YOUR CARGO ARRIVED DAMAGED! HOW TO FILE CLAIMS

Don’t procrastinate. Take immediate action! You may have fewer than 3 days.

This is a step-by-step guide to making the insurance claims process as simple and painless as possible. If your shipment arrived damaged during the importing process, following these relatively easy and practical steps will protect your financial interest and maximize your chances of successfully collecting on your damage claim against any carrier.

Because you are obligated to help your insurance company determine who is responsible for the loss, you must take the following precautions immediately!

1) Note exceptions!

Make a note on the truck waybill / delivery order in as much detail as possible. For example, if you see damage to your shipment: “10 cartons crushed with holes and water damage, some dried and some still damp, content exposed.”

2) A Picture is Worth a 1,000 Words

The old adage still holds true. Grab your smartphone and start snapping some pics of your cargo. Try to get as much detail as possible. Even taking videos to describe what you see is great evidence as well.

3) Keep the evidence

Do not discard damaged goods, packaging, and / or container seals until a surveyor has had a chance to investigate the loss or until you’ve received confirmation from your insurance company that it is suitable to do so.

4) Perform salvage!

Importers are obligated to limit the damages; segregate the good stuff from the bad. In other words, do not let water damage spread to otherwise undamaged cargo. If only the outer packaging is wet and damaged, salvage the content and repack it. Keep the old packaging!

5) Put everyone on notice!

Immediately send everyone involved in the supply chain a notice that your shipment arrived damaged, even if you do not know the total extent of the damage.  Doing this extends the time frame allowed to get the actual claim processed and submitted.

If this is not done, the carrier(s) is within its right to deny the claim, pending timelines laid down in their terms and conditions. By doing this, you are, in effect, reserving your right to possibly file a claim at a later date. Download and complete a “preliminary claim form” on letterhead and send it to the:

• Trucker that delivered the cargo
• Warehouse where it was picked up
• Exam site, if the shipment had been examined
• Ocean or air carrier that transported the goods
• Freight forwarder that arranged the transportation
• The supplier that you purchased the cargo from, because you never know!  There may have been a note about an issue when the goods were initially picked up!

If purchased under the Cost, Insurance & Freight (CIF) terms of sale, the supplier hopefully fulfilled his obligation and arranged for insurance coverage with a reputable firm and should at this point provide you with the contact details of that insurance company to process the claim.

(Forget about putting Customs on notice for damages that may have occurred during an exam;  they are not liable for anything.)

6) Notify the insurance company

Hopefully, you protected your investment and obtained cargo insurance, either by yourself or through your forwarder.  They should be notified right away. The insurance company will demand that you take the above steps as well, or they will have grounds to deny the claim!

Then, they may dispatch a surveyor to visit your facility to gather as much evidence about the loss as possible, in order to properly determine how much to pay out, but also to give them the chance to push other parties in the process to be responsible for parts of the loss.

Keep all physical evidence until the surveyor or insurance company confirms, in writing, that it can be destroyed.

7) Tally up your loss

Calculate the actual loss to prepare the final claim against the insurance policy or, if not insured, to start filing the claim against the carrier(s) directly. Remember to include the cost of freight, duties and taxes proportional to the loss as well.

8) Complete the claim

• Complete Claim form.
• Gather all the supporting documents as outlined
• Submit the claim

Then, simply send it to the insurance company and they will handle it from here. They will settle with you under the terms of the policy and go after the carriers to cover their losses.

If your vendor arranged the insurance they should have provided details of the insurance company’s local agent and possible surveyor for you to speak with.  Remember, you are subject to the terms and conditions, including any deductibles, that were originally negotiated by the vendor.

However if your shipment is not insured, this is where the “real fun” starts:

• Send the claim to the same folks with whom you filed the preliminary claim form.
• Each party will do its own investigation and either deny the claim or settle it under their limit of liability, if it can be proven that the damage occurred while the cargo was under their care. Be aware that they may deny the claim for a host of possible valid reasons: insufficient packaging, inherent vice, etc.
• Note that this process can take months and, in some cases, years. Keep following up.

The liable party is usually determined by examining the various delivery documents that are signed by each party (including waybills, delivery orders, and bills of ladings) as the shipment is handed over between truckers, warehouses, air or shipping lines as your cargo moves from origin to destination.

