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“Creativity is an import-export business.”

An Introduction to the World of Logistic and Freight Forwarding

Imesh Chandika Gunatilaka Page 1

Table of Contents International Trading & Local Trading. ..................................................................................................... 12

Definition and Reasons for International trading. 12

What is International Trade? .............................................................................................................. 12

The Reasons for International Trade Are: ........................................................................................... 12

Definition and Difference for Local Trading. 12

What is Local Trading? ........................................................................................................................ 12

The Difference between Local Trading and International Trading ..................................................... 12

FREIGHT FORWARDING & LOGISTICS ......................................................................................................... 13

What is Freight Forwarding? ........................ 13

Who are Freight forwarders? ....................... 13

What is Logistics? ........................................................................................................................................ 13

SOP- STANDARD OPERATING PROCEDURE. ................................................................................................ 13

What is SOP? ................................................ 13

What Services does the Freight Forwarder offer? ...................................................................................... 14

Air Freight Consolidation and Forwarding ... 14

Maritime Intermodal ................................... 14

Road and Rail Distribution ........................... 14

Trade Facilitation, Customs Brokerage ........ 14

Logistics and Supply Chain Management .... 14

Moving the Goods ....................................................................................................................................... 15

Transportation ............................................. 15

Documentation ............................................ 15

Customs ....................................................... 15

Payment of Charges ..................................... 15

Packing and Warehousing ............................ 15

Insurance ...................................................... 16

Security ........................................................ 16

Consolidation, Groupage and Special Services16

FREIGHT FORWARDS: WORKING WITH INDUSTIRES .................................................................................. 17



Choosing a Freight Forwarder ...................... 17

Set-up Procedures ............................................................................................................................... 17

Avoid Mistakes .................................................................................................................................... 17

Communication ................................................................................................................................... 17

Incoterms ............................................................................................................................................ 17

Documentation used in International Transport ........................................................................................ 18

Transport Documents .................................. 18

Bill of Lading ........................................................................................................................................ 18

Air Waybill ........................................................................................................................................... 18

Road Consignment Note ..................................................................................................................... 18

Official Documents .............................................................................................................................. 18

Commercial Documents ...................................................................................................................... 18

CFS & PORT OPERATION ............................................................................................................................. 19

Documents required inside the CFS .................................................................................................... 19

Challan: ............................................................................................................................................... 19

Shipping Order (SO) ............................................................................................................................ 19

Commercial invoice: ............................................................................................................................ 19

Packing List: ......................................................................................................................................... 20

Shipping Bill: ........................................................................................................................................ 20

Different types of Containers: .................................................................................................................... 21

Dry Storage Container .................................. 21

Flat Rack Container ...................................... 21

21

Open top Container ..................................... 21

Tunnel Container ......................................... 21

Open Side Storage Container: ...................... 21

Double Door Container ................................ 21

Refrigerated ISO containers ......................... 22

Insulated or thermal containers .................. 22

Tanks ............................................................ 22

Cargo storage roll container ........................ 22

Half height containers .................................. 23



Car carriers ................................................... 23

Intermediate bulk shift containers .............. 23

Drums ........................................................... 23

Special purpose containers .......................... 24

Swap bodies ................................................. 24

Garment on Hanger Container (GOH) ......... 24

What is Air Freight? .................................................................................................................................... 25

Advantage of Air Freight Shipping. ............................................................................................................. 25

High Speed: .................................................. 25

Comfortable and Quick Services: ................. 25

No Investment in Construction of Track: ..... 25

No Physical Barriers: .................................... 25

Easy Access: ................................................. 25

Emergency Services: .................................... 25

Quick Clearance: .......................................... 25

Most Suitable for Carrying Light Goods of High Value: 25

National Defense: ........................................ 25

Space Exploration: ....................................... 25

Disadvantage of Air Freight Shipping. ......................................................................................................... 25

Very Costly: .................................................. 26

Different types of plates and container in Airfreight .................................................................................. 26

Common designation: LD-1.......................... 26



Common designation: LD-3 Reefer .............. 28

Common designation: Half pallet ................ 28

Common designation: Half pallet ................ 28










Common designation: LD-9 Reefer .............. 31

Common designation: LD-11........................ 31





Common designation: P6P pallet ................. 33

Common designation: Demi ........................ 34

Common designation: Type A pen ............... 34

Common designation: HMA stall ................. 34

Common designation: M-1 .......................... 35

Common designation: M1H ......................... 35

Common designation: Main deck pallet (MDP) 35





Names of Container Ship Liners: ................................................................................................................. 37

MAERSK LINE:............................................... 37

Hapag Lloyd: ................................................. 37

Hanjin Shipping: ........................................... 37

OOCL: Orient Overseas Container Line ........ 37

HMM:Hyundai Merchant Marine ................ 38

NYK LINE ....................................................... 38

Names of Airfreight Companies: ................................................................................................................. 39

Singapore Airlines Cargo: (SIA CARGO) ........ 39

Etihad Cargo: ................................................ 39

Qatar Airways Cargo: ................................... 39

Lufthansa: .................................................... 40

SAFE TRANSPORT OF CONTAINERS BY SEA ................................................................................................. 41



Overview ...................................................... 41

Key Requirements ........................................ 41

Checking the Container ....................................................................................................................... 42

Pre-Stuffing ......................................................................................................................................... 42

External Checks ................................................................................................................................... 42

Post Stuffing ........................................................................................................................................ 43

Prior to Unstuffing .............................................................................................................................. 43

Checklist after Unstuffing ................................................................................................................... 44

General Stowage .......................................... 44

Homogeneous Cargo ........................................................................................................................... 44

Uniform Stowage ................................................................................................................................ 44

Carton and Packages ........................................................................................................................... 44

Bagged Cargo ...................................................................................................................................... 44

Drums and Barrels ............................................................................................................................... 45

Rolls ..................................................................................................................................................... 45

Bulk Liquids ......................................................................................................................................... 45

Bulk Solids ........................................................................................................................................... 45

Hanging Garments .............................................................................................................................. 45

Reefer Cargoes .................................................................................................................................... 45

Safety and Securing ...................................... 46

Overloading ......................................................................................................................................... 46

Road and Rail Limits ............................................................................................................................ 46

DG........................................................................................................................................................ 46

Shifting Cargo ...................................................................................................................................... 47

Securing in Containers ........................................................................................................................ 47

Securing Materials .............................................................................................................................. 47

Final Weighing of Container......................... 48

.................................................................................................................................................................... 49

CARO HANDLING EQUIPMENT ON BOARD AND IN PORT........................................................................... 50

LIQUID CARGO HANDLING EQUIPMENT ...... 52

GENERAL CARGO HANDLING EQUIPMENT .. 53

.................................................................................................................................................................... 54



.................................................................................................................................................................... 55

.................................................................................................................................................................... 56

.................................................................................................................................................................... 56

.................................................................................................................................................................... 57

PORT/TERMINAL CARGO HANDLING EQUIPMENT 57

Terms used in Freight Forwarding .............................................................................................................. 59

ATA: ..................................................................................................................................................... 59

ATD ...................................................................................................................................................... 59

Air Waybill ........................................................................................................................................... 59

Aircraft Container ............................................................................................................................... 59

All Risk ................................................................................................................................................. 59

Allotment ............................................................................................................................................ 59

Alongside ............................................................................................................................................. 59

BAF (Bunker Adjustment Factor) ........................................................................................................ 59

Bill of Lading (B/L) ............................................................................................................................... 59

Bill of Sale ............................................................................................................................................ 59

Bonded Warehouse ............................................................................................................................ 59

Break Bulk (B/B) .................................................................................................................................. 59

Break-bulk Vessel ................................................................................................................................ 60

CAF (Currency Adjustment Factor) ..................................................................................................... 60

Carnet .................................................................................................................................................. 60

Clean Bill of Lading .............................................................................................................................. 60

Combi Aircraft ..................................................................................................................................... 60

Commercial Invoice ............................................................................................................................. 60

Consignee ............................................................................................................................................ 60

Consignment ....................................................................................................................................... 60

Consolidation ...................................................................................................................................... 60

Cost and Freight (C&F) ........................................................................................................................ 60

Cost, Insurance and Freight (CIF) ........................................................................................................ 60

Customs............................................................................................................................................... 61

Customs Broker ................................................................................................................................... 61

Customs Clearance .............................................................................................................................. 61



Customs Invoice .................................................................................................................................. 61

DAFF (Department of Agriculture) ...................................................................................................... 61

DDP...................................................................................................................................................... 61

DDU ..................................................................................................................................................... 61

Dangerous Goods ................................................................................................................................ 61

Delivery Instructions ........................................................................................................................... 61

Demurrage .......................................................................................................................................... 61

Dimensional Weight ............................................................................................................................ 61

Direct Ship ........................................................................................................................................... 61

Drawback ............................................................................................................................................ 61

Duty ..................................................................................................................................................... 61

EDI ....................................................................................................................................................... 62

ETA ...................................................................................................................................................... 62

ETD ...................................................................................................................................................... 62

Ex Works (...named place) (EXW)........................................................................................................ 62

FCL or CY ............................................................................................................................................. 62

Federal Maritime Commission ............................................................................................................ 62

Flat Rack Containers ............................................................................................................................ 62

Forty-Foot Equivalent Unit (FEU) ........................................................................................................ 62

Free Alongside Ship ............................................................................................................................. 62

Free Carrier (FCA) ................................................................................................................................ 62

Free On Board (FOB) ........................................................................................................................... 62

Freight Carriage ... and Insurance paid to ........................................................................................... 62

Freight Carriage ... paid to .................................................................................................................. 63

Freight Forwarder ............................................................................................................................... 63

Freight for All Kinds (FAK) ................................................................................................................... 63

Gateway .............................................................................................................................................. 63

GST ...................................................................................................................................................... 63

HAWB .................................................................................................................................................. 63

Harmonised System ............................................................................................................................ 63

IATA ..................................................................................................................................................... 63

IATA Designator .................................................................................................................................. 63



Import Certificate ................................................................................................................................ 63

Import License ..................................................................................................................................... 63

Import Restrictions ............................................................................................................................. 64

Incoterms ............................................................................................................................................ 64

Insurance Certificate ........................................................................................................................... 64

Integrated Carriers .............................................................................................................................. 64

Intermediate Consignee ...................................................................................................................... 64

Intermodal .......................................................................................................................................... 64

Irrevocable Letter of Credit ................................................................................................................. 64

LCL ....................................................................................................................................................... 64

LD3 ...................................................................................................................................................... 64

Letter of Credit .................................................................................................................................... 64

Lower Deck .......................................................................................................................................... 64

Main Deck ........................................................................................................................................... 64

MPI (Ministry for Primary Industries) ................................................................................................. 65

Marine Cargo Insurance ...................................................................................................................... 65

NVD ..................................................................................................................................................... 65

POD ..................................................................................................................................................... 65

Packing List .......................................................................................................................................... 65

Pro Forma Invoice ............................................................................................................................... 65

Project Cargo ....................................................................................................................................... 65

Roll-on, Roll-off ( RORO ) .................................................................................................................... 65

Shipping Mark ..................................................................................................................................... 65

Shipping Weight .................................................................................................................................. 65

TACT .................................................................................................................................................... 65

Tare Weight ......................................................................................................................................... 65

Temporary Importation under Bond .................................................................................................. 65

Title ..................................................................................................................................................... 66

Through Bill of Lading ......................................................................................................................... 66

Transshipment .................................................................................................................................... 66

Twenty-Foot Equivalent Unit ( TEU )................................................................................................... 66

ULD ...................................................................................................................................................... 66



Ultimate Consignee ............................................................................................................................. 66

Value for Customs Purposes Only ....................................................................................................... 66

War/Strike Clause ............................................................................................................................... 66

Wharfage ............................................................................................................................................. 66

Without Reserve ................................................................................................................................. 66

Ad Valorem ......................................................................................................................................... 66

Agent ................................................................................................................................................... 66

Arbitrary .............................................................................................................................................. 66

BAF ...................................................................................................................................................... 66

Bonded Warehouse ............................................................................................................................ 66

CAF ...................................................................................................................................................... 66

CABAF .................................................................................................................................................. 66

CAN/PRA ............................................................................................................................................. 67

Cartage ................................................................................................................................................ 67

Certificate of Origin ............................................................................................................................. 67

CFR (Cost and freight) ......................................................................................................................... 67

CFS ....................................................................................................................................................... 67

CHIEF ................................................................................................................................................... 67

CIF (Cost, insurance and freight) ......................................................................................................... 67

CMI (Comite Maritime International) ................................................................................................. 67

Commercial Invoice ............................................................................................................................. 67

COU (Clip on unit) ............................................................................................................................... 67

CRN (Customs Register Number) ........................................................................................................ 67

CT (Combined Transport) .................................................................................................................... 67

CY (Container Yard) ............................................................................................................................. 67

Conference .......................................................................................................................................... 67

Consortium .......................................................................................................................................... 67

Cut Off Date ........................................................................................................................................ 67

CNOR (Consignor) ............................................................................................................................... 67

COD (Cash on delivery) ....................................................................................................................... 68

Deconsolidation Point ......................................................................................................................... 68

D/O ...................................................................................................................................................... 68



Documentary Credit ............................................................................................................................ 68

DOT (Department of Trade) ................................................................................................................ 68

Drawback ............................................................................................................................................ 68

Duty ..................................................................................................................................................... 68

EHA (Equipment Handover Agreement) ............................................................................................. 68

FCL (Full Container Load) .................................................................................................................... 68

FCX ...................................................................................................................................................... 68

Flat Rack .............................................................................................................................................. 68

Feeder Vessel ...................................................................................................................................... 68

GATT (General Agreements on Tariffs & Trade) ................................................................................. 68

Groupage............................................................................................................................................. 68

GP (General Purpose) .......................................................................................................................... 68

GST (Goods and Service Tax)............................................................................................................... 68

Hazchem Code .................................................................................................................................... 68

Hi-Cube ................................................................................................................................................ 68

ICC ....................................................................................................................................................... 69

IMDG Code (International Maritime Dangerous Goods Code) ........................................................... 69

IMO (International Maritime Organisation) ....................................................................................... 69

ISO (International Standards Organization) ........................................................................................ 69

LCL (Less than Container Load) ........................................................................................................... 69

L/I (Letter of Indemnity) ...................................................................................................................... 69

Lo/Lo (Lift On Lift Off) ......................................................................................................................... 69

Liner .................................................................................................................................................... 69

MMO - ................................................................................................................................................. 69

Manifest .............................................................................................................................................. 69

Non-Conference .................................................................................................................................. 69

Notify Party ......................................................................................................................................... 69

O/H (Over Height) ............................................................................................................................... 69

O/S (Open Sided)................................................................................................................................. 69

O/T (Open Top) ................................................................................................................................... 69

OOG (Out Of Gauge) ........................................................................................................................... 69

O/W (Over Width) ............................................................................................................................... 69



Packing Declaration............................................................................................................................. 70

POA (Place of Acceptance) .................................................................................................................. 70

POD (Place of Discharge) .................................................................................................................... 70

POL (Port of Loading) .......................................................................................................................... 70

Principal Carrier................................................................................................................................... 70

PSC (Port Service Charge) ................................................................................................................... 70

RO/RO (Roll On Roll Off) ..................................................................................................................... 70

Routing Order...................................................................................................................................... 70

Reefer .................................................................................................................................................. 70

SOB ...................................................................................................................................................... 70

Shipper ................................................................................................................................................ 70

Short Shipped ...................................................................................................................................... 70

Slot ...................................................................................................................................................... 70

TEU ...................................................................................................................................................... 70

THC ...................................................................................................................................................... 70

Tare Weight ......................................................................................................................................... 70

Tariff: ................................................................................................................................................... 70

Transship ............................................................................................................................................. 70

Waybill ................................................................................................................................................ 71

Vent ..................................................................................................................................................... 71



International Trading & Local Trading.

