Creativity Is An Import-Export Business.

An Introduction to the World of
Logistics and Freight Forwarding
Imesh Gunatilaka
export business.”
“Creativity is an import-
An Introduction to the World of Logistic and Freight Forwarding
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
Imesh Chandika Gunatilaka Page 1

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

Increased productivity
Statistics from UK Trade and Investment (UKTI) state
that companies involved in overseas trade can
International Trading & Local Trading. improve their productivity by 34% – imagine that,
over a third more with no increase in plant.
Definition and Reasons for International
trading. Economic advantage
Take advantage of currency fluctuations – export
when the value of the pound sterling is low against
What is International Trade?
International trade is the exchange of capital, goods, other currencies, and reap the very real benefits.
and services across international borders or Words of warning though; watch out for import
territories, which could involve the activities of the tariffs in the country you are exporting to, and keep
government and individual. In most countries, such an eye on the value of sterling. You don’t want to be
trade represents a significant share of gross caught out by any sudden upsurge in the value of
domestic product (GDP). the pound, or you could lose all the profit you have
worked so hard to gain.
The Reasons for International Trade Are:
Reduced dependence on your local market Your Innovation
home market may be struggling due to economic Because you are exporting to a wider range of
pressures, but if you go global, you will have customers, you will also gain a wider range of
immediate access to a practically unlimited range of feedback about your products, and this can lead to
customers in areas where there is more money real benefits.
available to spend, and because different cultures
Growth
have different wants and needs, you can diversify The holy grail for any business, and something that
your product range to take advantage of these has been lacking for a long time in our
differences. manufacturing industries – more overseas trade =
increased growth opportunities, to benefit both your
Increased chances of success
Unless you’ve got your pricing wrong, the higher the business and our economy as a whole.
volume of products you sell, the more profit you
Definition and Difference for Local Trading.
make, and overseas trade is an obvious way to
increase sales. In support of this, UK Trade and What is Local Trading?
Investment (UKTI) claim that companies who go Local Trading is the type of trading which is done
global are 12% more likely to survive and excel than inside the country it is a trading system which is
those who choose not to export. carried out with the geographical boundaries of
particular country.
Increased efficiency
Benefit from the economies of scale that the export The Difference between Local Trading and
of your goods can bring – go global and profitably International Trading
use up any excess capacity in your business,
smoothing the load and avoiding the seasonal peaks 1. Mobility in Factor of Production
•Domestic Trade: Free to move around factors of
and troughs that are the bane of the production
production like land, labor, capital and labor capital
manager’s life. Why international trade- Efficiency
and entrepreneurship from one state to another
and Productivity- chart icons
within the same country
•International Trade: Quite restricted

2. Movement of Goods Local companies - These are generally small single

•Domestic trade: easier to move goods without office companies which tend to deal with customers
many restrictions. Maybe need to pay sales taxed in the local area, or operate at a seaport or airport
concentrating on particular types of traffic. National
•International Trade: Restricted due to complicated companies - Many forwarders have offices in the
custom procedures and trade barriers like tariff, major ports and airports throughout the country as
quotas or embargo well as in the largest industrial towns. They may also
have warehousing or handling depots from where
3. Usage of different currencies
•Domestic trade: same type of currency used they operate their own services. Such companies will
often have agents or correspondents overseas in the
•International trade: different countries used markets with which they operate.
different currencies
International companies - The truly international
4. Broader markets company will have its own offices overseas and offer
•Domestic trade: limited market due to limits in a wide range of worldwide services. You should note
population, etc that these divisions are identified for ease of
understanding
•International trade: Broader markets
5. Language and Cultural Barriers What is Logistics?

•Domestic trade: speak same language and practice Logistics is the detailed of organization and
same culture implementation of a complex operation it is the
commercial activity of transporting goods to
•International trade: Communication challenges due
customer , logistics is when the right thing is at the
to language and cultural barriers
right place at the right time .
FREIGHT FORWARDING & LOGISTICS

SOP- STANDARD OPERATING PROCEDURE.
What is Freight Forwarding?
When a business decides to export their products
What is SOP?
they soon realize that they have to deal with the
A standard operating procedure, or SOP, is a set of
numerous barriers that have to be overcome to ship
step-by-step instructions created by a business to
the product to the end customer. In many cases a
help workers carry out routine operations. Their
business will look to a specialist, called a freight
purpose is to achieve efficiency, quality output and
forwarder, who can manage these obstacles.
uniformity of performance, while reducing
A freight forwarder or Forwarding agent , also miscommunication and failure to comply to industry
known as a non-Vessel Operating Common Carrier regulations.
(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:

There are no hard and fast rules about the way in

Maritime Intermodal The widespread
which a particular company is organized and there
introduction of sea containers in the 1970s provided
will be considerable overlap between types. It is
freight forwarders with the opportunity to develop
certain that size should not be considered as a
door-to-door and warehouse-to-warehouse services
criterion for measuring the standard of service. The
worldwide, for Full Container Load (FCL) cargo and
industry is made up of many specializations and
Less than Container Load (LCL) shipments. Freight
those interested in using a freight forwarder or
forwarders today provide such services to virtually
working in the forwarding profession will find that
every port and major industrial center worldwide.
there is an enormous range of companies to choose
from. The business of choosing a freight forwarder is Road and Rail Distribution A principal activity of
covered in a later section. There is no such thing as a forwarders, European distribution includes the door-
typical freight forwarding company. Each company to-door movement of full trailer loads of freight, and
provides services in accordance with the the consolidation of small consignments into full
requirements of its customers and, as with any loads for warehouse-to-warehouse trucking and
business, these services change with the demands of thence final delivery to the consignee. Within
the market. mainland, freight is commonly moved by rail.
Trade Facilitation, Customs Brokerage Many

What Services does the Freight Forwarder countries in Europe and elsewhere still maintain
offer? complex Customs procedures. The Customs
The freight forwarder’s basic service is the
clearance of import freight and delivery to final
organization of the movement of goods
destination is an important aspect of the work of
internationally by all modes of transport. A
freight forwarders. They hold up-to-date information
forwarder would typically be appointed by an
on local requirements in many countries of the
importer or an exporter to act on their behalf to
world enabling fast and reliable delivery of goods to
move goods into, or out of, the country, and all that
final destination.
this entails. Freight forwarders provide one or more
of the following services: Logistics and Supply Chain Management With
the increasing reliance placed upon freight
Air Freight Consolidation and Forwarding
specialists by the international trading community,
The use of scheduled airlines for the movement of freight forwarders have been quick to develop a
freight increased considerably following the wide range of value-added services for their
introduction of wide-bodied aircraft. Concentrated customers. These can include warehousing, sorting,
around the major international airports in the UK, air order picking, packaging and final assembly of goods.
freight forwarders provide a high quality range of Freight forwarders, in particular, have embraced
services worldwide for urgent and high value freight, modern electronic developments to offer a range of
and just-in-time stock systems. They also provide e-commerce and e-business solutions for their
airport handling and distribution services, and act as customers.
general sales agents for airlines.

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 information (Intrastat). Goods exported to third

Freight forwarders are the link between the seller countries (all countries outside the EU) are still
and the buyer. They may be contracted to work for subject to customs control, although systems are
either, and their key function will be to arrange for constantly being simplified.
the movement of the goods between the two. They
will book space on the ship, aircraft or other Payment of Charges
transport mode, call forward the goods at the When a normal trading relationship has been
appropriate time and collect them. They will liaise established between the forwarder and the
with their agent/office overseas to co-ordinate customer, the forwarder will accept and pay all
delivery to the buyer. These actions may be related charges on behalf of the customer. Thus a
influenced by the method of transportation chosen. trader requiring the services of airlines, shipping
lines and numerous other transportation and
Documentation handling organisations will only receive one invoice
In all international trade there are documents to be from the forwarder. The forwarder can sometimes
prepared. A freight forwarder is involved in either arrange to collect the amount of the seller’s invoice,
preparing most of these, or giving advice to the collecting cash on delivery through overseas agents,
exporter/importer on those documents which they or the carrier.
must prepare. The current trend is, however, to
reduce the number of documents required. In Packing and Warehousing
particular, with the development of a ‘frontier free’ The packing of the goods for export is a complex task
Europe, trade within the EU States has become to ensure goods are protected against the risks
much easier with the abolition of Customs borders. involved in their handling and the modes of
In addition, the growth of e-commerce and internet transportation being used. Consideration needs to
technology further reduces the need for paper be given to the climates and terrain of the countries
documents. through which the consignments will be travelling.
Too much heavy packing could prove costly for
Customs goods travelling by air, for example. On the other
Importers and exporters have a legal responsibility hand, too little packing might prove a false economy.
to declare and record all goods which enter and Many forwarders provide a packing service for their
depart the European Union. The preparation of customers, and the forwarder’s expertise
import and export declarations represents an
can save a customer a great deal of money.
important part of the forwarder’s service. Since 1993
Warehousing and allied functions, such as inventory
Customs clearance has not been required for goods
control, can often be of value to the trader who may
moving within the EU, although There are
have limited space of his own. Whether temporary
procedures which may require the forwarder’s
or longer-term storage, the forwarder will normally
involvement: for example, the collection,
be able to arrange this facility for his customer.
preparation and submission of statistical

