1

A Study on
BOOKING ACTIVITIES AND RELATED PROCEDURES FOR EXPORTING CARGO
Through Ocean
At
CMA-CGM Agencies (India) Pvt Ltd
Gandhidham, Kutch
Gujarat

A Summer Internship Report Submitted for Partial Fulfillment of the Requirements for the Degree of
MBA (International Transportation and Logistics Management 2018-2020)

By
SIDDU KANU BIRSA BANRA
(MBA-ITLM)
Registration No.: 1801305012

ससससससस ससससससस ससससस / School of Maritime Management

भारतीय समुद्री विश्वविद्यालय / Indian Maritime University
(केन्द्रीय विश्वविद्यालय, भारत सरकार / A central University, Govt. of India)
कोलकाता पररसर /Kolkata Campus

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DECLARATION

I,SIDDU KANU BIRSA BANRAhereby declare that this Internship report entitled “BOOKING ACTIVITIES
AND RELATED PROCEDURES FOR EXPORTING CARGO”, is a bonafide and independent work carried and
submitted by me during my Internship at CMA-CGM, Gandhidhamfrom 20th June, 2019 to 9th August,
2019 for partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS
ADMINISTRATION in INTERNATIONAL TRANSPORTATION AND LOGISTICS MANAGEMENT. The
Information submitted is true and original to the best of my knowledge.

DATE:9th August 2019

PLACE: Gandhidham, Gujarat SIDDU KANU BIRSA BANRA

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INDEX

ACKNOWLEDGEMENT……………………………………………………………………………………………………………………………4
EXECUTIVE SUMMARY…………………………………………………………………………………………………………………………..5
CHAPTER I
1. BOOKING PROCEDUREFOR EXPORTING CARGO….………………………………………………………………………….7
2. BOOKING PROCESS FOR TANK AND GENERAL CARGO…………………………………………………………………….8
3. BOOKING PROCESS FOR HAZARDOUS CARGO…………………………………………………………………………………9
4. SHIPPING INSTRUCTIONS (SI)…………………………………………………………………………………………………………11
5. SQ. No……………………………………………………………………………………………………………………………………………12
CHAPTER II
6. BOOKING AMENDEMENDS……………………………………………………………………………………………………………15
7. CHANGE OF DESTINATION…………………………………………………………………………………………………………….16
CHAPTER III
8. CONTAINER ALLOTMENT….……………………………………………………………………………………………………………19
9. ISO CODES……………………………………………………………………………………………………………………………………..20
10. BACK TO TOWN……………………………………………………………………………………………………………………………..21
11. OFFLOADING………………………………………………………………………………………………………………………………….21
12. MAJOR ICDS IN WESTERN INDIA…………………………………………………………………………………………………….22
13. PRE-ADVICE……………………………………………………………………………………………………………………………………23
CHAPTER IV
14. GATE-IN PROCESS………………………………………………………………………………………………………………………….25
15. SPECIAL SERVICE REQUEST / VIA……………………………………………………………………………………………………28
16. CUSTOMS EXAMINATIONS (CHECK PACKAGE)……………………………………………………………………………….33
17. STOWAGE PLANNING…………………………………………………………………………………………………………………….34
CHAPTER V
18. SHIPPING BILL………………………………………………………………………………………………………………………………..38
19. BILL OF LADING GENERATION………………………………………………………………………………………………………..40
CHAPTER VI
20. CASE STUDY ANALYSIS……………………………………………………………………………………………………………………44
CHAPTER VII
21. CONCLUSIONS……………………………………………………………………………………………………………………………….47
CHAPTER VIII
i.
Abbribriations……………………………………………………………………………………………………………………………………..49
ii. Definitions……………………………………………………………………………………………………………………………………….50
iii. Bibliography……………………………………………………………………………………………………………………………………52

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ACKNOWLEDGEMENT

I gratefully acknowledge the regular support from Mr. Nitin Vats, Senior Executive andMs. Priya Nair,
Sales Manager who in spite of being extremely busy with their official works, manages to take time out
to guide, hear and clear my doubts and problems whenever I have some, make me comfortable with
new elements and aspects of Shipping Industry as well as allows me to observe and learn important and
valuable lessons for future, at their esteemed organization throughout during my period of training.

I would also like to thank Mr. Manish Maheshwari, General Manager (ANL, India), Mr. Vincent Ugo,
Managing Director (CMA-CGM, India), Mr. Gagan Deep Singh, Branch Manager (CMA-CGM,
Gandhidham) for providing me an opportunity and allow me to observe the organization’s inside
operations on real time scenario.

I am also wholeheartedly thankful to the entire staff of the Gandhidham office for their cooperation and
assistance during the course of my training.

I hope that I can build upon the experience and knowledge that I have gained and make valuable
contributions towards this industry in coming future.

DATE: 9th August 2019

PLACE: Gandhidham, Gujarat SIDDU KANU BIRSA BANRA

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EXECUTIVE SUMMARY

The CMA-CGM Agencies (India) Private Limited, Gandhidham, Gujarat is group of three companies
mainly CMA-CGM, ANL and APL, where CMA-CGM is parent company and ANL & APL, both are
subsidiary companies of CMA-CGM. CMA-CGM has 26 offices across the India and 13 weekly services
that connect India to the world. It also covers and provides accessibility to 33 inland depots, 6 gateway
ports and 7 feeder ports in India.

CMA-CGM links 33 inland depots to 6 gateway ports and 7 feeder ports all across the India. It western
India it covers mainly Punjab, Haryana, New Delhi, Western Utter Pradesh, Rajasthan, Western Madhya
Pradesh, Gujarat and connect to Mundra, Hazira, Pipavav in Gujarat and JNPT in Mumbai. This covers
entire north-western India and boosts Indian export. Together with its subsidiary companies ANL & APL
it provides access to Europe, Australia & Oceania, Middle East countries, Asia, Africa, North and South
America.

This report is prepared as a part of internship conducted at CMA-CGM, Gandhidham which provides the
brief knowledge about the different activities takes place within the organization. The focus is given on
customer care department which provides pre-shipment and post shipment services to customers and
also takes care of customer grievances.

ANL, subsidiary of CMA-CGM uses various sophisticated software to provide quality and quick service to
customer. LARA, BOLLORE, O-DEX are few software’s used by ANL which provide cost effective and
efficient solutions.

It is observed that pre-shipment and post shipment services are key factor in relationship building with
exporters in international trade. Through providing quality service to customer, not only the trust
between shipping line and exporterget strengthens but also export quantity increases both in terms of
volume and values as exporter gain more confidence in line service. Exporter become more confident
about their export and in long term it is cost effective as well as time saving as exporter gradually learns
to do time consuming procedures as quick as possible through regular interaction with customer care. In
coming days it can be observed that it would give more confidence to exporter to go for more and more
export in international trade.

DATE: SIDDU KANU BIRSA BANRA

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CHAPTER I

1. BOOKING PROCEDURES FOR EXPORTING CARGO

2. BOOKING PROCESS FOR GENERAL CARGO
3. BOOKING PROCESS FOR SPECIAL CARGO (HAZARDOUS CARGO)
4. SHIPPING INSTRUCTIONS (SI)
5. SQ. No

Booking procedures for exporting cargo:

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In export, the booking process is first step towards the export, which includes the container stuffing, rail/road
transportation, documentation, clearance from concern authority etc. Booking procedure is a systematic process. The
process for booking follows following hierarchy:

