1. Mediterranean Shipping Company CHS
Air vs. Ocean Presentation
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2. Air freight
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3. Who moves my freight?
NVO‘s and Indirect Air Carriers
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4. NVO‘s and IAC‘s = Cost Efficiencies
Peace of Mind
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 NVOCC’s make TEU commitments to the steamship lines in exchange for favorable pricing.
 IAC’s make volume commitments to the airlines in exchange for favorable pricing.
 Discounts are then passed along to the ultimate shippers.
 Value added services such as freight forwarding, customs clearance are offered; giving clients a
central point of contact handling their cargo efficiently, safely and cost effectively.
 Utilizing a forwarder’s NVO or IAC services gives the client peace of mind that their shipment was
moved in compliance with applicable international law.
 By adding an NVO or IAC to the supply chain, logistics managers are working to insure that their
shipment not only moves in the most cost-effective way, they also prevent delays at destination.
 Many smaller companies do not have the leverage to gain concessions from steamship lines or airlines
on their pricing; nor can they absorb the administrative burden of compliance with international law.

5. Float or Fly – How do I know?
Factors to consider:
 Value of the goods
 Cost of the transportation
 Transit time
 Destination

6. What type of Cargo flies?
 Critical Parts
 Small Samples
 Delicate Freight
 Project Cargo

7. What type of Cargo floats?
 Raw Materials
 Inventory Back-Fill
 Bulky Items
 Over-dimensional cargo

8. Air Freight is different
 Freight arrives in days
instead of weeks
 Less free time at destination
– typically 24 to 48 hours
 File can be closed in the
same week it is opened

9. Air Freight is the same
 Master bills of lading (MAWB)
 Airline still must file MAWB in
AMS

10. Recap
To recap, air freight is both similar to and very
different from ocean freight. Before moving on,
are there are any questions that you would like to
have addressed based on what has presented thus
far?

11. Logistics and Beyond - Theory
EXPORT FROM U.S
 Air or ocean – cargo delivered to port or
airport of departure.
 Documents turned over to broker/forwarder.
 Compliance transmissions made – AES, MBL,
HBL’s.
 Shipping docs sent to destination for
clearance.
 Cargo arrives; clearance is made; charges are
satisfied; transportation is arranged; freight
delivers.
EASY, HUH?

12. Logistics and Beyond - Reality
 Shipment booked; transportation arranged.
 Truck arrives; warehouse has no documents; hasn’t
been paid; and refuses to load freight until they
are paid.
 Multiple phone calls between the forwarder,
supplier, seller ensue and cargo is finally loaded.
 Cargo arrives; no documents with driver, cargo is
refused.
 Multiple phone calls ensue and documents are
provided; cargo is accepted.
 Cargo finally sails 2 vessels after the original
projected sailing date.

13. Import Logistics - Theory
How do companies get their goods into the
country and what happens once it
arrives?
• Cargo is picked up; documents are
sent forward; cargo arrives at
destination.
• Cargo arrives and clearance is made
with proper authorities.
• Charges are satisfied; inland
transportation is arranged; cargo is
delivered to the consignee.
EASY, HUH?

14. Import Logistics - Reality
 Arrival notice matches no documents on file in the CHB office.
 Emails are sent to the shipper, the steamship line, potential customers based
on the cargo description, and the overseas office.
 2 days before LFD, docs arrive; cargo needs US Customs and 3 other agencies
clearance before the cargo can be released.
 Cargo finally clears; inland transport is arranged and shipment is filed until
the claim is received.

15. Logistics Comedy Hour
 Folding Chair Paint mishap
 Alabama-Auburn – Roll Tide
 Snapple and Ramadan
 H/H Goods and a car

16. Air vs. Ocean Wrap Up
 Import, export, air or ocean, one thing is
certain: Murphy’s Law was written by
someone in logistics.
 Each mode has a cut-off. Lock-out = air;
ocean = cut-off.
 Documentation and compliance
requirements
 Import free time
 AMS Transmissions
 Paperwork must be accurate, complete and
timely.

17. Thank you!
Thank you for allowing me to join you today and give a little overview of how the
processes work outside of your roles. I hope the information was useful.
Despite what anyone tells you on the phone, remember this: If it isn’t a human
heart, lung, liver, or kidney moving for organ transplant; no one is going to die
over it. Try to have fun when possible.