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Table of Contents
International Trading & Local Trading......................................................................................................12
Definition and Reasons for International trading. 12
What is International Trade? ..............................................................................................................12
The Reasons for International Trade Are:...........................................................................................12
Definition and Difference for Local Trading.12
What is Local Trading?........................................................................................................................12
The Difference between Local Trading and International Trading.....................................................12
FREIGHT FORWARDING & LOGISTICS .........................................................................................................13
What is Freight Forwarding?........................13
Who are Freight forwarders?.......................13
What is Logistics?........................................................................................................................................13
SOP- STANDARD OPERATING PROCEDURE.................................................................................................13
What is SOP?................................................13
What Services does the Freight Forwarder offer?......................................................................................14
Air Freight Consolidation and Forwarding...14
Maritime Intermodal ...................................14
Road and Rail Distribution ...........................14
Trade Facilitation, Customs Brokerage........14
Logistics and Supply Chain Management ....14
Moving the Goods.......................................................................................................................................15
Transportation .............................................15
Documentation ............................................15
Customs .......................................................15
Payment of Charges.....................................15
Packing and Warehousing............................15
Insurance......................................................16
Security ........................................................16
Consolidation, Groupage and Special Services16
FREIGHT FORWARDS: WORKING WITH INDUSTIRES..................................................................................17
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Choosing a Freight Forwarder......................17
Set-up Procedures...............................................................................................................................17
Avoid Mistakes....................................................................................................................................17
Communication...................................................................................................................................17
Incoterms............................................................................................................................................17
Documentation used in International Transport........................................................................................18
Transport Documents ..................................18
Bill of Lading........................................................................................................................................18
Air Waybill...........................................................................................................................................18
Road Consignment Note.....................................................................................................................18
Official Documents..............................................................................................................................18
Commercial Documents......................................................................................................................18
CFS & PORT OPERATION .............................................................................................................................19
Documents required inside the CFS....................................................................................................19
Challan: ...............................................................................................................................................19
Shipping Order (SO) ............................................................................................................................19
Commercial invoice:............................................................................................................................19
Packing List:.........................................................................................................................................20
Shipping Bill:........................................................................................................................................20
Different types of Containers: ....................................................................................................................21
Dry Storage Container..................................21
Flat Rack Container......................................21
21
Open top Container .....................................21
Tunnel Container .........................................21
Open Side Storage Container:......................21
Double Door Container................................21
Refrigerated ISO containers.........................22
Insulated or thermal containers ..................22
Tanks............................................................22
Cargo storage roll container ........................22
Half height containers..................................23
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Car carriers...................................................23
Intermediate bulk shift containers ..............23
Drums...........................................................23
Special purpose containers..........................24
Swap bodies.................................................24
Garment on Hanger Container (GOH) .........24
What is Air Freight? ....................................................................................................................................25
Advantage of Air Freight Shipping. .............................................................................................................25
High Speed:..................................................25
Comfortable and Quick Services:.................25
No Investment in Construction of Track:.....25
No Physical Barriers: ....................................25
Easy Access: .................................................25
Emergency Services: ....................................25
Quick Clearance: ..........................................25
Most Suitable for Carrying Light Goods of High Value: 25
National Defense: ........................................25
Space Exploration: .......................................25
Disadvantage of Air Freight Shipping..........................................................................................................25
Very Costly: ..................................................26
Different types of plates and container in Airfreight..................................................................................26
Common designation: LD-1..........................26
Common designation: LD-2..........................27
Common designation: LD-3..........................27
Common designation: LD-3 Reefer..............28
Common designation: Half pallet ................28
Common designation: Half pallet ................28
Common designation: LD-4..........................29
Common designation: LD-6..........................29
Common designation: LD-7..........................29
Common designation: LD-7..........................30
Common designation: LD-7..........................30
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Common designation: LD-8..........................30
Common designation: LD-9..........................31
Common designation: LD-9 Reefer..............31
Common designation: LD-11........................31
Common designation: LD-26........................32
Common designation: LD-29........................32
Common designation: LD-29........................33
Common designation: LD-39........................33
Common designation: P6P pallet.................33
Common designation: Demi ........................34
Common designation: Type A pen...............34
Common designation: HMA stall .................34
Common designation: M-1 ..........................35
Common designation: M1H.........................35
Common designation: Main deck pallet (MDP) 35
Common designation: M-6 ..........................35
Common designation: M-6 ..........................36
Common designation: M-2 ..........................36
Common designation: M-6 ..........................36
Names of Container Ship Liners:.................................................................................................................37
MAERSK LINE:...............................................37
Hapag Lloyd:.................................................37
Hanjin Shipping: ...........................................37
OOCL: Orient Overseas Container Line........37
HMM:Hyundai Merchant Marine ................38
NYK LINE.......................................................38
Names of Airfreight Companies:.................................................................................................................39
Singapore Airlines Cargo: (SIA CARGO)........39
Etihad Cargo:................................................39
Qatar Airways Cargo: ...................................39
Lufthansa: ....................................................40
SAFE TRANSPORT OF CONTAINERS BY SEA.................................................................................................41
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Overview......................................................41
Key Requirements........................................41
Checking the Container.......................................................................................................................42
Pre-Stuffing .........................................................................................................................................42
External Checks...................................................................................................................................42
Post Stuffing........................................................................................................................................43
Prior to Unstuffing ..............................................................................................................................43
Checklist after Unstuffing ...................................................................................................................44