It is assumed that any damage must have occurred in the custody of the first party that was handed back a signed “received” delivery document with damages noted on it.

If your shipping / receiving department blindly signed the waybill without making notes then they are saying, in effect, that the goods arrived in “good order and condition.” The carrier (and the insurance company) would then be able to deny any liability and reject your claim outright!

Good luck as you sail down the perilous river of claims processing!

P.S. If you file a claim with any of the major carriers (such as UPS, FedEx, DHL, etc.), their first response will most likely be to reject immediately, putting the burden on you to be persistent.  If this happens, go right back with your evidence.  If the 2nd time doesn’t work, the 3rd time, as the old adage goes, might be the charm.

WHAT HAPPENS TO YOUR CARGO AT CONTAINER FREIGHT STATIONS?

What is a container freight station?

A container freight station (CFS) is a warehouse where goods are consolidated into or de-consolidated from containers for transport to their next destination. They’re an integral part of LCL shipments; if you ever use LCL, then you should have a good grasp of what happens to your shipments when they pass through CFS warehouses.

Where do these warehouses fit in the importing process of your goods?

If you purchased less than a container’s worth of goods, your shipment will head to a warehouse (CFS) for consolidation in the origin country.  There, your shipment will be loaded into a container along with other people’s goods, before the container is taken aboard a ship for transportation to the destination country.

They’re typically located close to seaports or airports. and in major inland metropolitan cities to bring goods as close to their final destination as possible and thus keep the delivery cost for the final mile as low as possible.

Once the container reaches the destination country, it will be taken to another warehouse so that your goods can be de-consolidated and separated from the other shipments. The warehouse will then store your goods until you or a trucker picks it up.

What’s needed to pick up your goods from the warehouse (CFS)?

The warehouse will need a copy of the following two documents:

• a Delivery Order, which will give them permission to release the goods to either a designated trucker or to you
• the Customs Clearance release, which shows the warehouse that Customs gave the green light for your goods to be released to you

They should receive these documents before you or your trucker head to pick up your shipment, but they will also need to be presented in hand at the time of pickup.

Why this is important for shippers

Shipping LCL means that goods are handled by more parties than when shipping FCL. That increases costs and transit time as well as the risk of mishandling and damages. Furthermore, LCL cargo has a greater chance of going through Customs exams. That’s because if any single shipment in a container box has to be examined, then the whole container will be pulled for an examination by Customs.

Will there be any warehouse charges?

Unfortunately, yes, unless your shipment is a full container.  The warehouse charges applicable are for shipment handling and sorting (including using a liftgate to offboard goods from trucks).  These charges can be paid at pickup in cash (or through a broker’s check, depending on the warehouse’s payment conditions).

In addition, if your goods sit in the warehouse for too long, past the Last Free Date (which they will specify), your shipment will incur daily storage charges that will increase exponentially over time.  These storage fees are also known as demurrage charges. If you don’t pick up in time, your goods may be sent to Government Order warehouses, where even higher storage charges accrue and your goods may eventually be sold at auction to cover the cost. Warehouses are very serious about getting people to pick up their goods on time – these are not fun to see on your bill!

Remember, warehouse charges aren’t the only fees you’ll see in your importing process!

MEASUREMENTS OF EXPORT CARGO CONTAINERS

Here let us discuss the measurement of 20’ shipping cargo dry container. This information helps domestic and international trade to know more about the dimension specification of different types of containers.

These details surely support importers and exporters to plan before stuffing of goods to each type of container.

This post explains the inner measurement and outer measurement of 20’ container, volume capacity of Twenty foot Equipment Unit, tare weight and loading capacity of 20’ shipping container.

20’ container means Twenty foot Equipment Unit (TEU).

The different types of shipping cargo containers are Dry containers, Open Top Containers, Flat Rack containers, Flat Rack Container with Four Freestanding Posts, Platform containers, High Cube containers, Steel Refrigerated Container, Aluminum Refrigerated Container, Fuel Tank Container, Power Pack Generator Container, Flat Rack Container with Collapsible End, Flat Rack Hi-Cube Container, Hi-Cube Open Top Container, Hi-Cube Hanger Container etc. Most of the shipping cargo container length would be 20’ or 40’ standard in sizes.

