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Standard Bill of Lading by isv11699

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Standard Bill of Lading document sample

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									         CHAPTER VII
INTERNATIONAL TRANSPORTATION
 Types of International Transportation
 Types of International Cargo
 Ocean Freight Costs
 Ocean Bill of Lading
 Non-Negotiable Sea Waybill
 Multimodal Transport Document
 Letter of Credit and Ocean Bill of Lading
 Parties Responsible for Shipping Arrangements
 Arrival Notice



                                                  1
            Truck and Rail
   Primary carriers among countries in the
    same continent such as the USA,
    Mexico, & Canada. EU countries
   Containerized piggyback service on rail
   Combined transportation of ocean and
    inland to domestic final destination




                                              2
          Air Transportation
   Most expensive but fastest mode of
    transportation
   High valued goods
   Fragile goods
   Perishable goods
   Shorter transit time: Speedy delivery
   Less burden on inventory: Just-in-time
    delivery



                                             3
            Air Transportation
   Air freight
       By weight or volume
       Steep progressive rate structure
       Depending on commodities




                                           4
           Air Transportation
 Air freight carriers
   Airlines: Operate own air planes
   Air freight consolidators
      • Air freight wholesalers for less than
        container load (LCL)
      • Small shippers pay the consolidator less
        than they would pay the airline themselves
      • More waiting time for consolidation
      • Freight forwarding service by freight
        consolidator
      • Export customs clearance service by freight
        consolidator


                                                      5
            Air Transportation

 Air freight carriers
   International couriers
     •   Documents and small packages
     •   House to house service
     •   One to three day guaranteed delivery
     •   DHL, UPS, Federal Express, Emery, US
         Postal Service




                                                6
        Ocean Transportation
  Least expensive transportation mode
  Faster, more fuel-efficient vessels

 Shipping lines
   Usually own the cargo vessels
   Operate the cargo vessels
   Belongs to Conference or Non-conference




                                              7
           Ocean Transportation
   NVOCC's (Non-Vessel Operating Common
    Carriers)
     Do not own or operate the vessels
     Freight consolidators and wholesalers: Less
        freight than shipping lines for small shipments
       Specialized in LCL cargoes-- Small shipments
        in a container without expensive export crating
       Have a warehouse or terminal for receiving
        and consolidating small shipments
       Have own rate tariffs filed with the Federal
        Maritime Commission
       Issue a negotiable ocean bill of lading
                                                          8
           General Cargo
 Packaged cargo transported not in
  container
 Fiberboard (Cardboard) box, crate(wooden
  box), fiber drum, steel drum, wooden
  barrel, bag or sack, and bale
 Loaded in the cargo holds
 Refrigerated holds for frozen meat or fresh
  fruit


                                                9
                  Bulk Cargo
Cargo without package

 Dry bulk cargo: Coal, grain, ore, gravel loaded
  into the holds by cranes or clamshells or
  conveyor system

 Liquid bulk cargo: Gasoline, edible oil, liquidified
  natural gas (LNG) or liquidified petroleum gas
  (LPG) loaded into the tank by piping system




                                                         10
           Container Cargo
Packaged cargo transported in a container

 House to house service
 Shipper's load and count notation on the
  B/L
 Unloaded to Container Freight Station
  (CFS) in the case of more than one cargo
  owner and Container Yard (CY) in the case
  of one cargo owner


                                              11
              Container Cargo

   Container size (Outside dimension)
     Standard:
       • 20 Footer: W.8' x H.8' 6" x L.20' (7' 8"x 7'
         10"x 19' 4")
       • 40 Footer: W.8' x H.8' 6" x L.40' (7' 8"x 7'
         10"x 39' 4")
     High Cube:
       • 40 Footer: W.8' x H.9' 6" x L.40' (7' 8"x 8'
         10"x39' 4")
       • 45 Footer: W.8' x H.9' 6" x L.45' (7' 8"x 8'
         10"x44' 4")
                                                        12
              Container Cargo
   Specialized container
     Tanker container
     Reefer container

   Advantages of containerization
     No need for expensive crating
     Prevents theft at the dock
     Fast loading & unloading leading to savings on
      both time and money
     Savings on freight through consolidation of
      small shipments

                                                    13
              Ocean Freight Cost
   Pure freight: Rate tariff published & filed with
    the FMC
 Surcharges: Add-on costs after pure freight
  published
   • Currency Adjustment Factor (CAF): When US
     dollar drops, CAF goes up.
   • Fuel Adjustment Factor (FAF):Bunker charge.
     When price of bunker c fuel increases, FAF
     goes up
   • Terminal Handling Charges (THC): Charges
     for moving cargoes on the pier, loading or
     unloading. Regular lines usually include these
     charges in the ocean freight
                                                       14
           Ocean Bill of Lading
   Negotiable Bill of Lading: Order Bill of
    Lading
    • Made out "To order" or To the order of ----."
    • Cargoes are released only on presentation of
      an original bill of lading duly endorsed by the
      shipper or consignee named in the bill of
      lading
 Non-Negotiable Bill of Lading: Straight B/L
  • Consigned to the importer. Cargoes are
    released only to the consignee. Endorsement
    not needed


                                                        15
          Ocean Bill of Lading
 Long form B/L:
    It contains all terms & conditions of carriage
     printed on the reverse side of the B/L
 Short form B/L:
   It contains some of terms and conditions by
    reference to a source or document