General Stowage..........................................44
Homogeneous Cargo...........................................................................................................................44
Uniform Stowage ................................................................................................................................44
Carton and Packages...........................................................................................................................44
Bagged Cargo ......................................................................................................................................44
Drums and Barrels...............................................................................................................................45
Rolls.....................................................................................................................................................45
Bulk Liquids .........................................................................................................................................45
Bulk Solids ...........................................................................................................................................45
Hanging Garments ..............................................................................................................................45
Reefer Cargoes....................................................................................................................................45
Safety and Securing......................................46
Overloading.........................................................................................................................................46
Road and Rail Limits............................................................................................................................46
DG........................................................................................................................................................46
Shifting Cargo......................................................................................................................................47
Securing in Containers ........................................................................................................................47
Securing Materials ..............................................................................................................................47
Final Weighing of Container.........................48
....................................................................................................................................................................49
CARO HANDLING EQUIPMENT ON BOARD AND IN PORT...........................................................................50
LIQUID CARGO HANDLING EQUIPMENT......52
GENERAL CARGO HANDLING EQUIPMENT ..53
....................................................................................................................................................................54
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....................................................................................................................................................................55
....................................................................................................................................................................56
....................................................................................................................................................................56
....................................................................................................................................................................57
PORT/TERMINAL CARGO HANDLING EQUIPMENT 57
Terms used in Freight Forwarding ..............................................................................................................59
ATA:.....................................................................................................................................................59
ATD......................................................................................................................................................59
Air Waybill...........................................................................................................................................59
Aircraft Container ...............................................................................................................................59
All Risk.................................................................................................................................................59
Allotment ............................................................................................................................................59
Alongside.............................................................................................................................................59
BAF (Bunker Adjustment Factor) ........................................................................................................59
Bill of Lading (B/L) ...............................................................................................................................59
Bill of Sale............................................................................................................................................59
Bonded Warehouse ............................................................................................................................59
Break Bulk (B/B)..................................................................................................................................59
Break-bulk Vessel................................................................................................................................60
CAF (Currency Adjustment Factor) .....................................................................................................60
Carnet..................................................................................................................................................60
Clean Bill of Lading..............................................................................................................................60
Combi Aircraft.....................................................................................................................................60
Commercial Invoice.............................................................................................................................60
Consignee............................................................................................................................................60
Consignment.......................................................................................................................................60
Consolidation ......................................................................................................................................60
Cost and Freight (C&F)........................................................................................................................60
Cost, Insurance and Freight (CIF)........................................................................................................60
Customs...............................................................................................................................................61
Customs Broker...................................................................................................................................61
Customs Clearance..............................................................................................................................61
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Customs Invoice..................................................................................................................................61
DAFF (Department of Agriculture)......................................................................................................61
DDP......................................................................................................................................................61
DDU.....................................................................................................................................................61
Dangerous Goods................................................................................................................................61
Delivery Instructions ...........................................................................................................................61
Demurrage ..........................................................................................................................................61
Dimensional Weight............................................................................................................................61
Direct Ship...........................................................................................................................................61
Drawback ............................................................................................................................................61
Duty.....................................................................................................................................................61
EDI.......................................................................................................................................................62
ETA ......................................................................................................................................................62
ETD......................................................................................................................................................62
Ex Works (...named place) (EXW)........................................................................................................62
FCL or CY .............................................................................................................................................62
Federal Maritime Commission............................................................................................................62
Flat Rack Containers............................................................................................................................62
Forty-Foot Equivalent Unit (FEU)........................................................................................................62
Free Alongside Ship.............................................................................................................................62
Free Carrier (FCA)................................................................................................................................62
Free On Board (FOB)...........................................................................................................................62
Freight Carriage ... and Insurance paid to...........................................................................................62
