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