Freight forwarding is the coordination and shipment of goods from one place to another via a single or multiple carriers via air, marine, rail or highway. The companies those who move the freight around the world are known as commonly termed as “Freight Forwarders” or “Freight Forwarding Companies”.
Logistics is about getting the right product, to the right customer, in the right quantity, in the right condition, at the right place, at the right time, and at the right cost. Logistics typically refers to activities that occur within the boundaries of a single organization and Supply Chain refers to networks of companies that work together and coordinate their actions to deliver a product to market.
The Liner agency is a multi-tasking organisation, frequently part of the shipping company itself, although it may be an independent contracted to the line, to find it cargo and to “facilitate” the business. International trade is complex and the liner will be an expert in international trade procedures, able to help shippers with all the customs and other regulations that have to be fulfilled at both ends of the chain if the goods are not to be delayed.
A freight forwarder can be a person or a company, that dispatches the shipment or arrange carriers as well as space for it for a third party; a third-party here can be a person, a small size business or well-established commercial firm. Freight forwarders organize transportation for the goods, within country, outside the country or both. The freight forwarder’s knowledge of shipping regulations, banking practices, and transportation costs can ease the shipment process.
The transport of goods by sea from seller to buyer usually involves several parties whose roles may be unclear to those on-board ship. The seller and the buyer are the parties contracting with each other for the delivery of the goods. The seller may be the producer or manufacturer of the goods, or may be a party acting as the producer/manufacturer’s agent. Both parties agree on the trade terms which will influence the type and terms of shipping documents.
The mode of transportation is an important consideration when planning the shipment process. Besides the costs, the urgency of the shipment, the value of the goods being shipped as well as the size and weight of the goods need to be evaluated when determining the form of transportation.
Shipping documents are forms that accompany a shipment listing the date shipped, the customer, the method of shipment, and the quantities and specifications of goods shipped. The shipping documents such as Air waybill, bill of lading, or truck bill of lading, commercial invoice, certificate of origin, insurance certificate, packing list, or other documents required to clear customs and take delivery of the goods.
Correct terminology and abbreviations also play a fundamental role within this complex industry. Speaking the same “shipping” language can help avoid misunderstandings, which most of the time lead to errors and negatively affects service performance and revenue.
Selecting the appropriate shipping method is a vital part of the international trade process. Various types of Vessel and Container and its purposes are explained here.
A seaport is located on the coast where ship can dock for transferring cargo and people out of the ships. Ports play a very important role in maritime logistics. Ports are also important for the support of economic activities in the hinterland since they act as a crucial connection between sea and land transport. As a supplier of jobs, ports do not only serve an economic but also a social function.
Warehouse operations are an integral part of a company’s business strategy. Inland Container Depots, otherwise known as ICDs, are dry ports equipped for handling and temporary storage of containerized cargo as well as empties.
INCOTERMS rules are accepted by governments, legal authorities, and practitioners worldwide for the interpretation of most commonly used terms in international trade. INCO terms are used to make international trade easier. they’re known and accepted from Austin to Zanzibar. Incoterms spell out all the tasks, risks and costs involved during the transaction of goods from seller to buyer.
LC is the Payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. One of the best-known payment processes which provides security to both the seller and the buyer through the international banking system.