LCL EXPORT LOGISTICS ON HOW IT’S ORIGINATED UNTIL FINAL DESTINATION
In continuation of our previous post about the LCL (less than container load) export process. And for the essence of clarity, it would be given a logistics approach in order to ensure things are shaped properly. Meanwhile, details over our area of concern will come in stages.
And for us to deal with this properly it’s important we understand the essence of cargo insurance precisely when it comes to the exportation of goods. Therefore, the factor to be considered here will be based on agreed terms of buying goods, in order to export a particular cargo, and with that, the buyer or seller must provide an insurance certificate for the goods to be exported, since the goods will be crossing boundaries and will, in turn, become exposed to unknown environmental hazards or risk. With that said, let’s move to the stages of LCL logistics.
Identify the goods to be exported in form of a less than container load (LCL), for example, machinery spare parts, odoriferous substance, office equipment, and chemical products. Once that has been identified and you (or your firm) have established contact with the consignee(s) (buyer) based on agreed terms of goods export, then you have to proceed with the next step.
At this point, the document(s) backing of your eligibility will be required, meaning an export license from the government of your country through the appropriate authority responsible for the authorization of such goods to be exported will be required. This is done firstly by drafting an application letter to the authority, seeking its approval to export such goods. While in the process, your application should include your firm’s certificate with other documents relating to those goods which are to be exported.
“SAMPLE LETTER, WHICH REQUIRES YOUR FIRM OR AGENCY LETTER DEFAULT PAPER”.
ABC EXPORT LOGISTICS LIMITED
Ports and Trade Center
11 February 2019
Your Ref: *******
Our Ref: ********
The Director General
Ministry of Mines and Resources
REQUEST TO EXPORT GOODS
In our letter dated 22 December 2018, we introduced our freight company to you and as well, stated our goals and objectives in the area of freight logistics that was honored and approved.
Today, we are pleased to inform you that our organization has client’s goods to export on the basis of cargo consolidation, and with this development, you have reasons to take us seriously as freight forwarders.
Attached here are our firm’s documents and that of the goods, and with this, we, therefore, request your agency approval and will be delighted to bring along, all relevant documents for screening.
For: ABC Export Logistics Ltd
After the application has been approved with the license issued, then proceed with the process of goods commercial exportation documents.
Contact a shipping company that already has an LCL (less than container load) agent at the port of the final destination. Alternatively, your firm could function as the shipper, if it’s already operational as an LCL freight forwarder. It’s therefore, the duty of the shipper to contact a shipping line on the ground of contract of carriage, which an export officer from the shipping line, after inspecting the goods to be exported should allocate you with a container appropriate for such shipment.
At this point the goods will be shipped as full container load (FCL), this is where goods belonging to different consignees irrespective of their freight forwarders are consolidated (center of LCL export logistics) and shipped with a container as a single shipment, while the volume will determine the type or dimension of container to be deployed.
This is considered as the core stage, where LCL export logistics takes full effect, from the shipper to other LCL freight consolidators (principals) along that route. Meanwhile, freight forms are meant to be filled, such as packing list, packing declaration, authorization form, photos of goods, fumigation certificate, and goods invoice.
The subject goods at this point should’ve been packaged (either in pallets, crates, or cases), measured or weighed to determine its cubic meter (CBM), while symbols are also meant to be pasted as an indication on each package and the container which relates how it should be handled (upright, fragile, flammable or hazardous), however, it’s fair to say that freight and handling charges are to be paid before the cargoes are transferred into the container.
Shipping documents such as the house bill of lading is either surrendered to the principal by the consignee, while instructions are stated on the manifest and draft bill of lading that the goods should be released upon presentation of a specific bill of lading, either due to cargo transshipment via a shipping line or change of vessel name before the cargo gets to the shipping company’s agent at the port of destination or unloading.
Submit export documents relating to individual consignee’s goods to the customs export section for inspection and verification. This is done in order to figure out if the export documents correspond with the cargo description and the volume, and if verified! Then the cargo will be endorsed by customs and allowed into the port terminal to be exported.
Finally, once the cargo is shipped on board the vessel, the shipper and the consignee can easily track the goods via the shipping line’s site in a bid to ascertain the status of the shipment.
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