SHIPPING  DEPARTMENT
Logistics Management
Cargo Insurance

Global shipping, import-export shipping, logistics, logistics management, logistics supports, shipping space, shipping order, S/O, TEU, twenty-foot equivalent unit, knots, cellular container ships, multimodal transport, combined transport bill of lading, through bill of lading, CBM, cubic measurements, container services, standard containers, hicube, high cube containers, cargo cubes, global shipping, import-export shipping, logistics, logistics management, logistics supports, shipping space, shipping order, S/O. Shipping permits, shipping notes, dock receipts, master ships, mother ships, feeder vessels, transhipment, transshipment, transit shipment, dead freight, seaports, ports, freight forwarders, consolidators, freight consolidators, customs brokers, customs forwarders, brokers, customhouse brokers, customs house brokers, voyage, flight, groupage operators, shipping operators, shipping firms, shipping company, air shipping, ocean shipping, carriers, freight company, transport company, ETA, ETD, ETS. Transportation, transports, ocean shipping company, freight containers, couriers, airlines, tariffs, custom tariffs, shipping dangerous goods, shipping schedules, air containers, ocean containers, shipping containers, container load, LCL, full container load, FCL, marine insurance, cargo insurance, import-export insurance, NVOCC, nonvessel operating common carriers, NVO, nonvessel owner carriers, nonvessel owning carriers, ocean freight consolidator, and steamship.






Booking of Shipping Space


The exporter can book shipping space with a carrier or carrier's agent directly or through a customs broker or forwarder. In practice, it is not uncommon for the exporter to select a carrier and shipping schedule and let the customs broker or forwarder book the space.



Choosing the Carrier


Unless the importer specifies a carrier, the exporter is free to choose a shipping company or airline which offers a competitive rate and can meet the latest date for shipment. Certain importing countries may prohibit the use of flag vessels of a hostile country and any vessels that would make a stopover in a hostile country en route to their territory.





Worldwide Seaports


Please see Seaports of the World. Some port names may be spelled differently, for example, Arkhangelsk in the Russian Federation may appear as Archangels.

The letters after the port names in Australia, Canada and the U.S.A. represent the state or province where the port is located (please see General References---Abbreviations - Provinces, States and Territories).




Checking the Ocean Shipping Schedules


In many countries, the ocean shipping schedules (both outbound and inbound) are published in a major newspaper. In countries where newspapers do not carry shipping schedules, the exporter may contact the carrier, customs broker or forwarder for shipping information. The information is also available from private publishers of shipping schedules.





Carrier - Voyage/Flight No.


The phrase "carrier - voyage/flight no." refers to the name of the carrier and its voyage number (in the case of ocean and land freight) or flight number (in the case of air freight).

In ocean freight, the name of a carrier usually is preceded by letters S/S, SS, S.S., M/V, MV or M.V.. The S/S, SS or S.S. stands for steamship, while M/V, MV or M.V. for merchant vessel. The term steamship is still widely used despite the fact that modern ships are not propelled by steam.




ETD (ETS) and ETA


When booking shipping space, the exporter should know the ETD (ETS) and ETA of the shipment.

The term ETD is the estimated or expected time of departure from the port or point of origin; it applies to all modes of transportation. ETD is shipment on or about.

The term ETS is the estimated or expected time of sailing from the port of origin; it applies to ocean freight. ETS is sailing on or about.

The term ETA is the estimated or expected time of arrival at the port or point of destination; it applies to all modes of transportation.




Stopover En Route to Destination


When booking a shipping space, it is important to verify whether the vessel will stopover in other port(s) to unload and load other cargoes en route to the destination. The stopover in certain ports, particularly congested ones, may extend far beyond the expected time.