1. Shipper / Manufacturer / trader (exporter) after getting export order from consignee / Buyer (importer)
approaches and appoints the freight forwarder and CHA (Custom House Agent) for negotiating rates and custom
clearance purpose. Freight forwarder sometimes also does the custom clearing process.
2. Shipper provides the details of cargo like quantity, types of container required for cargo stuffing, HS code to
freight forwarder.
3. Freight forwarder then negotiates freight rates with the shipping line or container line, for the export.
4. Simultaneously forwarder quotes total logistics charges to shipper, which includes
a. Ocean freight, seal, origin THC (terminal handling charge), ISPS (International Ship and Port Facility Security)
charges and other shipping line charges (if any).
b. Custom clearance charges, transportation and others.
5. Once the rate has been finalized shipping line issues Quotation. no. to the freight forwarder, basis which he
submits the booking request at agreed rate, in the booking, forwarder submits the details like quantity, nature of
cargo, types of container required for cargo stuffing, HS code etc.
6. Shipping line process the booking request, cross check the cargo details and certificates provided for Haz and
tank, checks the cargo classification and legality in destination country (whether the cargo is allowed or not). Once
satisfy on all criteria, certificates and get clearance from all parties (in case of Haz cargo), shipping line issues and
confirm the booking.
7. Freight forwarder takes the print out of booking confirmation and approaches the CFS / Empty pickup yard for
container pick up as per their requirements. After allotment container is taken to factory / CFS for stuffing.
8. Stuffing process when done at factory is known as factory stuffing and when done at CFS is known as CFS stuffing.
The difference between factory and CFS stuffing is that, in CFS stuffing custom clearance is done before the
stuffing, whereas in factory stuffing custom clearance is done once container is gate-in the port terminal.
9. In factory stuffing, after stuffing containers road / rail out (in case of ICD) for terminal. Whereas CHAsubmits the
copy of all documents to surveyor, who then issues pre advice for the container to be gated in.
10. Surveyor issues pre-advice to CHA and update to port terminalonce container is rail out for port, so that container
is allowed for gate-in the port terminal.
11. At the Gate-in point, port terminal checks the pre-advice. Terminal authorities’ also match the cargo details
updated in terminal system by surveyor to that of issued pre-advice and condition of containerfor any damages
and VGM (verified gross mass) of stuffed container. Discrepancy is issued for damaged and overweight container.
12. Once gate-in containers stacked up at loading shed for loading intothe vessel. When vessel arrives, containers
loadedintothe vessel for export.

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Booking process for Tank and General cargo:

Booking for general cargo is a simple but important process in export as it is the first step towards the exporting. It
requires very few document and certifications. Also few regulations are needed to be cross checked.
For the booking of general cargo following measures needs to be taken:

 Tank container certifications: It is for certifying tank, safe for cargo stuffing of Non-hazardous / hazardousliquid
cargo like oil, chemicals, liquefied gases etc. mainly CSC plate certificate and tank survey report.

Any other certifications and clearance required for general cargo other than above mentioned are according to contract
of sale and as per respective countries laws,also as per the requirement of Reefer, OOG, ODG cargo.

Once the freight forwarder submittedthe booking and shipping line satisfies with all provided declarations, Line issues
booking confirmation. Booking confirmation, later used for generation of BL as well as for allotment of container etc.

Details provided in booking confirmations are as follows:

 Vessel name / voyage no., connecting vessels and voyage no., vessel arrival and departure at POL, POD and at
FPOD, various cut-off dates and time at POL.
 Equipment size and type of container as per requirement, net weight, gross weight. In case of reefer vent, set
temperature, humidity details.
 Booking no., booking date, haulage detail, container no., SQ. no., shipping line detail, booking party
details,Detention period and charges, and clauses for booking as per lines management’s decision, HS code.

Exporting procedures once booking is confirmed:

As booking confirmation is valid only for 3 days from issuance date, by the end of 3rd day, booking should be revalidated
or executed, if not get cancelled (as per CMA-CGM policy).
After the confirmation of booking, forwarder provides the booking confirmation to shipper which then picks up the
container from CFS yard / Empty Park. Shipper sometimes nominates agent or transporter for the same. Once picked up
from CFS yard / Empty Park, Container moved to Factory or CFS for stuffing.
a. Once container is allotted, detention period starts. This detention period ends once laden container gate-in the
port terminal or handed over at ICD.
b. There is some free time including the time of container allotment and pickup date, during a detention period. For
normal container it is 10 days and for reefer it is 7 days. Once the free time is over detention charges applied.
c. After allotment if container is not picked up or physically picked up and returned back empty, it’s called off-
loading and attracts charges.
In factory stuffing, shipper takes container into factory stuffing area. There shipper stuffs cargo into container and seal
the container. Before this laden container is road out for gate-in, CHA submits the copy of all documents to surveyor.
These documents includes,
 Shipper invoice copy,
 Packing list copy,
 Booking confirmation copy,
 Copy of other documents required at the time.
Based on the submitted documents, surveyor issues form-6 / form-13 also known as gate-in form. CHA gives this pre-
advice to transporter or nominated driver of transporter and Surveyor also updates pre-advice into port terminal
system. Transporter submits this pre-advice at port terminal while gate-in.

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Reefer, OOG (Out of gauge), ODC (Over dimension Cargo) also comes under general cargo. These cargos require special
handling permission and procedures for exporting.
 Reefer accepted only 3 days prior to vessel arrival.
 Shipper or nominated agent or transporter has to ensure proper lashing of any OOG container while transporting
and on board the vessel.
Shipper or nominated agent or transporter will be responsible for all direct and incidental cost and consequences arising
out of any damages of container till gate in, i.e. from container pick-up to gate-in the terminal.
All SI (Shipping Instructions) submitted before ETA (Earliest Time of Arriving) of vessel.

Booking process for special cargo (Hazardous goods):

For the booking of hazardous cargo following measures are to be taken care of:

 MSDS (Material safety data sheet): It is for all required and necessary physical and chemical details of cargo. For
hazardous cargo it providescargo identification, use, regulatory, ecological, disposal, cargo’s composition, stability
and reactivity, exposure effects, personal protection, measures for handling, storage, firefighting, first aid and
accidental release, toxicological information, transport information etc. In Hazardous cargo, cargos are identified
by UN no. (A 4 digit no. to identify hazardous goods mandatory for export).
 IIP (Indian institute of packaging) certificate: It is for certification of packing material used in outer and inner
portion of cargo. It also consist the information of UN marking specifications, packing instructions, potential as
marine pollutant etc. in case of chemical cargo.
 IMO DG (Dangerous goods) declaration: It is declaration of cargo, to be safe for export and voyage, declare by
shipper.
 Tank container certifications: It is for certifying tank, safe for cargo stuffing of Hazardous liquid cargo like oil,
chemicals, liquefied gases etc.

Hazardous goods booking process requires extra clearance from mainly:

 Hazardous cargo only booked when booking is approved by head office and vessel operator.
 Booking is issued to customer after checking if the cargo is accepted at POL and POD.
 Transhipment:Whether cargo is allowed at transhipment port or not, if allowed to handle such cargo then only,
booking issued for Haz cargo.
 Feeder Vessel: Whether transportation of such cargo is allowed onboard or not, if allowed then only,booking
issued for Haz cargo.
 Mother Vessel: Whether transportation of such goods is allowed onboard or not, if allowed then only,booking
issued for Haz cargo.

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LEG I LEG II
PORT OF LADING TRANSHIPMENT PORT OF DISCHARGE
(Cleared) PORT (Cleared) (Cleared)

LEG I: Leg I is covered by FEEDER VESSEL. For feeder vessel, transhipment port is POD.
LEG II: Leg II is covered by MOTHER VESSEL. For mother vessel, transhipment is POL.
Port of lading: port of lading is where container is originally loaded into vessel.
Port of discharge: Port of discharge is where container is finally discharged. There may be several PODs, in such case
final POD is denoted by FPOD.
Transhipment port: Transhipment port is port situated in between POL and POD, usually at en-route. Here container is
discharged by feeder vessel only to be loaded into mother vessel for rest of the voyage and vice versa.

Once the freight forwarder submitted the booking and shipping line satisfies with all provided declarations, Line issues
booking confirmation. Booking confirmation, later used for generation of BL as well as for allotment of container etc.
Details provided in booking confirmations are as follows:

 Vessel name / voyage no., connecting vessels and voyage no., vessel arrival and departure at POL, POD and at
FPOD, various cut-off dates and time at POL.
 Equipment size and type of container as per requirement, net weight, gross weight. In case of reefer vent, set
temperature, humidity details.
 Booking no., booking date, haulage detail, container no., SQ. no., shipping line detail, booking party details,
Detention period and charges, and clauses for booking as per lines management’s decision.
 Hazardous details, HS code.

Exporting procedures once booking is confirmed:

As booking confirmation is valid only for 3 days from issuance date, by the end of 3 rd day, booking should be revalidated
or executed, if not get cancelled (as per CMA-CGM policy).
After the confirmation of booking, forwarder provides the print out of booking confirmation to shipper which then picks
up the empty container from CFS yard / Empty Park. Shipper sometimes nominates agent or transporter for the same.
Once picked up from CFS yard / Empty Park, Container is moved to Factory or CFS for stuffing.
a. Once container is allotted, detention period starts. This detention period ends once laden container gate-in the
port terminal or handed over at ICD.
b. There is some free time including the time of container allotment and pickup date, during a detention period.
Normally for normal container it is 10 days and for reefer it is 7 days. Once the free time is over detention charges
applied.
c. After allotment if container is not picked up or physically picked up and returned back empty, it’s called off-
loading and attracts charges.
In factory stuffing, shipper takes container into factory stuffing area. There shipper stuffs cargo into container and seal
the container. Before this laden container is road out for gate-in, CHA submits the copy of all documents to surveyor.
These documents includes,
 Shipper invoice copy,
 Packing list copy,
 Booking confirmation copy,
 Copy of other documents required at the time,

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 IMO DG declaration.
Based on the submitted documents, surveyor issues form-6 / form-13 also known as gate-in form. CHA gives this pre-
advice to transporter or nominated driver of transporter. Surveyor also updates pre-advice into port terminal system.
Transporter submits this pre-advice at port terminal when gate-in.