Standard dry cargo containers are made of steel. 20’ shipping container and 40’ shipping containers are available. These standard dry cargo containers are completely sealed off and water resistant. Standard shipping containers are used for most of the cargo movement domestically and internationally for almost all dry goods, boxes, pallets, sacks, barrels etc. Most of these standard dry shipping cargo containers are manufactured with good plywood flooring. These containers are manufactured in such way to transfer from different modes of transport like trucks, ships, trains etc.

20’ Dry Cargo Container

20’ containers are commonly used by most of the traders apart from 40’ containers. 20’ standard dry cargo containers are manufactured with steel which is totally sealed and waterproof with plywood flooring.

What is the dimension of 20’ dry containers?

The dimension of 20 feet dry container (20’ container) can be explained as inner dimension and outer dimension.

What are the inner dimensions of 20’ cargo container (Interior dimension of 20’ container)?

The inner dimension of 20’ container is as follows. (The length, width, and height of 20’ container in millimeter, meter, and feet)

Length = 5898mm (5.898 meter 19’4” or 19 feet 4 inches)

Width = 2352mm (2.352 meter or 7’8” or 7 feet 8 inches)

Height = 2395mm (2.395 meter or 7’10” or 7 feet 10 inches)

What is the outer dimension of 20’ container (exterior dimension of 20’ container)?

The outer dimension of 20’ cargo container (exterior dimension of 20’ dry container) is as follows:

Length = 6058mm (6.058 meter or 19’11” or 19 feet 11 inches)

Width = 2440mm (2.440 meter or 8’ or 8 feet)

Height = 2600mm (2.600 meter or 8’6” or 8 feet 6 inches)

What are the door width and door height of a 20’ container in mm, meter and foot?

The door width of 20’ cargo container is 2340mm (2.340 meter or 7’8” or 7 feet 8 inches) and door height 2280mm (2.280 meter or 7’6” or 7 feet 6 inches).

The cubic volume of a 20-foot container?

The cubic volume of a 20’ dry cargo container is 33200 cubic mm (33.200 CBM- cubic meter)

What is the Door opening measurement of 20’ cargo dry container?

Door opening width of a 20’ dry container is 2338mm (2.338 meter or 7’8” or 7 feet 8 inches) and door opening height of 20 feet container is 2292mm (2.292 meter or 7’6” or 7 feet 6 inches)

Tare Weight of 20 feet dry container?

Tare weight of a 20-foot container is 2150 kgs

Maximum Pay Load weight of 20’ dry cargo container?

Maximum payload weight of 20’ container is 21850 kgs

What is the maximum capacity of 20’ container?

Maximum capacity of 20’ container is 33150 kgs

The information on measurement and weight mentioned may vary slightly from one brand owner to another. Some of the top cargo container owners are NYK, Evergreen, CMA-CGM, Maersk, MSC, Hapag-Lloyd, APL, Cosco, Hanging, CSCL. You may reconfirm exact weight, measurement and other details from container owner or their agent.

EXPORT AND IMPORT PROCEDURES IN GHANA

Exports and Imports in Ghana are controlled by the Exports and Imports Act 1995 (503). Export procedures for purposes of export documentation; exports are classified into two broad categories namely traditional and non-traditional. Traditional exports are gold, diamonds, bauxite, manganese, cocoa beans, coffee, timber and electricity. Non-traditional export items include processed forms of the above products and all other products. Exporters of traditional commodities have to complete the Exchange Control A2 Form, endorsed by the exporter's bankers and presented to the Customs Examination Officer at the time of shipment.

Exporters of non-traditional products have to complete a Ghana Export Form (from the Banks or Port of Exit) and present it to Customs at the time of export. Exports of antiques, wildlife, live plant, and pet require permits from Ghana Museums and Monuments Board, Department of Game and Wildlife and the Plant Protection and Regulatory Service of the Ministry of Food and Agriculture respectively.

Export incentive schemes
The Ghana Export Promotion Council in close collaboration with the Ministry of Trade and Industry plays a crusading role in the establishment of incentive schemes for exporters, some of which are:

• An Export Proceeds Retention Scheme in operation allows exporters to exchange all (i.e 100%) foreign exchange proceeds from non-traditional exports into cedis at competitive rates negotiated with the exporter's bankers or keep them in their foreign exchange accounts.

• A Corporate Tax Rebate, which allows any manufacturer or any person, engaged in agricultural production, exporting part or all of his production to claim tax rebate between 40% and 75% of his tax liability.