Definition and Reasons for International

trading.

What is International Trade?

International trade is the exchange of capital, goods,

and services across international borders or

territories, which could involve the activities of the

government and individual. In most countries, such

trade represents a significant share of gross

domestic product (GDP).

The Reasons for International Trade Are:

Reduced dependence on your local market Your

home market may be struggling due to economic

pressures, but if you go global, you will have

immediate access to a practically unlimited range of

customers in areas where there is more money

available to spend, and because different cultures

have different wants and needs, you can diversify

your product range to take advantage of these

differences.

Increased chances of success

Unless you’ve got your pricing wrong, the higher the

volume of products you sell, the more profit you

make, and overseas trade is an obvious way to

increase sales. In support of this, UK Trade and

Investment (UKTI) claim that companies who go

global are 12% more likely to survive and excel than

those who choose not to export.

Increased efficiency

Benefit from the economies of scale that the export

of your goods can bring – go global and profitably

use up any excess capacity in your business,

smoothing the load and avoiding the seasonal peaks

and troughs that are the bane of the production

manager’s life. Why international trade- Efficiency

and Productivity- chart icons

Increased productivity

Statistics from UK Trade and Investment (UKTI) state

that companies involved in overseas trade can

improve their productivity by 34% – imagine that,

over a third more with no increase in plant.

Economic advantage

Take advantage of currency fluctuations – export

when the value of the pound sterling is low against

other currencies, and reap the very real benefits.

Words of warning though; watch out for import

tariffs in the country you are exporting to, and keep

an eye on the value of sterling. You don’t want to be

caught out by any sudden upsurge in the value of

the pound, or you could lose all the profit you have

worked so hard to gain.

Innovation

Because you are exporting to a wider range of

customers, you will also gain a wider range of

feedback about your products, and this can lead to

real benefits.

Growth

The holy grail for any business, and something that

has been lacking for a long time in our

manufacturing industries – more overseas trade =

increased growth opportunities, to benefit both your

business and our economy as a whole.

Definition and Difference for Local Trading.

What is Local Trading?

Local Trading is the type of trading which is done

inside the country it is a trading system which is

carried out with the geographical boundaries of

particular country.

The Difference between Local Trading and

International Trading

1. Mobility in Factor of Production

•Domestic Trade: Free to move around factors of

production like land, labor, capital and labor capital

and entrepreneurship from one state to another

within the same country

•International Trade: Quite restricted



2. Movement of Goods

•Domestic trade: easier to move goods without

many restrictions. Maybe need to pay sales taxed

•International Trade: Restricted due to complicated

custom procedures and trade barriers like tariff,

quotas or embargo

3. Usage of different currencies

•Domestic trade: same type of currency used

•International trade: different countries used

different currencies

4. Broader markets

•Domestic trade: limited market due to limits in

population, etc

•International trade: Broader markets

5. Language and Cultural Barriers

•Domestic trade: speak same language and practice

same culture

•International trade: Communication challenges due

to language and cultural barriers

FREIGHT FORWARDING & LOGISTICS

What is Freight Forwarding?

When a business decides to export their products

they soon realize that they have to deal with the

numerous barriers that have to be overcome to ship

the product to the end customer. In many cases a

business will look to a specialist, called a freight

forwarder, who can manage these obstacles.

A freight forwarder or Forwarding agent , also

known as a non-Vessel Operating Common Carrier

(NVOCC),is a person or company that organize

shipment for Individual or Cooperation to get goods

from the manufacturer or producer to a market

customer or final point of distribution .

Who are Freight forwarders?

The different types of freight forwarding companies

can be broadly divided into three categories:

Local companies - These are generally small single

office companies which tend to deal with customers

in the local area, or operate at a seaport or airport

concentrating on particular types of traffic. National

companies - Many forwarders have offices in the

major ports and airports throughout the country as

well as in the largest industrial towns. They may also

have warehousing or handling depots from where

they operate their own services. Such companies will

often have agents or correspondents overseas in the

markets with which they operate.

International companies - The truly international

company will have its own offices overseas and offer

a wide range of worldwide services. You should note

that these divisions are identified for ease of

understanding

What is Logistics?

Logistics is the detailed of organization and

implementation of a complex operation it is the

commercial activity of transporting goods to

customer , logistics is when the right thing is at the

right place at the right time .

SOP- STANDARD OPERATING PROCEDURE.

What is SOP?

A standard operating procedure, or SOP, is a set of

step-by-step instructions created by a business to

help workers carry out routine operations. Their

purpose is to achieve efficiency, quality output and

uniformity of performance, while reducing

miscommunication and failure to comply to industry

regulations.



There are no hard and fast rules about the way in

which a particular company is organized and there

will be considerable overlap between types. It is

certain that size should not be considered as a

criterion for measuring the standard of service. The

industry is made up of many specializations and

those interested in using a freight forwarder or

working in the forwarding profession will find that

there is an enormous range of companies to choose

from. The business of choosing a freight forwarder is

covered in a later section. There is no such thing as a

typical freight forwarding company. Each company

provides services in accordance with the

requirements of its customers and, as with any

business, these services change with the demands of

the market.

What Services does the Freight Forwarder

offer?

The freight forwarder’s basic service is the

organization of the movement of goods

internationally by all modes of transport. A

forwarder would typically be appointed by an

importer or an exporter to act on their behalf to

move goods into, or out of, the country, and all that

this entails. Freight forwarders provide one or more

of the following services:

Air Freight Consolidation and Forwarding

The use of scheduled airlines for the movement of

freight increased considerably following the

introduction of wide-bodied aircraft. Concentrated

around the major international airports in the UK, air

freight forwarders provide a high quality range of

services worldwide for urgent and high value freight,

and just-in-time stock systems. They also provide

airport handling and distribution services, and act as

general sales agents for airlines.

Maritime Intermodal The widespread

introduction of sea containers in the 1970s provided

freight forwarders with the opportunity to develop

door-to-door and warehouse-to-warehouse services

worldwide, for Full Container Load (FCL) cargo and

Less than Container Load (LCL) shipments. Freight

forwarders today provide such services to virtually

every port and major industrial center worldwide.

Road and Rail Distribution A principal activity of

forwarders, European distribution includes the door-

to-door movement of full trailer loads of freight, and

the consolidation of small consignments into full

loads for warehouse-to-warehouse trucking and

thence final delivery to the consignee. Within

mainland, freight is commonly moved by rail.

Trade Facilitation, Customs Brokerage Many

countries in Europe and elsewhere still maintain

complex Customs procedures. The Customs

clearance of import freight and delivery to final

destination is an important aspect of the work of

freight forwarders. They hold up-to-date information

on local requirements in many countries of the

world enabling fast and reliable delivery of goods to

final destination.

Logistics and Supply Chain Management With

the increasing reliance placed upon freight

specialists by the international trading community,

freight forwarders have been quick to develop a

wide range of value-added services for their

customers. These can include warehousing, sorting,

order picking, packaging and final assembly of goods.

Freight forwarders, in particular, have embraced

modern electronic developments to offer a range of

e-commerce and e-business solutions for their

customers.



Moving the Goods Whether the forwarder is acting for an importer or an exporter, the main service provided is

the movement of goods. The forwarder’s experience will enable the provision of advice on the

best routing (cheapest, quickest, safest), the best mode of transport (air, sea, road, rail),

Customs requirements, packing, insurance, security issues, and the myriad of regulations that

apply in both the country of destination and the country of origin.

Transportation Freight forwarders are the link between the seller

and the buyer. They may be contracted to work for

either, and their key function will be to arrange for

the movement of the goods between the two. They

will book space on the ship, aircraft or other

transport mode, call forward the goods at the

appropriate time and collect them. They will liaise

with their agent/office overseas to co-ordinate

delivery to the buyer. These actions may be

influenced by the method of transportation chosen.

Documentation In all international trade there are documents to be

prepared. A freight forwarder is involved in either

preparing most of these, or giving advice to the

exporter/importer on those documents which they

must prepare. The current trend is, however, to

reduce the number of documents required. In

particular, with the development of a ‘frontier free’

Europe, trade within the EU States has become

much easier with the abolition of Customs borders.

In addition, the growth of e-commerce and internet

technology further reduces the need for paper

documents.

Customs Importers and exporters have a legal responsibility

to declare and record all goods which enter and

depart the European Union. The preparation of

import and export declarations represents an

important part of the forwarder’s service. Since 1993

Customs clearance has not been required for goods

moving within the EU, although There are

procedures which may require the forwarder’s

involvement: for example, the collection,

preparation and submission of statistical

information (Intrastat). Goods exported to third

countries (all countries outside the EU) are still

subject to customs control, although systems are

constantly being simplified.

Payment of Charges When a normal trading relationship has been

established between the forwarder and the

customer, the forwarder will accept and pay all

related charges on behalf of the customer. Thus a

trader requiring the services of airlines, shipping

lines and numerous other transportation and

handling organisations will only receive one invoice

from the forwarder. The forwarder can sometimes

arrange to collect the amount of the seller’s invoice,

collecting cash on delivery through overseas agents,

or the carrier.

Packing and Warehousing The packing of the goods for export is a complex task

to ensure goods are protected against the risks

involved in their handling and the modes of

transportation being used. Consideration needs to

be given to the climates and terrain of the countries

through which the consignments will be travelling.

Too much heavy packing could prove costly for

goods travelling by air, for example. On the other

hand, too little packing might prove a false economy.

Many forwarders provide a packing service for their

customers, and the forwarder’s expertise

can save a customer a great deal of money.

Warehousing and allied functions, such as inventory

control, can often be of value to the trader who may

have limited space of his own. Whether temporary

or longer-term storage, the forwarder will normally

be able to arrange this facility for his customer.



Insurance Insurance plays an important part in international

trade. Goods in transit are exposed to many risks

and hazards. The prudent trader will always make

sure that consignments are insured against these

risks. Professional risk takers, known as

underwriters, accept possible financial losses

involved on payment of a premium, subject to terms

and conditions. Freight forwarders, not being the

owner of the goods, do not have an insurable risk in

the cargo and therefore cannot cover the risks to

cargo themselves. In the UK the mediation of

insurance is regulated by the Financial Services

Authority (FSA). Freight forwarders who wish to

provide an insurance service for their customers

have an exemption under the Financial Services

Management Act but exporters and importers

should check with their freight forwarder at the time

of booking the cargo for shipment about insurance

cover. Freight forwarders who offer insurance can

provide cover for their customer’s goods providing

the customer formally instructs the forwarder to do

so in writing.

Security With ever-increasing levels of security being

introduced to protect goods from criminal activity

and acts of terrorism, it is imperative that freight

forwarders keep themselves up to-date with all the

latest regulatory security requirements so that any

cargo they handle is transported to its end

destination without any possibility of interference.

Forwarders work together with transport providers

and other key operators to ensure that everyone

conforms to the strict cargo handling and processing

procedures which are in place at the time. These

vary, depending on the mode of transport being

used. For example road trucks must be properly

secured, and cargo containers, for goods moving by

sea, must be locked and sealed, whilst in the air

sector, goods are screened before being uplifted.

These days many forwarders invest in expensive

scanning equipment to have cargo checked before it

is dispatched, thus avoiding any unnecessary delays

while the cargo is en route.

Consolidation, Groupage and

Special Services One of the main advantages in using freight

forwarders lies in their ability to group together

consignments from several exporters and present

them to a shipping company or airline as a single

large consignment. In this way the forwarder can

obtain a much cheaper rate than an individual

company, and is able to offer the customer a

competitive tariff for a small consignment. The

principle of consolidation also enables the forwarder

to offer added value to the customer. For example,

a forwarder consolidating cargo in one country will

dispatch the full load to an agent in the destination

country. The destination agent will de-consolidate,

Customs clear and deliver the goods to the final

consignee. In addition to providing a complete door-

to-door service, the forwarder may be able to hold

consignments at destination

Prior to delivery to await payment from the

importer. This gives an element of security to the

exporter, whilst minimizing delay in delivery.

