1 Sea Freight Logistics

1.1 Sea Freight Logistics
1.2 Introduction
After completing this lecture, participants will be able to:
Link the various actors involved in sea freight to the roles
which they play in transferring cargo across borders;
Make sea freight choices based on contract
considerations; and
Select appropriate warehousing solutions.
1.3 Introduction to Sea Freight
1.4 Answer the question
Correct Choice
X TRUE
FALSE
Feedback:
This is true.
Sea freight is the most economical way of moving

cargo between different countries. In fact, an
average ship can transport approximately 5,000
containers weighing an average of 18 tonnes each in
a single voyage, for approximately 100,000 tonnes
of cargo per trip.

1.5 What is sea freight?
Sea freight (also called ocean freight) is the
movement of goods by seagoing vessels or ships.
It is the most common type of logistics transport.,
with some 90% of worldwide goods transported
over water. This is due to the many advantages
which sea freight has over other methods of
transport: not only is it more cost-effective than
either land or air freight, it is also the safest way to
convey goods over large distances (provided they
are packaged properly!) The one disadvantage of
sea freight is that it is slow. Although ships
operate according to reliable, regular schedules,
other, quicker modes of transportation might be
more suitable if time is a critical factor for delivery
(for example, in the case of highly perishable
goods).
Advantages and disadvantages of sea freight
Sea freight has a number of advantages and
disadvantages over other modes of
transportation:
Advantages
 Ideal for transporting heavy and bulky goods
 Suitable for products with long lead times
 Less expensive than air freight
Disadvantages
 Longer lead/delivery times
 Bad weather can potentially ruin a delivery
 Difficult to monitor the exact location of goods in
transit
 Customs and excise restrictions

1.6 The actors involved in sea freight
Many actors are involved in an international sea freight
shipment. Although exporters are generally not in direct
contact with all of these parties, it is still useful to know the
various parties and understand their roles to get a more
comprehensive picture of what shipping products by sea
entails.
1. The shipping line: This is the company that owns the ship
on which the goods are transported. For an exporter, knowing
their shipping line can be useful if they ever need to track their
goods in a hurry. However, you should it is important to note
that, generally speaking, the shipping line cannot be held
responsible for any damages to an exporter’s cargo.
2. The container line: This is the company that owns and
provides the containers in which the cargo will be placed.
Often, the shipping line and the container line are the same
company.
3. The freight forwarder: Also known as “forwarding agent”,
“non-vessel operating common carrier” (NVOCC), or simply just
as “forwarder”, this is the company or individual that organizes
the export and import of the goods. Thus, they contract with
one or more carriers and arrange the intermodal shipment of
the cargo to its destination. They are the exporter’s main
contact point during the export process. Although they do not
move goods themselves, they play the role of expert in the
logistics network to ensure that cross-border intermodal
transport goes through without a hitch. As such, they typically
review the commercial invoice, export declaration, bill of lading
and other documents required by the carrier or country of
export, import, and/or for transshipment. They also advise
exporters on the “best” (cheapest, quickest, or safest,
depending on your priorities) route to take, mode of transport,
packing, insurance, security issues, etc.
4. The overseas freight forwarder: This is usually an agent or
associate of the freight forwarder located in the country of
destination. They are in charge of documentation, de-
consolidation of LCL cargo and collection of freight.
5. The consolidating warehouse: If the goods are shipped as
LCL cargo, they will have to be consolidated with other goods.
The consolidating warehouse will store the cargo until enough
different goods have been gathered to fill a container. Usually,
the consolidating warehouse will then be the organization in
charge of packing and loading the containers.
6. The overseas customs bonded warehouse: This is the
location where the exporter’s goods are stored after they have
been unloaded in the country of destination, and until they
clear customs.
7. The destination agent: This is the company that deals with