Insurance These days many forwarders invest in expensive

Insurance plays an important part in international scanning equipment to have cargo checked before it
trade. Goods in transit are exposed to many risks is dispatched, thus avoiding any unnecessary delays
and hazards. The prudent trader will always make while the cargo is en route.
sure that consignments are insured against these
risks. Professional risk takers, known as Consolidation, Groupage and
underwriters, accept possible financial losses Special Services
involved on payment of a premium, subject to terms One of the main advantages in using freight
and conditions. Freight forwarders, not being the forwarders lies in their ability to group together
owner of the goods, do not have an insurable risk in consignments from several exporters and present
the cargo and therefore cannot cover the risks to them to a shipping company or airline as a single
cargo themselves. In the UK the mediation of large consignment. In this way the forwarder can
insurance is regulated by the Financial Services obtain a much cheaper rate than an individual
Authority (FSA). Freight forwarders who wish to company, and is able to offer the customer a
provide an insurance service for their customers competitive tariff for a small consignment. The
have an exemption under the Financial Services principle of consolidation also enables the forwarder
Management Act but exporters and importers to offer added value to the customer. For example,
should check with their freight forwarder at the time a forwarder consolidating cargo in one country will
of booking the cargo for shipment about insurance dispatch the full load to an agent in the destination
cover. Freight forwarders who offer insurance can country. The destination agent will de-consolidate,
provide cover for their customer’s goods providing Customs clear and deliver the goods to the final
the customer formally instructs the forwarder to do consignee. In addition to providing a complete door-
so in writing. to-door service, the forwarder may be able to hold
consignments at destination
Security
With ever-increasing levels of security being Prior to delivery to await payment from the
introduced to protect goods from criminal activity importer. This gives an element of security to the
and acts of terrorism, it is imperative that freight exporter, whilst minimizing delay in delivery.
forwarders keep themselves up to-date with all the Consolidation is a term normally applied to air and
latest regulatory security requirements so that any sea freight, whilst for road and rail freight the
cargo they handle is transported to its end practice is known as groupage. The forwarder could
destination without any possibility of interference. be acting on behalf of an importer or exporter. In the
Forwarders work together with transport providers former case, the buyer at the destination may use
and other key operators to ensure that everyone the forwarder to collect goods from many different
conforms to the strict cargo handling and processing suppliers in the country of export, thus avoiding the
procedures which are in place at the time. These need to employ a purchasing agency for this
vary, depending on the mode of transport being purpose.
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.

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 5. Dangerous goods declaration*

There are thousands of companies who promote
6. Terms of shipment (latest edition of Incoterms -
themselves as international freight service providers,
who pays what)
and it is very important to select the right one
7. Special instructions eg. Letters of credit, payment
Set-up Procedures
terms
The organization within a company to deal with
import/export procedures is important. These will *A statement should be made, eg.‘Insurance
include the invoicing of orders, the preparation of required’ / ‘Insurance not required’, or ‘Goods
documentation and communications, along the hazardous’ / ‘Goods not hazardous’.
supply chain, such as banks, insurance companies
and, of course, the customer. Terms of Sale When goods are imported or exported
they are normally subject to a contract between a
Avoid Mistakes seller and a buyer. Part of that contract will
Mistakes must be avoided at all costs as these can determine what the price covers in relation to the
prove expensive. Failure to follow correct goods and the costs involved in transporting them
procedures and adopt good practice in international between the parties to the contract.
trade can cause
Incoterms
Problems. Mistakes do not only happen to those The purpose of Incoterms is to provide a set of
new to importing and exporting. Many experienced international rules for the most commonly used
traders would also benefit from a review of terms in foreign trade. Thus the uncertainties of
operational procedures to ensure that they are, as various interpretations of such terms in different
far as possible, eliminating unnecessary risks. countries may be avoided or reduced. Frequently
parties to a contract are unaware of the different
Communication trading practices in their respective countries. This
Always give instructions in writing. Failure to do this can give rise to misunderstandings, dispute and
may lead to error and misunderstanding. possible legal action with all the waste of time and
Instructions, whether via fax, e-mail or Electronic money that this entails. In order to remedy these
Data Interchange should include information on the problems the International Chamber of Commerce
following as a minimum. (ICC) first published in 1936 a set of international
rules for the interpretation of trade terms. These
1. Name and address of shipper and consignee
rules were known as Incoterms 1936. Amendments
2. Collection and delivery address if different from 1 and additions were later made, leading to Incoterms
above 2010 being the rules in line with current
international trade practices.
3. Consignment specifications including weight,
dimensions, contents and value
4. Insurance declaration*

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 for the carriage of goods by sea carriage, the conditions of the
Modes of Transport freight. In legal terms it is a contract and the receipt of the
CIP Carriage and receipt for goods shipped, a goods by the carrier.
Insurance Paid document of title and evidence
CPT Carriage Paid To of the contract of carriage. Official Documents
Possession of a negotiable bill of In addition to the basic
DAP Delivery At Place document of carriage,
lading which is properly
DAT Delivery At Terminal completed constitutes effective international freight transport
control of the goods. requires regulatory documents
DDP Delivery Duty Paid such as those required by law or
Air Waybill for the declaration of goods at
EXW Ex Works
The primary document for the import and export to Customs
FCA Free Carrier carriage of goods by air is the and other regulatory
air waybill. It is the contract authorities. Examples of official
between the shipper and the air documents include Dangerous
carrier for the carriage of goods, Goods Notes, Certificates of
Terms for Sea and Inland but it also serves as a receipt of Origin, or licenses.
Waterway Transport goods for shipment, a form of
CFR Cost and Freight invoicing, and a document for Commercial Documents
the import, export and transit The commercial documents in a
CIF Cost, Insurance
and Freight requirements of Customs. transaction are many and varied
FAS Free Alongside and will depend on the nature
Ship Road Consignment Note of the consignment, methods of
FOB Free On Board The international carriage of payment, etc. Examples of
goods by road is covered by the commercial documents will
CMR Convention, which is a set include invoices, insurance
Transport Documents of legal articles forming the certificates, letters of credit,
contract between the carrier and shipping instructions. This is
Bill of Lading and the shipper. The CMR not an exhaustive list.
The bill of lading takes many Convention prescribes the issue
forms but, first and foremost, it of a consignment note as
is the key transport document evidence of the contract of

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 the person or corporation that is exporting an item
across international borders. Although there is no
Challan: standard format, the document must include a few
This is a Bangla Term for a receipt which is handed specific pieces of information such as the parties
over for the Truck driver informing the good has involved in the shipping transaction, the goods being
been dispatched from the factory. transported, the country of manufacture, and the
Harmonized System codes for those goods. A
Shipping Order (SO) commercial invoice must also include a statement
: A document used by a business to specify what
certifying that the invoice is true, and a signature
items are to be transferred from a storage location
or warehouse to what person and to what new A commercial invoice is used to calculate tariffs,
location. A shipping order typically is sent along with international commercial terms (like the Cost in a
a shipment of goods so that the person receiving CIF) and is commonly used for customs purposes.
them can verify that the document correctly reflects
the items that they actually received. Commercial invoices are in European countries not
normally for payment. The definitive invoice for
Commercial invoice: payment usually has only the words "invoice". This
A commercial invoice is a document used in foreign invoice can also be used as a commercial invoice if
trade. It is used as a customs declaration provided by additional information is disclosed.

Packing List: Shipping Bill:

Itemized list of articles usually included in each Customs document used where drawback is claimed,
shipping package, giving the quantity, description, such as on goods exported or on dutiable goods
and weight of the contents. Prepared by the shipper transshipped or re-exported from a bonded
and sent to the consignee for accurate tallying of the warehouse. It serves basically as a statistical record.
delivered goods. Also called bill of parcels, packing
slip, or unpacking note.