Consolidation is a term normally applied to air and

sea freight, whilst for road and rail freight the

practice is known as groupage. The forwarder could

be acting on behalf of an importer or exporter. In the

former case, the buyer at the destination may use

the forwarder to collect goods from many different

suppliers in the country of export, thus avoiding the

need to employ a purchasing agency for this

purpose.



FREIGHT FORWARDS: WORKING

WITH INDUSTIRES

For those new to importing and exporting there is no substitute for planning a strategy and obtaining

advice. Most companies who begin to trade internationally will wish to use the services of a third party,

such as a freight forwarder, to advice on the movement of goods.

Choosing a Freight Forwarder There are thousands of companies who promote

themselves as international freight service providers,

and it is very important to select the right one

Set-up Procedures

The organization within a company to deal with

import/export procedures is important. These will

include the invoicing of orders, the preparation of

documentation and communications, along the

supply chain, such as banks, insurance companies

and, of course, the customer.

Avoid Mistakes

Mistakes must be avoided at all costs as these can

prove expensive. Failure to follow correct

procedures and adopt good practice in international

trade can cause

Problems. Mistakes do not only happen to those

new to importing and exporting. Many experienced

traders would also benefit from a review of

operational procedures to ensure that they are, as

far as possible, eliminating unnecessary risks.

Communication

Always give instructions in writing. Failure to do this

may lead to error and misunderstanding.

Instructions, whether via fax, e-mail or Electronic

Data Interchange should include information on the

following as a minimum.

1. Name and address of shipper and consignee

2. Collection and delivery address if different from 1

above

3. Consignment specifications including weight,

dimensions, contents and value

4. Insurance declaration*

5. Dangerous goods declaration*

6. Terms of shipment (latest edition of Incoterms -

who pays what)

7. Special instructions eg. Letters of credit, payment

terms

*A statement should be made, eg.‘Insurance

required’ / ‘Insurance not required’, or ‘Goods

hazardous’ / ‘Goods not hazardous’.

Terms of Sale When goods are imported or exported

they are normally subject to a contract between a

seller and a buyer. Part of that contract will

determine what the price covers in relation to the

goods and the costs involved in transporting them

between the parties to the contract.

Incoterms

The purpose of Incoterms is to provide a set of

international rules for the most commonly used

terms in foreign trade. Thus the uncertainties of

various interpretations of such terms in different

countries may be avoided or reduced. Frequently

parties to a contract are unaware of the different

trading practices in their respective countries. This

can give rise to misunderstandings, dispute and

possible legal action with all the waste of time and

money that this entails. In order to remedy these

problems the International Chamber of Commerce

(ICC) first published in 1936 a set of international

rules for the interpretation of trade terms. These

rules were known as Incoterms 1936. Amendments

and additions were later made, leading to Incoterms

2010 being the rules in line with current

international trade practices.



Documentation used in International Transport

Freight forwarders are well known for their knowledge of documentation.

International transport documents can be divided into three sectors:

1. Transport Documents

2. Official Documents

3. Commercial Documents

Incoterms are divided into two

categories as followed

Terms of any Mode or Modes of Transport

CIP Carriage and Insurance Paid

CPT Carriage Paid To

DAP Delivery At Place

DAT Delivery At Terminal

DDP Delivery Duty Paid

EXW Ex Works

FCA Free Carrier

Terms for Sea and Inland Waterway Transport

CFR Cost and Freight

CIF Cost, Insurance and Freight

FAS Free Alongside Ship

FOB Free On Board

Transport Documents

Bill of Lading

The bill of lading takes many

forms but, first and foremost, it

is the key transport document

for the carriage of goods by sea

freight. In legal terms it is a

receipt for goods shipped, a

document of title and evidence

of the contract of carriage.

Possession of a negotiable bill of

lading which is properly

completed constitutes effective

control of the goods.

Air Waybill

The primary document for the

carriage of goods by air is the

air waybill. It is the contract

between the shipper and the air

carrier for the carriage of goods,

but it also serves as a receipt of

goods for shipment, a form of

invoicing, and a document for

the import, export and transit

requirements of Customs.

Road Consignment Note The international carriage of

goods by road is covered by the

CMR Convention, which is a set

of legal articles forming the

contract between the carrier

and the shipper. The CMR

Convention prescribes the issue

of a consignment note as

evidence of the contract of

carriage, the conditions of the

contract and the receipt of the

goods by the carrier.

Official Documents

In addition to the basic

document of carriage,

international freight transport

requires regulatory documents

such as those required by law or

for the declaration of goods at

import and export to Customs

and other regulatory

authorities. Examples of official

documents include Dangerous

Goods Notes, Certificates of

Origin, or licenses.

Commercial Documents

The commercial documents in a

transaction are many and varied

and will depend on the nature

of the consignment, methods of

payment, etc. Examples of

commercial documents will

include invoices, insurance

certificates, letters of credit,

and shipping instructions. This is

not an exhaustive list.



CFS & PORT OPERATION

The flow Chart above describes the Port Operation Procedures and the process they follow inside the port before

the goods or cargo is been dispatched.

Documents required inside the CFS

Challan:

This is a Bangla Term for a receipt which is handed

over for the Truck driver informing the good has

been dispatched from the factory.

Shipping Order (SO)

: A document used by a business to specify what

items are to be transferred from a storage location

or warehouse to what person and to what new

location. A shipping order typically is sent along with

a shipment of goods so that the person receiving

them can verify that the document correctly reflects

the items that they actually received.

Commercial invoice:

A commercial invoice is a document used in foreign

trade. It is used as a customs declaration provided by

the person or corporation that is exporting an item

across international borders. Although there is no

standard format, the document must include a few

specific pieces of information such as the parties

involved in the shipping transaction, the goods being

transported, the country of manufacture, and the

Harmonized System codes for those goods. A

commercial invoice must also include a statement

certifying that the invoice is true, and a signature

A commercial invoice is used to calculate tariffs,

international commercial terms (like the Cost in a

CIF) and is commonly used for customs purposes.

Commercial invoices are in European countries not

normally for payment. The definitive invoice for

payment usually has only the words "invoice". This

invoice can also be used as a commercial invoice if

additional information is disclosed.



Packing List:

Itemized list of articles usually included in each

shipping package, giving the quantity, description,

and weight of the contents. Prepared by the shipper

and sent to the consignee for accurate tallying of the

delivered goods. Also called bill of parcels, packing

slip, or unpacking note.

Shipping Bill:

Customs document used where drawback is claimed,

such as on goods exported or on dutiable goods

transshipped or re-exported from a bonded

warehouse. It serves basically as a statistical record.



Different types of Containers:

Dry Storage Container The Most Commonly used shipping containers; they

come in various dimension standardized by ISO .

They are used for shipping for dry materials and

comes in sized of 20ft, 40ft 40HC ft. and 10ft

Flat Rack Container With collapsible side, these are like simple storage

shipping containers where the sides can be folded so

as to make a flats rack for shipping of wide varieties

of goods

Open top Container With a Convertible top that can be completely

removed to make an open top so that materials of

any height can be shipped easily

Tunnel Container Container Storage units provided with doors on both

ends of the container, they are extremely helpful in

quick loading and unloading of materials.

Open Side Storage Container: These Storage units are provided with doors that can

change into completely open sides providing a much

wider room for loading of materials

Double Door Container They are kinds of storage units that are provided

with double doors,making a wider room for loading

and unloading of materials .construction materials

include steel ,iron etc. in standardized size of 20ft

and 40ft



.

Refrigerated ISO containers These are temperature regulated shipping

containers that always have a carefully controlled

low temperature. They are exclusively used for

shipment of perishable substances like fruits and

vegetables over long distances.

Insulated or thermal containers These are the shipping storage containers that come

with a regulated temperature control allowing them

to maintain a higher temperature.

The choice of material is so done to allow them long

life without being damaged by constant exposure to

high temperature. They are most suitable for long

distance transportation of products

.

Tanks Container storage units used mostly for

transportation of liquid materials, they are used by a

huge proportion of entire shipping industry. They are

mostly made of strong steel or other anti-corrosive

materials providing them with long life and

protection to the materials

.

Cargo storage roll container A foldable container, this is one of the specialized

container units made for purpose of transporting

sets or stacks of materials. They are made of thick

and strong wire mesh along with rollers that allows

their easy movement. Availability in a range of

colored wire meshes make these shipping container

units a little more cheerful.



Half height containers Another kind of shipping containers includes half

height containers. Made mostly of steel, these

containers are half the height of full sized containers.

Used especially for good like coal, stones etc. which

need easy loading and uncork carriers

Car carriers Are container storage units made especially for

shipment of cars over long distances? They come

with collapsible sides that help a car fit snugly inside

the containers without the risk of being damaged or

moving from the spot. Loading.

Intermediate bulk shift containers These are specialized storage shipping containers

made solely for the purpose of intermediate

shipping of goods. They are designed to handle large

amounts of materials and made for purpose of

shipping materials to a destination where they can

be further packed and sent off to final spot

Drums As the name suggests, circular shipping containers,

made from a choice of materials like steel, light

weight metals, fiber, hard plastic etc. they are most

suitable for bulk transport of liquid materials. They

are smaller in size but due to their shape, may need

extra space



Special purpose containers Not the ordinary containers, these are the container

units, custom made for specialized purposes. Mostly,

they are used for high profile services like shipment

of weapons and arson. As such, their construction

and material composition depends on the special

purpose they need to cater to. But in most cases,

security remains the top priority.

Swap bodies They are a special kind of containers used mostly in

Europe. Not made according to the ISO standards,

they are not standardized shipping container units

but extremely useful all the same. They are provided

with a strong bottom and a convertible top making

them suitable for shipping of many types of

products.

Garment on Hanger Container

(GOH) Garment On Hanger (GOH) (also known in certain

circles as Hangtainer) containers are standard/dry

containers that are converted/outfitted to be able to

safely and conveniently carry garments on hangers –

the same way you see them hanging in all the major

retail stores..

A lot of the shipping lines have their own GOH

containers for which they charge a premium for the

conversion and outfitting.. The retail companies

benefit a lot in terms of time, labour and money by

using GOH for their garment imports as they can

move the garments from the container to the shop

floor DIRECTLY and in a good condition



What is Air Freight? Air freight parcel delivery is the transfer and shipment of goods via an air carrier, which may be charter

or commercial. Such shipments travel out of commercial and passenger aviation gateways to anywhere

planes can fly and land.

Advantage of Air Freight Shipping.

High Speed: The supreme advantage of air transport is its

high speed. It is the fastest mode of transport

and thus it is the most suitable mean where

time is an important factor.

Comfortable and Quick Services: It provides a regular, comfortable, efficient and

quick service.

No Investment in Construction of

Track: It does not require huge capital investment in

the construction and maintenance of surface

track.

No Physical Barriers: It follows the shortest and direct route as seas,

mountains or forests do not come in the way of

air transport.

Easy Access: Air transport can be used to carry goods and

people to the areas which are not accessible by

other means of transport.

Emergency Services: It can operate even when all other means of

transport cannot be operated due to the floods

or other natural calamities. Thus, at that time, it

is the only mode of transport which can be

employed to do the relief work and provide the

essential commodities of life.

Quick Clearance: In air transport, custom formalities can be very

quickly complied with and thus it avoids delay in

obtaining clearance.

Most Suitable for Carrying Light

Goods of High Value: It is most suitable for carrying goods of

perishable nature which require quick delivery

and light goods of high value such as diamonds,

bullion etc. over long distances.

National Defense: Air transport plays a very important role in the

defense of a country. Modern wars have been

fought mainly by airplanes. It has upper hand in

destroying the enemy in a very short period of

time. It also supports over wings of defense of a

country.

Space Exploration: Air transport has helped the world in the

exploration of space.

Disadvantage of Air Freight

Shipping. In spite of many advantages, air transport has

the following limitations:



Very Costly: It is the costliest means of transport. The fares

of air transport are so high that it is beyond the

reach of the common man.

Small Carrying Capacity:

Its carrying capacity is very small and hence it is

not suitable to carry cheap and bulky goods.

Uncertain and Unreliable:

Air transport is uncertain and unreliable as it is

controlled to a great extent by weather

conditions. Unfavourable weather such as fog,

snow or heavy rain etc. may cause cancellation

of scheduled flights and suspension of air

service.

Breakdowns and Accidents:

The chances of breakdowns and accidents are

high as compared to other modes of transport.

Hence, it involves comparatively greater risk.

Large Investment:

It requires a large amount of capital investment

in the construction and maintenance of

airplanes. Further, very trained and skilled

persons are required for operating air service.

Specialized Skill:

Air transport requires a specialized skill and high

degree of training for its operation.

Unsuitable for Cheap and Bulky

Goods:

Air transport is unsuitable for carrying cheap,

bulky and heavy goods because of its limited

capacity and high cost.

Legal Restrictions:

There are many legal restrictions imposed by

various countries in the interest of their own

national unity and peace.

Different types of plates and

container in Airfreight

Common designation: LD-1 IATA ULD code: AKC contoured container

Also known as: AVC, AVD, AVK, AVJ, and forkable AVY

Rate class: Type 8

Description: Half-width lower hold container with one

angled side.

Door is either canvas or solid.

Suitable for: 747, 767, 777, 787, MD-11 lower hold

Door opening: 58 x 61-in (147 x 155-cm)

Maximum gross weight: 1,588 kg (3,501 lb)

Tare weight: 70 to 170-kg (155 to 375-lb)



AS1825 volume: 5.0 m3 (175 ft3)

Boeing volume: 5.0 m3 (175 ft3)

Common designation: LD-2 IATA ULD code: DPE contoured container

Also known as: APA, DPA, and forkable

DPN Rate class: Type 8D

Description: Half-width lower hold container with one

angled side.