Shipper or nominated agent or transporter will be responsible for all direct and incidental cost and consequences arising
out of any damages of container till gate in, i.e. from container pick-up to gate-in the terminal.
All SI (Shipping Instructions) submitted before ETA (Earliest Time of Arriving) of vessel.

Booking issued

Container allotted

Container stuffing

Surveyor issues gate-in form Export process in brief

Gate-in

Custom clearance

Loaded into vessel

Shipping Instructions (SI):

Shipping instruction is the details submitted by the shipper’s representative for processing the bill of lading
Therefore the following are features of Shipping Instructions:

 It is compulsory document in export.

 It is provided by shipper or his nominated agent to shipping line.
 It is issued for each and every consignment separately.
 It is required to submit before document cut-off, in this it is ETA of scheduled vessel.
 It contains basic information required for draw bill of lading.

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Basic Information provided in Shipping Instruction:

 Booking No., BL no. and information.

 Shipper, consignee and notify party information,
 Vessel name and voyage no.
 Place of receipt, port of lading, port of discharge and final port of discharge of cargo.
 Container no. and seal no.
 Shipping mark,
 Cargo description and details of no. & kind of packages,
 Quantity,
 Weight and dimensions,
 UN class, UN code and Flash point details in case of IMO cargo,
 Min temp, max temp, ventilation and humidity details in case of refrigerated cargo,
 Length, height and width in case of OOG cargo,
 Type of BL : seaway / original,
 No. of original BL and copies,
 Freight payment terms (prepaid or collect after export),

SQ. no.:

Special quotation or the quotation no is the rate agreement contract no. between the forwarder and line. It is generated
in the name of, withwhich rates are agreed, usually forwarder. It is basically quotation no. for deciding part.

 It is issued for every new deciding party, applied for booking.

 It has the certain period of validity and after expiration of which, party needs to re-validate or re-issue new SQ.
no. for another time period.
 It is allotted by trade desk after negotiation and finalizing of freight rates for that period of time. Freight rates are
not fixed and amended on time to time.
 Once generated, deciding party uses SQ. no. to proceed with booking process and later invoice is generated by
line basis this SQ no. through it.

Amendment of SQ. no. after booking:

 Before freighting, amendment in SQ. no. is simple and easy as it’s done by updating SQ. no. in system subject to
approves from the concerned HOD.
 After BL is generated and freighting is done, it is required to involve and co-operate with documentation team and
instruct them to run an auto-freighting, once SQ. no. is updated in system.
 After invoice generated one need to take permission from GM / trade desk / HO. For making any amendments in
system. Once gets approval, needs to communicate this to documentation team, one updates SQ. no. and instruct
team to run re-auto-freighting.

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Freighting includes:
Basic freight rate, BAF (Bunker adjustment factor) charges, ISPS (International Ship and Port Facility Security) charges,
terminal handling charges in destination as well as home port, container seal charges etc., these charges are auto feed
by system. There are also some special charges like Haz surcharge, plug-in charge in Reefer container case etc. and these
charges are manually feed into system.

Process of SQ. no. generation:

 Deciding party asks for rates.

 Sale team quotes the rates.
 Party negotiates on rate.
 Team asks to trade desk, if desk agrees they communicate this to party, if not they negotiate with party on rate.
 Rate finalizes and booking process begins.
 After team generates MID (Market ID) for party and sends it to trade desk. Some Lines uses software whereas
some do this manually. CRM software is used in CMA-CGM MID generation.
 Trade desk on the basis of MID generate SQ. no. and communicate it to team. Oceania software is used in CMA-
CGM for SQ. no. generation. Some small Line does this manually.
 Team communicates SQ. no. to party for future bookings and update the same in booked consignment.

Usage of SQ. no.:

Once SQ. no. is generated in the name of deciding party, it is allotted to party. Now party can place export orders using
SQ. no. and during the validity period of SQ. no. party can order several export orders using same SQ. no. SQ. no. has
validity for period of time.
But as destination and rate of freight changes deciding party has to negotiate for new rates on same SQ. no. When
parties agreed on new rates, booking process start again.

OOG / Break bulk at

MICT port terminal,
Mundra. Preparing
is going on for
loading cargo into
vessel.

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CHAPTER II

6. BOOKING AMENDEMENDS
7. CHANGE OF DESTINATION

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Booking Amendments:
Sometimes due to multiple reasons there are need to make some amendments in current bookings(DO-Delivery Order).

Booking split:

 Sometimes shipper has one booking but later on due to consignee’s request or as per instruction, booking needed
to be split, so shipper request for booking split andas per request, no. of split needed or required, split is done.
 Sometimes part of the booking order is ready but remaining part got delayed for some reasons then also shipper
request for booking split.
 For the split, original booking reference no. remains same and each split of booking denoted by addition of suffix
in original booking reference no. like ‘A’,’B’,’C’ etc.
 To split the order, shipper must have more than one container allotted from single booking no. and if after split
one of new booking no. still has more than one container in its lot, all container shares the same booking
reference no. and original booking reference no. got cancelled.
 For booking split there is only one shipper, one freight forwarder but involves one or more consignee and notify.
 After split container can be loaded into two different vessels or can be loaded into same vessel.
 It should be done before SI submission.
 There are several BL generated as per required and depends on no. of split.

Booking merger:
 Booking merger is opposite of split as name suggest. In this two or more consignment having two or more
different reference no. merged into one booking.
 In this one of the booking reference no. is kept as new booking and others are cancelled. Containers from
cancelled booking are added into merged booking.
 For booking merger there is one shipper, one freight forwarder, one or more consignee and one or more notify.
 It should be done before SI submission.
 As single booking reference no. is used for all consignment, one single BL is generated.

Part Load BL:

 Sometimes there is one container but stuffed with cargo of several shippers. Here freight forwarder using one
booking reference no. generates master BL from which each shipper got its part BL.
 All part BL shares the same vessel, voyage no. and date, POL, POD, booking no. and name of consignee but have
different quantity, cargo details, shipper details etc.
 For part load BL there are two or more shippers, one consignee, one freight forwarder and one or more notify
involves.
 It should be done before SI submission.
 One booking reference no. is used to generate master BL, which is used to generate several Part BL depends upon
no. of shippers, all bearing same BL no. as master BL bears subject to approval from concerned HOD.

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Change of Destination (COD):

Sometimes shipper wants to change the destination of cargo, after the container is gate-in or in other words change in
port of discharge / change in destination country for cargo. It can be done through COD, shipper applied for COD once
container is gate-in. If container is not gate-in POL terminal, COD will not apply.

Process for COD:

COD process is as follows:

 Upon receipt of COD request from shipper / Forwarder COD team sends required message to the POD team /
Trade / Cargoflow team to check for feasibility of the COD.
 Once the COD team gets an approval from Transhipment or cargoflow team, they would checks for the cost with
the concerned and forward the same to the forwarder / shipper.
 Upon receipt of confirmation from forwarder / shipper of cost the COD is processed.

Following steps are immediately taken when COD is applied:

 Shipper has to declare letter of indemnity (before COD).

 Surrender original BL at local office (shipper), if already send to consignee then consignee has to surrender at his
local office.
 Pay the charges incurred due to COD.
 Apply for Remain on board (ROB).

Charges applicable in COD:

The charges applicable while applying for COD and bear by shipper are,

 COD charges.
 BL correction charges.
 OBL re-issuance charge (not applicable in case of seaway BL).
 Re-stow charges (charges for move required to handle container at POD, to and fro at port and re-plan it in same
vessel i.e. from bay to terminal and then from terminal to bay).
 Manifest (IGM) correction charges.
 Extra penalties imposed on container at original POD, depends upon that port policy and regulations.
 Freight difference between POL to original POD and POL to FPOD, is charged, if there is some.