• A Custom Duty Drawback that allows manufacturers to draw back up to 100% of duties paid on material imported to produce goods for export.

• A Bonded Warehousing that allows manufacturers to seek Customs licence to hold imported raw materials intended for manufacturing for export in secured places without payment of duty.

• Up-Front Duty Examination, which operates alongside the duty drawback system enables exporters, enjoy 100% duty exemption on imports intended to go into production for export.

Import procedures
Destination Inspection Scheme
The Destination Inspection Scheme (DIS) replaced the Pre-shipment Inspection in April 2000 under the DIS; inspection of imports is at the port of clearance. The scheme has been put in place to:

• facilitate trade
• provide an efficient verification of import
• check revenue loss by providing an impartial assessment of the duties and taxes to be collected
• limit the opportunities for fraud, fiscal evasion and price discrimination

1. Submission of IDF Form
Submit Import Declaration Form to Gateway Services Limited (GSL) 21 days before the arrival of the goods, along with the Proforma Invoice, Supplementary Information Document (SID) and Tax Identification Number (TIN) Certificate. The SID form is available at GSL.

2. Final documents submission to GSL
The Final Documents must be submitted 10 days prior to the arrival of the goods. They are the Final Invoice, Bill of Lading and the Packing List.

3. The custom entry
After collection of your Final Classification and Valuation Report FCVR from GSL, lodge your Single Administrative Document (SAD) with CEPS at the Long Room along with all supporting documents (Invoice, B/L, FCVR, Exemptions, etc.)

4. At the harbour
After processing at the Long Room, your entry will be dispatched to the Harbour to various locations, depending upon the Computerised Risk Management System (CRMS) Level quoted on your FCVR, as follows:

'SCANCO' GSL office at the Harbour for scanning of the containers.

'LR/RE' SHED 10 for CEPS Examination or immediate release.

'GSBV MN' GSBV office at SHED 2 for mandatory GSBV inspection

'HIGH RISK' SHED 10 for CEPS Examination

After satisfactory process (point 4 above), CEPS will release your Out-of-Charge document. You then obtain a GATEWAY PASS from GSBV if they inspected your cargo or GSL for the other clearance channels.

5. The GPHA WAYBILL
The last step of the process, present your release Out-of-Charge document to GPHA to obtain a WAYBILL as proof of payment of all port charges.

Procedure for clearance
The Importer or Agent completes the Single Administrative Form (SAD) and attaches all relevant documents to the Ghana Shippers Council, Internal Revenue Service and the Ministry of Trade and Industry who are all under the same roof at the port of entry, for endorsement. The SAD is then presented alongside other documents to the Customs Long Room where the documents pass through these processes:

• Bill of Entry is checked;
• Duties paid;
• Data captured by computer;
• Duty receipt issued.

TOP 10 EXPORT GOODS FROM GHANA WITH PICTURES!

Ghana is the 76th largest export economy in the world and the 100th most complex economy according to the Economic Complexity Index (ECI). 

Exports in Ghana decreased to 2201.30 USD Million in the third quarter of 2015 from 2703.50 USD Million in the second quarter of 2015. Exports in Ghana averaged 1886.43 USD Million from 2003 until 2015, reaching an all-time high of 4118.30 USD Million in the first quarter of 2012 and a record low of 565.06 USD Million in the first quarter of 2003. 

It's main exports partners are Netherlands, Burkina Faso, South Africa and the United Kingdom. 

Ghana's main exports are:

#1 - Gold

#2 - Cocoa Beans 

#3 - Crude Petroleum

#4 - Cocoa Paste

#5 - Refined Petroleum

#6 - Cars

#7 - Rice

#8 - Timber Products

#9 - Maize

#10 - Shea butter

FACTORS FOR CONSIDERING AIR FREIGHT VS. OCEAN FREIGHT

In life and business, there are always choices to make. When it comes to international shipping, there are many choices. Of all these choices, the most basic is the decision of what kind of transport to use: air freight or ocean freight. Whether you’re a business that will be shipping overseas all the time or an individual moving to a new country, deciding whether to go with ocean freight or air freight is an important choice. There are three key factors you should consider when making this decision.