Suitable for: 747, 767, 777, 787 lower hold



Tare weight: 92 kg (203 lb)

AS1825 volume: 3.5 m3 (124 ft3)


Common designation: LD-3 IATA ULD code: AKE contoured container

Also known as: AKE, AVA, AVB, AVC, AVK, DVA, DVE,

DVP, XKS, XKG, and

forkable AKN, AVN, DKN, DVN, and XKN

Rate class: Type 8

Description: Half-width lower hold container with

one angled side.


Suitable for: 747, 767, 777, 787, DC-10, MD-11

lower hold


Maximum gross weight: 1,588 cm (3,500 lb)


AS1825 volume: 4.5 m3 (159 ft3)




Common designation: LD-3 Reefer

IATA ULD code: RKN contoured cool container

Also known as: RVN

Rate class: Type 8

Description: Half-width lower hold insulated

container with one angled end.

Door is solid. Most examples are forkable.


lower hold




AS1825 volume: 4.5 m3 (159 ft3) plus internal

volume (as is)

Common designation: Half pallet IATA ULD code: PNA 767 half pallet with net

Also known as: PQP, FQF, and PPC

Rate class: Type 8

Description: Half pallet squared off for 767 lower hold

Suitable for: 767, 787 lower hold



AS1825 volume: 5.5 m3 (194 ft3

Common designation: Half pallet IATA ULD code: PLA half pallet with net

Also known as: PLB, FLA, P9A, P9B, P9P, P9R, and P9S

Rate class: Type 6

Description: Half pallet is contoured for lower hold and

main deck.

Suitable for: 747, 777, 787 lower hold; 707F, 727F, 737F

main deck with contoured load



AS1825 volume: 7.1 m3 (250 ft3)



Common designation: LD-4 IATA ULD code: ALP rectangular container

Also known as: ALD, AWD, AWZ, DLP, and forkable ALB,

ALC, AWB, and AWC

Rate class: Type 8

Description: Full-width lower hold container.

Door is canvas with built-in door straps.

Suitable for: 767, 777, 787 lower hold




AS1825 volume: 5.7 m3 (200 ft3)


Common designation: LD-6 IATA ULD code: ALF contoured container

Also known as: AWA, AWF, and forkable AWC

Rate class: Type 6W

Description: Full-width lower hold container with angled

ends.


Suitable for: 747, 777, 787, DC-10, MD-11 lower hold




AS1825 volume: 9.1 m3 (322 ft3)


Common designation: LD-7 IATA ULD code: P1P flat pallet with net

Also known as: PAA, PAG, PAJ, PAP, PAX, P1A, P1C, P1D, and

P1G

Rate class: Type 5

Description: Universal general-purpose flat pallet for lower

holds and main decks.

Suitable for: Widebody: All aircraft lower holds and main decks

Standard-body: 707F, 727F, 737F, 757F, DC8F, DC9F main decks



AS1825 volume: 10.5 m3 (370 ft3)




Common designation: LD-7 IATA ULD code: PAD P1P pallet with folding wings and net

Also known as: PAX and P1X

Rate class: Type 5

Description: P1P base with folding wings for overhang.

Suitable for: 747, 777, 787, DC-10, MD-11 lower holds



AS1825 volume: 14.0 m3 (495 ft3)

Common designation: LD-7 IATA ULD code: XAW P1P pallet with fixed-angle wings and

net

Rate class: Type 5

Description: P1P base with fixed wings for overhang.

Suitable for: 747, 777, 787, DC-10, MD-11 lower holds



AS1825 volume: 14.0 m3 (495 ft3)

Common designation: LD-8 IATA ULD code: DQF

Also known as: ALE, ALN, DLE, DLF, DQP, and MQP

Rate class: Type 6A

Description: Full-width lower hold container angled at

both ends.


Suitable for: 767, 787 lower hold




AS1825 volume: 7.1 m3 (252 ft3)




Common designation: LD-9 IATA ULD code: AAP enclosed pallet on P1P base

Rate class: Type 5

Description: General-purpose enclosed container fitted

to P1P base.

Door is canvas with built-in net door straps, or solid.

Suitable for: 747, 767, 777, 787, DC-10, MD-11 lower

hold

Door opening: 118 x 58 in (300 x 147-cm)

Maximum gross weight: Lower hold, 4,624 kg (10,194

lb); main deck, 6,000 kg (13,227 lb)

Tare weight: Canvas door, 215 kg (473 lb); solid door,

270 kg (595 lb)

AS1825 volume: 10.8 m3 (381 ft3)


Common designation: LD-9 Reefer IATA ULD code: RAP cool container on P1P base

Rate class: Type 5 Description: Insulated container with

solid door.

Suitable for: 747, 767, 777, 787, DC-10, MD-11 lower

hold


Maximum gross weight: Lower hold, 4,626 kg (10,198

lb); main deck, 6,000 kg (13,227 lb)


Internal volume: 9.6 m3 (339 ft3)

Common designation: LD-11 IATA ULD code: ALP rectangular container

Also known as: ALD, AW2, AWB, AWD, AWZ, DLP, DWB,

and MWB.

Refrigerated version: RWB, RWD, and RWZ.

Rate class: Type 6 Description: Full-width lower hold

container.

Door is canvas. Center post swings clear for loading.

Refrigerated version has solid door.







AS1825 volume: 7.4 m3 (262 ft3)


Common designation: LD-26 IATA ULD code: AAF contoured container on P1P base

Rate class: Type 5


both ends.

Door is canvas with built-in net door straps.





AS1825 volume: 13.3 m3 (470 ft3)

Common designation: LD-29 IATA ULD code: AAU contoured container on P1P base

Rate class: Type 5


both ends.


Suitable for: 747 lower hold




AS1825 volume: 14.4 m3 (510 ft3)



Common designation: LD-29 IATA ULD code: RAU contoured cool container on P1P

base.

Rate class: Type 5


both ends.

Refrigerated version of AAU has solid door.





Internal volume: 11.1 m3 (392 ft3)

Common designation: LD-39 IATA ULD code: AMU contoured container on P6P base

Rate class: Type 2BG

Description: Full-width lower hold container angled at both

ends.






AS1825 volume: 15.9 m3 (560 ft3)

Common designation: P6P pallet IATA ULD code: P6P 10-ft flat pallet with net

Rate class: Type 2BG

Description: Universal general-purpose flat pallet for

lower holds and main decks.



AS1825 volume: H 162.6 cm (64 in), 11.5 m3 (407 ft3) H

243.8 cm (96 in), 17.0 m3 (600 ft3) H 299.7 cm (118 in),

21.2 m3 (750 ft3)

Boeing volume: H 162.2 cm (64 in), 11.7 m3 (415 ft3) H

243.8 cm (96 in), 17.0 m3 (600 ft3) H 299.7 cm (118 in),

21.2 m3 (750 ft3)



Common designation: Demi IATA ULD code: AYY contoured container on half

pallet base.

Rate class: Type 7

Description: Half-width main deck container with

top contour

Suitable for: 727F, 737F, 757F main deck 747F, 767F,

777F, DC-10F, MD-11F main deck



AS1825 volume: 5.8 m3 (206 ft3)

Common designation: Type A pen IATA ULD code: KMA sheep and goat pens on P1P base

with net

Rate class: Type 3

Description: Triple-deck sheep and goat pens

Suitable for: Main deck 747F, 767F, 777F, DC-10F, MD-11F

Tare weight: Triple deck, 610 kg (1,344 lb);

AS1825 volume: 15.9 m3 (560 ft3)

Common designation: HMA stall IATA ULD code: HMA horse box on P6P pallet base

Rate class: Type 2

Description: P6P base with IATA-specified horse box stalls

attached.

Available with canvas top or solid roof.

Some further modified versions available with position for

escort.

Suitable for: Main deck 747F, 767F, 777F, DC-10F, MD-11F


Tare weight: 1,310 kg (2,888 lb)

AS1825 volume: 18.4 m3 (653 ft3)



Common designation: M-1 IATA ULD code: AMA rectangular container on P6P base

Rate class: Type 2

Also known as: AMF, AMG, AMK, AMP, AQA, AQD, and AQ6

Description: Main-deck container. Door is canvas with built-

in net door straps.

Suitable for: 747F, 747 Combi 777F center loading only


Tare weight: 350 kg (772 lb),

AS1825 volume: 17.6 m3 (623 ft3)

Common designation: M1H IATA ULD code: AMD contoured

Rate class: Type 2H

Description: Main-deck upper contoured container.





AS1825 volume: 21.2 m3 (750 ft3)

Common designation: Main deck pallet (MDP) IATA ULD code: PRA 16-ft pallet with net

Rate class: Type 1P

Also known as: PMA, P4A, P4M, and PZA

Description: Main-deck pallet with net Suitable for: 747F, 747

Combi, 777F



AS1825 volume: 27.6 m3 (974 ft3)

Common designation: M-6 IATA ULD code: PRA 16-ft flat pallet with twin car racks as VRA

Rate class: Type 1P

Also known as: PMA, P4A, P4M, and PZA

Description: Main-deck pallet with special moulding for car rack attachments.

The support racks are available in pairs as IATA ULD code VRA.



Suitable for: 747F, 747 Combi, 777F (center loading only)

Maximum gross weight: 8,900 kg (19,621 lb),

vehicle for upper rack must not exceed 1,800 kg (3,968 lb)


Car supports weight: 130 kg (286 lb) per pair Note:

The same system is available for longer vehicles on 20-ft pallet.

The only increase in weight is the pallet tare weight: 500 kg (1,102

lb).

Common designation: M-6 IATA ULD code: PGA 20-ft flat pallet with net

Rate class: Type 1

Also known as: PGA, PGE, PGF, PSA, PSG, P7E, P7F, and P7G

Description: Main-deck pallet squared off to 244 cm (96 in)

high.

Suitable for: 747F, 747 Combi, 777F


Tare weight: 500 kg (1,102 lb)

AS1825 volume: 33.7 m3 (1,190 ft3)

Common designation: M-2 IATA ULD code: AGA 20-ft box container

Rate class: Type 1

Also known as: ASE Description: Main-deck container.

Door is solid.



Tare weight: 1,000 kg (2,204 lb)

AS1825 volume: 33.7 m3 (1,190 ft3)

Common designation: M-6 IATA ULD code: PGA 10-ft high, 20-ft flat pallet with net

Rate class: Type 1

Also known as: PGA, PGE, PGF, PSA, PSG, P7A, P7E, P7F, and P7G

Description: Main-deck pallet squared off to 299.7 cm (118 in) high.

Suitable for: 747 Combi, 777F 747F through side cargo door only


Tare weight: 500 kg (1,102 lb)

AS1825 volume: 39.6 m3 (1,400 ft3)



Names of Container Ship Liners:

MAERSK LINE: Maersk line is the global container division and the largest operating unit of Maersk Group which is a

Danish Business Conglomerate. It is the world’s largest container shipping companies which have

customers through 374 offices in 166 countries and approximately 7,000 sea farers and 25,000

approximately based people. Maersk Line operates over 600 vessel and has a capacity of 2.6 million TEU

This company was founded in 1928, The CEO of the company is Soren Skou .

Hapag Lloyd: Is a German Chilean Transportation Company comprising a cargo container shipping line,Hapag Lloyd

AG, which in turn owned other subsidiaries such as Hapag-Lloyd Cruises. Hapag –Llyod AG is the world’s

fifth largest container carrier in terms of vessel capacity. The company was formed in 1970 as a merger

of two 19th century companies. Hapag, which dated from 1847 and Norddeutscher Lloyd (NDL) or (NGL),

which was formed in 1856. Hapag-Lloyd was acquired in 1998 by TUI AG (Hanover) and became its fully

owned subsidiary in 2002.

HAPAG: the Hamburg-Amerikanische-Paketfahrt-Aktien-Gesellschaft for shipping acoss the Atlantic

Ocean was founded in Hamburg.

North German Lloyd: Norddeutscher Lloyd (NDL) was formed in 1856 in the city –state of Bremen ,

offering passenger and cargo transportation between Bremen and New York .

Hanjin Shipping: Hanjin Shipping Co.ltd is South Korea’s Largest and one of the world’s top ten container carriers in terms

of capacity .Hanjin Shipping operates some 60 liner and tramper services around the globe transporting

over 100 million tons of cargo annually. Its fleet consists of some 200 containerships,bulk and LNG

Carriers Hanjin Shipping Has its Own Subsidiaries dedicated to ocean transportation and terminal

operation and it has 230 branch offices in 60 different countries . Hanjin Shipping was founded in 1977

in South Korea

OOCL: Orient Overseas Container Line OOCL is a Hong Kong – based container shipping and logistics Services Company. OOCL is one of the

world’s largest integrated international container transportation, logistics and terminal companies with

more than 320 offices in 70 countries around the world providing 78 services covering international

trading market with a fleet of more than 300 ship including line vessels, feeder and OOCL-owned and

operated vessels OOCL has vessels of different classes wth capacity varying from 2,500 twenty foot

equivalent units (TEU) to 13,000 TEU and ice class vessels for extreme weather conditions . OOCL was

founded 1969 .



HMM:Hyundai Merchant Marine Hyundai Merchant Marine (HMM) is a South Korean integrated logistics and containerized freight

Transport Company. With more than 50 sea routes, over 100 ports of call and operating about 138

vessels. HMM provides worldwide global service network, diverse logistics facilities ,leading IT shipping

related systems, a professional highly trained staff and continual effort to provide premiere

transportation . HMM begin with 3 VLCCs in 1976 . when the company was founded .

NYK LINE Nippon Yusen Kabushiki Kaisha is a Japan Mail Shipping Line or NYK Line is one of the oldest and Largest

Shipping Companies in the world .It is a member of the Mitsunishi UFJ FInacial Group Keirestu.The

Company has its Headquarters in Chiyoda,Tokyo,Japan . it was founded in Tokyo on September 29,1885.