Freight Carriage ... paid to ..................................................................................................................63
Freight Forwarder ...............................................................................................................................63
Freight for All Kinds (FAK) ...................................................................................................................63
Gateway ..............................................................................................................................................63
GST ......................................................................................................................................................63
HAWB..................................................................................................................................................63
Harmonised System ............................................................................................................................63
IATA.....................................................................................................................................................63
IATA Designator ..................................................................................................................................63
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Import Certificate................................................................................................................................63
Import License.....................................................................................................................................63
Import Restrictions .............................................................................................................................64
Incoterms............................................................................................................................................64
Insurance Certificate...........................................................................................................................64
Integrated Carriers..............................................................................................................................64
Intermediate Consignee......................................................................................................................64
Intermodal ..........................................................................................................................................64
Irrevocable Letter of Credit.................................................................................................................64
LCL.......................................................................................................................................................64
LD3 ......................................................................................................................................................64
Letter of Credit....................................................................................................................................64
Lower Deck..........................................................................................................................................64
Main Deck ...........................................................................................................................................64
MPI (Ministry for Primary Industries) .................................................................................................65
Marine Cargo Insurance......................................................................................................................65
NVD .....................................................................................................................................................65
POD .....................................................................................................................................................65
Packing List..........................................................................................................................................65
Pro Forma Invoice...............................................................................................................................65
Project Cargo.......................................................................................................................................65
Roll-on, Roll-off ( RORO ) ....................................................................................................................65
Shipping Mark .....................................................................................................................................65
Shipping Weight..................................................................................................................................65
TACT ....................................................................................................................................................65
Tare Weight.........................................................................................................................................65
Temporary Importation under Bond ..................................................................................................65
Title .....................................................................................................................................................66
Through Bill of Lading .........................................................................................................................66
Transshipment ....................................................................................................................................66
Twenty-Foot Equivalent Unit ( TEU )...................................................................................................66
ULD......................................................................................................................................................66
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Ultimate Consignee.............................................................................................................................66
Value for Customs Purposes Only.......................................................................................................66
War/Strike Clause ...............................................................................................................................66
Wharfage.............................................................................................................................................66
Without Reserve .................................................................................................................................66
Ad Valorem .........................................................................................................................................66
Agent...................................................................................................................................................66
Arbitrary..............................................................................................................................................66
BAF ......................................................................................................................................................66
Bonded Warehouse ............................................................................................................................66
CAF ......................................................................................................................................................66
CABAF..................................................................................................................................................66
CAN/PRA .............................................................................................................................................67
Cartage................................................................................................................................................67
Certificate of Origin.............................................................................................................................67
CFR (Cost and freight) .........................................................................................................................67
CFS.......................................................................................................................................................67
CHIEF...................................................................................................................................................67
CIF (Cost, insurance and freight).........................................................................................................67
CMI (Comite Maritime International).................................................................................................67
Commercial Invoice.............................................................................................................................67
COU (Clip on unit) ...............................................................................................................................67
CRN (Customs Register Number)........................................................................................................67
CT (Combined Transport)....................................................................................................................67
CY (Container Yard).............................................................................................................................67
Conference..........................................................................................................................................67
Consortium..........................................................................................................................................67
Cut Off Date ........................................................................................................................................67
CNOR (Consignor) ...............................................................................................................................67
COD (Cash on delivery) .......................................................................................................................68
Deconsolidation Point.........................................................................................................................68
D/O......................................................................................................................................................68
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Documentary Credit............................................................................................................................68
DOT (Department of Trade)................................................................................................................68
Drawback ............................................................................................................................................68