                                                      16
   Non-Negotiable Sea Waybill

 Cargoes are released only to the
  consignee on the Sea Waybill without
  surrendering an original Sea Waybill.
 Often used
   When consignee, or importer does not need to
    sell the goods during transit
   Specially convenient in the case of a very
    short transit time.
 Processing shipping documents through
 exporter’s bank and importer’s bank take
 several days
                                                   17
Multimodal Transport Document
   Multimodal (Combined or Intermodal) Bill of
    Lading

   Covers two or more transportation modes:
    truck or rail – vessel-truck or rail

   Covers all transportation from the place
    dispatched, taken in charge or shipped on
    board to the place of final destination


                                                18
    Letter of Credit and Ocean Bill of Lading
    Ocean Bill of Lading must conform to
     conditions of Letter of Credit (UCP 600)
    To be accepted by banks, a bill of lading
     must appear to
     indicate the name of the carrier and be
       signed by the carrier or its agent, or
       master or its agent
     indicate that goods have been shipped
       on board on a named vessel at the
       port of loading stated in the Credit
       •   Shipment date: the date of B/L issuance or
           On Board notation date

                                                        19
Letter of Credit and Ocean Bill of Lading

   To be accepted by banks, a bill of lading
    must appear to (continued)
      indicate shipment from the port of
       loading to the port of discharge stated
       in the Credit
      be the sole original or the full sets of
       originals as so issued
      contain the terms & conditions of
       carriage
      contain no indication subject to a
       charter party

                                                  20
Letter of Credit and Ocean Bill of Lading

    If the Credit calls for a multimodal bill of
     lading, it must appear to
     indicate that goods have been
         dispatched, taken in charge or
         shipped on board at the place stated
         in the Credit with the date dispatched,
         taken in charge of shipped on board




                                                    21
Letter of Credit and Ocean Bill of Lading
   If the Credit calls for a multimodal bill of
    lading, it must appear to (continued)
      indicate the place of dispatch, taking in
        charge or shipment and the place of
        final destination stated in the Credit,
        even if
       • it states, in addition, a different place of
         dispatch, taking in charge or shipment or
         final destination or
       • it contains the indication “intended” as to
         the vessel, port of loading or port of
         discharge
     meet other terms & conditions of a
      standard bill of lading
                                                        22
Letter of Credit and Ocean Bill of Lading
       Banks accept a bill of lading which
         bears a clause of “shipper’s load and count”
          or “said by shipper to contain” in container
          shipment
         indicates as the shipper or consignor of the
          goods a party other than the beneficiary of
          the Credit (3rd party B/L)
         indicates that transshipment will or may take
          place if cargo shipped in Container, Trailer or
          LASH (Lighter Aboard Ship) barge and
          covered by one B/L even if the L/C prohibits
          transshipment
         bears a reference to charges additional to the
          freight.
                                                        23
Letter of Credit and Ocean Bill of Lading

    Banks reject a bill of lading which
     states that the goods are or will be
       loaded on deck
     indicates a defective condition of the
       goods or the package: Not clean B/L
     shows a transshipment, if it is
       prohibited by the Credit, unless it is a
       multimodal transport document or the
       cargo is shipped in Container, Trailer
       or LASH
                                                  24
Letter of Credit and Ocean Bill of Lading
       Common discrepancies in Bill of Lading
         Less than a full set of original Bill of Lading
          presented
         Changes not initialed by the signor of the B/L
         Not properly endorsed
         No "On Board" notation indicating the date of
          shipment and the name of the actual vessel,
          if the B/L contains the indication “intended
          vessel“ or similar qualification such as
          “Received for shipment”
         Date of the B/L later than shipping date in the
          L/C

                                                        25
Letter of Credit and Ocean Bill of Lading

       Common discrepancies in Bill of Lading
        (continued)
         Stale B/L not presented to the negotiating
          bank within specified time after shipment
          stipulated in the L/C (Presentation date)
         Different markings from L/C
         Different description of the goods from L/C in
          general terms
         Not clean (foul) B/L with a notation of
          defective goods or packages
         On-deck shipments

                                                       26
    Parties Responsible for Shipping
             Arrangements

   Under a CFR or CIF Transaction
       Exporter is responsible for shipping
        arrangement, loading, paying freight
        or freight & marine insurance premium
       Exporter may ship by the least
        expensive vessel even though it is the
        slowest. Long voyage is a waste of
        time and money.


                                                 27
Parties Responsible for Shipping
         Arrangements

   Under FOB Transaction
       Importer is responsible for shipping
        arrangement, paying ocean freight and
        marine insurance premium
       Exporter responsible for loading the
        cargo on the carrier
       Exporter may ship by the most
        convenient vessel even though its
        freight is higher than other vessels.

                                                28
Parties Responsible for Shipping
         Arrangements
   First, import on a CFR or CIF basis
   Second, if you can get a better freight rate, then
    change to the FOB
   FOB ties up line of credit less than CFR or CIF,
    specially when the freight portion is very high.




                                                         29
               Arrival Notice
   Carrier unloads Containers with one cargo
    owner to C.Y. (Container Yard) and
    Containers with more than one owner to
    C.F.S. (Container Freight Station)
   Arrival Notice to “Notify Party” in the B/L
    indicating ETA and wharf demurrage
    starting date, generally
      8th day after vessel arrival for CY cargos
      13th day for CFS cargos excluding
       weekend & holidays
      Much shorter free period for reefer
       containers


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