Tunnel Container
Different types of Containers: Container Storage units provided with doors on both
ends of the container, they are extremely helpful in
quick loading and unloading of materials.
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
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
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 Double Door Container

With a Convertible top that can be completely They are kinds of storage units that are provided
removed to make an open top so that materials of with double doors,making a wider room for loading
any height can be shipped easily and unloading of materials .construction materials
include steel ,iron etc. in standardized size of 20ft
and 40ft

Tanks
Refrigerated ISO containers Container storage units used mostly for
These are temperature regulated shipping transportation of liquid materials, they are used by a
containers that always have a carefully controlled huge proportion of entire shipping industry. They are
low temperature. They are exclusively used for mostly made of strong steel or other anti-corrosive
shipment of perishable substances like fruits and materials providing them with long life and
vegetables over long distances. protection to the materials
.
Insulated or thermal containers
Cargo storage roll container
These are the shipping storage containers that come
A foldable container, this is one of the specialized
with a regulated temperature control allowing them
container units made for purpose of transporting
to maintain a higher temperature.
sets or stacks of materials. They are made of thick
The choice of material is so done to allow them long and strong wire mesh along with rollers that allows
life without being damaged by constant exposure to their easy movement. Availability in a range of
high temperature. They are most suitable for long colored wire meshes make these shipping container
distance transportation of products units a little more cheerful.

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
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
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
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.

Special purpose containers

Not the ordinary containers, these are the container
units, custom made for specialized purposes. Mostly, Garment on Hanger Container
they are used for high profile services like shipment (GOH)
of weapons and arson. As such, their construction Garment On Hanger (GOH) (also known in certain
and material composition depends on the special circles as Hangtainer) containers are standard/dry
purpose they need to cater to. But in most cases, containers that are converted/outfitted to be able to
security remains the top priority. 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
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.

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: Quick Clearance:

The supreme advantage of air transport is its In air transport, custom formalities can be very
high speed. It is the fastest mode of transport quickly complied with and thus it avoids delay in
and thus it is the most suitable mean where obtaining clearance.
time is an important factor.
Most Suitable for Carrying Light
Comfortable and Quick Services: Goods of High Value:
It provides a regular, comfortable, efficient and It is most suitable for carrying goods of
quick service. perishable nature which require quick delivery
and light goods of high value such as diamonds,
No Investment in Construction of bullion etc. over long distances.
Track:
It does not require huge capital investment in National Defense:
the construction and maintenance of surface Air transport plays a very important role in the
track. defense of a country. Modern wars have been
fought mainly by airplanes. It has upper hand in
No Physical Barriers: destroying the enemy in a very short period of
It follows the shortest and direct route as seas, time. It also supports over wings of defense of a
mountains or forests do not come in the way of country.
air transport.
Space Exploration:
Easy Access: Air transport has helped the world in the
Air transport can be used to carry goods and exploration of space.
people to the areas which are not accessible by
other means of transport.
Disadvantage of Air Freight
Emergency Services: Shipping.
It can operate even when all other means of
In spite of many advantages, air transport has
transport cannot be operated due to the floods
the following limitations:
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.

Very Costly: It requires a large amount of capital investment

It is the costliest means of transport. The fares in the construction and maintenance of
of air transport are so high that it is beyond the airplanes. Further, very trained and skilled
reach of the common man. persons are required for operating air service.
Small Carrying Capacity:

Its carrying capacity is very small and hence it is
not suitable to carry cheap and bulky goods.
Specialized Skill:
Uncertain and Unreliable: Air transport requires a specialized skill and high
Air transport is uncertain and unreliable as it is degree of training for its operation.
controlled to a great extent by weather
Unsuitable for Cheap and Bulky
conditions. Unfavourable weather such as fog,
snow or heavy rain etc. may cause cancellation Goods:
of scheduled flights and suspension of air Air transport is unsuitable for carrying cheap,
service. bulky and heavy goods because of its limited
capacity and high cost.
Breakdowns and Accidents:
The chances of breakdowns and accidents are
Legal Restrictions:
high as compared to other modes of transport. There are many legal restrictions imposed by
Hence, it involves comparatively greater risk. various countries in the interest of their own
national unity and peace.
Large Investment:
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)

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)

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)


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)

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)

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)


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)

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)

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)


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)

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)

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)

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)


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)

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)

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).

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)

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)

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.

• Never load by weight above the payload

limits of the container, i.e. the cargo and
SAFE TRANSPORT OF container net weight must not exceed the
CONTAINERS BY SEA container’s gross safe working load;
Overview • Never load by weight above the road

It is of the utmost importance to recognize that regulations applicable on the transit;
actions taken when containers are stuffed may
• Distribute the weight of the cargo evenly over
have direct implications for the stability and
the floor of the container. Never stow heavy
safety of containerships, the lives of seafarers
items in one section and light items in another.
on board and the safety of others throughout
The weight of the cargo should not exceed the
the transport chain. It is particularly important
’60% within half the length rule’;
for all involved to understand the high degree
of physical risk presented by the marine • Do not stow heavy goods on top of light
environment, the extreme forces to which a goods;
ship is exposed at sea, and the extent to which
these risks are greatly increased by any failure • Stow and secure all cargo tightly;
to stuff containers correctly. This point cannot
• Observe all the handling instructions on cargo
be over emphasised. It is vital to adhere to
such as “Do not drop” or “This side up”;
weight restrictions, and correct procedures for
loading and securing cargo, to ensure the safe • Stow goods with sharp corners separate from
distribution of weight and that cargoes inside other softer merchandise. Use dividers and
containers do not move or shift when at sea, separating material as appropriate;
compromising the safety of the ship. The
IMO/ILO/UNECE Guidelines on the Packing of • Where possible with mixed loads, place
Cargo Transport Units provides a common packages containing liquid cargo on the bottom
global resource for information on container tiers with dry cargo on top;
stuffing.
• Use cargo liners for obnoxious cargo such as
hides and carbon black;
Key Requirements
The following requirements must be adhered to • Do not use clamps or other loading devices
during container stuffing/unstuffing, in addition unless the goods can withstand them;
to the more specific observations elsewhere in
this leaflet: • When loading Dangerous Goods, ensure that
the IMDG Code packaging requirements are
• Subject to booking request, select the most always observed;
suitable container type to accommodate the
cargo; • Do not load goods in a container with
damaged packaging;
• Prepare a pre-stow plan before commencing
stuffing so that weight/volume considerations • Do not stow wet and damp goods with dry
are covered and point loading limits are goods;
observed;

• Do not use dunnage or packaging which is damage and reduce risks to personnel. At all
incompatible with the cargo; times, it is necessary to adhere to the
IMO/ILO/UNECE Guidelines for Packing of Cargo
• Do not stow goods with tainting odours with Transport Units.
sensitive merchandise;
Pre-Stuffing
• Observe all rules concerning dangerous Prior to stuffing, a number of checks should
cargo. Use appropriate labels and placards to
identify packing and freight containers loaded Industry Guidance for Shippers and Container
with Dangerous Goods; Stuffers
• Stow hazardous cargo near the door where be made on a container both internally and
possible; externally to ensure that it is structurally sound,
and safe to work in and around. Dated and
• Include all necessary documentation; digital photographs of the interior and exterior
• Record the seal number and the container of the container should be taken.
number on all shipping documents; External Checks
Before a container is opened, it should be
• Never smoke, eat or drink during loading or
ensured that it possesses a valid Container
unloading.
Safety Approval Plate and that the
Checking the Container reexamination date has not passed. Once this
In most operational regions, containers are has been established, the following aspects of
inspected when they return after import but the container’s exterior should be assessed
not again when they are released for export. before it is opened or entered:
There will also be instances of triangulation
moves when the container is driven by truck • Holes: No obvious holes or tears in the
straight from the import customer to the export exterior panelling;
customer. In such cases, the container will • Doors: No broken or distorted door hinges,
probably have only received a quick sweep out locks, or door seal gaskets;
and check for damage by the haulier. A full
container inspection for structural damage • Tilts (Tarps): Where containers are fitted
requires a competent and trained person. with removable roof tilts (tarps) or side
However, checking for cleanliness and general curtains, they should fit correctly, be equipped
acceptability is a matter of common sense. It is with tilt wires and have no tears in the fabric;
very much in the interests of any user,
• Roof bows: Open top containers should have
regardless of whether the container is being
all the roof bows (supports) in place. If the roof
stuffed with a full load, to carry out a quick
is of the retractable sort then the roof bows
internal and external inspection prior to stuffing
should slide smoothly to the ends of the
(and also after unstuffing the container). The
container;
following useful checklists should assist the
examination of containers during cleaning, • Placards and Markings: Any placards or
loading and unloading, to help minimise cargo markings remaining on the outside of the empty

