FLOW OF MARINE TRANSPORTATION
EXPLAINED OCEAN SHIPMENT FLOW.
HOW IS THE PROCESS OF THE CARGO AND DOCUMENTS FOR SEA SHIPMENT?
This time, I would like to
talk about the flow of marine transportation. Especially in this topic, I’ll
focus on FCL cargo.
How is a cargo actually
transported in marine transportation? It’s important for beginners and
apprentices of logistics to understand the flow of cargo and it’s paperwork.
First of all, let’s
understand the overall logistics flow, then you will know what to do in each
section in the flow.
Logistics Flow
1. A product is made in the
factory/ 2. There is a booking request from a customer/ 3. A forwarder arranges
all logistics/ 4. All required documents are checked/ 5. An empty container is
picked up/ 6. An empty container is delivered to a customer and a cargo is
picked up.
7. The cargo arrives at a
port*VGM&Shipping / 8. The container is loaded onto a vessel/ 9. B/L is
issued when the vessel leaves the port/ 10. Marine transportation is done/ 11.
Arrival Notice is issued/ 12. Payment for A/N & B/L is submitted/ 13. D/O
is released from forwarder to importer.
14. import custom clearance/
15. the cargos is released/ 16. The cargo is being delivered.
There are so many process till finishing delivery
cargo.
Cargo is made at the factory
First, let’s see the
production work in a factory.
It is quite rare for an
individual person to use containers for transportation, but some factories
produce goods every day, and ship them overseas every week.
Our customers also
transport various cargoes by marine transportation, including automotive parts,
frozen foods, paper, leather products, cosmetics, scraps, packaging materials,
and so on.
Booking to the Forwarder
Once the QC of a completed
product is done, a factory’s shipping representative send a booking to a
forwarder.
At this time, the
followings are informed
and so on.
Forwarder arrange logistics
Based on the information,
the forwarder prepares vessels, trucks, custom clearance, and confirms
necessary documents.
Basically, many customers
request a one-stop logistics service which has advantages of having a single
contact to complete logistics to a forwarder.
We believe it should be so easy for customer to use
one-stop service.
Check necessary documents and information
And this checking the
necessary documents is especially important. If any of information is
wrong, a cargo cannot pass through custom clearance properly nor board a vessel.
In addition, if a
certificate of origin has a mistake, a cargo is not allowed for duty reduction.
We need special attention for paperwork mistakes.
Please be careful..Please..
Pick up the empty container
To pick up a cargo, we
visit a container depot to pick up an empty container in the morning of the
cargo pickup or in the evening of the day before.Container depots are also
referred to as container vanpools.
The depot is stacked with
lots of used shipping company containers that have been cleaned and repaired.
When picking up an empty
container, we have to be careful of the quality of the container.A
poor quality container is sometimes assigned even though we have booked a
container grade A.
Our service is to ensure
that our truck drivers check the quality of the containers they pick up and
deliver them to our customers.
Cargo Pick up
Once the empty container is
delivered to a customer’s factory, we load cargo into it.A large scale customer
may use dozens of containers a day.
We calculate the time to
load and also manages truck’s delivery schedule.The container may shake greatly
at sea, so it is important that cargo is not moved inside.
It must also be lashed
firmly.
Container arrives at the port
The container arrives at a
port, where it is loaded onto a vessel. The term “Cut Off” is used for dead
line of container “gate in” at the port.
In addition, Container
Return means that it has to go back to port to be loaded on a vessel. Before
the container is loaded on a vessel.
and export custom clearance
have to be completed. You have to apply a lot of applications before a cargo is
loaded onto a vessel.
If export to USA, AMS has to be applied.
Terminal situation
A really large number of
containers are being collected in a terminal.
Therefore, Cut Off must be
kept because enough time for loading and unloading in a port is necessary.
Some customers request to extend cut off time.
Container Lift On
When a container is loaded
onto a vessel, it is lifted and loaded by a large crane called a gantry crane.
The total weight of the
container is a major issue since it is being lifted.
Container Weight
Some costumers inquire
whether a 40 feet container can carry twice the weight of a 20 feet container,
but
it can’t. Keep in mind that
cargo weigh is roughly limited to about 25 tons, whether 20 feet or 40 feet.
The space on the vessel
Like this, lots of
containers are loaded onto a vessel. There is a limit of the space on a vessel
as you see the picture.
Depending on the season, it
can be difficult to keep a space.
B/L is issued
B/L is issued when a
container is loaded onto a vessel. Let’s take a look at the flow.
B/L is issued by a
forwarder, and it is sent to Shipper. During the time, payment for goods is
made between Shipper and Consignee.
For Original B/L, Shipper
will send the original B/L to Consignee by a courier service such as DHL or
Fedex.
Thus, Consignee must obtain
B/L to pick up D/O.
Ocean Shipment
A container is repeatedly
loaded and unloaded at each port, while being rocked in a vessel on the sea.
A vessel is sometimes
delayed due to the weather, but this can’t be helped.
Marine transportation can
take a few days to arrive if it’s the close ocean, but it may take up to two
months if it’s a long route like Japan-Europe.
Arrival Notice is issued
Before vessel arrive to the
port, Arrival Notice is issued and sent by an importer’s forwarder to
Consignee.
Arrival Notice has a number
of costs, such as Terminal Handling charge and D/O fees, which an importer has
to pay.
Import Process
Let’s take a closer look at
the import process.
Payment for Arrival Notice
An importer must obtain
D/O, which is a delivery note.
So, the amount of money
that is written on Arrival Notice is payed to a forwarder.
Submit B/L
At the same timing of the
Arrival Notice payment, B/L is also submitted.
If it’s an original B/L,
the original document is submitted, and if it’s Surrendered B/L, a copy is
submitted to a forwarder.
D/O is released
In exchange for Arrival
Notice payments and B/L submission, an importer’s forwarder releases D/O to
Consignee.
When I start working as forwarder, I could not
understand this import process well..
Import custom clearance
In order for an importer to
pick up a container, not only D/O but also import custom clearance must be
completed.
Documents such as Invoice,
Packing List, and Certificate of Origin are entered into the system, and a
shipping person declares the import.
If there is no problem with
the declaration, they issue an import permit, but if not, an inspection will be
required.
Import shipping is more difficult than export
shipping..
Container is released
Having obtained D/O and
completed import clearance, Consignee can submit D/O to container yard and they
pick up the container from the yard.
Container is delivered
A trailer arrives at the
destination, and a cargo is unloaded. This is the end of delivery.
After all this process, the
cargo is finally sent to the overseas destination.
Summery
How did you like it? It
looks like we’re just transporting cargo in a container, but there are various
documents required in the process.
If there is a mistake in
the documents, a cargo will not be transported smoothly.
Please understand the whole
cargo and documents process so that you can make smooth international logistics
arrangements.
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