Duty.....................................................................................................................................................68
EHA (Equipment Handover Agreement).............................................................................................68
FCL (Full Container Load) ....................................................................................................................68
FCX ......................................................................................................................................................68
Flat Rack..............................................................................................................................................68
Feeder Vessel......................................................................................................................................68
GATT (General Agreements on Tariffs & Trade).................................................................................68
Groupage.............................................................................................................................................68
GP (General Purpose)..........................................................................................................................68
GST (Goods and Service Tax)...............................................................................................................68
Hazchem Code ....................................................................................................................................68
Hi-Cube................................................................................................................................................68
ICC .......................................................................................................................................................69
IMDG Code (International Maritime Dangerous Goods Code)...........................................................69
IMO (International Maritime Organisation) .......................................................................................69
ISO (International Standards Organization)........................................................................................69
LCL (Less than Container Load)...........................................................................................................69
L/I (Letter of Indemnity)......................................................................................................................69
Lo/Lo (Lift On Lift Off) .........................................................................................................................69
Liner ....................................................................................................................................................69
MMO -.................................................................................................................................................69
Manifest..............................................................................................................................................69
Non-Conference..................................................................................................................................69
Notify Party.........................................................................................................................................69
O/H (Over Height)...............................................................................................................................69
O/S (Open Sided).................................................................................................................................69
O/T (Open Top) ...................................................................................................................................69
OOG (Out Of Gauge) ...........................................................................................................................69
O/W (Over Width)...............................................................................................................................69
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Packing Declaration.............................................................................................................................70
POA (Place of Acceptance)..................................................................................................................70
POD (Place of Discharge) ....................................................................................................................70
POL (Port of Loading)..........................................................................................................................70
Principal Carrier...................................................................................................................................70
PSC (Port Service Charge) ...................................................................................................................70
RO/RO (Roll On Roll Off) .....................................................................................................................70
Routing Order......................................................................................................................................70
Reefer..................................................................................................................................................70
SOB......................................................................................................................................................70
Shipper................................................................................................................................................70
Short Shipped......................................................................................................................................70
Slot ......................................................................................................................................................70
TEU......................................................................................................................................................70
THC......................................................................................................................................................70
Tare Weight.........................................................................................................................................70
Tariff:...................................................................................................................................................70
Transship.............................................................................................................................................70
Waybill ................................................................................................................................................71
Vent.....................................................................................................................................................71
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International Trading & Local Trading.
Definition and Reasons for International
trading.
What is International Trade?
International trade is the exchange of capital, goods,
and services across international borders or
territories, which could involve the activities of the
government and individual. In most countries, such
trade represents a significant share of gross
domestic product (GDP).
The Reasons for International Trade Are:
Reduced dependence on your local market Your
home market may be struggling due to economic
pressures, but if you go global, you will have
immediate access to a practically unlimited range of
customers in areas where there is more money
available to spend, and because different cultures
have different wants and needs, you can diversify
your product range to take advantage of these
differences.
Increased chances of success
Unless you’ve got your pricing wrong, the higher the
volume of products you sell, the more profit you
make, and overseas trade is an obvious way to
increase sales. In support of this, UK Trade and
Investment (UKTI) claim that companies who go
global are 12% more likely to survive and excel than
those who choose not to export.
Increased efficiency
Benefit from the economies of scale that the export
of your goods can bring – go global and profitably
use up any excess capacity in your business,
smoothing the load and avoiding the seasonal peaks
and troughs that are the bane of the production
manager’s life. Why international trade- Efficiency
and Productivity- chart icons
Increased productivity
Statistics from UK Trade and Investment (UKTI) state
that companies involved in overseas trade can
improve their productivity by 34% – imagine that,
over a third more with no increase in plant.
Economic advantage
Take advantage of currency fluctuations – export
when the value of the pound sterling is low against
other currencies, and reap the very real benefits.
Words of warning though; watch out for import
tariffs in the country you are exporting to, and keep
an eye on the value of sterling. You don’t want to be
caught out by any sudden upsurge in the value of
the pound, or you could lose all the profit you have
worked so hard to gain.
Innovation
Because you are exporting to a wider range of
customers, you will also gain a wider range of
feedback about your products, and this can lead to
real benefits.
Growth
The holy grail for any business, and something that
has been lacking for a long time in our
manufacturing industries – more overseas trade =
increased growth opportunities, to benefit both your
business and our economy as a whole.
Definition and Difference for Local Trading.
What is Local Trading?
Local Trading is the type of trading which is done
inside the country it is a trading system which is
carried out with the geographical boundaries of
particular country.
The Difference between Local Trading and
International Trading
1. Mobility in Factor of Production
•Domestic Trade: Free to move around factors of
production like land, labor, capital and labor capital
and entrepreneurship from one state to another
within the same country
•International Trade: Quite restricted
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2. Movement of Goods
•Domestic trade: easier to move goods without
many restrictions. Maybe need to pay sales taxed
•International Trade: Restricted due to complicated
custom procedures and trade barriers like tariff,
quotas or embargo
3. Usage of different currencies
•Domestic trade: same type of currency used
•International trade: different countries used
different currencies
4. Broader markets
•Domestic trade: limited market due to limits in
population, etc
•International trade: Broader markets
5. Language and Cultural Barriers
•Domestic trade: speak same language and practice
same culture
•International trade: Communication challenges due
to language and cultural barriers
FREIGHT FORWARDING & LOGISTICS
What is Freight Forwarding?