container which refer to the previous cargo • Follow instructions: Any recommendations
should be removed; posted inside the container should be noted.
• Structure: No serious structural defects such Post Stuffing

as torn or cracked corner fittings or side rails When the planned quantity of goods has been
(IMO CSC/Circ. 134 contains guidance). stuffed in a container, the following checks
should be made:
Internal Checks
Restraint: The goods should be arranged and
Once the external elements of a container unit secured to withstand the normal stresses and
have been agreed to be of a suitable standard, strains of the journey. In particular, ensure
the container may be opened in order that the doorway cargo cannot move;
following checks can be made:
Customs inspection: If more than one type of
• Clean: No leftovers (sweepings, dust, grease article is stuffed in the container, it may save
or liquid) of the previous cargo; time and the cost of a search if a sample of each
• Dry: The interior should be dry and free of article is positioned near the door;
any sweat or frost; Security: When the doors are shut, all securing
• No infestation: There should be no evidence lugs should be properly engaged forcing the
of pests, insects or rodents which might door seals into compression. The company’s
contaminate cargo and lead to delay by port approved seal should be fitted in the
health authorities; appropriate position on the right hand door and
the number noted. Seals should comply with
• Taint free: If delicate goods susceptible to ISO standards;
damage by bad odours are to be packed, then
the container should be “sweet” smelling. This Contents: Any placard, except those required
should be checked immediately on opening the by regulation, on the outside of the container
doors when any lingering smells will be at their advertising the contents will attract thieves and
strongest. Caution must be exercised in case should be removed. Any packages of
there are obnoxious gases from cargo Dangerous Goods should be labelled according
previously to the IMDG Code; Placards: DG Placards, if
appropriate, should be affixed in the
stowed in containers, particularly where recommended positions. The placards must be
fumigation may have been used; placed in such a way that they do not obscure
the number of the container or other
• Watertight: This is best checked by entering
distinguishing marks.
the container and closing both doors. If any
spots of light can be seen then water can gain Prior to Unstuffing
entry. This also applies to the container floor The following should be checked prior to
because water can splash upwards during road unstuffing:
haulage;
Security: Seal is intact and has not been
tampered with. The number must be compared

with the accompanying documents for possible General Stowage

future reference;
Homogeneous Cargo
External condition of the container: Any If the load consists of homogeneous cargo (and
damage that may have affected the content all the cargo is the same size) the total volume
should be duly noted; Placards and markings: of the container should be utilised. Different
Before opening the doors, due regard should be kinds of packaging methods exist such as
taken of any placards and markings such as DG cartons, boxes, bags, drums and barrels, rolls,
labels or contents shipped in bulk; liners for liquid bulk and small wooden crates.
The container may have vacant space left on
Doors: The doors should be opened
completion of stuffing due to weight
cautiously and retaining straps attached to the restrictions or otherwise, and sensible securing
locking bars to avoid harm to individuals. This is is necessary on grounds of safety and cargo
to guard against the risk of improperly secured care. Bagged cargoes with a high moisture
cargo falling out and harming personnel. Once content, such as cocoa beans or coffee beans,
the doors are open, the container should be may require dressing of the container ceiling
allowed to ‘air’ for a period of time to ensure and walls with moisture/condensation
that no hazardous gases or fumes are present absorbing paper, and the hanging of so called
which could affect persons entering it. Moisture Absorbing Materials (MAMS) bags in
the container’s corners.
Checklist after Unstuffing
When a container is empty of cargo, the Uniform Stowage
container should be checked for damage that When cargo is stowed into a container and free
might lead to claims. Most tariffs are so space is unavoidable, the cargo must be stowed
worded that it is obligatory for full container in such a way that there is a gap in the middle
load customers to clean out the container after 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
unstuffing. This includes removal of all for bottles of wine which require corks to
packaging and a thorough sweep out. It is
prudent to examine the container for any signs remain immersed. To ensure stability in the
of wet stains and holes in the sides or roof that stow and spread the weight as evenly as
might have affected the cargo which has just possible a “Bonded Block Stow” should be used.
been carried. Labels and placards should be
Bagged Cargo
removed when the container is empty.
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 other similar devices. Support the rolls evenly
may be necessary where extra ventilation is along their length on a flat surface particularly
required. To avoid the risk of bags falling out of with cargo such as carpets.
the container when the doors are opened, a
Rolls of paper require paper clamps for careful
brace or net should be placed against the final
row. Bags that are stowed and secured on handling.
pallets do not cause this problem and the cargo Bulk Liquids
can be handled much faster. Wine, latex, printing ink and other
nonhazardous liquids are often transported in
Drums and Barrels
Drums and barrels in containers should always strong synthetic “flexi-bags” in 20’ general dry
be stowed upright if possible. If the bung or containers. The bags must be braced at the
door end of the container with a strong steel (or
closure is at one end, then it should be stowed
with the bung uppermost. Barrels of other material) bulkhead. It is important to
earthenware etc should always be stowed make sure that the harness straps on the bags
are secured tightly to the anchorage rings in the
upright. Unless the drums or barrels are
specially designed to “nest”, there should be container. It is not only necessary to secure the
some form of soft dunnage or ply between each load but also to make sure the pressure on the
tier of drums. Dunnage should be laid walls is not too high (if so, the pressure must be
distributed with planks or plates). Containers
sufficiently close to provide full support to the
tier above. Rolling hoops, when pressed out of with corrugated side panels should be used.
the side walls of the drums, are particularly Bottom valves, if any, of the flexi-bag must be
susceptible to rupture through chafing. In some enclosed and secured by the bulkhead panel, to
instances, it may be necessary to lay dunnage protect against shifting and bending during
between individual drums to prevent rolling transport, which can tear the bag.
hoops from chafing one another. A second Bulk Solids
option is that each alternate row of drums may Bulk bags are used for a wide range of granular
be lifted a few centimetres with carefully laid substances including malt and coffee. Care
dunnage, allowing the rolling hoops to ride should be taken to ensure that the cargo does
clear and reducing the effective diameter of not exceed the design parameters of the
each drum. Cargo behind the doorway should container.
be properly secured with a fence, net or lashing.
Hanging Garments
Rolls Specialist containers are available for shipping
When rolls are stowed upright, they should be clothing. Failure to observe proper preparation
packed closely together. Any empty spaces and stowage procedures can result in
between the rolls should be filled in by sacks of considerable claims for dry cleaning of
sawdust, corrugated cardboard or similar soft garments which may have dropped to the
dunnage. The rolls should be secured by means container floor.
of timber, nets or wedges. When the rolls are
stowed horizontally, the rolls which are nearest Reefer Cargoes
to the door should be secured by wedges or Hot stuffing of containers (warm cargoes in
cooled containers) should be avoided,

and the cargoes should thus be pre-cooled. loading of cargo must also be checked in order
Reefer cargoes must be stowed in such a that the tonnes per square metre loading limit
manner as to allow optimal circulation of cold is not breached. Cargoes such as metal ingots
air. For example, stowage of cartons or other come into this category and timber often
packages up to the container ceiling will requires the weight to be spread. Extremely
prevent optimal air circulation and therefore dense cargo can overload a small area of a
optimal cooling. container’s floor causing it to fail. For
extremely dense cargo, or cargo that puts a
Safety and Securing high load into a small area of a container’s floor,
This section identifies important issues of timber or other dunnage must be used to
safety that have been experienced with spread the weight over a larger floor area. As a
containerised cargo and the related subject of rule of thumb, floor loading should not exceed
cargo securing. 2,500 lb per linear foot of the container or a
maximum of 1.5 tonnes per floor supporting
Overloading
cross member.
There have been many incidents over the years
of containers being loaded above their Road and Rail Limits
stipulated payload. This can seriously affect Apart from the immediate dangers to the safety
stability and the safety of any ship carrying the of ships created by overloading, the gross
cargo when it is underway at sea. In many cases weight of the container (cargo plus container
the manifests declare cargo within payload tare) must not breach the applicable road or rail
limits when it is over the limit. This is often limits on all legs of the transit journey. The
exposed by the suspicions of a container importance of observing these limits cannot be
handler or even following an accident resulting overstressed.
in a weighbridge check. Overloading is
something which can NEVER be condoned and DG
when accepting cargo the following should In the interests of safety, it is essential to
always be obtained or checked. The party ensure the following with respect to the
stuffing the container is responsible for stowage of Dangerous Goods within a
ensuring that: container:
• The number of pieces, size, weight and • The cargo must be declared to the
volume of any commodity is obtained; appropriate dangerous cargo department;
• The payload and volume of the container • All documentation must be completed,
selected/requested is compared with the cargo signed and accurate;
particulars to establish whether a weight or
• Individual packages of DG must be labelled;
volume restriction applies;
• The container must be properly placarded
• The gross mass of the container is in
with appropriate placards, marks and signs, as
accordance with the gross mass given on the
determined by the IMDG Code, affixed to the
shipping documents. Where a weight restriction
outside walls of the container as specified by
applies, the point
the Code;