procedures such as customs clearing, cargo handling at the
port, and delivery to the buyer in the country of destination.
Usually this company is based in the country of destination and
familiar with the local laws and language.
8. The customs broker: The customs broker advises an
exporter on the requirements to export goods to their country
of destination, as well as on the formalities to follow for
customs clearance. Unlike a destination agent, a customs
broker broker only gives advice and does not actually perform
any of the formalities themselves. Unfortunately, customs
brokers are frequently unlicensed. As such, it is important to
carefully confirm the quality of the services that they offer, as
well as what they include in their prices.
http://ceylonshippinglines.com/shippingAgents.htm
https://www.pilship.com/en-port-schedules-pil-pacific-
international-lines/118.html
1.7 Types of ships used in sea freight
If you plan to export your products using sea
freight, you need to have a good understanding of
the different types of ships that are available to
transport your cargo. Each of the following types
of ships has its own strict operational
requirements, which must be followed.
1. Cargo Ships
Cargo ships can transport a variety of goods such
as food, furniture, metals, clothes and machinery.
They can either be conventional vessels (non-
containerized vessels), which are designed to
handle cargo such as break bulk, liquid and dry
bulk, or container vessels (cellular vessels), which
boast a system of cell blocks designed to handle
intermodal containers (also called shipping
containers or ISO containers).
2. RoRo (Roll-on/roll-off)
The vast majority of vehicles transported using sea
freight are placed on “RoRo” ships, as it is safer
and much faster to simply drive cars onto ships
than use cranes to hoist them up into a cargo
hold. Once the cars are aboard, they are braced to
the ship’s deck to keep them from moving while
the ship is at sea.
3. Tankers

Tankers are ships that primarily carry huge
quantities of liquid, such as oil, water, wine, or
chemicals. They come in many different sizes, with
the largest tankers weighing several tons.
4. Passenger Ships
Passenger ships are officially defined as ships that
carry more than 12 passengers. As such, these
include ships of many different ranges and sizes,
going from small yachts all the way to massive
cruise and holiday ships. Occasionally, some
passenger ships can be used to carry loose cargo.
That said, however, in recent years, improper
cargo loading has caused a number of high-profile
passenger ship accidents in which many people
have tragically lost their lives. As such, regulations
on using passenger ships for sea freight have
been strengthened and updated in a bid to
improve safety.
1.8 Types of sea freight cargo
Goods are transported on ships in three main
ways, depending on customers’ shipping
requirements. The most suitable type of sea
freight cargo will depend, not only on the goods
that you want to ship, but also on cost-
effectiveness and on the timeframe in which these
goods need to be delivered.
1. Containers
The use of containers dominates international
commercial shipping. Indeed, containers have
many advantages over other forms of cargo: they
can more easily be transported intermodally, they
protect goods during transit, and they can be
efficiently loaded and unloaded at port facilities.
Cargo can be transported as either FCL (full
container load) or LCL (less than container load).
Containerization is explained in more detail later
on in the lecture.
2. Break-bulk
Break-bulk refers to any non-containerized, non-
bulk cargo (such as goods placed on pallets,
crates, drums or sacks), which is loaded directly

into a ship's hold. This type of cargo tends to be
used for specialized products (such as fresh fruit),
or for shipments to small ports that do not have
the necessary infrastructure to handle
containerized traffic.
As they are loosely stowed in a ship’s hold, goods
carried as break-bulk are more susceptible to
damage. As such, resistant packaging and
dunnage (loose packaging materials placed
around the goods to lessen impacts) are essential
to protect the cargo from damage during transit.
3. Bulk
Large shipments of certain commodities - such as
coal, ore, wheat or oil - are typically carried in bulk,
i.e. unpackaged in a bulk-carrier ship's hold.
1.9 The importance of port facilities
Sea freight requires the presence of particular
infrastructure in order for shipping operations to
be carried out effectively. Naturally, the primary
requirement is that there be a port in which to
unload the cargo! However, simply organizing an
urban harbour and designating it a “port” is not
enough: all ports require certain additional
specialized facilities and infrastructure in order to
efficiently send and receive cargo. These can
include docks, bollards, pilings, cranes, bulk cargo
handling equipment, etc.
The equipment present at a port may differ from
pier to pier: while one dock could be handling
intermodal transport needs (transfer of sea freight
cargo to other modes of transport), another dock
might be equipped with bulk handling capacities
(such as conveyors, elevators, tanks, pumps, etc.)
for loading and unloading crates containing bulk
cargo such as grain, coal, or fuels. In some cases,
entire ports might be specialized in the loading or
unloading of one type of cargo or another!
Finally, make sure to remember the importance of
multimodal transportation: what other transport
systems, such as railways and truck terminals, are
available to continue transporting your goods to
their final destination, once they have been
unloaded at the port? Make sure to keep in mind
the facilities available at the port to which you

need to ship your goods when thinking about the
way in which you should package them for sea
freight!
Match the role player to the listed activities in sea
freight.
Role player Sea freight activity
Shipping line Supplying the
transportation system to
move cargo from port to
port
Consolidating
warehouse
Storing LCL goods before
they can be packed to fill a
container
Overseas
customs
bonded
warehouse
Storing goods after their
arrival at a destination
port, and until they clear
customs
Customs
broker
Providing advice on
exporting goods to a
particular country, as well
as on the formalities to
follow for customs
clearance
Freight
forwarder
Playing the role of “expert”
in the logistics network and
contracting to ensure the
intermodal transport of
cargo to its destination.
1.11 Contracting and documentation for sea freight