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Container Gate-in

COD Applied and

Not feasible Feasible COD charges issued
COD rejected feasibility is
to concerned party
checked

Charges paid and

new consignee
added

Flow of operations in COD case Discharged at new

POD

Hurdles in COD:
Major hurdles arise while applying COD are as follows:

 If container is below deck then to move container, several restow required, restows are very time consuming and
thus cost of doing several restows are not economical.
 Transhipment port apart from restow charge may charges abnormally high demurrage charge for container
waiting attranshipment port for connecting vessel.
 There may be some political and regulatory problem between transhipment and FPOD countries. Like Iran has
problematic relation with USA and European countries thereforeIran’s port cannot be used as transhipment port
while exporting goods to these countries. In India cabotage law prevents vessel operators from carrying
transhipment from one Indian port to another Indian port.

Once all these situations are properly addressed then shipper has to provide new shipping instructions, update new
consignee (if applicable), new POD, notify etc. , new documents if so required, clearance from FPOD (if required) and pay
all charges incurred with difference in original freight charge and new freight charge (if any).

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CHAPTER III

8. CONTAINER ALLOTTMENT
9. ISO CODE
10. BACK TO TOWN
11. OFF-LOADING
12. MAJOR ICDS IN WETERN INDIA
13. PRE-ADVICE

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Container allotment:
Allotment of container depends of few measures like volume base cargo, mass based cargo, solid or liquid cargo,
dimension of cargo, refrigeration required or not, OOG, ODG cargo etc.

On the basis of requirement following types of containers are allotted:

 Standard dry (ST/SD/GP): ST container is required for standard dry cargo.

 High cube (HC): HC container is required for cargo which not fits into ST container, mainly for volume base cargo.
 Flat rack (FR): FR container is open from all side except from base and ends of length (collapsible sidewalls). It is
used for over dimension cargo (OOG/OG).
 Open top (OT): OT container is open from top only. It is used for such cargo which requires for loading process
from top.
 Refer (REF): REF container is regular container but in white colour and with refrigeration subsystems. It is used for
stuffing of cargo which requires low temperature and refrigeration.
 Tank (TK): TK container is of tank shaped container of 20’ dimension. It is used for stuffing liquid cargo or liquefied
cargo.
 Flatbed: flatbed is simply a base of container and has no walls. It is used for cargo that does not fit into other
containers. Generally over dimension from length, width and height. Hence does not fit even in flat rack.
 Garment on hanger (GOH): GOH container is similar to ST container but it has hangers inside. It is used to stuff
garments on hangers.

20’ and 40’ are two most widely used container category around the world. Dimensions of containers are as follows:

Type of container Dimension Volume Capacity

ST 20’ ST 19’4”x7’8”x7’10” 33.20 m3 28,260 kg
40’ ST 39’6”x7’9”x7’10” 67.70 m3 28,860 kg
HC 40’ HC 39’6”x7’9”x8’10” 76.40 m3 28,660 kg
OT 20’ OT 19’4”x7’8”x7’10” 33.23 m3 28,180 kg
40’ OT 39’6”x7’9”x7’10” 66.50 m3 26,680 kg
FR 20’ FR 19’7”x7’10”x7’6” 2.06 m3 37,000 kg
40’ FR 38’3”x7’9”x6’5” 2.22 m3 44,650 Kg
Ref 20’ REF 17’10”x7’6”x7’1” 28.30 m3 27,540 Kg
40’ REF 38’x7’6”x7’10” 67.90 m3 30,260 Kg
Tank 20’ TK 19’8”x7’8”x8’3” 26 m3 26,290 kg

Apart from these standard and universally accepted container sizes, there are some over-dimension containers.
Those are 10’, 45’ HC, 48’ HC, 53’ ST, 60’ ST etc. these container have limited use in import-export.

Container no. is the no. of particular container as name suggest. It contains 11 alphanumeric letters. Every container has
unique container no. containing following details; first 4 letters are alphabets; first 3 are owner code, 4th letteris
thecategory identifier of container. Next 7 letters are digits; first 6 digits are serial no. of container and last digit or 7th
digit heck digit.

Some category identifiers are as follows:

U - for all freight containers
J - for detachable freight container-related equipment
Z -for trailers and chassis

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ISO CODE:

In the port, at container yard, containers are not identified by the dimensions and type but rather the port system
identifies containers by their ISO codes.
ISO code is internationally recognized codes used for describing container type globally. Every container type in the
world got a unique ISO code no. to identified by port authorities and systems used all around the world. This coding not
only helps to communicate through different languages but also reduces identification time of containers. Coding is also
useful for sorting, planning, classifying containers in port.

Some widely used ISO codes are as given below:

Container details ISO CODE (1984) ISO CODE (1995)

ST 2210 22G1
20’
REF 2230 22R0
TK 2270 / 2275 22T0 / 22T5
ST 4310 42G1
HC 4510 45G1
40’
REF 4530 45R0

In this container we observe the

ISO code painted below the
container no. ALLU-521653-5

22G1- is the ISO code (1995)

here.

22- Refers to 20’ ST container.

G1- Refers to general purpose
container.

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Back to Town (BTT):

As we know that, damaged and overweight containers are not accepted by terminal for voyage after gate-in.Terminal
refuse to handle such container as the damaged and overweight containers are not safe for voyage. Therefore once it
gets rejected by terminal,shipper re-calls the container and moves it back to the CFSor factory. This movement of
container from port’s container yard to CFS / Factory iscalled BTT (Back to Town).

Also when containers are stuffed and gate-in the terminal. Sometimes in this process some necessary part of the process
remains un-checked or part of consignment not gets stuffed. Sometimes there is some extra goods get stuffed which
aren’t part of that consignment or sometimes entire consignment got cancelled. In these cases shipper re-calls his
container from terminal or after gate-in. Shipper moves back his container to the CFS or factory for re-stuffing or to
perform un-checked processes. This is also a BTT (Back to Town). As mentioned here, there are two ways to execute
BTT.

 When there is some important process required for export, remains un-checked or missed by shipper to perform
then the shipper calls for BTT and at CFS or Factory complete / check those processes and after re-issuing shipping
bill for that consignment, it is go for export and it is move for gate-in. i.e. sometimes shipper forget to fumigate
the consignment which is required for exporting it is required.
 When there is some extra cargo gets stuffed or some parts of cargo is / are not stuffed or entire consignment got
cancelled then the shipper calls for BTT. Container is move to CFS or factory for re-stuffing or de-stuffing. If some
partof cargo is to be stuffed or de-stuffed then shipper just re-validated the shipping bill and consignment is ready
for gate-in. If in some cases entire cargo is to be de-stuffed or entire consignment got cancelled and needed to be
de-stuffed, in such case shipper calls for BTT, then shipping bill got cancelled and container de-stuffed. If due to
cancellation of consignment container returned back empty at CFS yard, it is known as Off-loading.
Theseprocedures attract respective charges.

Off-Loading:
As damaged containers are not allowed onboard the vessel, these get rejected and returned for re-stuffing. Container
has to return to stuffing area and get off-loaded. From CFS another container is re-allotted for stuffing and old container
is surrendered to CFS and this process is noted as off-loading with off-loading charges.

Empty return (Off-loading) is idle units picked up and returned back empty without any export cargo or allotted
container not picked up. Detention period starts with container allotment. This detention period stops once laden
container returned to port or handed over at ICD and all charges are paid-off.Therefore as soon contianer is allotted
some free time is given to shipper for picking up container from CFS yard, stuffing and transport back laden container to
port for gate-in. If shipper did not pick up the allotted containeror gate-in laden container into port within given free
time detention charges applied.

Off-loaded container

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Major ICDs in western India:

Some major ICDs and the rail service providers in western Indian region are:
Following are the ICDs where shippers handed over their containers custom clearance and rail out. Surveyor issues pre-
advice for rail out containers after receiving copy of all required documents from CHA and get confirm rail summary
from rail service operator.

Sr. no. ICDs Rail service providers

1. Faridabad (Haryana) ACTL, Gateway
2. Ludhiana (Punjab) Hind terminal(NTPL), Gateway, CONCORE
3. Loni Dehat (UP) World window, DP world
4. Sonipat (Haryana) Boxco world trans
5. Tughlakabad (TKD) (Delhi)
6. Dadri (UP)
7. Jaipur (Rajasthan) CONCOR
8. Jodhpur (Rajasthan)
9. Khatuwas (Rajasthan)
10. Kota (Rajasthan)
11. Moradabad (UP)
12. Patli (Haryana)
Garhi Harasaru (Haryana) Gateway
13.
14. Palwal (Haryana)
15. Samalkha (Haryana) CONCOR

ICD in western India with CONCOR as rail service provider

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Pre-advice:
Pre advice is issued by surveyor after receiving copy of documents and surveyor update pre advice into terminal system.
Pre advice is used by transporter / shipper for gate-in the container in port terminal.