Names of Airfreight Companies:

Singapore Airlines Cargo: (SIA CARGO) Is a Cargo airline based in Singapore .it is a subsidiary of Singapore Airlines and was incorporated in

2001.SIA Cargo operates nine freighters and manages the belly hold of all Singapore Airlines and Scoot

Aircraft. SIA Cargo’s warehouse in Singapore, dubbed SIA super hub 1, was opened in 1995.This

warehouse is capable of handling up to 450,000 tons of goods a year . in 2001 Super hub 2 was opened

which increased the capacity to over 1,200,000 Tonnes per year .

Etihad Cargo: Etihad Cargo, formerly Etihad Crystal Cargo, operates three Boeing B777F,one Boeing 747-

400F(operated by Atlas Air in Etihad Colours) and three Airbus A330-200F.Ethihad Cargo has one

additional Airbus A330 -200F freighter Scheduled for Delivery in 2014 Etihad Cargo delivered 368,000

tonnes of cargo in 2012, a tonnage growth of 19 per cent on the back of a capacity increase of 14 per

cent in available tonnage kilometers.

Qatar Airways Cargo: the airline's freight branch, is the world's third largest international cargo carrier.[109] It has ordered

three Boeing 777F.[110] The first Boeing 777F was delivered to the airline in on May 14, 2010, and has

freight facilities able to handle 750,000 tonnes of cargo per annum during its first development phase.

The Boeing 777F will be used primarily on Qatar Airways' Far East and European routes and will be

supplemented by Airbus A300-600F freighters operating on regional routes feeding the airline's hub.

Dedicated cargo flights to Cairo International Airport were launched in June 2009 complementing the

passenger services already operated. On August 18, 2010, the airline launched its first US dedicated

cargo service from its hub in Doha to Chicago-O'Hare with a stop-over in Amsterdam, Netherlands using

Boeing 777 freighter aircraft. On March 13, 2013, Qatar Airways Cargo first of three A330F was delivered

provided on lease from BOC aviation replacing A300-600F.Global Supply Systems operated three Boeing

747-8F aircraft under a wet lease arrangement for British Airways World Cargo until BA terminated the

contract early on January 17, 2014.[115] An agreement with Qatar Airways to operate flights for IAG

Cargo using Boeing 777F was announced on the same day. On March 18, 2015, Qatar Airways Cargo

announced that starting April 4, 2015 will launch a twice-weekly Boeing 777 Freighter service to Los

Angeles which will become Qatar Airways Cargo’s fourth US freighter destination alongside Houston,

Chicago and Atlanta.



Lufthansa: Lufthansa Cargo AG is a German cargo airline and a wholly owned subsidiary of Lufthansa. It operates

worldwide air freight and logistics services and is headquartered at Frankfurt Airport, the main hub of

Lufthansa. Besides operating dedicated cargo planes; the company also has access to cargo capacities of

350 passenger aircraft of the Lufthansa Group. Lufthansa was Founded 1977 as German Cargo

Lufthansa name was founded in 1993.



SAFE TRANSPORT OF

CONTAINERS BY SEA

Overview It is of the utmost importance to recognize that

actions taken when containers are stuffed may

have direct implications for the stability and

safety of containerships, the lives of seafarers

on board and the safety of others throughout

the transport chain. It is particularly important

for all involved to understand the high degree

of physical risk presented by the marine

environment, the extreme forces to which a

ship is exposed at sea, and the extent to which

these risks are greatly increased by any failure

to stuff containers correctly. This point cannot

be over emphasised. It is vital to adhere to

weight restrictions, and correct procedures for

loading and securing cargo, to ensure the safe

distribution of weight and that cargoes inside

containers do not move or shift when at sea,

compromising the safety of the ship. The

IMO/ILO/UNECE Guidelines on the Packing of

Cargo Transport Units provides a common

global resource for information on container

stuffing.

Key Requirements The following requirements must be adhered to

during container stuffing/unstuffing, in addition

to the more specific observations elsewhere in

this leaflet:

• Subject to booking request, select the most

suitable container type to accommodate the

cargo;

• Prepare a pre-stow plan before commencing

stuffing so that weight/volume considerations

are covered and point loading limits are

observed;

• Never load by weight above the payload

limits of the container, i.e. the cargo and

container net weight must not exceed the

container’s gross safe working load;

• Never load by weight above the road

regulations applicable on the transit;

• Distribute the weight of the cargo evenly over

the floor of the container. Never stow heavy

items in one section and light items in another.

The weight of the cargo should not exceed the

’60% within half the length rule’;

• Do not stow heavy goods on top of light

goods;

• Stow and secure all cargo tightly;

• Observe all the handling instructions on cargo

such as “Do not drop” or “This side up”;

• Stow goods with sharp corners separate from

other softer merchandise. Use dividers and

separating material as appropriate;

• Where possible with mixed loads, place

packages containing liquid cargo on the bottom

tiers with dry cargo on top;

• Use cargo liners for obnoxious cargo such as

hides and carbon black;

• Do not use clamps or other loading devices

unless the goods can withstand them;

• When loading Dangerous Goods, ensure that

the IMDG Code packaging requirements are

always observed;

• Do not load goods in a container with

damaged packaging;

• Do not stow wet and damp goods with dry

goods;



• Do not use dunnage or packaging which is

incompatible with the cargo;

• Do not stow goods with tainting odours with

sensitive merchandise;

• Observe all rules concerning dangerous

cargo. Use appropriate labels and placards to

identify packing and freight containers loaded

with Dangerous Goods;

• Stow hazardous cargo near the door where

possible;

• Include all necessary documentation;

• Record the seal number and the container

number on all shipping documents;

• Never smoke, eat or drink during loading or

unloading.

Checking the Container

In most operational regions, containers are

inspected when they return after import but

not again when they are released for export.

There will also be instances of triangulation

moves when the container is driven by truck

straight from the import customer to the export

customer. In such cases, the container will

probably have only received a quick sweep out

and check for damage by the haulier. A full

container inspection for structural damage

requires a competent and trained person.

However, checking for cleanliness and general

acceptability is a matter of common sense. It is

very much in the interests of any user,

regardless of whether the container is being

stuffed with a full load, to carry out a quick

internal and external inspection prior to stuffing

(and also after unstuffing the container). The

following useful checklists should assist the

examination of containers during cleaning,

loading and unloading, to help minimise cargo

damage and reduce risks to personnel. At all

times, it is necessary to adhere to the

IMO/ILO/UNECE Guidelines for Packing of Cargo

Transport Units.

Pre-Stuffing

Prior to stuffing, a number of checks should

Industry Guidance for Shippers and Container

Stuffers

be made on a container both internally and

externally to ensure that it is structurally sound,

and safe to work in and around. Dated and

digital photographs of the interior and exterior

of the container should be taken.

External Checks

Before a container is opened, it should be

ensured that it possesses a valid Container

Safety Approval Plate and that the

reexamination date has not passed. Once this

has been established, the following aspects of

the container’s exterior should be assessed

before it is opened or entered:

• Holes: No obvious holes or tears in the

exterior panelling;

• Doors: No broken or distorted door hinges,

locks, or door seal gaskets;

• Tilts (Tarps): Where containers are fitted

with removable roof tilts (tarps) or side

curtains, they should fit correctly, be equipped

with tilt wires and have no tears in the fabric;

• Roof bows: Open top containers should have

all the roof bows (supports) in place. If the roof

is of the retractable sort then the roof bows

should slide smoothly to the ends of the

container;

• Placards and Markings: Any placards or

markings remaining on the outside of the empty



container which refer to the previous cargo

should be removed;

• Structure: No serious structural defects such

as torn or cracked corner fittings or side rails

(IMO CSC/Circ. 134 contains guidance).

Internal Checks

Once the external elements of a container unit

have been agreed to be of a suitable standard,

the container may be opened in order that the

following checks can be made:

• Clean: No leftovers (sweepings, dust, grease

or liquid) of the previous cargo;

• Dry: The interior should be dry and free of

any sweat or frost;

• No infestation: There should be no evidence

of pests, insects or rodents which might

contaminate cargo and lead to delay by port

health authorities;

• Taint free: If delicate goods susceptible to

damage by bad odours are to be packed, then

the container should be “sweet” smelling. This

should be checked immediately on opening the

doors when any lingering smells will be at their

strongest. Caution must be exercised in case

there are obnoxious gases from cargo

previously

stowed in containers, particularly where

fumigation may have been used;

• Watertight: This is best checked by entering

the container and closing both doors. If any

spots of light can be seen then water can gain

entry. This also applies to the container floor

because water can splash upwards during road

haulage;

• Follow instructions: Any recommendations

posted inside the container should be noted.

Post Stuffing

When the planned quantity of goods has been

stuffed in a container, the following checks

should be made:

Restraint: The goods should be arranged and

secured to withstand the normal stresses and

strains of the journey. In particular, ensure

doorway cargo cannot move;

Customs inspection: If more than one type of

article is stuffed in the container, it may save

time and the cost of a search if a sample of each

article is positioned near the door;

Security: When the doors are shut, all securing

lugs should be properly engaged forcing the

door seals into compression. The company’s

approved seal should be fitted in the

appropriate position on the right hand door and

the number noted. Seals should comply with

ISO standards;

Contents: Any placard, except those required

by regulation, on the outside of the container

advertising the contents will attract thieves and

should be removed. Any packages of

Dangerous Goods should be labelled according

to the IMDG Code; Placards: DG Placards, if

appropriate, should be affixed in the

recommended positions. The placards must be

placed in such a way that they do not obscure

the number of the container or other

distinguishing marks.

Prior to Unstuffing

The following should be checked prior to

unstuffing:

Security: Seal is intact and has not been

tampered with. The number must be compared



with the accompanying documents for possible

future reference;

External condition of the container: Any

damage that may have affected the content

should be duly noted; Placards and markings:

Before opening the doors, due regard should be

taken of any placards and markings such as DG

labels or contents shipped in bulk;

Doors: The doors should be opened

cautiously and retaining straps attached to the

locking bars to avoid harm to individuals. This is

to guard against the risk of improperly secured

cargo falling out and harming personnel. Once

the doors are open, the container should be

allowed to ‘air’ for a period of time to ensure

that no hazardous gases or fumes are present

which could affect persons entering it.

Checklist after Unstuffing

When a container is empty of cargo, the

container should be checked for damage that

might lead to claims. Most tariffs are so

worded that it is obligatory for full container

load customers to clean out the container after

unstuffing. This includes removal of all

packaging and a thorough sweep out. It is

prudent to examine the container for any signs

of wet stains and holes in the sides or roof that

might have affected the cargo which has just

been carried. Labels and placards should be

removed when the container is empty.

General Stowage

Homogeneous Cargo

If the load consists of homogeneous cargo (and

all the cargo is the same size) the total volume

of the container should be utilised. Different

kinds of packaging methods exist such as

cartons, boxes, bags, drums and barrels, rolls,

liners for liquid bulk and small wooden crates.

The container may have vacant space left on

completion of stuffing due to weight

restrictions or otherwise, and sensible securing

is necessary on grounds of safety and cargo

care. Bagged cargoes with a high moisture

content, such as cocoa beans or coffee beans,

may require dressing of the container ceiling

and walls with moisture/condensation

absorbing paper, and the hanging of so called

Moisture Absorbing Materials (MAMS) bags in

the container’s corners.

Uniform Stowage

When cargo is stowed into a container and free

space is unavoidable, the cargo must be stowed

in such a way that there is a gap in the middle

of the stow. The gap, which can be fore and aft

or athwart the container, must be chocked with

wood or lashed with rope and, if the cargo is

fragile, nets or dunnage bags must be used.

Carton and Packages

It is important to follow any instructions

printed on the cartons, e.g. particular side up

for bottles of wine which require corks to

remain immersed. To ensure stability in the

stow and spread the weight as evenly as

possible a “Bonded Block Stow” should be used.

Bagged Cargo

Bagged cargo tends to settle during transit

causing pressure on side walls. Normal practice

is to stow bags in interlocking stows. Bag on



bag or building air chimneys within the stow

may be necessary where extra ventilation is

required. To avoid the risk of bags falling out of

the container when the doors are opened, a

brace or net should be placed against the final

row. Bags that are stowed and secured on

pallets do not cause this problem and the cargo

can be handled much faster.

Drums and Barrels

Drums and barrels in containers should always

be stowed upright if possible. If the bung or

closure is at one end, then it should be stowed

with the bung uppermost. Barrels of

earthenware etc should always be stowed

upright. Unless the drums or barrels are

specially designed to “nest”, there should be

some form of soft dunnage or ply between each

tier of drums. Dunnage should be laid

sufficiently close to provide full support to the

tier above. Rolling hoops, when pressed out of

the side walls of the drums, are particularly

susceptible to rupture through chafing. In some

instances, it may be necessary to lay dunnage

between individual drums to prevent rolling

hoops from chafing one another. A second

option is that each alternate row of drums may

be lifted a few centimetres with carefully laid

dunnage, allowing the rolling hoops to ride

clear and reducing the effective diameter of

each drum. Cargo behind the doorway should

be properly secured with a fence, net or lashing.

Rolls

When rolls are stowed upright, they should be

packed closely together. Any empty spaces

between the rolls should be filled in by sacks of

sawdust, corrugated cardboard or similar soft

dunnage. The rolls should be secured by means

of timber, nets or wedges. When the rolls are

stowed horizontally, the rolls which are nearest

to the door should be secured by wedges or

other similar devices. Support the rolls evenly

along their length on a flat surface particularly

with cargo such as carpets.

Rolls of paper require paper clamps for careful

handling.

Bulk Liquids

Wine, latex, printing ink and other

nonhazardous liquids are often transported in

strong synthetic “flexi-bags” in 20’ general dry

containers. The bags must be braced at the

door end of the container with a strong steel (or

other material) bulkhead. It is important to

make sure that the harness straps on the bags

are secured tightly to the anchorage rings in the

container. It is not only necessary to secure the

load but also to make sure the pressure on the

walls is not too high (if so, the pressure must be

distributed with planks or plates). Containers

with corrugated side panels should be used.