When selling goods overseas, exporters have no say
in deciding how their goods are shipped. This
decision is best left to shipping professionals.
Feedback:
This is false.
In fact, it is very important for exporters to be fully
involved in the decision of the shipping method to
be used, as it will have important implications as to
the cost and success of the delivery. Improper
shipping arrangements could even cause an
exporter unwanted contractual issues with its
buyer! We will look at the various contracting and
documentation issues which exporters should keep
in mind when it comes to sea freight in the coming
slides.
1.13 Considerations for sea freight
Having a good relationship with reputable service
partners, in particular your freight forwarder, can help
you make cost- and time-effective decisions about your
transportation strategy.
However, before submitting a quote to your buyer and
contact a freight forwarder, you will need to take into
account a number of considerations that will determine
the shipping contracting process. These include:
 The destination of your shipment
 The timeframe of your shipment
 Your buyer’s shipping requirements
 The quantity, size and weight of the goods to be
shipped
 Any special transport requirements, such as for
dangerous goods or perishable goods.

1.14 Using incoterms in sea freight transactions
When negotiating the contract with a buyer, exporters need to
decide: Who will pay/arrange for the shipping? Who will bear
the risks of loss or damage to the goods during transport? How
will the shipping tasks, costs and responsibilities be shared?
To clarify these questions, traders often chose to incorporate
International Commercial Terms (Incoterms) into their
contracts. Incoterms are pre-defined commercial terms
published by the International Chamber of Commerce (ICC).
The Incoterm rules define the obligations of each party of a
sales contract, as well as the transfer of liability at various
stages of the transaction. Governments, legal authorities and
practitioners worldwide accept the Incoterm rules to interpret
the most common terms used in international trade. As such,
incorporating Incoterms in a contract helps both parties avoid
the risk of different interpretation in different countries.
The latest (2010) edition of the Incoterm rules consists of 11
rules, abbreviated by three upper case letters.
More detailed information can be accessed under:
https://www.searates.com/reference/incoterms/
or on the ICC website: https://iccwbo.org/resources-for-
business/incoterms-rules/incoterms-rules-2010/

1.15 Documents used in sea freight
As with most international transport, sea freight
requires the completion of a number of specific
documents. Exporters do not fill out most of these
documents themselves: freight forwarders take care
of most of them, while the shipping line issues some
others. Nonetheless, it is a good idea for exporters
to understand the documents that are involved in the
export process, in case they are ever called upon to
review and/or confirm the accuracy of any of them.
The list below shows the key documents that are
used in sea freight. Please note, however, that this
list is not comprehensive. We recommend
contacting a freight forwarder if you would like to
receive a comprehensive list of specific
requirements related to your product.
Shipping instructions: The shipping instructions are
used by exporters to provide their shipping lines
and/or freight forwarder with the details of their
goods, as well as to set out instructions for the
shipment. These instructions should be provided
soon after the initial booking, when the shipping line
has confirmed the date and ship on which the cargo
will sail. Although shipping instructions are often
simply given by telephone and, as such, are not a
“document” per se, it is always a good idea to
confirm everything in writing. Note that providing
clear and precise shipping instructions is absolutely
critical. Any mistake in the shipping instructions
could lead to mistakes by the freight forwarder,
which could endanger the success of the entire
shipment.
Documents handled by the freight forwarder: After the
exporter has provided the shipping instructions, the
freight forwarder handles the shipment
arrangements on their behalf. This includes the port
entry document, wharfage fee approval document,
customs approval document, as well as any special
declarations for particular products such as
dangerous goods and perishable items (note:
dangerous goods will also need a “Dangerous
Goods Note” - DGN).
Transport document: Exporters are issued a transport
document for their goods. This transport document
can be either a bill of lading, or a waybill. The
precise type of transport document which exporters
receive depend on the type of shipping method
which they are using, as well as on the precise
details of the transaction in which they are engaged.

