Breakbulk Clearing Guide, A Look At The Delivery Approach


Breakbulk Clearing guide
Break Bulk Unloading Process

Drifting from containerized trades, it should be noted that breakbulk dry trade is practically a sure bet for clearing firms, as such, creating an enabling ecosystem for this category of trade that firms could potentially cast their nets. With that in mind, a close look at the ‘break bulk clearing guide’ wouldn’t just educate but rather, broaden our understanding in this sphere.

Going forward, a high proportion of seaborne trade (solid) are often shipped as break bulk, resulting in a high percentage of goods shipped via this medium. These shipments come in diverse dimensions, ranging from agricultural produce, raw materials, wood boards, chemical products, oversized goods, spares, and so on. Which is often shipped based on the nature of the goods, more often, trade categorized as general goods are often shipped with the aid of jumbo bags, pieces, cases, crates, and so on, offering room for flexibility.  

While we walk through the right measures taken to customs this category of trade, it would be fair if we could have this subject addressed in the right proportion. To have things shaped is for us to begin the whole process, however, this is how to walk around this. Prior to the shipment arrival, precisely the vessel’s ETA, the clearing firm or the clearing agent responsible for the shipment delivery is expected to have figured out the shipping company and the port or terminal where the trade would be unloaded, precisely with the aid of the shipment bill of lading. Should the subject trade be stored after unloading? The warehouse or shed should be figured out as well.

Once the shipping company and the storage unit have been figured out, it will be right to proceed with the submission of the trade documents to the customs in order to initiate the shipment entry and documentation process. With that in place (customs documentation process), reach out to the shipping company through which the goods were shipped (this step is often taken in order to figure out the ship or the vessel’s expected time of arrival), owing to the fact that most goods shipped in this category are often required by factories for further production, as such, should not be delayed further once unloaded from the vessel. However, sensitive trade will require a special warehouse due to their nature and so would not be expected to exceed the stipulated period that such goods should be stored in a warehouse.

Meanwhile, one vital factor to be considered as regards this subject (breakbulk clearing guide) is the ‘storage local bills’ that are often incurred when this category of freight is shipped. These are local charges generated based on the shipment tonnage coupled with port or terminal local handling bills known as THC (terminal handling charges), while the former is incurred daily. This significantly increases the local storage cost unlike full container load and less than container load trade. With this in mind, it’s advisable to ensure that clearing firms give this a quick approach as soon as the vessel berths, noting that incurred bills could rip consignees apart. In some cases, the previous process may not be required, owing to the fact that some shipments in this category could undergo direct unloading and delivery.

To ensure ugly situations are avoided at all costs, wrap up the customs documentation process that will lead to customs inspections aimed at figuring out if the subject shipment is classified as contraband (CB) or dangerous goods. But if the freight is not classified as prohibited goods, it will be self-inflicting if the clearing firm delays the process, otherwise, wrap up the customs documentation process. At this point, the shipment proforma bill and the bill of lading will be required to process the freight tariff. Once the value of the shipment has been figured out, it’s advisable to proceed with the customs inspection and examination process while making sure that the shipment tariff is effected accordingly. And as things are still in process, a couple of government authorities may be involved. However, the shipment examination process is expected to be done snappy considering the nature of the goods.

In view of this, it will be nice to effect the customs release, to ensure the shipment is exited from the port legally. Howbeit, the next is to effect the shipping and terminal releases in order to take delivery of the shipment. This will require the payment of the freight local bills to the shipping company coupled with the submission of the shipments’ original bill of lading and other documents required by the shipping company, as soon as the shipping company’s payment advice has been effected. The presentation of all documents required by the company should be addressed, and once things are shaped accordingly, the shipment Delivery Order (DO) will be issued by the shipping company.

As for the terminal, the process here is just straightforward, while a breakbulk local terminal payment advice will consist of handling and storage local charges billed based on the number of days (period) the subject shipment was stored in the shed or warehouse. And once the terminal advice has been paid, the port administrative unit will require the presentation of the shipment documents, which will include a copy or copies of evidence of terminal payments. If everything is in order, the Terminal Delivery Order (TDO) including an Authority to Load document will be issued the clearing firm or the agent.

If things are shaped, the shipment is considered set to be delivered to the consignee but will require some checks and verification at the exit point by the port officials. Regardless, that’s all about the breakbulk clearing guide, and you’re done. Congratulation.

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