Basic Shipping Documentation

Shipping Documentation
An induction on the container transport,
and its driving forces.
Outlines of the parties and sectors who
involve in the business.
Outlines of the operation, and
Introduction of the various key
documents associated with each sector
of the business, and their significance.

Who, What is involved, and Why

What documents are produced

in facilitating the shipment cycle

Apart from the physical transportation of the

goods from the buyer to the seller, there are
various kinds of documents involved.
This presentation aims at providing a basic
knowledge on the key documents.
For details on the documents, you may need
to refer to the relevant text.

Documents In The Outbound

Business Cycle
IDENTIFY
PROSPECTIVE
CUSTOMERS
MARKETING

MEET WITH
CUSTOMER

SALES

MARINE
OPERATIONS

LOAD
CONTAINER
ON SHIP

LOADED
LOADED
CONTAINER
CONTAINER
TO
TO
TERMINAL
TERMINAL
OR DEPOT
OR DEPOT
FREIGHT CASHIER

ISSUE
BILL OF
LADING
(B/L)
CUSTOMER SERVICE

FREIGHT
FREIGHT
CHARGE
CHARGE
COLLECTION
COLLECTION
RELEASE B/L
RELEASE B/L
TO CUSTOMER
TO CUSTOMER

TRANSMIT
TRANSMIT
B/L INFO
B/L INFO
TO
TO
DESTINATIONS
DESTINATIONS
DOCUMENTATION

AGREE ON
AGREE ON
PRICE AND
PRICE AND
SERVICE WITH
SERVICE WITH
CUSTOMER
CUSTOMER
PRICING/SALES

CONTAINER
STUFFING

BOOK
CARGO

CUSTOMER SERVICE

CUSTOMER
CUSTOMER
PICKS UP EMPTY
PICKS UP EMPTY
CONTAINER
CONTAINER
AT TERMINAL
AT TERMINAL
OR DEPOT
OR DEPOT
DEPOT/TRANSPORT

CUSTOMER
CUSTOMER
DELIVERS
DELIVERS
THEIR
THEIR
CARGOES
CARGOES
TO
TO
WAREHOUSE
WAREHOUSE

CARGO
CONSOLIDATION
AND
STUFFING

CFS (Container Freight Station)

DISCHARGE
DISCHARGE
COTAINER
COTAINER

DELIVERY OR
DELIVERY OR
CUSTOMER
CUSTOMER
PICK UP
PICK UP

1. To Identify Prospective
Customers

Customer nomination
e.g. in L/C
Sales calls & follow
up on transport
solution for their
Sales Contract
Walk-In customers

What is a L/C ?

Definition of a
Documentary Credit
Availability under
Documentary Credits
Guideline for handling
Documentary Credit is
set in ICC publication
No.500 (the UCP500)

Who use the L/C ?

DC Issuing and Advising Flow Chart

OK

Why the L/C ?

In Export Document Negotiation

OK

What is Sales Contract ?

What are common in the

Contract

Name and address of seller & buyer

Reference between the document and the goods
themselves
Number/quantity
Price
Delivery Terms (Incoterm CIF, FOB etc.)
Payment
Transport
Insurance
Import and export license
Various contract terms

Definition of INCOTERM

INCOTERMS are International Commercial Terms used

in shipping documentation which are recognized as the
international standard.

INCOTERMS are generally letters or abbreviations that

represent a universal understanding of: the parties
involved, terms of sale, point of origin, destination, and
party responsible given a certain condition.

INCOTERMS are not legal binding subject to acceptance

of individual involved with the business transactions

Who facilitate the trade conducts :

International Chamber of Commerce

It is the World Business Organization which

promotes international trade, investment and the
market economy system worldwide;
makes rules that govern the conduct of business
across borders;
e.g. the INCOTERMS 2000

provides essential services, foremost among them

the ICC International Court of Arbitration, the world's
leading institution of its kind.

Incoterms 2000

Brings in line with current international trade

practice in 2000 after its last issue in 1990.
Reduces uncertainties, misunderstandings, disputes
and litigation on Sales contracts.
Implication to transport e.g. if CIF contract then it
cannot perform such contract by other mode than
carriage by Sea, needs B/L (or other maritime
document) to the buyer, and the kind of document
required in a Documentary Credit (L/C).

How the INCOTERMS works

To determine at what point the seller has fulfilled his

obligations so that the goods in legal sense could
be said to have been delivered to the buyer
To identify

who is responsible to provide export and import license

what kind of documents to be provided by seller
extent of the insurance protection
duty to notify the order party on any arrangement made
duty to pack the goods

Increasing sellers obligation:

Structured grouping in INCOTERMS

EXW (Ex Works) [the E-term group]

Minimum obligation for the seller. The buyer
receives the cargo directly from the factory and
thereafter arranges shipment, insurance etc.
himself.
Should not use this term if buyer cannot carry out
export formalities directly or indirectly.
FOB (Free On Board) [the F-term group]
The seller has to arrange delivery to the vessel
including trucking and insurance up to the vessel,
thereafter the buyer arranges for the freight to the
shipping line as well as any further insurance.
The seller requires to clear the goods for export.