Cost
Speed
Reliability

1. Cost

You probably don’t have to be told to consider the costs before an undertaking. As a business person, you consider the bottom line and as an individual, you have a budget. Naturally, you’re going to want to know which will cost you less, air freight or ocean freight. Typically, you will hear that shipping by ocean is cheaper than shipping by air. And typically, this is true; however, this is not necessarily the case.

To make the best decision, it helps to be educated about how carriers charge for international shipping. Airlines bill you, by what is called a chargeable weight. Chargeable weight is calculated from a combination of the weight and size of a shipment. Sea carriers charge per container rates for shipping in standard containers (20’ and 40’ being the most common sizes). While weight can factor into the price from sea carriers, their charge tends to be based more on the size of a shipment. If you are shipping less than a container load, your price is often determined by cubic meter. With larger and heavier shipments, it is often much cheaper to ship by sea. As a shipment gets smaller, the margin between the prices gets smaller and sometimes air will even end up less expensive.

Shippers should note that there are destination charges to consider. Whether shipping by air or by sea, there will be customs and destination fees. While the actual shipment cost of sea freight is usually cheaper than the shipment cost of air freight, the warehousing fees at seaports are many times more expensive than those at airports.

2. Speed

When it comes to speed, there is no question that air freight is usually much faster. Since time is money, this factor could more than makeup for a higher cost of flying cargo. Many sea shipments can take around a month to arrive while an air shipment takes a day or two. For most business, shipping faster is better. When it comes to the individual moving a household, it is often good to have the extra time to prepare for the arrival of household goods in a new country. It should be noted that technology keeps moving forward in the international shipping world. Ships are getting faster. Canals have created shorter shipping routes. There are many ocean freight shipments crossing the oceans and being delivered in as few as 8 days.

3. Reliability

Reliability is something we all look for in people, businesses, products, and services. How does ocean freight and air freight stack up against each other in this category? Air freight shipping has a much, much shorter history than ocean freight shipping, yet air freight tends to win the battle of reliability. Flights get delayed by weather and other factors, but airlines tend to be very on top of their schedules. Ocean carriers are notorious for being bad about this. It is not uncommon for ships to be off schedule. For many, a day or two here or there doesn’t hurt; however, for many businesses, a day or two could have serious cost effects. With airlines, there are usually daily flights back and forth between major cities around the world. Because of this, missing a flight doesn’t cause much of a delay for a cargo shipment. Ocean lines tend to have weekly schedules. Missing the cutoff at a seaport means a longer delay.

Considering these four factors should help you make the best decision for your cargo shipment.

EXPORT DOCUMENTATION AND EXPORT SHIPPING

When preparing for Export Documentation and Export Shipping, the exporter needs to be aware of packing, labeling, documentation, and insurance requirements. Because the goods are being shipped by unknown carriers to distant customers, the new exporter must be sure to follow all shipping requirements to help ensure that the merchandise is

• packed correctly so that it arrives in good condition;
• labeled correctly to ensure that the goods are handled properly and arrive on time and at the right place;
• documented correctly to meet local and foreign government requirements as well as proper collection standards; and
• insured against damage, loss, and pilferage and, in some cases, delay.

Because of the variety of considerations involved in the physical Export Documentation and Export Shipping process, most exporters, both new and experienced, rely on an international freight forwarder to perform these services.

FREIGHT FORWARDERS

The international freight forwarder acts as an agent for the exporter in moving cargo to the overseas destination. These agents are familiar with the import rules and regulations of foreign countries, methods of shipping, government export regulations, and the documents connected with foreign trade.

Freight forwarders can assist with an order from the start by advising the exporter of the freight costs, port charges, consular fees, cost of special documentation, and insurance costs as well as their handling fees, all of which help in preparing price quotations. Freight forwarders may also recommend the type of packing for best protecting the merchandise in transit; they can arrange to have the merchandise packed at the port or containerized. The cost for their services is a legitimate export cost that should be figured into the price charged to the customer.

When the order is ready to ship, freight forwarders should be able to review the letter of credit, commercial invoices, packing list, and so on to ensure that everything is in order. They can also reserve the necessary space on board an ocean vessel, if the exporter desires.

If the cargo arrives at the port of export and the exporter has not already done so, freight forwarders may make the necessary arrangements with customs brokers to ensure that the goods comply with customs export documentation regulations. In addition, they may have the goods delivered to the carrier in time for loading. They may also prepare the bill of lading and any special required documentation. After shipment, they forward all documents directly to the customer or to the paying bank if desired.