Bottom valves, if any, of the flexi-bag must be

enclosed and secured by the bulkhead panel, to

protect against shifting and bending during

transport, which can tear the bag.

Bulk Solids

Bulk bags are used for a wide range of granular

substances including malt and coffee. Care

should be taken to ensure that the cargo does

not exceed the design parameters of the

container.

Hanging Garments

Specialist containers are available for shipping

clothing. Failure to observe proper preparation

and stowage procedures can result in

considerable claims for dry cleaning of

garments which may have dropped to the

container floor.

Reefer Cargoes

Hot stuffing of containers (warm cargoes in

cooled containers) should be avoided,



and the cargoes should thus be pre-cooled.

Reefer cargoes must be stowed in such a

manner as to allow optimal circulation of cold

air. For example, stowage of cartons or other

packages up to the container ceiling will

prevent optimal air circulation and therefore

optimal cooling.

Safety and Securing This section identifies important issues of

safety that have been experienced with

containerised cargo and the related subject of

cargo securing.

Overloading

There have been many incidents over the years

of containers being loaded above their

stipulated payload. This can seriously affect

stability and the safety of any ship carrying the

cargo when it is underway at sea. In many cases

the manifests declare cargo within payload

limits when it is over the limit. This is often

exposed by the suspicions of a container

handler or even following an accident resulting

in a weighbridge check. Overloading is

something which can NEVER be condoned and

when accepting cargo the following should

always be obtained or checked. The party

stuffing the container is responsible for

ensuring that:

• The number of pieces, size, weight and

volume of any commodity is obtained;

• The payload and volume of the container

selected/requested is compared with the cargo

particulars to establish whether a weight or

volume restriction applies;

• The gross mass of the container is in

accordance with the gross mass given on the

shipping documents. Where a weight restriction

applies, the point

loading of cargo must also be checked in order

that the tonnes per square metre loading limit

is not breached. Cargoes such as metal ingots

come into this category and timber often

requires the weight to be spread. Extremely

dense cargo can overload a small area of a

container’s floor causing it to fail. For

extremely dense cargo, or cargo that puts a

high load into a small area of a container’s floor,

timber or other dunnage must be used to

spread the weight over a larger floor area. As a

rule of thumb, floor loading should not exceed

2,500 lb per linear foot of the container or a

maximum of 1.5 tonnes per floor supporting

cross member.

Road and Rail Limits

Apart from the immediate dangers to the safety

of ships created by overloading, the gross

weight of the container (cargo plus container

tare) must not breach the applicable road or rail

limits on all legs of the transit journey. The

importance of observing these limits cannot be

overstressed.

DG

In the interests of safety, it is essential to

ensure the following with respect to the

stowage of Dangerous Goods within a

container:

• The cargo must be declared to the

appropriate dangerous cargo department;

• All documentation must be completed,

signed and accurate;

• Individual packages of DG must be labelled;

• The container must be properly placarded

with appropriate placards, marks and signs, as

determined by the IMDG Code, affixed to the

outside walls of the container as specified by

the Code;



• The relevant IMDG stowage segregation

requirements must be complied with at all

times.

Shifting Cargo

The incidence of cargo moving inside a

container during transit is considerable. This is

usually because the cargo has not been secured

properly, or the packaging is defective. Apart

from the serious risks to ships and the stability

of container stacks, several cases have been

recorded where road vehicles have turned over

due to cargo moving, when negotiating bends.

The key issue is to secure cargo efficiently to

prevent the initial movement.

Although containerised cargo is well protected,

it is still subject to the constant movement and

stress of maritime transport. In heavy seas, the

cargo is exposed to compressive forces due to

pitching and rolling. These forces may increase

the normal strain on lashings, struts and other

securing devices by as much as 100%. Effective

securing of the load throughout the entire

transport process is therefore of absolute

importance.

Securing in Containers

The cargo in containers needs to be stowed in

such a way that the cargo cannot move. The

container itself is designed to permit tight,

secure stowage of cargo either through

compact loading or individual securing. These

facilities include:

• Floor of wood or plywood which permits

blocks, stays and wedges to be anchored with

nails or screws;

• Internal walls, for the support of light cargo

only;

• Corner posts which are suitable for bracing to

with timbers and by using lashing points

provided inside the container;

• Lashing points are located along top and

bottom rails of the container at regular

intervals. Example for a typical 20’ container’s

lashing facilities:

Example for a typical 20’ container’s lashing

facilities:

Location No of lashing points

Rating (kg)

Side wall(base)

5 2,000

Side wall (top)

5 500

Front (based) 1 500 Back (door recess area)

5 500

It should be noted that the walls, doors and

roof of a container are merely a protective shell

that cannot withstand concentrated stress. If

the walls or ceiling are used for lashing

purposes, the stress on the walls or ceiling must

be evenly distributed.

Securing Materials

Most types of cargo can be secured using the

following materials (though precautions should

be taken to ensure that they are not forbidden

for import into the cargo’s country of

destination):

• Timber beams, struts, chocks, planks for

shoring, bracing and relieving pressure;

• Adjustable wooden battens, rods or strap

belts for securing the load in sections,

facilitating mechanical discharge;



• Plywood and dunnage to separate several

layers of cargo or to segregate different types of

cargo into separate sections;

• Foam-rubber cushions and air bags to reduce

vibration and prevent the load from shifting;

• Second hand tyres or bags with paper waste

or sawdust to fill empty spaces, soften the

impact and prevent shifting;

• Nets to secure fragile goods;

• Rope (hemp, manila, sisal, etc), wire, steel

bands and terylene straps for lashing;

• Nylon span sets;

• Bolt clips into T section flooring in insulated

containers;

• Bulkhead bars.

Securing calculations aboard ship:

As shown in Figure 1, forces acting in a seaway

are: Rotational:

Rolling;

Pitching;

Sheering/Yawing.

Linear: Swaying;

Surging;

Heaving.

Calculations for securing against the above

forces follow a prescribed discipline and it is

important to refer to this procedure when

performing calculations. The recognised

calculations are contained in the IMO Code of

Safe Practice for Cargo Stowage and Securing

(CSS Code).

Final Weighing of Container After finalisation of stuffing and securing of

containerised cargo, the total container weight

must be verified and documented.





CARO HANDLING EQUIPMENT ON BOARD AND IN PORT.

The form of cargo-handling equipment employed is basically determined by the nature of the actual

cargo and the type of packing used. The subject of handling facilities raises the important question of

mechanization.

BULK CARGO HANDLING EQUIPMENT So far as dry bulk cargoes are concerned, handling facilities may

be in the form of power-propelled conveyor belts, usually fed at the landward end by a hopper (a very

large container on legs) or grabs, which may be magnetic for handling ores, fixed to a high capacity

travel1ing crane or travel1ing gantries. These gantries move not only parallel to the quay, but also run

back for considerable distances, and so cover a large stacking area, and are able to plumb the ship's

hold. These two types of equipment are suitable for handling coal and ores. In the case of bulk sugar or

when the grab is also used, the sugar would be discharged into a hopper, feeding by gravity a railway

wagon or road vehicle below. Elevators (US) or silos are normally associated with grain. They may be

operated by pneumatic suction which sucks the grain out of the ship's hold.

Ship Unloader

Front Loader



Belt Conveyor

Hopper

Grab type unloaded



Loading Boom

LIQUID CARGO HANDLING EQUIPMENT The movement of liquid bulk cargo, crude oil and derivatives, from the tanker is undertaken by means

of pipelines connected to the shore-based storage tanks. Pumping equipment is provided in the tanker

storage plant or refinery ashore, but not on the quayside. In view of the dangerous nature of such cargo,

it is common practice to build the special berths a small distance from the main dock system on the

seaward side. Oil cargo is discharged from the ship’s tanks, via the cargo piping system to the main

ship’s manifold usually situated amidships, on either port or starboard side. From there by means of

shore-based loading arms oil is transferred to the shore manifold and is then distributed to shore-based

storage tanks on the oil terminal. The loading arm hose must be flanged oil-tight to the ship’s manifold

so that oil spills can be avoided.



GENERAL CARGO HANDLING EQUIPMENT With regard to general cargo (goods, merchandise, commodities), also referred to as break bulk cargo,

almost 90 percent of all such cargo in most liner cargo trades today is containerized. Meanwhile the

system of dockers handling cargo will continue, but doubtless every effort will be made to expand the

a1ready extensive use of various types of mechanized cargo-hand1ing equipment. General cargo is

handled by cranes on the quay, floating cranes or by the ship's own cargo gear (deck cranes, derricks,

etc.). Attached to such lifting gear is a shackle which links the crane or derrick with the form of cargo-

handling equipment being used. For most lifts a hook is used. There are numerous types of tools or

loose gear that can be attached to the shipboard or shore-based lifting gear. They include the sling or

strop, which is probably the most common form of loose gear. Such equipment, generally made of rope,

is ideal for hoisting strong packages, such as wooden cases or bagged cargo, which is not likely to sag or

be damaged when raised. Similarly, snotters

or canvas slings are suitable for bagged cargo. Chain slings, however, are used for heavy slender cargoes,

such as timber or steel rails. Can or barrel hooks are suitable for hoisting barrels or drums. Cargo nets

are suitable for mail bags and similar cargoes that are not liable to be crushed when hoisted. Heavy

lifting beams are suitable for heavy and long articles such as locomotives, boilers or railway passenger

coaches. Cargo trays and pallets, the latter being wooden or of steel construction, are ideal for cargo of

moderate dimensions, which can be conveniently stacked, such as cartons, bags, or small wooden crates

or cases.









Additionally, dog or case hooks and case and plate clamps are suitable for transhipping cargo to railway

wagons or road vehicles, but not to or from the ship, except to facilitate trans-shipping the cargo in the

hold to enable suitable cargohandling gear to be attached. Plate clamps are used for lifting metal plates.

Dockers working in the ship's holds also use pinch or crowbars for moving heavy packages, and band

books for manoeuvring packages into position.

PORT/TERMINAL CARGO HANDLING EQUIPMENT A lot of terminal or port cargo handling equipment is provided to facilitate movement of the cargo to

and from the ship's side and the transit shed, warehouse, barge, railway wagon or road vehicle. These

include two-wheeled hand barrows and four-wheeled trucks either manually or mechanica1ly propelled,

and mechanically or electrica1ly propelled tractors for hauling four wheeled trailers. Ro-ro trailers are

moved by tug-masters or ro-ro tractors. There are also belt conveyors mechanically or electrically

operated, or rollers, all perhaps extending from the quayside to the transit shed, warehouse, railway

wagon or road vehicle. Containers are loaded and unloaded by means of the quayside container cranes,

i.e. container gantries also called shiptainers.

Transtainers or stacking cranes, straddle carriers, van carriers, front and side loading fork-lift trucks are

used for moving and stacking containers within the terminal up to five-high, i.e. five containers one

above the other. Mechanically powered straddle carriers are designed to distribute containers on the

quay and on the terminal.

Fork lift trucks (FLT) are mechanically or electrically operated and fitted in front with a platform in the

shape of two prongs of a fork; lifting capacity varies from 1 to 45 tons. Clamps for reels and bales are

provided on some fork lift trucks.

On the docks various types of dockside cranes, level-luffing cranes, mobile cranes etc. are used for

moving and lifting packages. All the vertical cargo movements are conducted by the lifting gear (lift-

on/lift-off equipment).



Roll-on/roll-off cargoes, i.e. containers and heavy loads on trailers, roll on and off the ro-ro ship via

stern, bow or quarter ramps. They are lifted to various decks on board by means of scissor-supported

platforms.



Terms used in Freight Forwarding:

ATA:

Actual Time of Arrival, or Airport-To-Airport, or Air

Transport Association of America.

ATD

Actual Time of Departure.

Air Waybill An AWB is a bill of lading which covers both

domestic and international flights transporting

goods to a specified destination. Technically, it is a

non-negotiable instrument of air transport which

serves as a receipt for the shipper, indicating that

the carrier has accepted the goods listed therein and

obligates it to carry the consignment to the airport

of destination according to specified conditions.

Normally AWB refers to the Air Waybill issued by

carrying airlines and also called Master Air Waybill

(MAWB) which comes with three digits of numeric

airline identification codes issued by IATA to non-

U.S. based airlines and Air Transport Association of

America to U.S. based airlines. However, air freight

forwarders also issue HAWB (House Air Waybill) to

their customers for each of the shipments.

Aircraft Container

A unit load device (ULD) which links directly with the

airplane cargo handling and restraint system.

All Risk

All Risks Coverage, a type of marine insurance, is the

broadest kind of standard coverage, but excludes

damage caused by war, strikes, and riots.

Allotment

A term used to describe blocked space by airlines on

behalf of forwarders/shippers.

Alongside

A phrase referring to the side of a ship. Goods to be

delivered alongside are to be placed on the dock or

lighter within reach of the transport ship's tackle so

that they can be loaded aboard the ship. Goods are

delivered to the port of embarkation, but without

loading fees.

BAF (Bunker Adjustment Factor)

An adjustment in shipping charges to offset price

fluctuations in the cost of bunker fuel.

Bill of Lading (B/L)

Bills of lading are contracts between the owner of

the goods and the carrier. There are two types. A

straight bill of lading is nonnegotiable. A negotiable

or shipper's order bill of lading can be bought, sold,

or traded while goods are in transit and is used for

many types of financing transactions. The customer

usually needs the original or a copy as proof of

ownership to take possession of the goods.

Bill of Sale

A bill of sale is a legal document made by a 'seller' to

a purchaser, reporting that on a specific date, at a

specific locality, and for a particular sum of money or

other "value received", the seller sold to the

purchaser a specific item of personal, or parcel of

real, property of which he had lawful possession. It is

a written instrument which evidences the transfer of

title to personal property from the vendor, seller, to

the vendee, buyer.

Bonded Warehouse The Customs Service authorizes bonded warehouses

for storage or manufacture of goods on which

payment of duties is deferred until the goods enter

the Customs Territory. The goods are not subject to

duties if re-shipped to foreign points.