[continue]

CFR (Cost and Freight) [the C-term group]

Same as CIF except the buyer arranges his own
insurance.

CIF (Cost, Insurance and Freight) [the C-term group]

are all paid by the seller who is then in control of
the shipment until it is discharged and delivered to
the buyer.
Seller only need to clear the goods for export.

Reason in Using INCOTERMS:

Benefits

Gives consistency to the interpretation of

international trade terms;
Brings certainty to international transactions;
Defines the method of delivery of the goods;
Indicates the calculation of the purchase price
and incidental charges which are included

2. To Understand Customers
Requirement
Do you have schedule to London
next week

OOCL .. May I help You ..

Just a minutes, let me

check

Okay .. Thank you

Its approved, US$1500

3. Commit
Requirement

Please make Booking to

Customer

4. Book Cargo

Booking
Acknowledgement
Booking
Acknowledgement

Sample
Booking
Acknowledgement

5. Picks up empty container:

from designated depot

Sample
Job
Order

6. Factory Stuffing

9. Laden Container to
Terminal

10. Load container onboard

ship

11. Bills Of Lading Preparation

Customer & Shipment

Details:
* Shipper
* Consignee
* POR
* POL POD
* FND
Cargo Details:

. etc

Samples of Shipping Instruction

Bills Of Lading Issuance

Documentations
issue

BL

BL

What is the Bill of Lading?

The Bill of Lading (B/L) is a document

issued by the carrier serving as a legal
document between the shipper and the
carrier by which both parties accept the
carriage to be bound as stipulated on Terms
and Conditions of the B/L

Functions of the Bill of

Lading

It is the shipping lines Receipt of the cargo which

includes description of the cargo and other particulars
declared by the shipper.
It is an written evidence of Contract of Carriage
that the vessel will transport the goods from a named
place of receipt to a named place of delivery.
It is a Document of Title which means that it can be
sold or otherwise transferred. The owner of the B/L
has the right of ownership of the cargo.

Why the Bill of Lading is important

to the shipper (consignor)?

The consignor (shipper) having obtained the Bill

of Lading issued by the carrier will serve as an
evidence signifying their fulfillment of their part
of the sales contract between the buyer. The
shipper can then collect their payment for the sales
of the goods with the presentation of the Bill of
Lading
B/L also governs the liabilities of carrier on the
reimbursement of cargo claims and general
average

How to draw up Content

of a Bill of Lading ?

Customer information (Shipper, Consignee, Notify

Party) furnished by shipper
Shipment start & end places
(POR/POL/POD/FND)
Cargo particulars furnished by shipper: Cargo
Description, Marks & Numbers, weight /
measurements, cargo package and quantity etc)
Name of the vessel and her voyage number
Key Dates & Places: e.g. Onboard Date
Freight details (optional)
Signature

Sample
Bill of
Lading
Please double click
the form if you would
like to see the details

UCP500

Its ICC Uniform Customs

and Practice for Documentary
Credits
UCP 500, published by ICC
in 1993 is the new version
revised from UCP 400
A set of Rules to facilitate the
Documentary Credit
undertakings.
Standard for examination of
Documents by banks

Some Common types

of B/L in shipping
Marine / Ocean Bill of Lading
Straight Bill of Lading
To Order negotiable Bill of Lading
Original Bill of Lading
Sea Waybill (or Express B/L)
Shipped Bill of Lading

The Sea Waybill

Definition of the Sea

Waybill

It is a document issued to a shipper in

exchange for his cargo. A Sea Waybill is
not negotiable and therefore cargo can only
be delivered to a named consignee
nominated by the shipper. It is possible for
a shipper to vary his instructions and any
request to change consignee should always
be made in writing.

Usage of The Sea Waybill

Due to the increased speed and turn around of container

vessels, the Bills of Lading issued to the shippers may not
have reached the consignees by the time they wish to take
delivery from the vessel, hence it may be desirable to issue
a Sea Waybill.
It is also useful for companies that trade internationally
with themselves between geographical areas where
payment for exports is not a problem.
Hence, a Sea Waybill can be sent forward with the goods
allowing the consignee to take immediate delivery.

Disadvantages of The Sea

Waybill

It is a high risk business transaction.

Delivery - The carrier shall be under no liability for wrong delivery if
he can prove that he has exercised reasonable care to ascertain that the
party claiming to be the consignee is in fact that party.
Right of Control Unless shipper expressly noted on the Sea
Waybill, he shall be the only party entitled to give the carrier
instructions in relation to the contract of carriage. Unless prohibited by
the applicable law, he shall be entitled to change the name of the
consignee at any time up to the consignee claiming delivery of the
goods after their arrival at destination.
It is not possible for shipper to change the cargo entity after Sea
Waybill is issued.