Following details are to be filled and duly mentioned in pre-advice:

Consignment and Vessel Details:POL, Receiving Location, Country of Origin, Line Operator, Vessel Visit, POD,
Final Destination Country/Port, Shipper, Acknowledgment Email of concern party, booking number, carrier mode, Model
of Arrival.

Primary Details of Container:Container Number, ISO Type, Verified Gross Mass (VGM), VGM verifier, Cargo Gross
Weight, VGM Tick Box, Commodity Code, Seal number, Freight kind, Hazardous Cargo details (in HAZ case), Reefer
Containers details (Required Temperature& Conditioning settings are not mandatory but can be added like, Humidity,
Vent and Atmosphere settings), Dimension details (in ODC case).

Pre-advice issued for Adani port terminal

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CHAPTER IV

14. GATE-IN PROCESS

15. SPECIAL SERVICE REQUEST / VIA
16. CUSTOMS EXAMINATIONS (CHECK PACKAGE)
17. STOWAGE PLANNING

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Gate in Process:
‘Gate in’ is the term refer to entry of container in port terminal for loading in vessel. For entry in terminal container
should have cleared for ‘gate in’. Surveyor issues ‘pre-advice’ which is the clearance for container to be ‘gate in’.
This ‘gate in’ process is initiated by CHA by submitting documents to surveyor for issuance of ‘gate in’ form. The process
varies from method of stuffing as well as from mode of transportation used.

Transportation by Road:
When container is transported by road then gate-in process depends upon activities following the stuffing of container.

In following table activities are mention accordingly the stuffing method used.

After pre advice is updated into the terminal system, terminal quickly checks and matches the mention details with pre
advice once container reaches for gate-in. pre-advice is the clearance issued for the container for gate-in the terminal.

Factory Stuffing: CFS Stuffing:

 CHA submits the documents to surveyor.
 Documents include: Shipper invoice copy,
packing list copy, Annexure copy, booking
confirmation copy, copy of other documents
required at the time.
 Surveyor issues gate-in form to CHA.
 CHA gives ‘pre-advice’ to transporter.
 Transporter submits ‘pre-advice’ at terminal
gate.
 Surveyor updates ‘pre-advice’ in terminal
portal.
 CHA submits the documents to surveyor.
 Documents include: Shipper invoice copy,
packing list copy, booking confirmation copy, CLP
(Container loading plan) copy, shipping bill copy,
copy of other documents required at the time.
 Surveyor issues gate-in form to CHA.
 CHA hands over ‘pre-advice’ to CFS.
 CFS after receiving ‘pre-advice’ move container
to terminal for ‘gate in’.
 Surveyor updates ‘pre-advice’ in terminal portal.

Transportation by Rail:
When container is transported by rail then gate-in process depends upon haulage charges bearer.

1. Carrier Haulage (Transporter): Shipper instructs shipping line for haulage on his behalf. Shipping line provide
haulage service to shipper. Shipper pays, shipping line for haulage service. It involves Shipper, shipping line and
haulage service provider. Damages during transportation are goes to shipping line account.
2. Merchant Haulage: Shipper directly bears the cost ofcontainer transportation. CHA on behalf of shipper
approaches to ICD (Inland container depot) rail service operator. Provide ‘Forwarding note’ to rail operator. Rail
operator certifies and duly stamped on note and returned it to CHA. CHA then approaches surveyor with copy of
required documents (shipping bill, packing bill, booking confirmation and other documents at the time) and
‘Forwarding note’ and submits to surveyor. Rail operator sends rail summery to ICD terminal surveyor on the date
of rail-out. ICD Terminal surveyor matches the details of rail summery and CHA submitted documents and issues
& send ‘pre-advice’ to port surveyor. Damages during transportation are goes to consignee / shipper’s account.

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LDB site is used to locate the container once it is Rail out from ICDs

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Operation Activity after Gate in

Once the container is ‘gate-in’ the terminal, responsibility of Shipper or nominated agent or transporter ends and
responsibility of shipping line starts thereof. Shipping lines bears the responsibility of container starting from ‘gate-in’ at
terminaland ends once loaded into vessel. Shipping lines submit EAL (Export Advance List) to slot operator (provide slots
to shipping line, on vessel). Slot operator hands over the EAL to vessel operator and vessel operator submit at terminal.
This process needs to be complete before the ‘gate cut-off’. ‘Gate cut-off’ happens approximately 6 hours prior to vessel
arrival. For export to takes place properly;
 Documents to be submitted before cut-off.
 Container to be ‘gate-in’ before cut-off.

EAL EAL EAL

Slot Shipping Vessel
Terminal
operator Lines operator

After completion of these entire processes terminal prepare the discrepancy. Once discrepancies are
solved, terminal release the containers.

Once terminal receives EAL, it prepares for discrepancy run. If any discrepancy arises it solves before the loading process
begins. After solve discrepancy, loading plan is layout by terminal and loading process starts (Container released by
terminal)

Cut –Off:
Cut-off is the term use to indicate the time at which all activities that are being performed are freeze to execute until
next activity is authorize to begin or starts.

Types of Cut-off:

 Gate cut-off: 6 hr. prior to vessel arrival and re-started once vessel sailed.
 Shipping Instruction cut-off: 24 hr. prior to vessel arrival and re-started once vessel sailed.
 Document submission cut-off: 1 or 2 hr. prior to gate cut-off varies from line to line.

For container to be loaded in scheduled vessel both, documents as well as container must be gate-inand submitted
respectively before cut-off’s.

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ODeX software is used at CMA-CGM for issuing form-13 (form-6)

Special Service Request (SSR) or VIA:

Special service request or VIA is permission given by terminal and vessel operator, to Line, to load the container in
scheduled vessel, in cases where container is off the schedule or late and misses the cut-off’s but still shipper wants to
load the container in planned vessel. Shipper made a formal request to shipping line for apply and load the container in
current scheduled vessel for voyage, through VIA / SSR

Shipping line applies for VIA / SSR accordingly:

 Shipper mails and request to shipping line for apply VIA in case of delay in container gate-in or delay in documents
submission.
 Shipping line mails to slot operator regarding this situation.
 Slot operator mails to vessel operator for possibility of loading.
 Vessel operator either accepts it and issues ‘NOC’ to terminal or rejects it.
 If terminal accepts ‘NOC’ / agrees with vessel operator then only container gets loaded into vessel.
 If terminal not accepts ‘NOC’ / notagrees with vessel operator then Line shut out the container even if vessel
operator is agreed to load the container on VIA / SSR.

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Documents received but container is not gate-in:

Sometimes shipping line receives documents from shipper but container is not gate-in yet or missed the gate cut-off. In
such caseshipper made a formal request to line for apply and load the container in current scheduled vessel for voyage,
through VIA / SSRas soon as container reaches and gated-in the terminal.

Following steps are to be taken, for loadingthe container into scheduled vessel through VIA / SSR:

 Once container reaches the terminal, it is allowed to gate-in for next scheduled vessel.
 Container gate-in, on ground rent, for next scheduled vessel. VIA is not required as of this point.
 Line de-manifests container from scheduled vessel and manifested it onto next vessel. Then line applies for VIA /
SSR, for loading the container into scheduled vessel instead of next vessel.
 If terminal and vessel operator accepts VIA then Line again de-manifests the container and shut out from next
vessel and manifested it in scheduled vessel. In such case VIA charges + ground rent applied on container.
 VIA / SSR is subject to terminal and vessel operators, capacity and acceptance accordingly.

Container is gate-in but documents not received:

Sometimes container is gate-in but shipping line does not receive documents from shipper yet or shipper missed the
documents cut-off. In such case shipper made a formal request to line for apply and load the container in current
scheduled vessel for voyage, through VIA / SSR.