• The relevant IMDG stowage segregation • Corner posts which are suitable for bracing to
requirements must be complied with at all with timbers and by using lashing points
times. provided inside the container;
Shifting Cargo • Lashing points are located along top and

The incidence of cargo moving inside a bottom rails of the container at regular
container during transit is considerable. This is intervals. Example for a typical 20’ container’s
usually because the cargo has not been secured lashing facilities:
properly, or the packaging is defective. Apart
from the serious risks to ships and the stability Example for a typical 20’ container’s lashing
of container stacks, several cases have been facilities:
recorded where road vehicles have turned over
Location No of lashing Rating
due to cargo moving, when negotiating bends. points (kg)
The key issue is to secure cargo efficiently to
Side 5 2,000
prevent the initial movement. wall(base)
Side 5 500
Although containerised cargo is well protected, wall (top)
it is still subject to the constant movement and Front (based) 1 500
stress of maritime transport. In heavy seas, the Back (door 5 500
cargo is exposed to compressive forces due to recess area)
pitching and rolling. These forces may increase
the normal strain on lashings, struts and other
It should be noted that the walls, doors and
securing devices by as much as 100%. Effective
roof of a container are merely a protective shell
securing of the load throughout the entire
that cannot withstand concentrated stress. If
transport process is therefore of absolute
the walls or ceiling are used for lashing
importance.
purposes, the stress on the walls or ceiling must
Securing in Containers be evenly distributed.
The cargo in containers needs to be stowed in
Securing Materials
such a way that the cargo cannot move. The
Most types of cargo can be secured using the
container itself is designed to permit tight,
following materials (though precautions should
secure stowage of cargo either through
be taken to ensure that they are not forbidden
compact loading or individual securing. These
for import into the cargo’s country of
facilities include:
destination):
• Floor of wood or plywood which permits
• Timber beams, struts, chocks, planks for
blocks, stays and wedges to be anchored with
shoring, bracing and relieving pressure;
nails or screws;
• Adjustable wooden battens, rods or strap
• Internal walls, for the support of light cargo
belts for securing the load in sections,
only;
facilitating mechanical discharge;

• Plywood and dunnage to separate several are: Rotational:

layers of cargo or to segregate different types of
cargo into separate sections; Rolling;
Pitching;
• Foam-rubber cushions and air bags to reduce Sheering/Yawing.
vibration and prevent the load from shifting; Linear: Swaying;
Surging;
• Second hand tyres or bags with paper waste Heaving.
or sawdust to fill empty spaces, soften the Calculations for securing against the above
impact and prevent shifting; forces follow a prescribed discipline and it is
• Nets to secure fragile goods; important to refer to this procedure when
performing calculations. The recognised
• Rope (hemp, manila, sisal, etc), wire, steel calculations are contained in the IMO Code of
bands and terylene straps for lashing; Safe Practice for Cargo Stowage and Securing
(CSS Code).
• Nylon span sets;
Final Weighing of Container
• Bolt clips into T section flooring in insulated
After finalisation of stuffing and securing of
containers;
containerised cargo, the total container weight
• Bulkhead bars. must be verified and documented.
Securing calculations aboard ship:
As shown in Figure 1, forces acting in a seaway


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: delivered to the port of embarkation, but without

Actual Time of Arrival, or Airport-To-Airport, or Air loading fees.
Transport Association of America.
BAF (Bunker Adjustment Factor)
ATD An adjustment in shipping charges to offset price
Actual Time of Departure. fluctuations in the cost of bunker fuel.
Air Waybill Bill of Lading (B/L)

An AWB is a bill of lading which covers both Bills of lading are contracts between the owner of
domestic and international flights transporting the goods and the carrier. There are two types. A
goods to a specified destination. Technically, it is a straight bill of lading is nonnegotiable. A negotiable
non-negotiable instrument of air transport which or shipper's order bill of lading can be bought, sold,
serves as a receipt for the shipper, indicating that or traded while goods are in transit and is used for
the carrier has accepted the goods listed therein and many types of financing transactions. The customer
obligates it to carry the consignment to the airport usually needs the original or a copy as proof of
of destination according to specified conditions. ownership to take possession of the goods.
Normally AWB refers to the Air Waybill issued by
carrying airlines and also called Master Air Waybill Bill of Sale
(MAWB) which comes with three digits of numeric A bill of sale is a legal document made by a 'seller' to
airline identification codes issued by IATA to non- a purchaser, reporting that on a specific date, at a
U.S. based airlines and Air Transport Association of specific locality, and for a particular sum of money or
America to U.S. based airlines. However, air freight other "value received", the seller sold to the
forwarders also issue HAWB (House Air Waybill) to purchaser a specific item of personal, or parcel of
their customers for each of the shipments. real, property of which he had lawful possession. It is
a written instrument which evidences the transfer of
Aircraft Container title to personal property from the vendor, seller, to
A unit load device (ULD) which links directly with the the vendee, buyer.
airplane cargo handling and restraint system.
Bonded Warehouse
All Risk The Customs Service authorizes bonded warehouses
All Risks Coverage, a type of marine insurance, is the for storage or manufacture of goods on which
broadest kind of standard coverage, but excludes payment of duties is deferred until the goods enter
damage caused by war, strikes, and riots. the Customs Territory. The goods are not subject to
duties if re-shipped to foreign points.
Allotment
A term used to describe blocked space by airlines on
behalf of forwarders/shippers.
Break Bulk (B/B)
Alongside For consolidated air freight, it is moved under one
A phrase referring to the side of a ship. Goods to be MAWB and each consignment designated to specific
delivered alongside are to be placed on the dock or consignee or recipient is under one HAWB. When
lighter within reach of the transport ship's tackle so freight forwarder receives the consolidated cargo
that they can be loaded aboard the ship. Goods are from carrier, they will break the consolidation apart

per HAWB then proceed customs clearance along number of copies, language to be used, and other
with associated shipping and import documents. characteristics.
Such Break-Bulk is normally handled by airlines or
their contracted ground handling agent. Consignee
The person or firm named in a freight contract to
Break-bulk Vessel whom goods have been consigned or turned over.
A general cargo vessel designed to efficiently handle For export control purposes, the documentation
un-containerized cargo. Vessels are usually self- differentiates between an intermediate consignee
sustaining in that they have their own loading and and an ultimate consignee.
unloading machinery.
Consignment
CAF (Currency Adjustment Factor) Delivery of merchandise from an exporter (the
A freight surcharge or adjustment factor imposed by consignor) to an agent (the consignee) under
an international carrier to offset foreign currency agreement that the agent sell the merchandise for
fluctuations. In some cases an emergency currency the account of the exporter. The consignor retains
adjustment factor (ECAF) may be applied when a title to the goods until sold. The consignee sells the
charge or rate has been originally published in a goods for commission and remits the net proceeds
currency that is experiencing sustained or rapid to the consignor.
decline. The CAF is charged as a percentage of the
freight. Consolidation
In order to handle small lot of consignment
Carnet efficiently and competitively, freight forwarder
A customs document permitting the holder to carry usually put many consignments into one lot then
or send merchandise temporarily into certain foreign tender to carrier for forwarding. In this case, each
countries for display, demonstration or other consignment will be shipped with one HAWB
purposes without paying import duties or posting respectively and all of them will be under one
bonds. master AWB.
Clean Bill of Lading Cost and Freight (C&F)

