Cargo transportation from one market to another market_en_2016.02.01

Content

P1 = Container Shipment | Overview

P1 = Container Shipment | Box Size

P2 = Container Shipment | Steps/Documents/Time

P3 = Container Shipment | Full container load (FCL)

P3 = Container Shipment | Less container load (LCL)

P4 = Container Shipment | Free on Board (FOB)

P4 = Container Shipment | EX Works (EXW)

P5 = Container Shipment | Cost, Insurance and Freight (CIF)

P6 = Express/Courier Shipment | Overview

P6 = Express/Courier Shipment | Steps/Documents/Time

P7 = Air Freight Shipment | Steps/Documents/Time

Cargo transportation from one market to another market

to use for training and revision - created by Jonathan Greiner | 2016-02-01 Guangdong

Finished goods are located at a supplier warehouse. The goods will be loaded into an export container (20ft || 40ft || 40HQ).

After loading is fi nished the container will be carried to the port by truck or train. At the port the container will be granted export by the customs.

Then the container is transit and loaded onto the container ship. Now the container is shipped for several days on the ocean. Once the container

arrived the destination port it is granted import by the customs. Afterwards the container is transit and loaded onto a truck or train. In the end it

will arrive the customers warehouse or another fi nial destination.

Container ShipmentOverview

P1


20ft 40ft 40HQ

Container ShipmentBox Size

20FT

Available inner size 5898 mm (l) x 2350 mm (w) x 2385 mm (h)

40FT


40HQ


The actual inner size might slightly vary from container to container. As well you should consider door opening space as well as max weight.

In any case you can contact with your forwarder and confi rm all details before planning your shipment

Container ShipmentSteps/Documents/Time

To get cargo ready for export the exporter needs to request a shipping order (SO) from the forwarder. Once the SO is published the exporter can

pick up the container from the container hub and load it. The loading needs to be fi nished till the SI cut off date (Shipping instruction). At this

day the forwarder needs to hand in the container information to the carrier. Once the container is loaded it will process to the port and needs to

arrive at least before the fi nial closing date (CLS). The forwarder will then publish the Bill of lading (BL). This might be in hard copy format or in

soft copy as telex release. The container can only be received when the importer presents the BL. The transit inside the port might take around 2 days. Then

the container is loaded on an export ship (ETD - Estimated time of departure). Depending on the export and destination port the ocean transit will take a few

weeks (e.g. Yantian/Hamburg is approximately 28 days). The time the ship arrives the port is known as estimated time of arrival (ETA). Once the container has

arrived the port the importer needs to show the Bill of Lading (BL), Commercial invoice (CI), Packing List (PL), HS/Taric Code (Standardized Number of cargo)

and his import number if required to the customs. After approval the container will be processed and delivered.

P2


Container ShipmentFull container load (FCL)

A container shipment is considered a full container load (FCL), when the exporter books and prepares a full container.

The export will be processed under one shipper name. The import will be processed under one importer name.

This method is used if the shipper wants to take advantage of low transport costs and is able to reach the required cbm (Cubic meter).

Container ShipmentLess container load (LCL)

If there are two or more shipper who want to export cargo to the same destination port a LCL shipment can be processed. The shipper do not necessarily

need to know from each other. The process is organized by the forwarder who will bind exporter with the same interest. The shipper deliver their cargo to a

consolidation warehouse. From this warehouse the goods are bind and put into one container. Then the container is processed. The export is proceeded as a

consolidated export for the different shipper. At the port of destination the cargo is imported as a consolidated shipment for the shipper. The container is than

split inside a consolidation warehouse. Now the split cargo is processed to the different importer.

This method is used if the shipper wants to benefi t from low cost of export and is not able to reach the required cbm of a full container (Cubic meter).

P3


Free on Board is one of the most popular export terms (FOB). It basically means that the supplier takes care of all processes to the point where the goods are

on the export ship. This includes cargo loading, handling export documents, custom clearance, clearing harbour fee and so on. On many markets supplier can

benefi t from the FOB term since they can claim tax return, once the goods are exported.

On the other side the customer takes responsibility for the shipment once the goods are on the ship.

This includes ocean transportation, import and harbour costs, inland transportation and so on.

Container ShipmentFree on Board (FOB)

If the trade term is ex Works (EXW) the supplier just offers the fi nished cargo at his warehouse. Inland and ocean transportation, custom handling and all other

processes are handled by the customer himself. In this case the customer might be the exporter and importer at the same time if he does not work with an

agent.

Container ShipmentEX Works (EXW)

P4


Another commonly used term method is Cost, insurance and Freight (CIF). Similar to the FOB term the supplier takes care of all handling on the export market

side. However he will as well cover the cost and insurance of the ocean transportation.

Container ShipmentCost, Insurance and Freight (CIF)

P5


To deliver urgent or light goods fast from one market to another market express/courier forwarding is a solution.

Goods are fi nished by a supplier and put into the warehouse. Then a courier company will pick up the goods (e.g. DHL || UPS || FEDEX).

To use the service of the courier company the importer or the exporter need to have an account with the courier company. Cost might

as well be paid by the exporter or the importer, depending on agreement.

The courier truck will drive to the courier hub facility at the airport site. Once airplane space is ready the cargo will be put into the airplane and send to the des-

tination airport. Then processed at the courier hub facility and forwarded by truck to the fi nial destination.

Express/Courier ShipmentOverview

The exporter needs to hand in all relevant export documents such as Commercial invoice (CI), Packing list (PL), Taric Code and importer code to

the courier company. Then the entire process will be handled by the courier company. After the cargo has been delivered, the importer will receive an import

invoice from the courier company that includes import tax, duty and other local charges.

Most courier company offer a tracking system and deliver within 3 - 5 workdays.

Express/Courier shipments are used if the shipper wants to benefi t from fast delivery time and low handling effort.

Express/Courier ShipmentSteps/Documents/Time

P6


Air freight shipments are similar to courier shipments. However when making air freight shipments the exporter should deliver the goods by himself to the air-

port hub or ask an agent to do it. The export procedure is handled by the exporter or by an agent as well. The forwarder just handles the transportation of the

cargo from one airport to another airport.

Once the goods arrive the destination airport the customer can pickup and handle the import by himself or ask an agent to do so.

Air freight shipments are used if the shipper wants to benefi t from fast delivery time and lower rates than the courier service.

Air Freight ShipmentSteps/Documents/Time

P7


Cargo transportation from one market to another market_en_2016.02.01

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