The document provides information on freight forwarding and logistics. It discusses key topics such as freight forwarding, which involves coordinating the shipment of goods via multiple carriers. It also describes logistics and standard operating procedures. Furthermore, it outlines various documents used in freight forwarding like bills of lading, certificates of origin, packing lists, and commercial invoices. Finally, it explains international commercial terms that define responsibilities and risks between buyers and sellers in international trade.

1. FREIGHT FORWARDING
& LOGISTICS
PRESENTED BY IMESH CHANDIKA GUNATILAKA

2. FREIGHT FORWARDING

3. Freight forwarding is the coordination and shipment of goods
from one place to another via a single or multiple carriers via
air, marine, rail or highway.

4.  Freight forwarder is also known as a non-vessel operating
 common carrier (NVOCC)
 Freight forwarder is a person or company that organize shipment for
Individual or Corporation
 to get good from the manufacture or producer to a market ,
 customer or final point of distribution.
 Undertakes the process of movements of good through the various
stags involved.
 Provide these services directly or through sub-contractors

5. Sea freight is the term used in the world
transportation industry. We can call ocean
freight as well. Sea freight is one of the
transportation modules to carry cargo from one
country to another via sea by ship/vessel.

6. Air freight parcel delivery is the transfer and
shipment of goods via an air carrier, which may be
charter or commercial. Such shipments travel out of
commercial and passenger aviation gateways to
anywhere planes can fly and land.

7. LOGISTICS

9. STANDARD OPERATING PROCEDURE
SOP

10. A standard operating procedure, or SOP, is a set
of step-by-step instructions created by a business
to help workers carry out routine operations.
Their purpose is to achieve efficiency, quality
output and uniformity of performance, while
reducing miscommunication and failure to
comply to industry regulations.

11. DOCUMENTS USED IN FREIGHT FORWARDING

12. HOUSE BILL OF LADING
A House Bill of Lading is a transportation contract
which takes place between a customer and a
forwarder. This legal document is issued by a freight
or cargo forwarder to each exporter, for goods to be
shipped or transported in a group. Hence, a HBL is
also referred to as a group age document or
certificate.

13. MASTER BILL OF LADING
A Master Bill of Lading (MBL) is a document created for
shipping companies by their carriers as a receipt of transfer.
A MBL summarizes the contents of a shipment including the
bill of lading numbers assigned to the various items within
the shipment, as well as a description of the freight under
each bill of lading. The document also includes the terms for
transporting the freight and the name and address of the
consignor, or the shipper, and the consignee, the person
whom possess the goods.

14. SHIPPING ORDER
Shipping order is a copy of the shipper’s instruction issued by the shipping
company to a shipper regarding the disposition of goods to be transported. It is
an inventory control document that identifies the confirmed space booking, the
goods to be shipped from the warehouse, and the place to which the goods must
be shipped.
A shipping order generally contains the order number and date, names and
addresses of the shipper, customs broker, or forwarder, shipping and receipt
dates, a customer purchase order number, vessel and voyage number, sailing
time, delivery date and location, customs closing date, and number and type of
packages. The shipping order also includes a space for the recipient's signature.
Therefore, the shipping order accompanies the shipment, so that the recipient
can verify and sign that the items listed were received.

15. COMMERICAL INVOICE
 A commercial invoice is a document used in foreign trade. It is used as a
customs declaration provided by the person or corporation that is exporting
an item across international borders. Although there is no standard format,
the document must include a few specific pieces of information such as the
parties involved in the shipping transaction, the goods being transported, the
country of manufacture, and the Harmonized System codes for those goods. A
commercial invoice must also include a statement certifying that the invoice
is true, and a signature. A commercial invoice is used to calculate tariffs,
international commercial terms (like the Cost in a CIF) and is commonly used
for customs purposes. Commercial invoices are in European countries not
normally for payment. The definitive invoice for payment usually has only the
words "invoice". This invoice can also be used as a commercial invoice if
additional information is disclosed.

16. CERTIFICATE OF ORIGIN
A certificate of origin (often abbreviated to C/O, COO or CoO) is a document
used in international trade. In a printed form or as an electronic document, it is
completed by the exporter and certified by an recognized issuing body, attesting
that the goods in a particular export shipment have been produced,
manufactured or processed in a particular country.

17. PACKING LIST
A packing list is a document that includes details about the contents of a
package. The packing list is intended to let transport agencies, government
authorities, and customers know the contents of the package. These details help
each of these parties handle the package accordingly.

19.  INternational COmmercial TERMS
 11terms of shipment and delivery created
 by the International Chamber of Commerce (ICC),
 for use in sales contracts
 Provide an Internationally accepted definition of :
 The responsibilities of Buyer and Seller
 The allocation of delivery costs
 The assumption of delivery risks
 Periodically updated to reflect trade practice
 Should be referred to as “rules’
 Translated into different Languages

20.  Divide costs, risk and responsibilities between seller and buyer
 Guide one or the other contracting party into subsidiary contracts necessary
to fulfill designated Incoterms Tasks, Such as Contracts of carriage and
insurance
 Provide useful shorthand
 Reduce potential misunderstanding between buyer and seller
 “Reflect” rather than dictate trade practices.