Following steps are to be taken, for loadingthe container into scheduled vessel through VIA / SSR:

 Whenever shippers misses the document cut-off either he formally request shipping line for applying the VIA or
let container to be shut out.
 Here container gate-in the terminal only if it is in EAL and pre-advice is duly updated by surveyor.
 After gate cut-off terminal runs discrepancy and if documents received before the completion of discrepancy run
then shipping line submits documents immediately at terminal system and container is release and cleared for
loading into vessel.
 If documents aren’t received at the completion of discrepancy run then terminal shut out the container from
scheduled vessel.
 If applied VIA gets rejected then Line de-manifests the container and shut outit from scheduled vessel and
manifests it into next vessel on ground rent.
 If after container manifestation into next vessel,shipping line receives the documents and VIA is already accepted,
then Line again de-manifests the container andshut out it from next vessel, and re-assigned / manifests it again
into scheduled vessel. In such case Shut out cost + ground rent + VIA charges applied on container.
 To avoid shut out charges, Lines generally let container gate-in for next vessel on ground rent and then applied for
VIA if accepted then container loaded onto scheduled vessel through VIA and only have to pay the “VIA charges +
ground rent”.
 If VIA / SSR is not applied and container gate-in for next vessel then it get loaded into next vessel. In this case Only
ground rent applied

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When container gates-in before EAL update then it is listed in EAL. After EAL update and gate cut-off some container
gate-in so after cut-off EAL again updated. Sometimes container is in EAL list but it is not gate-in then on the basis that it
is in EAL list, it is allowed for gate-in. For this pre-advice should be updated by surveyor before container arrival at
terminal gate.

For assurance generally Lines applied for VIA / SSR when container or documents delays and misses the respective cut-
off’s. This way Lines avoids some unaccepted consequences that arises later on, like some ports issues limited VIA
approval nos. due to move restrictions, some ports did not accepts VIA / SSR after cut-off.
In some ports if container is gate-in but documents not received, in such scenario Line mails to terminal with surveyor
attached with, once surveyor issues LEO (Let Export Order) / Shipping bill, terminal releases the container, if LEO not
updated then, either terminal load it into assigned vessel, without necessary documents or Line call for shut out the
container.
VIA / SSR is not the guarantee for sure release of container by terminal but it allows the Line to adjust the container in
current planned vessel only if there is space in vessel for that, vessel operator agrees to load, terminal have some move
left to perform loading and terminal agrees to load. If any of above mentioned condition is not fulfill, then Line de-
manifests container and shut out from current vessel and manifests onto next vessel.

EAL format sample

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Rejection of Special service request (SSR) / VIA:-

 Due to weight and no. of container restriction in a vessel, vessel operator rejects SSR / VIA. In this case vessel
operator does not issue NOC to terminal.
 Due to congestion in port, terminal rejects SSR / VIA. In this case terminal rejects NOC given by vessel operator.
 Due to late application for SSR / VIA by shipping line with cut-off time period is over in particular port.
 Due to late application for SSR / VIA by shipping line with already issued limited no. of VIA approvals for that port,
where no. of moves are restricted due to technical and administrative reasons.
 Due to non-compliance of fulfillment of document submission or container gated in the terminal after acceptance
of SSR / VIA.

Whenever shipper finds out that either container is gate in but documents not received at terminal or documents are
received but container not gate in the terminal, and still some time left and possibility of loading that container in
scheduled vessel is there, shipper request shipping line for VIA.

Below diagram depicts the process of VIA application, acceptance and execution.

Container not gate-in Container gate-in

+ Shipper +
Documents received Documents not received

Shipping line (Apply for VIA)

Mails
Slot operator

Vessel operator (Agrees)

Issues NOC

Approves Terminal (Agrees / Disagree) Not approves

Documents necessarily received

Documents received / not received
+
Container necessarily gate-in

Terminal releasethe container Line SHUT OUT the container

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Moves are no. of steps used to load / off load container into / from
vessel. In some ports there is restriction in no. of moves per vessel
to load and off load containers into and from it.

Containers are moved by Gantry crane at Mundra port in pictures.

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Customs Examination (Check Package):

In CFS, custom examination and clearance takes place during stuffing and sealing of container. But that is not the case in
factory stuffing. In factory stuffing containers is stuffed and self-sealed by shipper. Once gate-in it is cleared by customs
and sometimes selected for random customs examination. CFS stuffed container however not goes through random
customs examination.
It is different from customs clearance (Not same) and only applicable to factory stuffed containers.

Customs examination sequences:

 CHA filing shipping bills into customs system for custom clearance.
 System selects any random container no. of that shipping bill for customs examination.
 Once selected for custom examination that containeris tagged as check package.
 This is notified to forwarder, who then mails the shipping line and provides the details and information of that
container.
 Line issues NOC to terminal, giving them authority to move the container from terminal to Exim yard / Buffer yard
for customs examination when container gate-in the terminal.
 There Customs officer is accompanied by CHA, forexamination of the container.
 Customs officer orders to cut the seal and container opened for examination. If customs officer not satisfy with
visual observation he further order to de-stuff the container and then examine the cargo thoroughly.
 Once satisfy with inspection, customs officer allows re-stuffing of container and container re-sealed in front of
officer.
 Customs examination also takes place in ICD’s but in ICD, there is no need to move container so no NOC required
and no handling charges applicable.
 Handling charges incurred due to customs examination thereby are to be borne by shipper; these charges include
terminal charges, de-stuffing and re-stuffing charges, and charges for issuing additional seal.
 In Exim yard CHA handles the de-stuffing and re-stuffing activities and bear costs. Later they recover these cost
from shipper (depends upon deal between them).
 If during customs examination of the container, vessel sails and container not connect to vessel then container is
shut out from that vessel and rollover to next vessel. In such case shipper also bears the shut out cost.

List of potential costs incurred during the customs examination are:

 Terminal handling charges,

 De-stuffing charges,
 Re-stuffing charges,
 Additional seal charges,
 Shut out charges (if applicable).

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Stowage Planning:
Stowage planning is arrangement of containers on board a container vessel. It is for optimize available space and
prevent damage to goods and more importantly minimize time, vessel spent at the port terminal.
In this planning, containers which is / are heavy and off loaded at last stoppage port are kept at lower deck and
containers which is / are light and off loaded at transit port or in between last stoppage port and port of loading are kept
at upper deck. Also Haz container are kept at end side of vessel i.e. either at Bow side Bay or Stern (Aft) side Bay.
This planning is made according to Tier height, Row width and available no. of bays in length.
Tier is total height of no. of stacked container in a Bay. It includes containers on, on-deck (visible) as well as under deck
(not visible due to hatch cover).

Container Stacked in a BAY

L L L L L L
L L L L L L
ON DECK (Visible)

TIER HEIGHT
HATCH COVER

UNDER DECK Here,

H H H H H H
(Not visible)
H H H H L – Light cargo, loaded on top
H– Heavy cargo, loaded at bottom

This is done mainly for the stability of

ROW the vessel.

BAY is the space in vessel that holds containers in stacked manner. A vessel has several bays and these bays are divided
into two parts: On-Deck and Under-Deck.
Haz container, reefer container and OOG cargo are also planned in stowage planning. Priority is given to reefer
containers and then Haz container and then accordingly. In Haz containers, some Haz cannot be kept together, some
needs to keep away from direct sunlight, some needs to keep away from reefer’s instruments, motors etc. and planned
accordingly.

Stowage planning and loading BREAKBULK (BBK):

As Break bulk cargo is over dimension it cannot stack like regular container and needs to be placed at secure and safe
place, separated from regular containers. For planning and loading break bulk, terminal organize a cargo pre-survey and
the lasher examine and check the cargo for the lifting points and lashing points. Also terminal requires enough time to
arrange these, so that when vessel arrives, then there is no delay in readiness of the cargo and loading process.

Terminal generally required following information for all BBK handling:

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• All four lifting points should be clear and certified for vertical lifting.
• Cargo weight should be equally distributed for any un-even lifting.
• Centre of gravity to be clearly marked on the cargo.
• Lashing points clearly marked on the cargo avoid any time loss during on board lashing.
• Any specific requirements for handling, which will well recommended by the manufacturer of the equipment.
• Trailer carrying cargo needs to be gate in only 12 hours prior to berthing of the vessel
• Apart from above if customer wish to gate in the cargo early for customs clearance or documentation process, on
wheel charges would be applicable on daily basis from day one (subject to Line).
• Cargo to be presented for loading well in time

Standard Operation Procedures (SOPs) for BREAKBULKs (BBK) handling:

For any BREAKBULK shipment export from or Import into India following SOPs are to be followed:

 Mailed to respective authority for permission to respective operations team with the dimensions / cargo-weight,
Diagram & pictures of the cargo. This has to be done at least 3 weeks in advance of the shipment.
 So operations team can take the pre-approval from the terminal, appointed surveyors, lashing team etc.
 This is mandatory so that we don’t have any last minute surprise, terminals official approval for any BBKs & they
prepare for the same.
 Same for Imports also, for discharge as well, operations team has to advise the terminal in advance.
 For exports, along with operations team, equipment team needs to be advice for the movement of the flat racks
(FR), with the proper mention of the vessel / voyage / POD.