PACKING

In packing an item for export, the shipper should be aware of the demands that exporting puts on a package. Four problems must be kept in mind when an export shipping crate is being designed: breakage, weight, moisture, and pilferage.

Most general cargo is carried in containers, but some is still shipped as break-bulk cargo. Besides the normal handling encountered in domestic transportation, a break-bulk shipment moving by ocean freight may be loaded aboard vessels in a net or by a sling, conveyor, chute, or other method, putting added strain on the package. In the ship's hold, goods may be stacked on top of one another or come into violent contact with other goods during the voyage. Overseas, handling facilities may be less sophisticated than in your country and the cargo may be dragged, pushed, rolled, or dropped during unloading, while moving through customs, or in transit to the final destination.

Moisture is a constant problem because cargo is subject to condensation even in the hold of a ship equipped with air conditioning and a dehumidifier. The cargo may also be unloaded in the rain, and some foreign ports do not have covered storage facilities. In addition, unless the cargo is adequately protected, theft and pilferage are constant threats.

Since proper packing is essential in exporting, often the buyer specifies packing requirements. If the buyer does not so specify, be sure the goods are prepared with the following considerations in mind:

• Pack in strong containers, adequately sealed and filled when possible.
• To provide proper bracing in the container, regardless of size, make sure the weight is evenly distributed.
• Goods should be packed in oceangoing containers, if possible, or on pallets to ensure greater ease in handling. Packages and packing filler should be made of moisture-resistant material.
• To avoid pilferage, avoid mentioning contents or brand names on packages. In addition, strapping, seals, and shrink wrapping are effective means of deterring theft.

One popular method of shipment is the use of containers obtained from carriers or private leasing concerns. These containers vary in size, material, and construction and can accommodate most cargo, but they are best suited for standard package sizes and shapes. Some containers are no more than semi-truck trailers lifted off their wheels and placed on a vessel at the port of export. They are then transferred to another set of wheels at the port of import for movement to an inland destination. Refrigerated and liquid bulk containers are readily available.

Normally, air shipments require less heavy packing than ocean shipments, but they must still be adequately protected. In many instances, standard domestic packing is acceptable, especially if the product is durable and there is no concern for display packaging.

For both ocean and air shipments, freight forwarders and carriers can advise on the best packaging. Marine insurance companies are also available for consultation. It is recommended that a professional firm be hired to package for export if the exporter is not equipped for the task. This service is usually provided at a moderate cost.

Finally, because transportation costs are determined by volume and weight, special reinforced and lightweight packing materials have been devised for exporting. Care in packing goods to minimize volume and weight while giving strength may well save money while ensuring that goods are properly packed.

LABELING

Specific marking and labeling is used on export shipping cartons and containers to

• meet shipping regulations,
• ensure proper handling,
• conceal the identity of the contents, and
• help receivers identify shipments.

The overseas buyer usually specifies export marks that should appear on the cargo for easy identification by receivers. Many markings may be needed for shipment. Exporters need to put the following markings on cartons to be shipped:

• Shipper's mark.
• Country of origin (exporters' country).
• Weight marking (in pounds and in kilograms).
• Number of packages and size of cases (in inches and centimeters).
• Handling marks (international pictorial symbols).
• Cautionary markings, such as "This Side Up" or "Use No Hooks" (in English and in the language of the country of destination).
• Port of entry.
• Labels for hazardous materials (universal symbols adapted by the International Maritime Organization).

Legibility is extremely important to prevent misunderstandings and delays in shipping. Letters are generally stenciled onto packages and containers in waterproof ink. Markings should appear on three faces of the container, preferably on the top and on the two ends or the two sides. Old markings must be completely removed.

In addition to port marks, customer identification code, and indication of origin, the marks should include the package number, gross and net weights, and dimensions. If more than one package is being shipped, the total number of packages in the shipment should be included in the markings. The exporter should also include any special handling instructions on the package. It is a good idea to repeat these instructions in the language of the country of destination. Standard international shipping and handling symbols should also be used.

Exporters may find that customs regulations regarding freight labeling are strictly enforced; for example, most countries require that the country of origin be clearly labeled on each imported package. Most freight forwarders and export packing specialists can supply necessary information regarding specific regulations.