Break Bulk (B/B)

For consolidated air freight, it is moved under one

MAWB and each consignment designated to specific

consignee or recipient is under one HAWB. When

freight forwarder receives the consolidated cargo

from carrier, they will break the consolidation apart



per HAWB then proceed customs clearance along

with associated shipping and import documents.

Such Break-Bulk is normally handled by airlines or

their contracted ground handling agent.

Break-bulk Vessel

A general cargo vessel designed to efficiently handle

un-containerized cargo. Vessels are usually self-

sustaining in that they have their own loading and

unloading machinery.

CAF (Currency Adjustment Factor)

A freight surcharge or adjustment factor imposed by

an international carrier to offset foreign currency

fluctuations. In some cases an emergency currency

adjustment factor (ECAF) may be applied when a

charge or rate has been originally published in a

currency that is experiencing sustained or rapid

decline. The CAF is charged as a percentage of the

freight.

Carnet

A customs document permitting the holder to carry

or send merchandise temporarily into certain foreign

countries for display, demonstration or other

purposes without paying import duties or posting

bonds.

Clean Bill of Lading

A receipt for goods issued by a carrier with an

indication that the goods were received in apparent

good order and condition, without damages or other

irregularities.

Combi Aircraft An aircraft configured to carry both passengers and

cargo on the Main Deck.

Commercial Invoice

The commercial invoice is a bill for the goods from

the seller to the buyer. These invoices are often used

by governments to determine the true value of

goods for the assessment of customs duties and are

also used to prepare consular documentation.

Governments using the commercial invoice to

control imports often specify its form, content,

number of copies, language to be used, and other

characteristics.

Consignee

The person or firm named in a freight contract to

whom goods have been consigned or turned over.

For export control purposes, the documentation

differentiates between an intermediate consignee

and an ultimate consignee.

Consignment

Delivery of merchandise from an exporter (the

consignor) to an agent (the consignee) under

agreement that the agent sell the merchandise for

the account of the exporter. The consignor retains

title to the goods until sold. The consignee sells the

goods for commission and remits the net proceeds

to the consignor.

Consolidation

In order to handle small lot of consignment

efficiently and competitively, freight forwarder

usually put many consignments into one lot then

tender to carrier for forwarding. In this case, each

consignment will be shipped with one HAWB

respectively and all of them will be under one

master AWB.

Cost and Freight (C&F)

Cost and Freight (CFR) to a named overseas port of

import. Under this term, the seller quotes a price for

the goods that includes the cost of transportation to

the named point of debarkation. The cost of

insurance is left to the buyer's account. (Typically

used for ocean shipments only. CPT, or carriage paid

to, is a term used for shipment by modes other than

water.) Also, a method of import valuation that

includes insurance and freight charges with the

merchandise values.

Cost, Insurance and Freight (CIF)

Cost, insurance, and freight (CIF) to a named

overseas port of import. Under this term, the seller

quotes a price for the goods (including insurance), all

transportation, and miscellaneous charges to the

point of debarkation for the vessel. (Typically used

for ocean shipments only. CIP, or carriage and



insurance paid to, is a term used for shipment by

modes other than water.)

Customs

The government authorities designated to collect

duties levied by a country on imports and exports.

Customs Broker

An individual or company licensed by the

government to enter and clear goods through

Customs. The U.S. Customs Service defines a

Customs Broker, as any person who is licensed in

accordance with Part III of Title 19 of the Code of

Federal Regulations (Customs regulations) to

transact Customs business on behalf of others.

Customs business is limited to those activities

involving transactions with Customs concerning the

entry and admissibility of merchandise; its

classification and valuation; the payment of duties,

taxes, or other charges assessed or collected by

Customs upon merchandise by reason of its

importation, or the refund, rebate, or drawback

thereof.

Customs Clearance

The procedures involved in getting cargo released by

Customs through designated formalities such as

presenting import license /permit, payment of

import duties and other required documentations by

the nature of the cargo such as FCC or FDA approval.

Customs Invoice A document, required by some foreign countries'

customs officials to verify the value, quantity, and

nature of the shipment, describing the shipment of

goods and showing information such as the

consignor, consignee, and value of the shipment.

DAFF (Department of Agriculture) Department of Agriculture, Fisheries and Forestry, is

now known as Department of Agriculture. It’s

responsible for Quarantine and Biosecurity at the

border.

DDP

Deliver Duty Paid.

DDU

Deliver Duty Unpaid.

Dangerous Goods Commodities classified by IATA according to its

nature and characteristic in terms of the effect of its

danger to carrier's flying safety.

Delivery Instructions Provides specific information to the inland carrier

concerning the arrangement made by the forwarder

to deliver the merchandise to the particular pier or

steamship line. Not to be confused with Delivery

Order this is used for import cargo.

Demurrage

Excess time taken for loading or unloading a vessel,

thus causing delay of scheduled departure.

Demurrage refers only to situations in which the

charter or shipper, rather than the vessel's operator,

is at fault.

Dimensional Weight Also called measurement weight. This is the size of

consignment calculated by total square feet by 6000.

Carrier charge for freight based on the dimensional

weight or actual gross weight whichever is higher.

Direct Ship

Ship without consolidation and under one MAWB i.e.

non- consolidation.

Drawback

Drawback is a rebate by a government, in whole or

in part, of customs duties assessed on imported

merchandise that is subsequently exported.

Drawback regulations and procedures vary among

countries.

Duty

A tax imposed on imports by the customs authority

of a country. Duties are generally based on the value

of the goods, some other factors such as weight or

quantity (specific duties), or a combination of value

and other factors (compound duties).



EDI

EDI , Electronic Data Interchange for Administration,

Commerce, and Transportation, is an international

syntax used in the interchange of electronic data.

Customs uses EDI to interchange data with the

importing trade community.

ETA Estimated Time of Arrival. Then, it normally takes 3

hours for carriers to Break Bulk then ready to be

picked up by forwarders along with customs release

notification.

ETD

Estimated Time of Departure. The cut-off time for

carriers' cargo ramp handling is normally two hours

ahead of ETD. However, the freight forwarders'

consolidation cut-off time may vary depending on

each forwarder's operations respectively.

Ex Works (...named place) (EXW) A term of sale in which for the quoted price, the

seller merely makes the goods available to the buyer

at the seller's "named place" of business. This trade

term places the greatest responsibility on the buyer

and minimum obligations on the seller. The Ex

Works term is often used when making an initial

quotation for the sale of goods without any costs

included.

FCL or CY Full Container Load, also known as CY . CY is the

abbreviation of Container Yard. When the term CY to

CY , it means full container load all the way from

origin to destination.

Federal Maritime Commission

The FMC is independent agencys which regulates

oceanborne transportation in the foreign commerce

and in the domestic offshore trade of the United

States.

Flat Rack Containers

Especially for heavy loads and over-dimensional

cargo. Containers do not have sides or a top. This

allows easy fork-lift and crane access.

Forty-Foot Equivalent Unit (FEU) FEU is a measure of a ship's cargo-carrying capacity.

One FEU measures forty feet by eight feet by eight

feet -- the dimensions of a standard forty-foot

container. An FEU equals two TEUs.

Free Alongside Ship Free Alongside Ship, FAS, at a named port of export.

Under FAS, the seller quotes a price for the goods

that includes charges for delivery of the goods

alongside a vessel at the port of departure. The

seller handles the cost of unloading and wharfage;

loading, ocean transportation, and insurance are left

to the buyer. FA is also a method of export and

import valuation.

Free Carrier (FCA)

Free Carrier, FCA, to a named place. This term

replaces the former “FOB named inland port" to

designate the seller's responsibility for the cost of

loading goods at the named shipping point. It may

be used for multimodal transport, container stations,

and any mode of transport, including air.

Free On Board (FOB)

Common price term used in international trade

meaning seller's responsible for the cost of goods is

to the point of loading it to the vessel deck or

aircraft loading deck. The risk of loss of or damage to

the goods is transferred from the seller to the buyer

when the goods have been so delivered. FOB

normally comes with port of loading either airport or

sea port.

Freight Carriage ... and Insurance paid to

This term is the same as "Freight/Carriage Paid to ..."

but with the addition that the seller has to procure

transport insurance against the risk of loss of

damage to the goods during the carriage. The seller

contracts with the insurer and pays the insurance

premium.



Freight Carriage ... paid to

Like C & F, "Freight/Carriage paid to ..." means that

the seller pays the freight for the carriage of the

goods to the named destination. However, the risk

of loss of or damage to the goods, as well as of any

cost increases, is transferred from the seller to the

buyer when the goods have been delivered into the

custody of the first carrier and not at the ship's rail.

The term can be used for all modes of transport

including multi-modal operations and container or

"roll on-roll off" traffic by trailer and ferries. When

the seller has to furnish a bill of lading, waybill or

carrier's receipt, he duly fulfills this obligation by

presenting such a document issued by the person

with whom he has contracted for carriage to the

named destination. (Also see incoterms)

Freight Forwarder

An independent business which handles export

shipments for compensation. At the request of the

shipper, the forwarder makes the actual

arrangements and provides the necessary services

for expediting the shipment to its overseas

destination. The forwarder takes care of all

documentation needed to move the shipment from

origin to destination, making up and assembling the

necessary documentation for submission to the bank

in the exporter's name. The forwarder arranges for

cargo insurance, makes the necessary overseas

communications, and advises the shipper on

overseas requirements of marking and labeling.

Freight for All Kinds (FAK)

FAK is a shipping classification. Goods classified FAK

are usually charged higher rates than those marked

with a specific classification and are frequently in a

container which includes various classes of cargo.

Gateway

In the context of travel activities, gateway refers to a

major airport or seaport. Internationally, gateway

can also mean the port where customs clearance

takes place.

GST

Goods and Service Tax, GST in relation to importing,

is payable on the landed cost of the goods, known as

the CIF value. The GST is calculate thus: (Purchase

price of goods + Duty + Insurance + Freight) x GST

HAWB House Air waybill issued by carrying airlines' agent,

normally freight forwarder .

Harmonised System

The Harmonized Commodity Description and Coding

System (or Harmonized System, HS) is a system for

classifying goods in international trade, developed

under the auspices of the Customs Cooperation

Council. Beginning on January 1, 1989, the new HS

numbers replaced previously adhered-to schedules

in over 50 countries, including the United States.

IATA

International Air Transport Association ( IATA ),

established in 1945, is a trade association serving

airlines, passengers, shippers, travel agents, and

governments. The association promotes safety,

standardization in forms (baggage checks, tickets,

weigh bills), and aids in establishing international

airfares. IATA headquarter is in Geneva, Switzerland.

IATA Designator

Two-character Airline identification assigned by IATA

in accordance with provisions of Resolution 762. It is

for use in reservations, timetables, tickets, tariffs as

well as air waybill.

Import Certificate

The import certificate is a means by which the

government of the country of ultimate destination

exercises legal control over the internal channeling

of the commodities covered by the import

certificate.

Import License A document required and issued by some national

governments authorizing the importation of goods.

Also referred as import permit. With such

documentation, customs clearance can be

conducted.



Import Restrictions

Import restriction, applied by a country with an

adverse trade balance (or for other reasons), reflect

a desire to control the volume of goods coming into

the country from other countries may include the

imposition of tariffs or import quotas, restrictions on

the amount of foreign currency available to cover

imports, a requirement for import deposits, the

imposition of import surcharges, or the prohibition

of various categories of imports.

Incoterms

Maintained by the International Chamber of

Commerce (ICC), this codification of terms is used in

foreign trade contracts to define which parties incur

the costs and at what specific point the costs are

incurred. (also see incoterm section)

Insurance Certificate This certificate is used to assure the consignee that

insurance is provided to cover loss of or damage to

the cargo while in transit.

Integrated Carriers

Carriers that have both air and ground fleets; or

other combinations, such as sea, rail, and truck.

Since they usually handle thousands of small parcels

an hour, they are less expensive and offer more

diverse services than regular carriers.

Intermediate Consignee

An intermediate consignee is the bank, forwarding

agent, or other intermediary (if any) that acts in a

foreign country as an agent for the exporter, the

purchaser, or the ultimate consignee , for the

purpose of effecting delivery of the export to the

ultimate consignee .

Intermodal

Movement of goods by more than one mode of

transport, i.e. airplane, truck, railroad and ship.

Irrevocable Letter of Credit

A letter of credit in which the specified payment is

guaranteed by the issuing bank if all terms and

conditions are met by the drawee. It is as good as

the issuing bank.

LCL

Less than Container Load, consolidated container

load.

LD3 Lower deck type 3 container. This is the most

commonly used container in passenger aircraft.

Letter of Credit A financial document issued by a bank at the request

of the consignee guaranteeing payment to the

shipper for cargo if certain terms and conditions are

fulfilled. Normally it contains a brief description of

the goods, documents required, a shipping date, and

an expiration date after which payment will no

longer be made. An Irrevocable Letter of Credit is

one which obligates the issuing bank to pay the

exporter when all terms and conditions of the letter

of credit have been met. None of the terms and

conditions may be changed without the consent of

all parties to the letter of credit . A Revocable Letter

of Credit is subject to possible recall or amendment

at the option of the applicant, without the approval

of the beneficiary. A Confirmed Letter of Credit is

issued by a foreign bank with its validity confirmed

by a U.S. bank. An exporter who requires a

confirmed letter of credit from the buyer is assured

payment from the U.S. bank in case the foreign

buyer or bank defaults. A Documentary Letter of

Credit is one for which the issuing bank stipulates

that certain documents must accompany a draft. The

documents assure the applicant (importer) that the

merchandise has been shipped and that title to the

goods has been transferred to the importer.

Lower Deck

The compartment below the Main Deck (also

synonymous with lower hold and lower lobe).