Verbal Booking of Space and Dead Freight


In many countries, verbal booking of shipping space is accepted, except for dangerous goods. Sometimes, the space booked is not used and the carrier may levy a charge known as dead freight. The exporter must inform the customs broker or forwarder who booked the space on his/her behalf in advance if the space will not be used, so that other shippers may use the space and to avoid paying the dead freight charge.





Dangerous Goods


When shipping dangerous goods, a written application for shipping space is required. If a shipping order is issued for dangerous goods, it does not mean that the goods will be accepted for loading on board the vessel. When they arrive at the designated customs delivery (closing) location, the goods, shipping order and Dangerous Goods Note are submitted to the ship's master for approval before customs clearance and loading.




Transhipments


The prefix "trans-" means over or to the other side of. Transhipment or transshipment (written with two letter 's')---transit shipment---means a shipment destined to a port or an interior point (location or depot) is best reached by connecting shipment(s) from other port(s) and/or point(s). It is the unloading and reloading of cargo from one means of conveyance to another, in the same or different modes of transportation, during the course of carriage from the place of shipment to the place of destination stipulated in the letter of credit (L/C).

Unless otherwise stipulated in the L/C, transhipment is allowed provided that the entire carriage is covered by one and the same transport document.

Some exporters refuse to accept transhipment because of a belief that it costs more and is slower than a direct shipment. Some importers have the same belief. Contrary to this belief, by using transhipment the cost to certain destinations can be lower and it can be faster than a direct shipment. For instance, the frequency of sailing to a certain destination in a direct shipment is once every two weeks, but by transhipment to the same destination the frequency of sailing can be once or twice weekly. The point in such an instance is that the greater the supply the lower the cost and the earlier the shipment the earlier the importer may receive the goods. In other words, transhipment may save cost and time.

Most ocean freight are containerized in modern shipping. Hence, intermediate reloading of cargo is eliminated in the transhipment, which reduces the cost and time.

The transhipment charge usually is included in the through freight rates, but the shipper must verify with the carrier to ensure that no additional transhipment charge will be collected from the consignee.

Multilateral agreements make the transhipment possible. With worldwide trades and new trading partners on the rise, new routes for transhipment will emerge. For example, trades between Far East and CIS (Commonwealth of Independent States of former Eastern Bloc), the shipment traditionally passes through the Black Sea, but the transit time is shorter by transhipment via the Middle East country (e.g. Iran).

Shipments from Asia and Europe to Central and South America, and vice versa, often require transhipment at ports in North America.




Feeder Vessel and Master Ship


In booking the ocean shipping space with a transhipment, the shipping company provides the names and voyage numbers of the feeder vessel and master ship. The master ship sometimes is referred to as the mother ship. The names and voyage numbers of the feeder vessel and master ship are entered in the ocean bill of lading.





Transhipment in Landlocked Countries


Certain countries are landlocked and so are inaccessible by deep-sea ocean vessels. Import and export goods must be transhipped in other country(ies) by means of truck and/or rail and/or inland waterway (river, canal or lake) transports. Please see some of the landlocked countries in the Landlocked Countries and Transhipping Points.




Shipping Order (S/O)


The shipping order---shipping permit---is issued by the shipping company to a shipper with a confirmed space booking, authorizing the receiving clerk (cargo checker) at the container terminal or dock to receive a specified amount of goods from the named shipper.

A shipping order (S/O) typically contains the space booking number, names and addresses of the shipper and customs broker or forwarder, vessel and voyage number, sailing time, delivery date and location, customs closing date, and number and type of packages.

The customs broker or forwarder usually requires the packing list of a consignment in order to book the shipping space and to obtain the S/O and/or to prepare the dock receipt (shipping note). In some cases, the presentation of the packing list and a valid export permit is required to obtain the S/O.

The S/O accompanies the dock receipt and the deliverer of the goods presents these two and other documents that may be required in the delivery to the receiving clerk (cargo checker) at the closing location. In certain countries, only the space booking number is needed instead of a formal S/O, since the information in an S/O is found in the dock receipt.












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