DOCUMENTATION

Exporters should seriously consider having the freight forwarder handle the formidable amount of documentation that exporting requires; freight forwarders are specialists in this process. The following documents are commonly used in exporting; which of them are actually used in each case depends on the requirements of both our government and the government of the importing country.

* Commercial invoice. As in a domestic transaction, the commercial invoice is a bill for the goods from the buyer to the seller. A commercial invoice should include basic information about the transaction, including a description of the goods, the address of the shipper and seller, and the delivery and payment terms. The buyer needs the invoice to prove ownership and to arrange payment. Some governments use the commercial invoice to assess customs duties.

* Bill of lading. Bills of lading are contracts between the owner of the goods and the carrier (as with domestic shipments). There are two types. A straight bill of lading is nonnegotiable. A negotiable or shipper's order bill of lading can be bought, sold, or traded while goods are in transit and is used for letter-of-credit transactions. The customer usually needs the original or a copy as proof of ownership to take possession of the goods.

* Consular invoice. Certain nations require a consular invoice, which is used to control and identify goods. The invoice must be purchased from the consulate of the country to which the goods are being shipped and usually must be prepared in the language of that country.

* Certificate of origin. Certain nations require a signed statement as to the origin of the export item. Such certificates are usually obtained through a semiofficial organization such as a local chamber of commerce. A certificate may be required even though the commercial invoice contains the information.

* Inspection certification. Some purchasers and countries may require a certificate of inspection attesting to the specifications of the goods shipped, usually performed by a third party. Inspection certificates are often obtained from independent testing organizations.

* Dock receipt and warehouse receipt. These receipts are used to transfer accountability when the export item is moved by the domestic carrier to the port of embarkation and left with the international carrier for export.

* Destination control statement. This statement appears on the commercial invoice, ocean or air way-bill of lading, to notify the carrier and all foreign parties that the item may be exported only to certain destinations.

* Insurance certificate. If the seller provides insurance, the insurance certificate states the type and amount of coverage. This instrument is negotiable.

* Export license. (when needed).

* Export packing list. Considerably more detailed and informative than a standard domestic packing list, an export packing list itemizes the material in each individual package and indicates the type of package: box, crate, drum, carton, and so on. It shows the individual net, legal, tare, and gross weights and measurements for each package . Package markings should be shown along with the shipper's and buyer's references. The packing list should be attached to the outside of a package in a waterproof envelope marked "packing list enclosed." The list is used by the shipper or forwarding agent to determine:

(1) the total shipment weight and volume and 

(2) whether the correct cargo is being shipped

In addition, customs officials (both local and foreign) may use the list to check the cargo.

Documentation must be precise. Slight discrepancies or omissions may prevent merchandise from being exported, result in exporting firms not getting paid, or even result in the seizure of the exporter's goods by local or foreign government customs. Collection documents are subject to precise time limits and may not be honored by a bank if out of date. Much of the documentation is routine for freight forwarders or customs brokers acting on the firm's behalf, but the exporter is ultimately responsible for the accuracy of the documentation.

The number of documents the exporter must deal with varies depending on the destination of the shipment. Because each country has different import regulations, the exporter must be careful to provide proper documentation.

EXPORT IMPORT SHIPPING

The handling of transportation is similar for domestic orders and export orders. The export marks should be added to the standard information shown on a domestic bill of lading and should show the name of the exporting carrier and the latest allowed arrival date at the port of export. The exporter should also include instructions for the inland carrier to notify the international freight forwarder by telephone on arrival.

International shipments are increasingly being made on a through bill of lading under a multi-modal contract. The multi-modal transport operator takes charge of and responsibility for the entire movement from factory to the final destination.

When determining the method of international shipping, the exporter may find it useful to consult with a freight forwarder. Since carriers are often used for large and bulky shipments, the exporter should reserve space on the carrier well before actual shipment date (this reservation is called the booking contract).

The exporter should consider the cost of shipment, delivery schedule, and accessibility to the shipped product by the foreign buyer when determining the method of international shipping. Although air carriers are more expensive, their cost may be offset by lower domestic shipping costs (because they may use a local airport instead of a coastal seaport) and quicker delivery times. These factors may give the exporter an edge over other competitors, whose service to their accounts may be less timely.

Before shipping, the firm should be sure to check with the foreign buyer about the destination of the goods. Buyers often wish the goods to be shipped to a free-trade zone or a free port where goods are exempt from import duties.

