboard </li></ul><ul><li>Clean onboard </li></ul><ul><li>To be stowed or shipped below deck or water line </li></ul><ul><li>To be stowed away from boiler or engines </li></ul><ul><li>To be carried at temperature </li></ul><ul><li>Transshipment prohibited or not allowed </li></ul><ul><li>Cool stowage </li></ul><ul><li>Protected from freezing </li></ul><ul><li>Ventilated container </li></ul>
  44. 44. What is new in today B/L Printing ? via Internet <ul><li>OOCL leads the container transport industry in technological innovation by offering access to original Bills of Lading via the Internet. </li></ul><ul><li>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. </li></ul>
  45. 45. Features of Internet Bill of Lading <ul><li>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. </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul>
  46. 46. 12. Shipper Collect B/L
  47. 47. 13. Complete Voyage Data to enable destination inbound process to start
  48. 48. Complete Export Authority Formalities
  49. 49. The Manifest
  50. 50. Sample Manifest Please double click the form if you would like to see the details
  51. 51. Definition of the Manifest <ul><li>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 . </li></ul><ul><ul><li>It is also called summary of Bills of lading. </li></ul></ul>
  52. 52. Purpose of the Manifest <ul><li>For submission to customs in connection with clearance of the vessel to and from certain ports </li></ul><ul><li>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. </li></ul><ul><li>By the ship as a record of cargo loaded on board, by destination. </li></ul><ul><li>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 </li></ul><ul><li>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 </li></ul><ul><li>Manifest is also utilized by terminal or port authority to charge wharfage or other port charges </li></ul>
  53. 53. In Sea Transit
  54. 54. B/L Transactions by customers Shipper send the Original BL to Consignee
  55. 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. 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. 57. 14. Start Process Inbound Voyage Data
  58. 58. 15. Complete Inbound Formalities
  59. 59. 16. The Manifest Submission
  60. 60. Sample Manifest Please double click the form if you would like to see the details
  61. 61. 17. Notification on Cargo Arrival (Arrival Notice) Arrival date Vessel Information Container Details Freight/Surcharg
  62. 62. Sample Arrival Notice
  63. 63. 18. Container Discharge
  64. 64. 19. Store Container On Dock for Customer Pick Up
  65. 65. 20. Inter-modal Connection: From Terminal to Customer
  66. 66. 21. Inter-modal Connection: From Terminal to Inland Depot
  67. 67. Sample Job Order
  68. 68. 22. Cargo Release against Document & Payment
  69. 69. Sample Invoice
  70. 70. Sample Bank Guarantee
  71. 71. 23. Take Delivery of Laden Container
  72. 72. Sample Release Order
  73. 73. 24. Return Empty Container
  74. 74. End

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