For any BBK shipment import / export shipment shouldn’t be booked, without operations team confirmation. For
operations team prior releasing booking is mandatory process as they have to take terminal handling approval first, as
handling each and every BBK is always depends on case to case basis.

BBK handling time is always time based and calculation includes time for fixing / unfixing of special spreader / beam
hook. Handling hours in terminal, always calculates pre and post preparatory time in cargo loading. In case of, on board
lashing / unlashing time exceeds by 90 mins per cargo, charges applied as per terminal policy.

Terminal is not responsible for any kind of damage / claims while handling such Break bulk cargo.

As OOG stacked in a container possibly occupy more space than normal container and chances are that due to OW / OH
of cargo, no other container can be stacked onto it. So one Flat rack container, having OOG cargo occupies space of, up
to 6 equivalent containers. Hence due to one container, vessel owner losses, up to 6 container equivalent space and this
means loss in revenue, earn from 5 containers. To make-up for this kind of loss in revenue, shipper is charged for extra
container space that its cargo occupies in vessel. Unused spaces are denoted by void equivalent TEUs.
i.e. 2 void TEUs means space of 2 TEUs is unused, similarly 4 void TEUs, 6 void TEUs, 10 void TEUs etc. whereas used
space is denoted by 2 used TEUs.

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On Deck (visible) stacking of containers, also at bottom Under Deck is visible in picture

Stowage Planning of Break Bulk,

Loaded in Under Deck space due to
its heavy weight, at Mundra Port.

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CHAPTER V

18. SHIPPING BILL

19. BILL OF LADING (BL)

Shipping Bill:
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Shipping bill is the main document required by customs authority for clearance of goods for shipment.
It is also called: Let export order (LEO), Bill of export, Bill of transhipment depends upon users and methods of
transportation for export.

Shipping bill is accompanied by following documents:

 Invoice,
 Packing list,
 Export license (if required),
 Contract of sale (Indent),
 Acceptance of Contract,
 Letter of Credit,
 Inspection and Quality Control Certificate,
 Port Trust Document,
 Any other (as specified).

Shipping Bill contains following particulars:

 Shipping bill Number,

 Nature of Exported goods, Quantity of each cases and aggregate weight,
 Exporters address, Importers address,
 Number and kind of the package,
 Free On Board (FOB) prices and real value as define in the sea customs act, additional charges including customs
duty and IGST,
 Commercial invoice no., value in rupees, total value in rupees, currency in which invoice issued, exchange rate,
nature of payment,
 GSTIN if GST is levied on the supplies for domestic clearance, PAN for exempt goods,
 Origin of merchandise,
 Port code with bill issue date, Name of vessel, master or agents,
 Country of destination, POL, POD, POR,
 Details of taxable value and total tax amount of items on which refund is processed,

Shipping Bill is filed by CHA in customs system for custom clearance, so that when container gate-in the terminal custom
clearance can be done. It is filed after stuffing (factory / CFS) and before gate-in. While filing for shipping bill CHA
provide details of export like product quantity, invoice, specification, weight of shipment, GSTIN etc. and based on these
details custom clearance is verify on details. Once cleared, shipping bill is printed known as Out of Charge (OC).

The Shipping Bill is generated by the system in two copies: one as Custom copy and one as Exporter copy. Both copies
are signed by the Custom Officer and the Custom House Agent. Exporter copy is given to exporter for proof and
reference / record in future for past exports.

Types of shipping bill:

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 Free Shipping Bill: It is used in case of goods which neither attract any duty nor entitled for duty drawback. It is
printed on simple white paper.
 Dutiable Shipping Bill: It is used in case of goods, which attract export duty. It may or may not be entitled to duty
drawback. It is printed on yellow paper.
 Drawback Shipping Bill: It is used in case when refund of duties is allowed on the goods exported. Generally, it is
printed on green paper, but when the drawback claim is paid to a bank, and then it is printed on yellow paper.
 Shipping bill for Shipment Ex-Bond: It is used in case of imported goods for re-export and which are kept in bond.
It is printed on yellow paper.
 Coastal Shipping Bill: It is used in case of shipment that is moved from one port to another port, by sea, within
India. It is not an export document. When bill goods are sent by sea, it is called Shipping Bill and it is Airway bill
when goods are sent by air.

A shipping bill has various formats / names which are differentiated by colour. The colour schemes denote the following:

Sr.no. Form Name Colour

1 Dutiable Goods Yellow
2 Duty-free goods White
3 Goods with drawback claims Green
4 Goods allowed to be exported as duty-free ex-bond Pink
5 Export goods under Advance Authorization Scheme Blue

AAS-Advance Authorization Scheme

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Bill of Lading (BL):

Bill of lading (BL) is issued by shipping line once the cargo is loaded into the vessel. Usually it is posted in company
website. From website BL is downloaded by shipper. It is the certification of ownership of cargo. It sometimes called
waybill. For the generation of BL the shipper submitted/uploaded the required documents to the shipping line counter
/website.

BL consist of following information:

 Details of shipper and consignee.

 Details of notify party.
 Voyage no., BL no. and name of vessel.
 Carrier company details.
 Place of receipt, freight payment place, port of loading, port of discharge and final place of delivery.
 Pre carriage by.
 Details of cargo: marks and no. of container and seals, no. and kind of packages, gross weight, tare,
Measurement, description of package.
 Place of issue and voyage date.
 Discharge portagent details.

BL is generated on the basis of following certificate and documents:

 Draft of BL- Final draft, prepare and submitted by shipper (also called as first check copy).
 Shipping bill- Filed by CHA as per ICES (Indian Customs EDI System).
 Invoice- invoice of exported goods submitted by shipper as well.
 ANNEXURE- ‘B’/ CLF- certification for factory/ CFS stuffing.
 Packing list- Packaging material and its details submitted by shipper as well.
 Payment receipt- receipt of payment, paid by shipper to shipping line.
 Tax invoice- All taxes and charges incurred during the cargo being in terminal for loading.

Types of Bill of Lading:

1. Original BL (3 copies)-Shipper’s copy, Consignee copy, Banker / Broker / Third party copy
2. Non-Negotiable BL (only for reference purpose)
3. Waybill / Seaway BL (Digital BL, no hardcopy sent or used)

Shipper negotiates BL in either of these ways:

 BL is surrendered at shipping line home branch office.

 BL is send to consignee by courier.
 BL is submitted to the L/C bank.
 Instead of original BL, Seaway BL is generated and printed in plane paper.
 No original BL is generated but digital BL is generated and send to concern parties.

Seaway bill of lading is one of the acceptable format of BL but it is not send or used in physical form but rather than in
soft copy form. If physically required then it can be printed on simple plain paper and use accordingly. For bill of lading
shipper needs to apply for either original bill of lading or seaway bill of lading.

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WAYBILL specimen of ANL (Subsidiary unit of CMA-CGM)

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Process for BL correction:

A few times shippers require BL correction after vessel is sailed.

Processes executed in such situation are as follows:

 OBL surrendered at home office.

 Pay BL correction charges.
 Pay BL re-issuance charges (not applicable in seaway BL).
 Pay IGM / manifest correction charges (correction for new consignee).

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CHAPTER VI

19. CASE STUDY ANALYSIS

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Case Study Analysis:

Introduction of Artificial Intelligence (AI) in sales and customer care department:
Sales and customer care departments are highly interactive departments of shipping lines. These departs however still
relies on manpower due to the fact that customer needs to be engaged with lines service at same time different
segments of line need to be interlinked with human interactive means. However these jobs are highly fatigue and
stressful as several phone calls and e-mails need to attended daily. These are most of the time regarding customer
grievances, error in booking, booking amendments, technical difficulty in filling booking, mis declaration of cargo, error
in shipping bill, bill of lading, applying for VIA etc.

Due to increase in automation in shipping industry for cost cutting there are several proposal of introducing AI in sales
and customer care departments. This assimilation of AI in shipping line will eventually cost Millions of dollars but at the
same time it saves Billions of dollars. Also it eliminates the manpower required to perform the job and very few people
needed to maintain the AI system.

Software LARA is currently used for consignment booking in ANL (Subsidiary unit of CMA-CGM)

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Long term impact:

This is at proposal stage but calculations on its implications and its long term impacts on shipping line and industry. In
long term the introduction of AI has its own pros and cons. Following are the brief view on these pros and cons.