EXPORT IMPORT INSURANCE

Export shipments are usually insured against loss, damage, and delay in transit by cargo insurance. For international shipments, the carrier's liability is frequently limited by international agreements and the coverage is substantially different from domestic coverage. Arrangements for cargo insurance may be made by either the buyer or the seller, depending on the terms of sale. Exporters are advised to consult with international insurance carriers or freight forwarders for more information.

Damaging weather conditions, rough handling by carriers, and other common hazards to cargo make marine insurance important protection for exporters. If the terms of sale make the firm responsible for insurance, it should either obtain its own policy or insure cargo under a freight forwarder's policy for a fee. If the terms of sale make the foreign buyer responsible, the exporter should not assume (or even take the buyer's word) that adequate insurance has been obtained. If the buyer neglects to obtain coverage or obtains too little, damage to the cargo may cause a major financial loss to the exporter.

LESS CONTAINER LOAD VS FULL CONTAINER LOAD

Less Container Load (LCL) is a container shipping term used to describe an arrangement whereby the cargo space in a container is made available to more than one consignee. This situation arises when an exporter or consignee is unable to provide enough cargo to fill the cargo space in a container and, therefore, it would make economic sense to share the space in the shipping ‘box’ (container) with other cargo owners. The term ‘Less Container Load’ does not literally mean that the container has not been loaded to its full capacity but rather it means that no single exporter exclusively owns the cargo space in the container. So in situations where a container is loaded to its full capacity but containing cargo belonging to two or more exporters, it would still be considered less container load.

The term is usually used in a consolidated shipment where the shipper (consolidator) combines cargo from different owners into a single container and issues a ‘House Bill of Lading’ to each consignee. Even though this might make some economic sense with regards cost of transport, it exposes your cargo to the risk of damage or contamination by other cargoes which usually are not homogeneous in nature.

Full Container Load (FCL) is also a shipping term describing the situation where the entire cargo space in a shipping container is made available to one consignee (cargo owner). What this means is that the consignee has exclusive usage of the cargo space in a container. It should also be noted that, the container might not necessarily be loaded to its full capacity, in fact, it could be half empty but would still be considered Full Container Load since the cargo belongs to a single owner.  It is more appropriate when transporting homogeneous goods.

This might seem a little expensive especially when you do not have enough cargo to fill up the container and yet the same rate is charged for the transport of a standard container (whether full or half empty). The advantage, however, with this option, is that the cargo runs less risk of damage or contamination from other cargoes from different consignees and also the seal to the container still remains intact and would  only be broken with your concern, hence you run less risk of theft or pilferage.

As an exporter/importer therefore, it is up to you to make a decision with regards which option best suits your needs and more cost efficient taking into consideration the type and nature of your cargo, for instance if you are transporting very fragile goods or highly perishable products, you may not want to run the risk of the bumping and hassle during the consolidation and deconsolidation process as pertaining to the Less Container Load.

Difference between Received for Shipment, Shipped on Board, Clean on Board & Clean Shipped on Board

Difference between Received for Shipment, Shipped on Board, Clean on Board & Clean Shipped on Board

These are 4 terms that some people are not clear about, with regards to the various types of endorsements on the bill of lading.

• Received for Shipment
• Shipped on Board
• Clean on Board
• Clean Shipped on Board

Bill of lading endorsed with Received for shipment: confirms that the carrier has “received” the containers at the port facility for loading onto a specific ship. This does not mean that the container(s) has been shipped on board.

Bill of lading endorsed with Shipped on board: confirms that the carrier has received and loaded the containers physically on board the specified ship This is definite proof that the container(s) have been loaded.

Bill of lading endorsed with Clean on board: is a bill of lading that is predominantly used for non-containerised cargoes that are loaded on the break-bulk or multi-purpose vessels. This confirms that the cargo has been received by the carrier in good order and condition.
By certifying this, however, the shipowner, carrier and/or master can be liable for any damages that the consignee might notice to the cargo upon discharge.
In containerised shipping this clause is not accepted or granted by any shipping line unless, under very rare circumstances as in the case of FCL containers, the carrier is not aware of what has been packed in the container and in what condition.
It is important that the Implications of issuing a Clean on Board bill of lading are fully understood.

Bill of lading endorsed with Clean Shipped on board: (or Shipped Clean on Board) is basically the same as a Clean on board bill of lading.