Main Deck

The deck on which the major portion of payload is

carried, normally known as Upper Deck of an

airplane. The full cargo freighter aircraft has it entire

upper deck equipped for main deck type of

containers/pallets while Combi aircraft uses it rear

part of the upper deck for cargo loading. There is no



upper deck or main deck type of container/pallet at

passenger aircraft.

MPI (Ministry for Primary Industries) Ministry for Primary Industries is commonly known

as MPI (formally MAF). It is charged with leadership

of the New Zealand biosecurity system. This

encompasses facilitating international trade,

protecting the health of New Zealanders and

ensuring the welfare of our environment, flora and

fauna, marine life and Maori resources.

Marine Cargo Insurance

Broadly, insurance covering loss of, or damage to,

goods at sea. Marine insurance typically

compensates the owner of merchandise for losses in

excess of those which can be legally recovered from

the carrier that are sustained from fire, shipwreck,

piracy, and various other causes. Three of the most

common types of marine insurance coverage are

"free of particular average" (f.p.a.), "with average"

(w.a.), and "All Risks Coverage."

NVD

No Value Declared.

POD

Proof of Delivery or a cargo/package receipt with the

signature of recipient. This term has been widely

used in courier and express industry and also gaining

more attention and implementation at air cargo

industry..

Packing List

A shipping document issued by shipper to carrier,

Customs and consignee serving the purposes of

identifying detail information of package count,

products count, measurement of each package,

weight of each package, etc.

Pro Forma Invoice

An invoice provided by a supplier prior to the

shipment of merchandise, informing the buyer of the

kinds and quantities of goods to be sent, their value,

and important specifications (weight, size, and

similar characteristics). When an importer applies for

Letter of Credit as the means of payment, a Pro

Forma Invoice from the beneficiary of such Letter of

Credit, usually the exporter is required by the L/C

issuing bank.

Project Cargo

This is a term normal referred to when shipping

cargo air or sea, which does not fall within standard

methods. Ie over-height or oversize cargo which

requires special equipment and handle.

Roll-on, Roll-off ( RORO )

A type of ship designed to load and discharge cargo

which rolls on wheels or tracks. They are similar to a

giant car ferry.

Shipping Mark

The letters, numbers or other symbols placed on the

outside of cargo to facilitate identification.

Shipping Weight Shipping weight represents the gross weight in

kilograms of shipments, including the weight of

moisture content, wrappings, crates, boxes, and

containers (other than cargo vans and similar

substantial outer containers).

TACT

TACT stands for The Air Cargo Tariff. It is published

by IAP -- International Airlines Publications, an IATA

company.

Tare Weight The weight of a ULD and tie down materials without

the weight of the goods it contains.

Temporary Importation under Bond

When an importer makes entry of articles and

claimed to be exempt from duty under Chapter 98,

Subchapter XIII, Harmonized Tariff Schedule of the

United States, a bond is posted with Customs which

guarantees that these items will be exported within

a specified time frame (usually within one year from

the date of importation). Failure to export these

items makes the importer liable for the payment of



liquidated damages for breach of the bond

conditions.

Title

In the United States the certificate of title for a

vehicle or boat(also known as a car title or pink slip;

or pinks in the plural) is a legal form, establishing a

person or business as the legal owner of a vehicle.

Through Bill of Lading

A single bill of lading covering receipt of the cargo at

the point of origin for delivery to the ultimate

consignee , using two or more modes of

transportation.

Transshipment

Transshipment refers to the act of sending an

exported product through an intermediate country

before routing it to the country intended to be its

final destination.

Twenty-Foot Equivalent Unit ( TEU ) TEU is a measure of a ship's cargo-carrying capacity.

One TEU measures twenty feet by eight feet by eight

feet -- the dimensions of a standard twenty-foot

container. An FEU equals two TEUs.

ULD

Unit Load Device, Any type of container, container

with integral pallet, aircraft container or aircraft

pallet.

Ultimate Consignee The ultimate consignee is the person located abroad

who is the true party in interest, receiving the export

for the designated end-use.

Value for Customs Purposes Only

The value for customs purposes of imported

merchandise should be based on the actual value of

the imported merchandise on which duty is

assessed, or of like merchandise, and should not be

based on the value of merchandise of national origin

or on arbitrary or fictitious values.

War/Strike Clause

An insurance provision that covers loss due to war

and/or strike.

Wharfage

A charge assessed by a pier or dock owner for

handling incoming or outgoing cargo.

Without Reserve A term indicating that a shipper's agent or

representative is empowered to make definitive

decisions and adjustments abroad without approval

of the group or individual represented.

Ad Valorem (“at value”) – an ad valorem freight rate is one

where the freight is based on the value of the goods.

An ad valorem bill of lading is one where the value of

the goods is shown on the face of the document,

which value then becomes the carrier’s limit of

liability; in return for this increased liability the

carrier will charge an addition to the sea freight.

Agent A person authorized to transact business for and in

the name of another person or company.

Arbitrary

An additional rate charged over an already fixed

rate, when freight has to be moved by an additional

source of transport from one point, to get to another

point.

BAF

Bunker Adjustment Factor. Adjusts the freight to

reflect current cost of bunkers (fuel for ships).

Bonded Warehouse

A place of security approved by the custom

authorities for the deposit, keeping and securing of

goods liable to excise duty, without payment of this

duty.

CAF

Currency adjustment factor – adjusts the freight to

reflect currency exchange fluctuations.

CABAF

Currency and Bunker adjustment factor, a

combination of CAF and BAF.



CAN/PRA

CAN (Customs Authority Number) It's the number

given by customs upon the clearance of export

goods. PRA (Pre Receival Advice) It's the electronic

lodgment to the wharf for notification of a container

coming in for export.

Cartage

Refers to the intra-city haulage of goods on drays

(heavy side less cart) or trucks.

Certificate of Origin

A document certifying the country of origin of goods

which is normally issued or signed by a Chamber of

Commerce or Embassy

CFR (Cost and freight)

An Incoterm where the seller includes the cost of

transportation in the price for his goods (freight pre-

paid). Formerly known as C & F.

CFS

(Container Freight Station) – a place for the packing

and unpacking of LCL consignments.

CHIEF

(Customs Handling of Import and Export Freight) – a

customs computer system.

CIF (Cost, insurance and freight)

An Incoterm where the seller arranges and pays for

the main carriage to the port of destination and

organizes the insurance cover for the cargo, while in

transit.

CMI (Comite Maritime International)

an international committee of maritime lawyers.

Commercial Invoice

Represents a complete record of a transaction

between exporter and importer with regard to the

goods sold. Also reports the content of the shipment

and serves as the basis for all other documents

about the shipment.

COU (Clip on unit)

A portable refrigeration unit

CRN (Customs Register Number)

is the number allocated by customs to an export,

agent or freight forwarder for use when exporting

goods on the same shipment from more than one

shipper.

CT (Combined Transport)

Carriage buys more than one mode of transport

under one contract of carriage.

CY (Container Yard)

A collection and distribution point for FCL

containers.

Conference

An organisation of a group of shipping lines

operating in one trade who have agreed to operate a

common tariff.

Consortium

A group of ‘Combined Transport’ operators who

agree to rationalize sailing in a trade and carry each

other’s cargo.

Cut Off Date

The last date for which goods can be accepted for a

nominated sailing.

CNOR (Consignor)

The sender of the goods

Consignment Note - A document that describes a

consignment moving from one point to another, also

known as advice or dispatch note or Con note.



COD (Cash on delivery)

Full payment for goods on delivery

Deconsolidation Point

Place where loose or other non-hazardous cargo is

ungrouped for delivery.

D/O

A document given to the party surrendering the

original Bill of Lading, authorizing them to take

delivery of the goods.

Documentary Credit

The basis of international trade by means of which

payment in made against surrender of specified

documents.

DOT (Department of Trade)

governmental department with responsibility for

shipping and trade.

Drawback

Repayment of a duty upon re-exportation of goods

previously imported.

Duty

Is a particular percentage (depending on

commodity) of the FOB value, which is paid to the

government. The FOB value is the cost of the goods

plus any other charges to get those goods on to a

vessel.

EHA (Equipment Handover Agreement)

Acknowledging the condition of the carrier’s

equipment when taking over and returning it,

incorporating contractual terms under which the

equipment is taken over.

FCL (Full Container Load)

An arrangement whereby the shipper utilizes all the

space in a container which he packs himself.

FCX

Full container shipments from multiple suppliers for

the one consignee.

Flat Rack

Container bottom specifically for heavy lifts and

over width cargoes. Noncontainerisable cargo can be

accommodated on several flats positioned side by

side.

Feeder Vessel

A Short-sea vessel used to fetch and carry goods

and containers to and from deep-sea ports/vessels

GATT (General Agreements on Tariffs &

Trade)

an international multilateral agreement embodying

a code of practice for fair-trading in international

commerce with headquarters in Geneva.

Groupage

Consolidation of several LCL consignments into a

container for different consignees.

GP (General Purpose)

A closed steel container for the carriage of all types

of general, non-hazardous cargo. 20’ & 40’ available

in GP.

GST (Goods and Service Tax)

Worked out as 10% of the CIF value + the duty

amount. The CIF value is the cost of goods + marine

insurance + freight amount (cost to get cargo to

destination port) + duty.

Hazchem Code

Hazardous chemical code placed on tankers carrying

dangerous chemicals.

Hi-Cube



Is a container which is slightly (bigger) higher than a

General Purpose container. Available in both 20’ &

40’.

ICC

International Chamber of Commerce.

IMDG Code (International Maritime

Dangerous Goods Code)

contains the IMO recommendations for the carriage

of dangerous goods by sea. The form needed for

export of this sort of cargo is known as an MO41 and

is available from a freight forwarder. Paperwork for

imported dangerous goods comes from the supplier.

IMO (International Maritime

Organisation)

a UN body charges with the duty of making safety

and anti-pollution conventions and

recommendations concerning sea transport.

Insulated Container –

Specifically for cargoes requiring transport at a

constant temperature above or below freezing point

this is controlled by the ship’s or the terminal’s

cooling plant or a clip on reefer unit.

ISO (International Standards

Organization)

A body responsible for inter alia, setting standards

for container construction.

LCL (Less than Container Load)

When a parcel is too small to fill a container, it is

grouped by the carrier at a ‘CFS’ depot, with other

compatible cargo, for the same destination.

L/I (Letter of Indemnity)

Sometimes also called a letter of guarantee, if an

original b/lading has become lost or delayed it allows

the consignee to take delivery of his goods.

Lo/Lo (Lift On Lift Off)

A wharf charge for the lifting of containers on and

off a vessel.

Liner

A vessel plying a regular pattern of trade on a

defined route under a published sailing schedule

MMO - Multi Modal Operator

Manifest

List of goods or passengers on a vessel / aircraft

Non-Conference

A shipping line which does not participate in a

consortium with other lines for tariff agreement.

NVOC(C) - Non Vessel Operating (Common) Carrier –

a carrier issuing bills of lading for carriage of goods

on vessels which they either own or operate.

Notify Party

The party to whom the cargo arrival notice is sent.

O/H (Over Height)

A container with cargo exceeding the height of the

container.

O/S (Open Sided)

A container with open sides for over width cargo.

O/T (Open Top)

A container with open top loading facility, suitable

for the carriage of heavy, over height cargo’s

equipped with tarpaulin roof.

OOG (Out Of Gauge)

Goods whose dimensions exceed those of the

container in which they are packed.

O/W (Over Width)



A container with goods protruding beyond the sides

of the container / flat rack onto which they are

packed.

Packing Declaration

Document required by Aqis which states how the

shipment has been packed with regards to straw,

timber and bark. The packing declaration must be

completed in full including a numerical link i.e.

container or bill number and issued on supplier’s

own letterhead to be accepted by quarantine.

POA (Place of Acceptance)

The place where the goods are received for

shipment of transit and where the carrier’s liability

commences.

POD (Place of Discharge)

The place where the goods are discharged and

carrier’s liability ends. It can also mean; Proof of

Delivery – a signed receipt acknowledging delivery.

POL (Port of Loading)

the port at which accepted cargo is loaded onto a

vessel.

Principal Carrier

The carrier who issues the B/Lading regardless of

whether or not the goods are carried on their own, a

third party’s or a consortium members vessel.

PSC (Port Service Charge)

Cost of loading, unloading FCL consignment at the

terminal.

RO/RO (Roll On Roll Off)

A vessel onto which goods can be driven, via ramp

Routing Order

Document given to a supplier for instruction of

buyers whom cargo is to be routed through, i.e.

freight forwarder or forwarders agent in country of

origin.

Reefer

A refrigerated container.

SOB

Shipped on Board – and endorsement on the bill of

lading confirming that the goods have been loaded

on board.

Shipper

The person who tenders the goods for carriage. Not

to be confused with the party issuing the bill of

lading or the vessel operator, who is the carrier.

Short Shipped

Goods not carried on the intended vessel.

Slot

The space on board a vessel occupied by a

container. Also known as the time booked to deliver

a container to the wharf.

TEU

Twenty-Foot Equivalent Unit – ie. 1 x 20ft = 1 TEU, 1

x 40ft = 2 TEU.

THC

Terminal Handling Charge – A charge for handling

containers at ocean terminals/wharves.

Tare Weight

The actual weight of the empty container, no

including the goods.

Tariff: The terms, conditions and scale of charges

for carriage

Transship

When cargo is discharged from one ship and loaded

onto another in order to reach a port of no direct



service or as a cheaper alternative to the direct

service.

Waybill

A bill of lading that acts as receipt for the goods and

evidence of the contract for carriage. A waybill is a

bill of lading that is not a document and can be

defined as follows: - a receipt for goods; is evidence

of the contract; is a nonnegotiable document.

Under a waybill, delivery will be affected to a

nominated consignee upon proof of identity. As a

title it presents a personal contract between the

shipper and the carrier only. There is (at present) no

mandatory law or convention and the parties have

absolute freedom of contract.

Vent

Container which contains ventilations sites to

prevent condensation accumulating on cargo.