Forwarding
What is Freight Forwarding?
It’s the business of moving goods from one place to another.
What do you call shipments directly booked by consignor to the shipping line (Shipping/Air Lines) and to be received by consignee?
Direct (DRT)
These are rules that define a buyer and seller’s responsibilities.
Incoterm
A charge assessed by a shipping terminal or port when goods are moved through the location. It covers the handling of shipments at the destination port.
Wharfage
What is the difference between a HBL and MBL?
HBL is issued by the NVOCC/Freight Forwarder to the actual customer.
MBL is issued by the Shipping Line (Carrier) to the NVOCC/Freight Forwarder – also known as Ocean Bill of Lading.
What are the Services Freight Forwarding offers including the 2 value-added services?
Road Freight
Rail Freight
Sea Freight
Air Freight
Warehousing
Customs Brokerage
What are the three shipment types?
Indicate the type of Bill/s of Lading produced in each
Direct (DRT) – MBL
Agent (AGT) – HBL, MBL
Co-load (CLD) – HBL, Co-load MBL, MBL
What are the 3 main items that INCOTERMS seek to answer?
Cost, Liability, and Control
This charge is levied by the port or the terminal to the shipping line as compensation for port usage or terminal depot or inland container yard facilities.
Storage
What is the distinct difference between a Commercial Invoice and a Tax Invoice?
CIV to determine goods value for customs clearance. Tax Invoice is for accounting a company’s liability in the balance sheet.
Illustrate the Operational Flow of Freight Forwarding
Seller ( Exporter-Manufacturer, CNR ) - port of shipments - Carrier - port of destination - Buyers ( importer, CNE )
This is the physical description of the container used for the shipment.
Give the minimum capacity of the most common Containers.
Container Types
20’ GP - 33CBM
40’ GP - 67CBM
40’ HC - 76CBM
When would you tag the INCOTERM as FOB based on the BL?
When would you tag the INCOTERM as CFR based on the BL?
Freight Collect payment term – Default FOB
Freight Prepaid payment term – Default CFR
What is Chargeable Weight?
Commonly used by air freight forwarders, domestic motor carriers and brokers to calculate their air freight and/or domestic trucking charges. They use a dimensional factor to determine the “volume” or “volumetric” or “dimensional” weight of the cargo.
What is the difference between a Packing List and a Packing Declaration?
Packing List -
a document that includes details about the contents of a package with details about the quantity, description, and weight of these contents
Packing Declaration -
A document which shows the responsible party for the cargo in which they are stating that they have complied with the international standards of timber packing and cleanliness standards
What are the factors to consider in Freight Forwarding?
Rates
Quality of service
Network of connections
Give at least 2 indicators of FCL which can be found in the document (MBL and/or HBL)?
CY/CY, 1 consignor and 1 consignee, 1 HBL, 1 MBL
What are the 7 most commonly used Incoterm?
EXW
FOB
CFR
CIF
DPU
DAP
DDP
What is a Cross trade shipment?
It is cargo that is transported by either road, rail, air or sea from one country to another but not through the local business base.
For example, Forwarding Company ABC will send cargo from China to New Zealand without the goods routing via the client based in Australia.
How is COO related to Free trade agreement?
FTA is a treaty between two or more countries to establish a free trade area where commerce in goods and services can be conducted across their common borders, without tariffs or hindrances. Having said that, you need a COO document to serve as a proof that the goods was exported from a country with an agreement with the importing country.
Give at least 3 reasons why Freight Forwarding is important
Freight Forwarders ensure that shipments get to where they are supposed to go -- safely and on time, every time
Freight Forwarders act as an intermediary between buyers, sellers and the transport companies, handling everything that is related to the shipping process.
Freight Forwarders help companies save time, money and a lot of hassle.
Through Freight Forwarding, deals are fulfilled; jobs are kept; goods are made; and lives are improved.
The Freight Forwarding Industry helps drive trade and economic growth
It is an indispensable part of our world and you play a critical role in it
Give two indicators to differentiate LCL, FAK and BCN.
LCL: CFS/CFS - Co-loader involved
FAK: CY/CFS - Multiple consignees
BCN: CFS/CY, one consignee
What are the Most Common Release Types.
How do they differ from each other?
1.ORIGINAL BILL OF LADING REQUIRED (OBR)
-Stamp: ORIGINAL Copies: 3
2. ORIGINAL BILL OF LADING SURRENDERED AT ORIGIN (OBO)
- Stamp: SURRENDERED Copies: 0
3. EXPRESS BILL OF LADING (EBL)
- Stamp: AWBL/SWBL/Express/TELEX Copies: 0/1
What is the difference between Multimodal and Intermodal?
Multimodal transport is the transportation of goods with at least two different means of transport or carriers (e.g. rail, sea and road). The carrier is liable for the entire carriage, even though it is performed by several different modes of transport. The shipper has a contract with one carrier that covers the entire journey of their shipment, regardless of the number of modes involved.
Intermodal transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation (rail, ship, and truck). There are multiple contracts – one with a freight forwarder or ocean carrier, one or more with a trucking company, and one or more for rail transportation. Each carrier issues a separate Bill of Lading in intermodal shipping.
What is the difference between Pre alert and Arrival Notice?
Pre-Alert is a summary of the details about the shipment similar to an Arrival Notice. This can be sent prior to the departure of the shipment from origin.
Arrival Notice is a notice sent by a carrier or agent to the consignee (and to the notify party, if any) to inform about the arrival of the shipment and number of packages, description of goods, their weight, and collection charges (if any). This is normally sent if the shipment is en route to the destination.