21.  Convey title
 Address revenue recognition
 Include all of the duties of the Buyer/Seller in a transaction
 Automatically Apply (you must specify)
 Speak about payment disputes between buyer and seller
 Deal with a breach in contracts

23. INCORTERMS GROUPING
 “E” Terms:
EX WORKS…NAMED PLACE(usually the seller’s premises )
 Abbreviation :EXW
 Transport mode: all
 Seller’s cost and risk end when seller place the good at the disposal of the
byer at sellers premises or another named place
 Loading is buyer’s responsibility
 Pre carriage is buyer’s responsibility
 Main-carriage is buyer’s responsibility

24. “F” TERMS

25. FCA :FREE CARRIER …NAMED PLACE
 FREE CARRIER….NAMED PLACE
(usually the seller’s Premises or a buyer appointed carrier terminal on the
seller’s side )
 Abbreviation: FCA
 Transport Mode: All
 Loading: truck,train,barge at seller’s facility is seller’s responsibility
 Pre-carriage is seller's responsibility
 Seller’s cost &risk end when goods are delivered to Buyer’s Carrier at the
sellers premises or another named place

26. FAS:FREE ALONGSIDE SHIP
 FREE ALONGSIDE SHIP… NAME PORT OF SHIPMENT
 Abbreviation: FAS
 Transport Mode :Vessel
 Loading :Truck,Train,Barge,etc.at Seller’s facility is seller’s responsibility
 Pre-carriage: seller’s responsibility
 Seller’s cost and risk end when goods are placed alongside the vessel
nominated by the buyer at the named port of shipment
 Suggestion: In case of containers delivered at a terminal, the FCA rue is more
appropriate

27. FOB:FREE ON BOARD
 FREE ON BOARD .. NAME OF PORT OF SHIPMENT
 Abbreviation: FOB
 Transport Mode: Vessel
 Loading:truck,train,barge,etc.at seller’s facility is the seller’s responsibility
 Pre-Carriage: seller’s responsibility
 Vessel Loading: seller's Responsibility
 Seller’s cost and risk end when the goods are delivered on board the vessel
nominated by the buyer
 Suggestion: for containerized shipments, consider FCA showing the carrier’s
terminal at the port as the designated place

28. “C”TERMS

29. COST AND FREIGHT …NAMED PORT OF
DESTINATION
 Abbreviation:CFR
 Transport Mode: Vessel
 Loading: truck,train,barge,etc.at Seller’s facility is the
 Seller’s responsibility
 Pre-Carriage: Seller’s Responsibility
 Vessel Loading: Seller’s Responsibility
 Main Carriage: Seller’s Responsibility
 (however, Seller is not responsible for condition of goods while they are
 in main carriage transit )
 Seller’s risks for loss and damage end when the goods are on board the vessel
 The Seller must contract and pay the costs and freight necessary to bring the goods to the named
port of destination
 Suggestions: for containerized shipment ,consider CPT Showing the destination port or an inland
location on the buyer’s side .

30. COST INSURANCE AND FREIGHT …. NAME
OF DESTINATION
 Abbreviation:CIF
 Transport Mode: Vessel
 Loading :truck,train,barge,etc at Seller’s responsibility
 Pre carriage: Seller's responsibility
 Vessel loading: Seller's responsibility
 The Seller’s risks of damage or loss end when goods are on board the Vessel
 The seller must contract for and pay the cost and freight necessary to bring the goods to the
name port of destination
 Insurance: seller must effect and insurance policy on behalf of the buyer
 Main Carriage : the contract of main carriage and payment are the seller’s responsibility
 Suggestion: for containerized shipments, consider CIP showing the destination port or an
inland location on the buyer’s side .

31. CARRIAGE PAID TO… NAMED PLACE OF
DESTINATION
 Abbreviation:CPT
 Transport Mode: All
 Loading : Seller’s responsibility
 Pre Carriage: Seller's responsibility
 Main Carriage: Seller's responsibility
 Seller’s risk ends when goods are delivered to the carrier or another person
nominated by the seller at and agreed place
 Suggestions :Ideal for containerized shipments
 The Seller must contract for the cost of carriage necessary to bring the goods
to the named place of destination .

32. CARRIAGE AND INSURANCE PAID TO …
NAMED PLACE OF DESTINATION
 Abbreviation: CIP
 Transport Mode :All
 Loading :truck,train,barge at Seller’s facility is Seller’s responsibility
 Pre-Carriage: Seller’s responsibility
 Insurance: Seller must provide buyer with insurance policy
 Seller’s risk ends when goods are delivered to the carrier or another person
nominated by the seller at an agreed place
 The seller must contract for the costs of carriage necessary to bring the goods
at the named place of destination .

33. “D”TERMS

34. DELIVERED AT TERMINAL
(terminal on Buyer’s side)
 Abbreviation: DAT
 Transport mode: all
 Seller’s risks end once goods are unloaded from the arriving means of
transport and placed at the disposal of the buyer at a named terminal at port
or place of destination
 The Seller must contract for the costs of carriage to the named terminal at
the agreed port or place of destination
 Suggestion: when using this term it is recommended to specify as clearly as
possible the terminal at the agreed port or place of destination, as the risks
to that point are for the account of the Seller

35. DELIVERED AT PLACE
(on Buyer’s side)
 Abbreviation: DAP
 Transport mode: all
 The seller’s risks end when goods are placed at the disposal of the buyer on
the arriving means of transport ready for unloading
 The Seller bears the costs for the carriage of the goods to the named place of
destination or the agreed place
 Suggestion: when using this term, make clear which party is responsible for
unloading and any type of on-carriage

36. DELIVER DUTY PAID… NAMED PLACE
(on Buyer’s side)
 Abbreviation: DDP
 Transport mode: All
 The Seller bears
 all the costs and risks involved in bringing the goods to the place of
destination and
 has an obligation to clear the goods not only for export but also for import,
 And has to pay any duty for both export and import and
 Has to carry out all customs formalities
 The seller will also need to bear the VAT !

37. END OF PRESENTATION