A receipt for goods issued by a carrier with an Cost and Freight (CFR) to a named overseas port of
indication that the goods were received in apparent import. Under this term, the seller quotes a price for
good order and condition, without damages or other the goods that includes the cost of transportation to
irregularities. the named point of debarkation. The cost of
insurance is left to the buyer's account. (Typically
Combi Aircraft used for ocean shipments only. CPT, or carriage paid
An aircraft configured to carry both passengers and to, is a term used for shipment by modes other than
cargo on the Main Deck. water.) Also, a method of import valuation that
includes insurance and freight charges with the
Commercial Invoice
merchandise values.
The commercial invoice is a bill for the goods from
the seller to the buyer. These invoices are often used Cost, Insurance and Freight (CIF)
by governments to determine the true value of Cost, insurance, and freight (CIF) to a named
goods for the assessment of customs duties and are overseas port of import. Under this term, the seller
also used to prepare consular documentation. quotes a price for the goods (including insurance), all
Governments using the commercial invoice to transportation, and miscellaneous charges to the
control imports often specify its form, content, 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 DDU

modes other than water.) Deliver Duty Unpaid.
Customs Dangerous Goods

The government authorities designated to collect Commodities classified by IATA according to its
duties levied by a country on imports and exports. nature and characteristic in terms of the effect of its
danger to carrier's flying safety.
Customs Broker
An individual or company licensed by the Delivery Instructions
government to enter and clear goods through Provides specific information to the inland carrier
Customs. The U.S. Customs Service defines a concerning the arrangement made by the forwarder
Customs Broker, as any person who is licensed in to deliver the merchandise to the particular pier or
accordance with Part III of Title 19 of the Code of steamship line. Not to be confused with Delivery
Federal Regulations (Customs regulations) to Order this is used for import cargo.
transact Customs business on behalf of others.
Customs business is limited to those activities
involving transactions with Customs concerning the
Demurrage
entry and admissibility of merchandise; its
Excess time taken for loading or unloading a vessel,
classification and valuation; the payment of duties,
thus causing delay of scheduled departure.
taxes, or other charges assessed or collected by
Demurrage refers only to situations in which the
Customs upon merchandise by reason of its
charter or shipper, rather than the vessel's operator,
importation, or the refund, rebate, or drawback
is at fault.
thereof.
Dimensional Weight
Customs Clearance
Also called measurement weight. This is the size of
The procedures involved in getting cargo released by
consignment calculated by total square feet by 6000.
Customs through designated formalities such as
Carrier charge for freight based on the dimensional
presenting import license /permit, payment of
weight or actual gross weight whichever is higher.
import duties and other required documentations by
the nature of the cargo such as FCC or FDA approval. Direct Ship
Ship without consolidation and under one MAWB i.e.
Customs Invoice
non- consolidation.
A document, required by some foreign countries'
customs officials to verify the value, quantity, and Drawback
nature of the shipment, describing the shipment of Drawback is a rebate by a government, in whole or
goods and showing information such as the in part, of customs duties assessed on imported
consignor, consignee, and value of the shipment. merchandise that is subsequently exported.
Drawback regulations and procedures vary among
DAFF (Department of Agriculture)
countries.
Department of Agriculture, Fisheries and Forestry, is
now known as Department of Agriculture. It’s Duty
responsible for Quarantine and Biosecurity at the A tax imposed on imports by the customs authority
border. of a country. Duties are generally based on the value
of the goods, some other factors such as weight or
DDP
quantity (specific duties), or a combination of value
Deliver Duty Paid.
and other factors (compound duties).

EDI Flat Rack Containers

EDI , Electronic Data Interchange for Administration, Especially for heavy loads and over-dimensional
Commerce, and Transportation, is an international cargo. Containers do not have sides or a top. This
syntax used in the interchange of electronic data. allows easy fork-lift and crane access.
Customs uses EDI to interchange data with the
importing trade community. Forty-Foot Equivalent Unit (FEU)
FEU is a measure of a ship's cargo-carrying capacity.
ETA One FEU measures forty feet by eight feet by eight
Estimated Time of Arrival. Then, it normally takes 3 feet -- the dimensions of a standard forty-foot
hours for carriers to Break Bulk then ready to be container. An FEU equals two TEUs.
picked up by forwarders along with customs release
notification. 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
ETD alongside a vessel at the port of departure. The
Estimated Time of Departure. The cut-off time for seller handles the cost of unloading and wharfage;
carriers' cargo ramp handling is normally two hours loading, ocean transportation, and insurance are left
ahead of ETD. However, the freight forwarders' to the buyer. FA is also a method of export and
consolidation cut-off time may vary depending on import valuation.
each forwarder's operations respectively.
Free Carrier (FCA)
Ex Works (...named place) (EXW) Free Carrier, FCA, to a named place. This term
A term of sale in which for the quoted price, the replaces the former “FOB named inland port" to
seller merely makes the goods available to the buyer designate the seller's responsibility for the cost of
at the seller's "named place" of business. This trade loading goods at the named shipping point. It may
term places the greatest responsibility on the buyer be used for multimodal transport, container stations,
and minimum obligations on the seller. The Ex and any mode of transport, including air.
Works term is often used when making an initial
quotation for the sale of goods without any costs Free On Board (FOB)
included. Common price term used in international trade
meaning seller's responsible for the cost of goods is
FCL or CY to the point of loading it to the vessel deck or
Full Container Load, also known as CY . CY is the aircraft loading deck. The risk of loss of or damage to
abbreviation of Container Yard. When the term CY to the goods is transferred from the seller to the buyer
CY , it means full container load all the way from when the goods have been so delivered. FOB
origin to destination. normally comes with port of loading either airport or
sea port.
Federal Maritime Commission
The FMC is independent agencys which regulates Freight Carriage ... and Insurance paid to
oceanborne transportation in the foreign commerce This term is the same as "Freight/Carriage Paid to ..."
and in the domestic offshore trade of the United but with the addition that the seller has to procure
States. 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 the CIF value. The GST is calculate thus: (Purchase
Like C & F, "Freight/Carriage paid to ..." means that price of goods + Duty + Insurance + Freight) x GST
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
HAWB
cost increases, is transferred from the seller to the
House Air waybill issued by carrying airlines' agent,
buyer when the goods have been delivered into the
normally freight forwarder .
custody of the first carrier and not at the ship's rail.
The term can be used for all modes of transport Harmonised System
including multi-modal operations and container or The Harmonized Commodity Description and Coding
"roll on-roll off" traffic by trailer and ferries. When System (or Harmonized System, HS) is a system for
the seller has to furnish a bill of lading, waybill or classifying goods in international trade, developed
carrier's receipt, he duly fulfills this obligation by under the auspices of the Customs Cooperation
presenting such a document issued by the person Council. Beginning on January 1, 1989, the new HS
with whom he has contracted for carriage to the numbers replaced previously adhered-to schedules
named destination. (Also see incoterms) in over 50 countries, including the United States.
Freight Forwarder IATA

An independent business which handles export International Air Transport Association ( IATA ),
shipments for compensation. At the request of the established in 1945, is a trade association serving
shipper, the forwarder makes the actual airlines, passengers, shippers, travel agents, and
arrangements and provides the necessary services governments. The association promotes safety,
for expediting the shipment to its overseas standardization in forms (baggage checks, tickets,
destination. The forwarder takes care of all weigh bills), and aids in establishing international
documentation needed to move the shipment from airfares. IATA headquarter is in Geneva, Switzerland.
origin to destination, making up and assembling the
necessary documentation for submission to the bank IATA Designator
in the exporter's name. The forwarder arranges for Two-character Airline identification assigned by IATA
cargo insurance, makes the necessary overseas in accordance with provisions of Resolution 762. It is
communications, and advises the shipper on for use in reservations, timetables, tickets, tariffs as
overseas requirements of marking and labeling. well as air waybill.
Freight for All Kinds (FAK) Import Certificate

FAK is a shipping classification. Goods classified FAK The import certificate is a means by which the
are usually charged higher rates than those marked government of the country of ultimate destination
with a specific classification and are frequently in a exercises legal control over the internal channeling
container which includes various classes of cargo. of the commodities covered by the import
certificate.
Gateway
In the context of travel activities, gateway refers to a Import License
major airport or seaport. Internationally, gateway A document required and issued by some national
can also mean the port where customs clearance governments authorizing the importation of goods.
takes place. Also referred as import permit. With such
documentation, customs clearance can be
GST conducted.
Goods and Service Tax, GST in relation to importing,
is payable on the landed cost of the goods, known as