Prohibited Liability Clauses on

B/L
Clause that increase carriers risk exposure and beyond the Clubs insurance
covers are generally prohibited.
Shipped clean onboard
Clean onboard
To be stowed or shipped below deck or water line
To be stowed away from boiler or engines
To be carried at temperature
Transshipment prohibited or not allowed
Cool stowage
Protected from freezing
Ventilated container

What is new in today

B/L Printing ? via Internet

OOCL leads the container transport industry in

technological innovation by offering access to
original Bills of Lading via the Internet.

Customers can now print their Bills of Lading

via the Internet in their own offices saving time
and the cost of collecting documents in person.

Features of Internet Bill of Lading

The Bill of Lading from the Internet can be printed at the location of
shippers choice and time is saved because customer is not required to
collect the document in person or to use costly courier services.

Shippers can transfer the right to print the Bill of Lading to their
counterparts so that there is no need for them to forward a hard copy.

Shippers can use our system to internally distribute Bills of Lading to

different departments or regions. If the shippers transfer the printing
rights to consignee, forwarder and/or bank, they may also internally
distribute the Bill of Lading to their various counterparts.

12. Shipper Collect B/L

13. Complete Voyage Data to

enable destination inbound
process to start

Complete Export Authority

Formalities

The Manifest

Sample Manifest
Please double click the form if you would like to see the details

Definition of the Manifest

It is a document that lists in detail all the bills

of lading issued by a vessel or its agent or
master i.e., a detailed summary of the total
cargo of a vessel. It is used principally for
customs purposes.
It is also called summary of Bills of lading.

Purpose of the Manifest

For submission to customs in connection with clearance of the vessel

to and from certain ports
By the shipping agent as a record of the shipments made and as a
reference document for numerous purposes in the day to day operation.
By the ship as a record of cargo loaded on board, by destination.
By the agent in the discharging port as a check list from which he can
contact customers regarding the delivery of their cargo and also
ascertain whether freight must be collected before delivery
By the ship owner to check the agents commissions and to ascertain
from where he can expect payment of fright to be credited to his
current account
Manifest is also utilized by terminal or port authority to charge
wharfage or other port charges

In Sea Transit

B/L Transactions by customers

Shipper send the Original BL to Consignee

Documents In The Inbound Business

Cycle
RECEIVE
MANIFEST
INFORMATION
DOCUMENTATION

CUSTOMER
CUSTOMER
PICKS UP
PICKS UP
CONTAINER AND
CONTAINER AND
UNLOADS CARGO
UNLOADS CARGO
TRANSPORT/
WAREHOUSE

COLLECT
FREIGHT
CHARGES/
AUTHORIZE
RELEASE
FREIGHT CASHIER

EDIT
EDIT
INBOUND
INBOUND
INFORMATION
INFORMATION
DOCUMENTATION

SEND ARRIVAL
SEND ARRIVAL
NOTICE TO
NOTICE TO
CUSTOMER
CUSTOMER
DOCUMENTATION

STORE
STORE
CONTAINER
CONTAINER
IN TERMINAL
IN TERMINAL
FOR CUSTOMER
FOR CUSTOMER
PICK-UP
PICK-UP
TRANSPORT

CUSTOMER
RETURNS
EMPTY
CONTAINER
TO DEPOT
DEPOT/TRANSPORT

SUBMIT MANIFEST
SUBMIT MANIFEST
TO GOVT.
TO GOVT.
AGENCIES FOR
AGENCIES FOR
REVIEW &
REVIEW &
ACCEPTANCE
ACCEPTANCE

STORE
STORE
CONTAINER IN
CONTAINER IN
INLAND
INLAND
CONTAINER
CONTAINER
YARD
YARD

DISCHARGE
CONTAINER

MARINE
OPERATIONS

INTERMODAL
CONNECTION

The Business Cycle at Inbound

When the ship arrive at the destination, inbound
cycle starts :
(1) Receive manifest information
(2) Edit inbound information
(3) Submit Manifest to Government Agencies for review
and acceptance
(4) Send arrival notice to customer
(5) Discharge container
(6) Store container in terminal for customer picks up or
dispatch containers to Inland point or Buyers facilities
(7) Issue authorized release documents
(8) Customer picks up container and unload cargo
(9) Customer return empty container to depot

14. Start Process Inbound

Voyage Data

15. Complete Inbound

Formalities

16. The Manifest Submission

Sample
Manifest
Please double click the form if you would like to see the details

17. Notification on Cargo Arrival

(Arrival Notice)
ate ation
d
l
iva Inform tails
r
r
A sel
De arg
r
s
e
e
V tain urch
n
Co ight/S
Fre

Sample
Arrival
Notice

18. Container Discharge

19. Store Container On Dock

for Customer Pick Up

20. Inter-modal Connection:

From Terminal to
Customer

21. Inter-modal Connection:

From Terminal to Inland
Depot

Sample
Job
Order

22. Cargo Release against

Document & Payment

Sample
Invoice

Sample
Bank
Guarantee

23. Take Delivery of Laden

Container

Sample
Release
Order

24. Return Empty Container

End