A COMPREHENSIVE INSIGHT ON EXPORT LOGISTICS FOR ALL SEABORNE TRADE
At this point, it’s evident a comprehensive round check over export logistics is necessary since we’ve dealt with core areas of dry trade exportation. While for obvious reasons it will be nice to have a simplified sum up of the various forms of exportation which were discussed previously. Noting that we’ve imbibed the act to grow in knowledge precisely in this sphere of global economy.
I believe that anybody who has to export, and who believes in skills, gets away from fighting about history. – Stef Wertheimer.
We itemize each of these factors just as we did in our previous posts.
- Identify the goods to be exported, based on the mode of exportation.
- Establish contacts with consignees or buyers of the goods identified to be exported.
- Obtain and make sure the license to export (FCL (full container load), LCL (less container load), Breakbulk cargo, and roll-on-roll-out (RORO)) goods are all in place.
- Understand and deploy the logistics process required to export the subject goods.
- The commercial documentation process is required, which is dependent on the nature of export.
- Good cargo handling and ideal equipment are often required to export goods like LCL or FCL. For breakbulk goods, professional handling of such goods will be essential.
- Contact a shipping company or liner, for breakbulk cargo (shipowner or liner) for its carriage and its documentation. Make sure all paperwork is done properly and correctly.
- Make sure the capital required to export goods in this capacity is accessible.
In the first instance, you have to identify the goods to be exported. Alternatively, to identify the area of logistics service one could render the service of a freight forwarder or shipper, and once that has been identified, however, this will mean having good knowledge of exportation processes of various trade categories, such as, less than container load (LCL) and full container load (FCL), breakbulk cargo or roll-on-roll-out (RORO) will be needed to cope with the logistics challenges, and once that is in place, proceed with the next stage.
One must establish contact with consignees or buyers of goods intended for export. On the other hand, functioning as a freight forwarder to render the logistics service of less than container load (LCL) export is also ideal, and with that, needing an established contacts and feedback system with a shipping company (agent at destination) or companies at the port of transshipment. In the process of shipping a less container load that will be transshipped before goods arrive at the port of destination, the freight forwarder responsible for the cargo consolidation at the port of transshipment would function as correspondent to the shipper, and in turn the principal to the agent at the port of final destination. These shipping companies are meant to transmit the shipment status reports based on feedback updates, from her agent to the principal and in turn, the shipper for documentation and clarification of cargo delivery to each of the consignees.
Shipment status reports are also required for full container load, general cargo, and roll-on-roll-out shipments.
At this stage, you are meant to draft a letter to the appropriate government authority responsible for the approval of the goods to be exported. This will require your organization’s documents, such as the certificate of incorporation coupled with the letter (drafted with your organization’s default format).
At this stage, one is required to deploy the knowledge of export logistics which is core in this post.
- FULL CONTAINER LOAD (FCL) LOGISTICS: The first step to be taken about this type of freight is to proceed with all export documents that have been approved, coupled with the packing list and the commercial invoice of the goods to a shipping company or liner for export booking, precisely under the contract of carriage, all charges demanded by the shipping company or liner are to be paid by the shipper. Then an officer of the company contacted for its carriage will inspect the goods to determine the right container to be deployed, and, in turn, allocate the shipper with the right equipment (container) to be used.
Note: At this point, freight charges could be paid to the shipper, shipping company, or shipping line (liner).
As regards its documentation process, all charges which include payment of the bill of lading document with other shipping documents obtained from the shipping company or liner ought to have been met, and once the shipper is done with the export documentation, you must check all paperwork if everything is correct (spelling, goods description coupled with agreed terms), and if the paper works are confirmed correct, the next is to submit a set of that document to customs export department before its (goods) arrival at the port or terminal. As soon as the cargo gets to port entry, customs would have to run their inspection, if the drafted details of the goods tallied with its export documents. And if all is figured out correctly, the goods will be allowed into the port terminal to be exported. However, other authorities may certify goods before exportation.
- LESS THAN CONTAINER LOAD (LCL) LOGISTICS: After you have identified or purchased goods to be exported through this process. Approved export documents from the government authority should be merged with the packing list and commercial invoice. Bear in mind that freight insurance is to be paid by the seller of the goods in case of any damage in transit. On the other hand, you (the shipper) are to package and determine the shipment cubic meter or allow the shipping company contracted to figure out the goods cubic meter, this will enable the shipping company to determine its freight charges, and these are meant to take effect before the goods including cargoes from other consignees are consolidated and shipped as a full container load (FCL) by the shipping line under a contract of carriage. However, some forms are to be filled for a less than container load (LCL) export and these include, a packing declaration form (a complete LCL declaration and authorization form), authorization form, and fumigation certificate, including the pictures of the goods.
Stages of less than container load export logistics from the shipper to its port of destination;
The shipper or freight forwarder holds the responsibility of basic export documentation, and this is core for less than container load export. In the process of documentation, the Multi-modal Dangerous Goods Form is expected to be filled and may be used as a dangerous goods declaration, this is done to ensure strict compliance of cargo handling (hazardous and non-hazard goods) while on transit, safety precautionary measures should be taken.
As for the cargo manifest and house bill of lading, these documents are issued by the shipper, however, on the Manifest document are the shipment details and instructions drafted, basically from the shipper to its agent at the port of destination in respect to cargo delivery. While the House Bill of Lading serves as evidence of payment, proof of ownership, and contract of carriage. These include freight conditions and cargo descriptions. Once cargo documentation at this stage is completed, reassessment of documents in case of any mistake is considered very important.
If all is correct, prior to the departure of the goods (consolidated cargo) from the port of origin, the shipper is expected to send shipment documents via electronic medium or Currier service to its agent or correspondent (if the shipment is to be transshipped) before it arrives at the port of unloading. This will enable its agent or correspondent to run all the necessary documentation prior to its arrival or transshipment. However, the shipment status report is also expected to be sent via email to all parties (shipper, correspondent, and agent) on a daily basis after the shipment has been unloaded at the port of destination, meanwhile, the consignee would have to keep in touch with the shipper and its agent at the destination based on shipment expected time of arrival (ETA).
Finally, customs will inspect the container to ascertain if all declarations are correct before it’s loaded onboard.
- BREAK BULK CARGO LOGISTICS: Goods shipped in this form require more professional handling, from the farm or factory to its port of loading. As we know, this form of shipping is tedious and capital intensive, and as such, requires professional handling, however, volume and the sensitivity of goods are factors to be considered.
The process of documentation while exporting goods through this medium varies. For instance, when the whole vessel is chartered or hired, a single bill of lading is issued, known as a chartered bill of lading. In another dimension, when goods onboard belong to different consignees, a master or house bill of lading could be issued to each of the consignees. Once the documentation is complete and charges are paid, a set of export documents for inspection will be submitted to the customs including other government authorities.
- ROLL-ON-ROLL-OUT LOGISTICS: These are wheeled goods that could be exported with the aid of a container (either shipped with other goods or for security reasons), but these goods are predominantly shipped without the use of containers, meaning with the aid of RORO Vessels.
Also read more on this via this link: clinchbase.com/roro-export/
This article concludes our analysis of export logistics while we move on to import process/ logistics.
- We hope you found this article on export logistics, helpful?