Import Restrictions LCL

Import restriction, applied by a country with an Less than Container Load, consolidated container
adverse trade balance (or for other reasons), reflect load.
a desire to control the volume of goods coming into
the country from other countries may include the LD3
imposition of tariffs or import quotas, restrictions on Lower deck type 3 container. This is the most
the amount of foreign currency available to cover commonly used container in passenger aircraft.
imports, a requirement for import deposits, the
Letter of Credit
imposition of import surcharges, or the prohibition
A financial document issued by a bank at the request
of various categories of imports.
of the consignee guaranteeing payment to the
Incoterms shipper for cargo if certain terms and conditions are
Maintained by the International Chamber of fulfilled. Normally it contains a brief description of
Commerce (ICC), this codification of terms is used in the goods, documents required, a shipping date, and
foreign trade contracts to define which parties incur an expiration date after which payment will no
the costs and at what specific point the costs are longer be made. An Irrevocable Letter of Credit is
incurred. (also see incoterm section) one which obligates the issuing bank to pay the
exporter when all terms and conditions of the letter
Insurance Certificate of credit have been met. None of the terms and
This certificate is used to assure the consignee that conditions may be changed without the consent of
insurance is provided to cover loss of or damage to all parties to the letter of credit . A Revocable Letter
the cargo while in transit. of Credit is subject to possible recall or amendment
at the option of the applicant, without the approval
Integrated Carriers of the beneficiary. A Confirmed Letter of Credit is
Carriers that have both air and ground fleets; or issued by a foreign bank with its validity confirmed
other combinations, such as sea, rail, and truck. by a U.S. bank. An exporter who requires a
Since they usually handle thousands of small parcels confirmed letter of credit from the buyer is assured
an hour, they are less expensive and offer more payment from the U.S. bank in case the foreign
diverse services than regular carriers. buyer or bank defaults. A Documentary Letter of
Credit is one for which the issuing bank stipulates
Intermediate Consignee
that certain documents must accompany a draft. The
An intermediate consignee is the bank, forwarding
documents assure the applicant (importer) that the
agent, or other intermediary (if any) that acts in a
merchandise has been shipped and that title to the
foreign country as an agent for the exporter, the
goods has been transferred to the importer.
purchaser, or the ultimate consignee , for the
purpose of effecting delivery of the export to the Lower Deck
ultimate consignee . The compartment below the Main Deck (also
synonymous with lower hold and lower lobe).
Intermodal
Movement of goods by more than one mode of Main Deck
transport, i.e. airplane, truck, railroad and ship. The deck on which the major portion of payload is
carried, normally known as Upper Deck of an
Irrevocable Letter of Credit
airplane. The full cargo freighter aircraft has it entire
A letter of credit in which the specified payment is
upper deck equipped for main deck type of
guaranteed by the issuing bank if all terms and
containers/pallets while Combi aircraft uses it rear
conditions are met by the drawee. It is as good as
part of the upper deck for cargo loading. There is no
the issuing bank.

upper deck or main deck type of container/pallet at similar characteristics). When an importer applies for
passenger aircraft. 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.
MPI (Ministry for Primary Industries)
Ministry for Primary Industries is commonly known Project Cargo
as MPI (formally MAF). It is charged with leadership This is a term normal referred to when shipping
of the New Zealand biosecurity system. This cargo air or sea, which does not fall within standard
encompasses facilitating international trade, methods. Ie over-height or oversize cargo which
protecting the health of New Zealanders and requires special equipment and handle.
ensuring the welfare of our environment, flora and
fauna, marine life and Maori resources. Roll-on, Roll-off ( RORO )
A type of ship designed to load and discharge cargo
Marine Cargo Insurance which rolls on wheels or tracks. They are similar to a
Broadly, insurance covering loss of, or damage to, giant car ferry.
goods at sea. Marine insurance typically
compensates the owner of merchandise for losses in Shipping Mark
excess of those which can be legally recovered from The letters, numbers or other symbols placed on the
the carrier that are sustained from fire, shipwreck, outside of cargo to facilitate identification.
piracy, and various other causes. Three of the most
common types of marine insurance coverage are Shipping Weight
"free of particular average" (f.p.a.), "with average" Shipping weight represents the gross weight in
(w.a.), and "All Risks Coverage." kilograms of shipments, including the weight of
moisture content, wrappings, crates, boxes, and
NVD containers (other than cargo vans and similar
No Value Declared. substantial outer containers).
POD TACT
Proof of Delivery or a cargo/package receipt with the TACT stands for The Air Cargo Tariff. It is published
signature of recipient. This term has been widely by IAP -- International Airlines Publications, an IATA
used in courier and express industry and also gaining company.
more attention and implementation at air cargo
industry.. Tare Weight
The weight of a ULD and tie down materials without
Packing List the weight of the goods it contains.
A shipping document issued by shipper to carrier,
Customs and consignee serving the purposes of Temporary Importation under Bond
identifying detail information of package count, When an importer makes entry of articles and
products count, measurement of each package, claimed to be exempt from duty under Chapter 98,
weight of each package, etc. Subchapter XIII, Harmonized Tariff Schedule of the
United States, a bond is posted with Customs which
Pro Forma Invoice guarantees that these items will be exported within
An invoice provided by a supplier prior to the a specified time frame (usually within one year from
shipment of merchandise, informing the buyer of the the date of importation). Failure to export these
kinds and quantities of goods to be sent, their value, items makes the importer liable for the payment of
and important specifications (weight, size, and

liquidated damages for breach of the bond Wharfage

conditions. A charge assessed by a pier or dock owner for
handling incoming or outgoing cargo.
Title
In the United States the certificate of title for a Without Reserve
vehicle or boat(also known as a car title or pink slip; A term indicating that a shipper's agent or
or pinks in the plural) is a legal form, establishing a representative is empowered to make definitive
person or business as the legal owner of a vehicle. decisions and adjustments abroad without approval
of the group or individual represented.
Through Bill of Lading
A single bill of lading covering receipt of the cargo at Ad Valorem
the point of origin for delivery to the ultimate (“at value”) – an ad valorem freight rate is one
consignee , using two or more modes of where the freight is based on the value of the goods.
transportation. An ad valorem bill of lading is one where the value of
the goods is shown on the face of the document,
Transshipment which value then becomes the carrier’s limit of
Transshipment refers to the act of sending an liability; in return for this increased liability the
exported product through an intermediate country carrier will charge an addition to the sea freight.
before routing it to the country intended to be its
final destination. Agent
A person authorized to transact business for and in
Twenty-Foot Equivalent Unit ( TEU ) the name of another person or company.
TEU is a measure of a ship's cargo-carrying capacity.
One TEU measures twenty feet by eight feet by eight Arbitrary
feet -- the dimensions of a standard twenty-foot An additional rate charged over an already fixed
container. An FEU equals two TEUs. rate, when freight has to be moved by an additional
source of transport from one point, to get to another
ULD point.
Unit Load Device, Any type of container, container
with integral pallet, aircraft container or aircraft BAF
pallet. Bunker Adjustment Factor. Adjusts the freight to
reflect current cost of bunkers (fuel for ships).
Ultimate Consignee
The ultimate consignee is the person located abroad Bonded Warehouse
who is the true party in interest, receiving the export A place of security approved by the custom
for the designated end-use. authorities for the deposit, keeping and securing of
goods liable to excise duty, without payment of this
Value for Customs Purposes Only duty.
The value for customs purposes of imported
merchandise should be based on the actual value of CAF
the imported merchandise on which duty is Currency adjustment factor – adjusts the freight to
assessed, or of like merchandise, and should not be reflect currency exchange fluctuations.
based on the value of merchandise of national origin
or on arbitrary or fictitious values. CABAF
Currency and Bunker adjustment factor, a
War/Strike Clause combination of CAF and BAF.
An insurance provision that covers loss due to war
and/or strike.

CAN/PRA and serves as the basis for all other documents

CAN (Customs Authority Number) It's the number about the shipment.
given by customs upon the clearance of export
goods. PRA (Pre Receival Advice) It's the electronic COU (Clip on unit)
lodgment to the wharf for notification of a container
A portable refrigeration unit
coming in for export.
CRN (Customs Register Number)
Cartage
is the number allocated by customs to an export,
Refers to the intra-city haulage of goods on drays
agent or freight forwarder for use when exporting
(heavy side less cart) or trucks.
goods on the same shipment from more than one
Certificate of Origin shipper.
A document certifying the country of origin of goods CT (Combined Transport)

which is normally issued or signed by a Chamber of
Carriage buys more than one mode of transport
Commerce or Embassy
under one contract of carriage.
CFR (Cost and freight)
CY (Container Yard)
An Incoterm where the seller includes the cost of
transportation in the price for his goods (freight pre- A collection and distribution point for FCL
paid). Formerly known as C & F. containers.
CFS Conference
(Container Freight Station) – a place for the packing An organisation of a group of shipping lines
and unpacking of LCL consignments. operating in one trade who have agreed to operate a
common tariff.
CHIEF
Consortium
(Customs Handling of Import and Export Freight) – a
customs computer system. A group of ‘Combined Transport’ operators who
agree to rationalize sailing in a trade and carry each
CIF (Cost, insurance and freight) other’s cargo.
An Incoterm where the seller arranges and pays for
Cut Off Date
the main carriage to the port of destination and
organizes the insurance cover for the cargo, while in The last date for which goods can be accepted for a
transit. nominated sailing.
CMI (Comite Maritime International) CNOR (Consignor)

an international committee of maritime lawyers. The sender of the goods
Commercial Invoice
Represents a complete record of a transaction Consignment Note - A document that describes a

between exporter and importer with regard to the consignment moving from one point to another, also
goods sold. Also reports the content of the shipment known as advice or dispatch note or Con note.

