Logistics Process Flow Explained For Import Export Business

Introduction

This article is proudly presented to you by Actions Logistics, a freight forwarder located in Port Klang, Malaysia.

Introduction

Hello, I'm Adrian, the logistician from this channel. The flow of logistics is an exciting topic to explore, especially in the context of Full Container Load (FCL) by cargo vessel. Whether you are a beginner or an experienced person handling export or import shipments, understanding the flow of logistics and its paperwork is crucial. Once you know the flow, you'll know what to do and expect in each section of the process.

The Need for Containers in Transportation

While it is pretty rare for an individual to use containers for transportation, many manufacturers produce goods every day and ship them overseas every week. Once the cargo is ready to ship, the manufacturer's shipping representative will contact a freight forwarder. They provide relevant details such as cargo readiness, trade under which Incoterm, port of discharge, volume, and container types required. This allows the freight forwarder to check the rate and plan the shipment based on the manufacturer's needs.

Planning and Booking

The freight forwarder replies to the manufacturer with the sailing schedule, including closing time, Estimated Time of Departure (ETD), transit time, Estimated Time of Arrival (ETA), and total charges. The manufacturer then decides to book the vessel that sails on their preferred ETD. Upon booking, the freight forwarder provides a booking confirmation comprising vessel details to the manufacturer.

Delivery Arrangements

Once the manufacturer receives the booking, they plan the loading date with the freight forwarder to make necessary arrangements, such as picking up and delivering empty containers to the manufacturer. Many importers and exporters prefer to work with freight forwarders for their knowledge and connections, simplifying the process of contacting multiple parties like shipping lines, haulage providers, and customs brokers. The forwarder also thoroughly checks required documents to avoid errors which could lead to customs queries or issues with duty exemption.

Picking Up Containers

To pick up the empty containers, they are collected from container depots, where shipping lines keep their containers. The depot also manages maintenance tasks like cleaning and repairing. We usually visit the container depot in the early morning or late evening to meet the delivery time requested by the manufacturer. The haulage driver inspects the containers to ensure they are of Grade A quality.

Loading and Delivery

Once the empty containers are delivered, a proper schedule is discussed for sending fully loaded containers to the port. Proper management by the freight forwarder is essential to gate the container in before the shipping line's closing time. During the loading process, precision is needed to ensure safety given the rough sea conditions and potential shaking. Hence, lashing is necessary to avoid cargo damage.

Preparing for Departure

When the containers are gated into the port, the freight forwarder must ensure that Verified Gross Mass (VGM) submission and customs declaration are completed before the vessel's departure. Multiple procedures need to be followed even before a container reaches the port. Closing time adherence is crucial for efficient loading and unloading.

Loading onto the Vessel

Containers are lifted onto cargo vessels by gantry cranes. Weight distribution and strict weight control are essential for lifting processes. Once the vessel departs from the port of loading, the freight forwarder must obtain and forward the bill of lading to the manufacturer, who then sends it to the consignee upon payment.

Receiving at the Destination

Before the vessel arrives at the destination port, the consignee will receive a notice of arrival and a commercial invoice for terminal handling charges and other local fees. The consignee must surrender the original bill of lading to receive delivery orders and settle any outstanding charges. Once these steps are completed, the consignee’s freight forwarder proceeds with customs clearance and final delivery.

Customs Clearance and Final Delivery

Customs documentation like the bill of lading, commercial invoice, packing list, and certificate of origin (if required) is necessary for clearance. Once customs clearances are in order, the final delivery to the consignee is arranged, marking the end of the logistics process.

Conclusion

In conclusion, while transporting cargo by container seems straightforward, various documents and checks are required along the way. An understanding of the logistics flow is essential for smooth shipment processing.

If you need assistance with export or import shipments, please contact me, Adrian the logistician, with the provided contact details.

Thanks for reading!

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Keywords

• Full Container Load (FCL)
• Freight forwarder
• Manufacturer
• Booking confirmation
• Shipping schedule
• Customs clearance
• Container depot
• Verified Gross Mass (VGM)
• Bill of Lading
• Terminal Handling Charges

FAQ

Q1: What is FCL in shipping terms?
A: FCL stands for Full Container Load, meaning a single consignee's cargo fills an entire container.

Q2: Why is a freight forwarder essential for manufacturers and importers/exporters?
A: Freight forwarders leverage their knowledge and connections to simplify the shipping process, handle multiple parties, and ensure all paperwork is accurate, reducing the risk of customs delays.

Q3: What documents are necessary for customs clearance?
A: Required documents typically include the bill of lading, commercial invoice, packing list, and certificate of origin if applicable.

Q4: What is the significance of Verified Gross Mass (VGM)?
A: VGM ensures that the total weight of the container is verified and documented, critical for safe loading and transport.

Q5: How are containers loaded onto cargo vessels?
A: Containers are lifted onto cargo vessels using gantry cranes, and the weight must be evenly distributed for safety.

Q6: What happens if there's an error in the shipping documents?
A: Errors can lead to customs queries, processing delays, and potential issues with duty exemption, affecting the timely delivery of the shipment.