Master Bill of Lading/House Bill of Lading: A bill of lading
serves three purposes: it shows that the carrier has
received the goods, provides evidence of a contract
or carriage, and serves as a document of title to the
goods. Exporters are issued with a Master Bill of
Lading (MBL) by the shipping line if they are
exporting their goods as an FCL, breakbulk or bulk
shipment, or with a House Bill of Lading (HBL) by
the freight forwarder if they are exporting your goods
as a non-containerized or LCL shipment. Note that,
while MBLs and HBLs are both technically title
documents, the ownership of HBLs is, in practice,
very difficult to transfer.
Click here for more information on Bills of Lading:
Sea Waybill: This fulfils the same practical functions
as a bill of lading, but does not confer any title to the
goods. As such, it is quicker and easier to use. Sea
Waybills are often used if there is a well-established
trading relationship between a buyer and a seller, or
in transactions in which ownership doesn’t change
hands, such as between different divisions of a
single company.
Note: The SOLAS Convention
The Safety of Life at Sea Convention (SOLAS)
requires each container loaded onto a ship to have a
verified weight. It is the shipper’s responsibility to
accurately weigh the packed container and provide
its Verified Gross Mass (VGM) to the vessel operator
and marine terminal operator. If such verification is
missing, the container can be weighed at the port. If
this is not possible, then the container may not be
loaded onto the ship. As such, the exporter and the
freight forwarder should both make sure that they
accurately weigh the cargo and ensure that it meets
the SOLAS convention’s requirements.
1.16 Determining the costs of shipping by sea
Before submitting a quote to a buyer, exporters
have to consider the costs involved in delivering the
cargo to the buyer’s location. The costs of shipping
cargo by sea can broadly be divided into three
categories: sea freight shipment costs, customs
clearance costs and security costs (insurance). We
will introduce insurance in greater detail in the
following slide.
In this slide, we will provide a breakdown of the
costs of sea freight shipment.

The exact calculations involved in producing
shipping rates (i.e. the price at which a certain cargo
can be shipped from one point to another) are quite
complex and depend on many factors, including
destination, shipping volume, the time of year, etc.
However, the two main elements in the cost of sea
freight shipments are:
The freight rates charged by the carrier (shipping
line)
Freight rates will vary, depending on whether the
cargo is being shipped as FCL, LCL, bulk or break
bulk. Shipping lines charge lump sums per unit when
it comes to FCL cargo, depending on the size of the
container (20ft or 40ft). LCL, bulk and break bulk
cargo, however, are charged either by weight (per
unit of 1,000kg), or by volume (per1,000m3),
whichever is greater.
It is usually more economical for an exporter to ship
cargo by LCL if they do not have enough product to
fill an entire container. That said, if an LCL load
becomes large enough, the volume-based charge
could end up costing more than simply reserving a
container. As such, it is always a good idea to “run
the numbers” to see whether it would be cheaper to
reserve a container at the FCL rate even if it cannot
fully be filled.
The costs associated with the delivery, handling
and clearing the goods at the ports of loading and
discharge are as follows:
Inland haulage: These are the costs involved to haul
the cargo from the warehouse to the export
warehouse or port of exit.
Terminal Handling Charge (THC): These are the
costs involved to cover the handling of the cargo at
the port or consolidation warehouse.
Bunker adjustment factor (BAF): These are the
costs to cover fuel surcharge for “bunker oil”, the
generic name given to the fuel used to power ships.
Unfortunately, the BAF fluctuates continually and
with comparatively little warning.
Documentation fees: These are the administrative
charges required to cover all necessary
documentation, such as the MBL, HBL, certificates of
origin, etc.

Currency adjustment factor (CAF): These costs are
used to hedge against currency risks. They are
normally advertised as a percentage of the freight
rate (e.g. 12% of a 20ft container at $1,000 per
container = $120 CAF).
Port congestion surcharge: Congestion in a port for
a period of time can involve large amounts of
financial losses for the idle ship’s owners. In such
cases, shipping lines may impose a port congestion
surcharge on freight to cover lost revenue. These
are usually calculated as a percentage of the freight
rate, in the same way as the CAF.
War surcharge: The outbreak of hostilities between
nations can have a serious effect upon shipping
lines. Ships sailing in the vicinity of a war zone may
impose a war surcharge on freight to compensate
for the higher risks involved and the higher rates of
insurance premiums.
Customs clearance costs: These costs are used to
cover the production and lodging of the necessary
customs declaration. They usually come in a lump
sum.
Note that there may be additional costs depending
on the location to which a shipment is being sent.
The costs indicated above are the core costs
involved when shipping under CFR incoterms.
Click here to see sample shipping quotes. As you can
see, the costs are clearly broken down into each
separate component:
Sample quote 1:
http://icecargo.com.au/pdf/sample_quote_1.pdf
Sample quote 2:
http://icecargo.com.au/pdf/sample_quote_2.pdf