COD (Cash on delivery) FCX
Full payment for goods on delivery Full container shipments from multiple suppliers for
the one consignee.
Deconsolidation Point
Flat Rack
Place where loose or other non-hazardous cargo is
ungrouped for delivery. Container bottom specifically for heavy lifts and
over width cargoes. Noncontainerisable cargo can be
D/O accommodated on several flats positioned side by
side.
A document given to the party surrendering the
original Bill of Lading, authorizing them to take Feeder Vessel
delivery of the goods.
A Short-sea vessel used to fetch and carry goods
Documentary Credit and containers to and from deep-sea ports/vessels
The basis of international trade by means of which GATT (General Agreements on Tariffs &
payment in made against surrender of specified Trade)
documents.
an international multilateral agreement embodying
DOT (Department of Trade) a code of practice for fair-trading in international
commerce with headquarters in Geneva.
governmental department with responsibility for
shipping and trade. Groupage
Drawback Consolidation of several LCL consignments into a
container for different consignees.
Repayment of a duty upon re-exportation of goods
previously imported. GP (General Purpose)
Duty A closed steel container for the carriage of all types
of general, non-hazardous cargo. 20’ & 40’ available
Is a particular percentage (depending on
in GP.
commodity) of the FOB value, which is paid to the
government. The FOB value is the cost of the goods
GST (Goods and Service Tax)
plus any other charges to get those goods on to a
vessel. Worked out as 10% of the CIF value + the duty
amount. The CIF value is the cost of goods + marine
EHA (Equipment Handover Agreement) insurance + freight amount (cost to get cargo to
destination port) + duty.
Acknowledging the condition of the carrier’s
equipment when taking over and returning it,
Hazchem Code
incorporating contractual terms under which the
equipment is taken over. Hazardous chemical code placed on tankers carrying
dangerous chemicals.
FCL (Full Container Load)
Hi-Cube
An arrangement whereby the shipper utilizes all the
space in a container which he packs himself.

Is a container which is slightly (bigger) higher than a A wharf charge for the lifting of containers on and
General Purpose container. Available in both 20’ & off a vessel.
40’.
Liner
ICC
A vessel plying a regular pattern of trade on a
International Chamber of Commerce. defined route under a published sailing schedule
IMDG Code (International Maritime MMO - Multi Modal Operator

Dangerous Goods Code)
Manifest
contains the IMO recommendations for the carriage
of dangerous goods by sea. The form needed for List of goods or passengers on a vessel / aircraft
export of this sort of cargo is known as an MO41 and
Non-Conference
is available from a freight forwarder. Paperwork for
imported dangerous goods comes from the supplier. A shipping line which does not participate in a
consortium with other lines for tariff agreement.
IMO (International Maritime
Organisation) NVOC(C) - Non Vessel Operating (Common) Carrier –
a carrier issuing bills of lading for carriage of goods
a UN body charges with the duty of making safety
on vessels which they either own or operate.
and anti-pollution conventions and
recommendations concerning sea transport. Notify Party
Insulated Container – The party to whom the cargo arrival notice is sent.
Specifically for cargoes requiring transport at a O/H (Over Height)

constant temperature above or below freezing point
this is controlled by the ship’s or the terminal’s A container with cargo exceeding the height of the
cooling plant or a clip on reefer unit. container.
ISO (International Standards O/S (Open Sided)

Organization)
A container with open sides for over width cargo.
A body responsible for inter alia, setting standards
for container construction.
O/T (Open Top)
A container with open top loading facility, suitable

LCL (Less than Container Load)
for the carriage of heavy, over height cargo’s
When a parcel is too small to fill a container, it is equipped with tarpaulin roof.
grouped by the carrier at a ‘CFS’ depot, with other
compatible cargo, for the same destination.
OOG (Out Of Gauge)
Goods whose dimensions exceed those of the

L/I (Letter of Indemnity)
container in which they are packed.
Sometimes also called a letter of guarantee, if an
original b/lading has become lost or delayed it allows
O/W (Over Width)
the consignee to take delivery of his goods.
Lo/Lo (Lift On Lift Off)

A container with goods protruding beyond the sides freight forwarder or forwarders agent in country of
of the container / flat rack onto which they are origin.
packed.
Reefer
Packing Declaration
A refrigerated container.
Document required by Aqis which states how the
shipment has been packed with regards to straw, SOB
timber and bark. The packing declaration must be
Shipped on Board – and endorsement on the bill of
completed in full including a numerical link i.e.
lading confirming that the goods have been loaded
container or bill number and issued on supplier’s
on board.
own letterhead to be accepted by quarantine.
Shipper
POA (Place of Acceptance)
The person who tenders the goods for carriage. Not
The place where the goods are received for
to be confused with the party issuing the bill of
shipment of transit and where the carrier’s liability
lading or the vessel operator, who is the carrier.
commences.
Short Shipped
POD (Place of Discharge)
Goods not carried on the intended vessel.
The place where the goods are discharged and
carrier’s liability ends. It can also mean; Proof of Slot
Delivery – a signed receipt acknowledging delivery.
The space on board a vessel occupied by a
POL (Port of Loading) container. Also known as the time booked to deliver
a container to the wharf.
the port at which accepted cargo is loaded onto a
vessel. TEU
Principal Carrier Twenty-Foot Equivalent Unit – ie. 1 x 20ft = 1 TEU, 1
x 40ft = 2 TEU.
The carrier who issues the B/Lading regardless of
whether or not the goods are carried on their own, a THC
third party’s or a consortium members vessel.
Terminal Handling Charge – A charge for handling
PSC (Port Service Charge) containers at ocean terminals/wharves.
Cost of loading, unloading FCL consignment at the Tare Weight

terminal.
The actual weight of the empty container, no
RO/RO (Roll On Roll Off) including the goods.
A vessel onto which goods can be driven, via ramp Tariff: The terms, conditions and scale of charges
for carriage
Routing Order
Transship
Document given to a supplier for instruction of
buyers whom cargo is to be routed through, i.e. 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.

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An Introduction to the World of

Logistics and Freight Forwarding

Imesh Chandika Gunatilaka Page 1

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

Imesh Chandika Gunatilaka Page 2

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

Imesh Chandika Gunatilaka Page 3

Common designation: LD-8.......................... 30

Imesh Chandika Gunatilaka Page 4

Imesh Chandika Gunatilaka Page 5

Imesh Chandika Gunatilaka Page 6

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

Imesh Chandika Gunatilaka Page 7

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

Imesh Chandika Gunatilaka Page 8

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

Imesh Chandika Gunatilaka Page 9

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

Imesh Chandika Gunatilaka Page 10

Imesh Chandika Gunatilaka Page 11

•International Trade: Quite restricted

Imesh Chandika Gunatilaka Page 12

2. Movement of Goods Local companies - These are generally small single

5. Language and Cultural Barriers What is Logistics?

FREIGHT FORWARDING & LOGISTICS

Who are Freight forwarders?

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There are no hard and fast rules about the way in

Trade Facilitation, Customs Brokerage Many

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Moving the Goods

Transportation information (Intrastat). Goods exported to third

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Insurance These days many forwarders invest in expensive

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FREIGHT FORWARDS: WORKING

Choosing a Freight Forwarder 5. Dangerous goods declaration*

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Documentation used in International Transport

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CFS & PORT OPERATION

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Packing List: Shipping Bill:

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Open Side Storage Container:

Open top Container Double Door Container

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Intermediate bulk shift containers

Half height containers

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

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Special purpose containers

A lot of the shipping lines have their own GOH

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What is Air Freight?

Advantage of Air Freight Shipping.

High Speed: Quick Clearance:

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Very Costly: It requires a large amount of capital investment

Small Carrying Capacity:

Different types of plates and