PROs:

 It saves billions of dollars in terms of expenses.

 It centralizes the sales and customer care department. This reduces the manpower required to do the task and
maintain the system.
 It provides customers 24 hours service. This feature is earlier not possible due to fatigue.
 It synchronizes the line’s operations all around the world.
 It saves lot of time in export import processes.

CONs:

 It is very expensive to implement as AI required sophisticated hardware and software, and skilled manpower to
maintain and assemble it.
 It’s up gradation is costly too as it required highly qualified manpower to maintain and upgrade systems.
 Server problem in one place of the world would affectorganization’s operations all around the globe.
 It lacks the human touch with customers. Few customers expect and like to interact with real human being while
getting service from lines.
 It creates the friction between management and currently employed manpower within the organization as lots of
workforce are either loss their job or have to switch to new fields.
 AI is energy consuming system that means exponential increase in electricity consumption by it which increase
electricity bill. Also few countries where infrastructure is not developed it limits companies operations.
 Centralization only works within the same country having common lingua franca and countries where there is
diversity in language spoken all around that country, usage of AI may limits the companies reach to customers in
the region.

CMA-CGM Office, Gandhidham

Using AI will eliminate the

human factor from system.
Human interaction has
versatility that AI cannot adapt.

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CHAPTER VII

20. CONCLUSION

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Conclusion:
This report is prepared to understand the booking activities and related procedures takes place for exporting
cargo from India, at CMA-CGM, Gandhidham which is one of the world’s leading shipping line and provides
services for broad range of cargo for export.

This report try to provide the detailed view of export process and gives a broad picture of related procedures. It
also tries to explain the role of different process, facilities and documents in export process with in-depth analysis
and recognizes the hidden activities, activities takes place on rare occasion and redundancy activity takes place
during the export process.

This report also analyze the case study on Introduction of Artificial Intelligence (AI) in sales and customer care
department and highlights the pros and cons of AIIntroduction as well as its impacts on organization and shipping
industry in the long run.

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CHAPTER VIII

i. ABBREVIATIONS
ii. DEFINITIONS
iii. BIBLIOGRAPHY

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Abbreviations:
Terms and abbreviations used in CMA-CGM Gandhidham:

OBL- Original bill of lading // SQ. no. - Sequence no. // SI- Shipping instruction // SB- Shipping bill //
ICES- Indian customs EDI system // EDI- Electronic data interchange // EAL- Export advance list //
IAL- Import advance list // IGM- Import general manifest // EGM- Export general manifest // ROB- Remain on-board //
BTL- Balance to load // TEU- twenty feet (20’) equivalent unit // POR- Port of receipt (ICD’s) //
TAT- Turnaround time //OOG- Out of Gauge //FCL- Full container load //LCL- Less than container load //
BTT- Back to town // LOI- Letter of indemnity // IBC- Intermediate bulk carrier // BP- Base port //
VGM- Verified gross mass // IHC- Inland haulage charges // HS code- Harmonize code of goods //
CDV- Container detention variation // COD- Change of destination // SSR- Special service request //
LEO- Let export order // CHA- Custom House Agent//MID- Market ID //SOB- Shipped on-board //
SOP- Standard Operation Procedure //ODC- over dimension cargo //SOC- Shipper owned carrier //MICT- Mundra
International Container Terminal //APSEZ- Adani Porte & Special Economic Zone Ltd (Mundra) //AICTP- Adani
International Container Terminal Private Ltd (Mundra) //ENS- Entry Summery Declaration (in Europe) //AMS- Automated
Manifest System (in USA) //OC- Out of charges //ICEGATE- Indian Custom EDI Gateway //THC- terminal handling charge
// ISPS- International Ship and Port Facility Security//AAS- Advance Authorization Scheme//CRO- Container release order
//BAF- Bunker adjustment factor//FOB- Free on Board

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Definitions:
 POL is the port of loading, at which container is loaded into vessel.
 POD is the port of discharge, at which container is discharged by vessel. It could be transhipment port.
 FPOD is the final port of discharge / final place of delivery.
 POR is the port of receipt, at where container is received for loading. Usually PORs are ICDs.
 CHA (Custom House Agent) is the agent / agency hired by shipper for customs clearance purpose, when exporting /
importing cargo.
 ‘EGM’ (Export General Manifest) is also rotation no. of the ship. It is filed by vessel operator in customs. For this vessel
operator collects the shipping bills and other documents details from all Line operators. It is necessary be filed before
vessel sails. It is similar to IGM. A new process has been implemented from 1st of August wherein the EGM would be
filled in advance unlike earlier when the EGM was filed after sailing of the vessel.
 ‘Blank Sailing’ is the condition of non-availability of scheduled vessel due to unforeseen circumstances. It happens
when either scheduled vessel not comes to port or its voyage gets cancelled.
 ‘Ship advisory’ is advisory issued by vessel operator (Feeder and Mother Vessels). It contains the details of vessel
voyage and their rotation details
 ‘Discrepancy’ is run by terminal after cut-off to find out difference between planned and actual situation of containers.
Once it solved container releases by terminal into vessel.
 ‘IAL’ (Import Advance List) is similar to EAL (Export advance list).
 ‘IHC’ (Inland Haulage Charge) are the charges incurred during the transportation of containers from ICD to Port.
 Purchase Order (PO): It is the document set by buyer to the shipper.
 ‘Rollover’ –when container didn’t connect to designated vessel, then it is loaded into next scheduled vessel. This is
called Rollover of container.
 Shut out is the process of de-manifestation of container from one vessel for next vessel.
 Exim yard (Buffer yard) is the customs area in port, where container seal cut and container is opened by CHA in the
presence of customs officer for customs examination. Here container also gets de-stuffed and re-stuffed for
examination.
 Stowage plan (Bay plan) is planning / arrangement of container which is to be loaded in container vessel. It is planning
about where container is to be placed / stacked in vessel.
 BAY is the space in vessel that holds containers in stacked manner. A vessel has several bays and these bays are divided
into two parts: On-Deck (visible) and Under-Deck (not visible).
 Terms used in vessel: Bow (front of the vessel), Aft / stern (rear end of vessel), Port side (Left side of vessel when facing
towards bow while standing at stern side), Starboard (right side of vessel when facing towards bow while standing at
stern side). The term port side and starboard side is always define for vessels respect not for viewers respect, i.e. these
terms do not change with change of viewers point.
 Re-stow: It means the container is remaining on the vessel but it is re-arranged and re-stacked and for doing so it
needs to be offloaded first and then loaded back on the same vessel.
 Laytime is the amount of time allotted for loading and off loading of cargo from vessel.
 Demurrage and Detention is the line revenue. Detention is the when container is with the shipper or consignee.
Demurrage is when the container is under lines control however applicable since the standard free time is already
over.
 FOB (Free on Board) is the trade term used in export import that lay the responsibility of shipped cargo in any case of
damage and destruction during shipping. It identifies the liable party and bestows the risk upon that party. In FOB
origin buyer bears the risk and in FOB destination seller bears the risk during the shipping.

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 ‘LOI’ (Letter of indemnity) is declaration given by shipper, declaring the responsibility of container rest on shipper if it
found not up-to mark and customs reject it at destination, during voyage, damage of stuffed cargo rests on shippers.
 Revalidation is extension of booking validity only. If booking is not revalidated it will get cancelled.
 Revise is amendment made in booking plus extension in validity date. Here applicant has to be specific about
amendments he wants in booking.
 ‘Flat rack’ and ‘flatbed’ used when over dimension cargos are to be stuffed and lashed firmly to rack / bed. Since cargo
often loaded is of over dimension, these containers can’t be stacked as usual containers stacked and kept separately in
vessel. Generally these containers are used to load OOG / OG type goods or Break Bulk cargo.

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Bibliography:
 https://cleartax.in/s/shipping-bill
 https://howtoexportimport.com
 www.kkfreight.com
 https://www.logisticsglossary.com
 https://shippingandfreightresource.com
 https://www.nautiqus.pl
 https://en.wikipedia.org/wiki/ISO_6346
 Google images
 https://www.csiu.co/resources-and-links/iso-container-size-and-type-iso-6346
 https://www.morethanshipping.com/changing-destination-cargo-sailed/
 https://www.cma-cgm.com/static/Communication/Attachments/BROCHURE_CORPORATE_Inde-Final-Web.pdf
 https://help.sap.com/viewer/92d941c46ccf4ca0aaf76d87f912f318/2.0/en-
US/18f99a13beb7454b9b11dc423dd32d7b.html
 Wikipedia

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