1.17 Marine cargo insurance
Goods being transported by sea are exposed to a
variety of risks that are difficult or impossible for an
exporter to control. Such risks include damage
through inappropriate handling, theft, pilferage,
sinking of a vessel, exposure to rain or salt water,
etc. Purchasing marine cargo insurance can help
you mitigate these risks by protecting you from
bearing the consequences of loss and damage of
your goods during transit. It also covers against risks
associated with connecting land conveyances and
transport by air or mail (so-called “warehouse to
warehouse” coverage).
Marine cargo insurance is usually voluntary, but may
be mandatory if the contract chosen uses the
Incoterms 2010. Indeed, Incoterms 2010 specify that
insurance must be provided on the basis of
minimum cover in accordance with the Institute
Cargo Clauses, or a similar set of clauses. Only the
CIF and CIP Incoterms, however, require a seller to
provide the buyer with evidence that insurance has
been purchased. Nonetheless, it is still advisable to
ensure that all cargo is covered by insurance, even if
it is not fully mandatory.
What does marine cargo insurance not cover?
Marine cargo insurance has some exemptions to its
coverage. For example, if it is found that the goods
were not packaged properly, or if the loss or
damage to the cargo was due to ship crew
negligence, then insurance will not apply.
What’s more, marine cargo insurance will not cover
delays in shipment, sales, or payments, not will it
cover changes in the composition of the goods as a
factor of improper packaging, such as liquid
evaporation.
Shipper: Global producer of fish products, Evans
Food Group
Export order: Evans Food Group has secured an
order to ship 20 pallets (individual size/weight: 1m x
1m x 1m/950 kilos) of cartons of canned fish from
Colombo to London on CIP terms. Transported as
FCL.

What method of transportation should be used?
Correct Choice
X Sea freight/20ft container
Air freight/20ft container
Sea freight/break bulk
Sea freight/bulk
Ship transport is much cheaper than air transport, and
time is not a crucial factor for delivery in this case. Based
on the weight and size of the cargo, it is most
advantageous to pack it into a container.
Which of the following documents does Evans Food
Group have to provide?
Correct Choice
X A bill of lading;
A declaration for dangerous goods;
X Forwarding instructions;
X A verification of the container’s
weight;
The company's financial
statement.
Feedback: Evans Food Group needs to provide a bill
of lading, forwarding instructions and a verification
of the container’s weight. Tin fish is not considered
to be a “dangerous good” and the company's
financial statement is not relevant for shipping.

1.20 Introduction to Warehousing

Warehousing allows freight forwarders to propose value-
added services to exporters.
Correct Choice
X TRUE
FALSE
Feedback:
This is true.
Since exporters often do not have the necessary
facilities to adequately store their goods for any
extended period of time, warehousing is a value-
added service which many freight forwarders opt to
provide to exporters whose exports they are
handling. There are two types of warehousing
options available: bonded and non-bonded
warehousing. We will discuss these in greater detail
in the coming slides.
1.22 Warehousing and exports
What is warehousing?
In a business context, a “warehouse” refers to a
facility designed to store goods for later sale or
transport. As such, when it comes to very small,
home-based enterprises, “warehouses” are often
nothing more than a spare room, a garage, or even
just several shelves. However, larger businesses, as
well as businesses handling sensitive or perishable
goods, usually need specialized, dedicated space in
which to keep their products. This is where freight
forwarders come in.

Bonded vs. non-bonded warehousing
Freight forwarders generally offer two types of
warehousing services from which exporters can
choose:
 Non-bonded warehousing: Non-bonded
warehousing is the “standard” warehousing
option, which makes a storage facility
available to traders (exporters or importers)
in exchange for a monthly rent. Warehouses
can be specialized for the handling of
different products (i.e. refrigerated, humidity-
controlled, etc.) and may even be shared
between multiple exporters. They are open to
any company or trader in need of storage
space for their inventory while it waits to be
processed or shipped. Many freight
forwarders will include non-bonded
warehousing in their forwarding offer, and
may even include ancillary services such as
labelling, co-packing management, inventory
and shipment tracking, etc.
 Bonded warehousing: Bonded warehousing
allows a trader to store, manipulate, or even
manufacture goods in a certain area for a
limited time without paying customs duties,
until such time as the goods are either re-
exported or officially “imported” into the
country – at which point the normal taxes
and duties become payable. This system
exists in all of the world’s developed
countries, as well as in many developing
countries. It is particularly useful for traders
seeking to avoid cash flow issues, or seeking
to import product for re-exportation
purposes. What’s more, it can help speed up
the unloading of containers and reduce port
charges such as warehousing and demurrage
fees, as it allows shipments to be transported
directly from the port/airport to the bonded
warehouse, at which all customs formalities
(apart from inspections) are performed.
Usually, a bonded warehouse consists of a
single building or premise; larger locations
stretching over a more extended geographic
area are usually referred to as “special
economic zones” or “bonded logistics parks”.
Freight forwarders may have the ability to
offer bonded warehousing. In such a case,
they are referred to as “bonded freight
forwarders”.

1.22 1, 2, 3 and 4PL
When talking about logistics, including
warehousing, it is important to have a good grasp
of logistics organization. Operations are divided
into so-called first, second, third and fourth party
logistics (i.e. 1, 2, 3 and 4PL). It is important for
exporters to understand the differences between
each of these logistics providers in order to grasp
the different levels of services that each can
provide, as well as the advantages and
disadvantages inherent in using different levels of
service. Broadly speaking, the level of services
provided increases along with the PL number,
with 1PL involving an exporter performing all of
the logistics, and 4PL involving an exporter
performing absolutely none of the logistics.
1PL: First party logistics providers refer to a
manufacturer or producer that handles its own
logistics, and thus owns its transport methods. A
farmer who uses his own trucks to transport his
produce from the field to the market, for example,
is considered a 1PL. In some cases, it may be
beneficial for an exporter to transport the goods
itself, although this is not usually realistic,
particularly when large quantities and/or distances
are involved.
2PL: Second party logistics providers are asset-
based carriers who own the means of
transportation. They consist of shipping lines,
airlines, railway lines, or trucking companies.
Exporters can directly contract with 2PLs to
transport their goods, but should remember that
they may not always provide packaging services,
or arrange for multimodal transportation.
3PL: Third party logistics providers offer
outsourced (i.e. “third party”) logistics services
which cover part or all of the supply chain
management function, including packaging,
tracking, and warehousing. These include
dedicated suppliers, such as DHL, FedEx, UPS,
XPO, Wincanton, etc. Many freight forwarders
work as 3PL
4PL: Also called “Lead Logistics Providers

(LLPs), fourth party logistics providers are
independent integrators that take over the entire
logistics section of a business. As such, they tend
to handle “core” logistics function including
procurement and distribution, in addition to all of
the functions of a 3PL.
Match the following actors with their logistics
designation:
Correct Choice
Manufacturer handling its own logistics 1PL
Shipping line 2PL
Logistics service provider, such as DHL 3PL
Lead logistics service provider 4PL

1.25 Key points
Remember:
 A number of role players are involved in shipping
goods by sea, from the shipping line, to the
consolidating warehouse, to the overseas
customs broker. However, the main point of
contact for exporters is the freight forwarder.
 Ensuring correct contracting and documentation
when exporting is paramount. Using Incoterms
in an export contract is a good way to avoid
confusion and increase the certainty of the
transaction. When it comes to documentation,
exporters should make sure that all of the
information which they provide is accurate and
correct.
 There are different levels of outsourcing possible
when it comes to logistics operations, including
warehousing. Bonded and non-bonded
warehousing provide different advantages, and
should be considered to ease cash flow and
facilitate the payment of import tariffs.
1.26 Key Points
Remember:
 International trade is more complex and costly than
domestic trade. It involves numerous additional
parties and many documents to be filled out,
particularly when it comes to border clearance
procedures.
 The different methods of transportation which can
be used in international trade include air, sea, road,
and rail freight. Freight packaging, meanwhile, can
include non-containerized cargo, such as pallets,
wooden packages, small packages, parcels, and more
specialized containers such as bales and barrels, as
well as containerized cargo, which simplifies the

multimodal transportation of goods across different
types and modes of shipment.
 The major stakeholders in international trade include
the exporter and importer, the freight forwarder, the
carrier, the customs authority and the customs
brokerage. Each has different roles and
responsibilities in ensuring that an international
transaction goes through without a hitch.
1.27 Thank you for completing the lecture

1 Sea Freight Logistics

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1 Sea Freight Logistics