When a business decides to export their products
they soon realize that they have to deal with the
numerous barriers that have to be overcome to ship
the product to the end customer. In many cases a
business will look to a specialist, called a freight
forwarder, who can manage these obstacles.
A freight forwarder or Forwarding agent , also
known as a non-Vessel Operating Common Carrier
(NVOCC),is a person or company that organize
shipment for Individual or Cooperation to get goods
from the manufacturer or producer to a market
customer or final point of distribution .
Who are Freight forwarders?
The different types of freight forwarding companies
can be broadly divided into three categories:
Local companies - These are generally small single
office companies which tend to deal with customers
in the local area, or operate at a seaport or airport
concentrating on particular types of traffic. National
companies - Many forwarders have offices in the
major ports and airports throughout the country as
well as in the largest industrial towns. They may also
have warehousing or handling depots from where
they operate their own services. Such companies will
often have agents or correspondents overseas in the
markets with which they operate.
International companies - The truly international
company will have its own offices overseas and offer
a wide range of worldwide services. You should note
that these divisions are identified for ease of
understanding
What is Logistics?
Logistics is the detailed of organization and
implementation of a complex operation it is the
commercial activity of transporting goods to
customer , logistics is when the right thing is at the
right place at the right time .
SOP- STANDARD OPERATING PROCEDURE.
What is SOP?
A standard operating procedure, or SOP, is a set of
step-by-step instructions created by a business to
help workers carry out routine operations. Their
purpose is to achieve efficiency, quality output and
uniformity of performance, while reducing
miscommunication and failure to comply to industry
regulations.
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There are no hard and fast rules about the way in
which a particular company is organized and there
will be considerable overlap between types. It is
certain that size should not be considered as a
criterion for measuring the standard of service. The
industry is made up of many specializations and
those interested in using a freight forwarder or
working in the forwarding profession will find that
there is an enormous range of companies to choose
from. The business of choosing a freight forwarder is
covered in a later section. There is no such thing as a
typical freight forwarding company. Each company
provides services in accordance with the
requirements of its customers and, as with any
business, these services change with the demands of
the market.
What Services does the Freight Forwarder
offer?
The freight forwarder’s basic service is the
organization of the movement of goods
internationally by all modes of transport. A
forwarder would typically be appointed by an
importer or an exporter to act on their behalf to
move goods into, or out of, the country, and all that
this entails. Freight forwarders provide one or more
of the following services:
Air Freight Consolidation and Forwarding
The use of scheduled airlines for the movement of
freight increased considerably following the
introduction of wide-bodied aircraft. Concentrated
around the major international airports in the UK, air
freight forwarders provide a high quality range of
services worldwide for urgent and high value freight,
and just-in-time stock systems. They also provide
airport handling and distribution services, and act as
general sales agents for airlines.
Maritime Intermodal The widespread
introduction of sea containers in the 1970s provided
freight forwarders with the opportunity to develop
door-to-door and warehouse-to-warehouse services
worldwide, for Full Container Load (FCL) cargo and
Less than Container Load (LCL) shipments. Freight
forwarders today provide such services to virtually
every port and major industrial center worldwide.
Road and Rail Distribution A principal activity of
forwarders, European distribution includes the door-
to-door movement of full trailer loads of freight, and
the consolidation of small consignments into full
loads for warehouse-to-warehouse trucking and
thence final delivery to the consignee. Within
mainland, freight is commonly moved by rail.
Trade Facilitation, Customs Brokerage Many
countries in Europe and elsewhere still maintain
complex Customs procedures. The Customs
clearance of import freight and delivery to final
destination is an important aspect of the work of
freight forwarders. They hold up-to-date information
on local requirements in many countries of the
world enabling fast and reliable delivery of goods to
final destination.
Logistics and Supply Chain Management With
the increasing reliance placed upon freight
specialists by the international trading community,
freight forwarders have been quick to develop a
wide range of value-added services for their
customers. These can include warehousing, sorting,
order picking, packaging and final assembly of goods.
Freight forwarders, in particular, have embraced
modern electronic developments to offer a range of
e-commerce and e-business solutions for their
customers.
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Moving the Goods
Whether the forwarder is acting for an importer or an exporter, the main service provided is
the movement of goods. The forwarder’s experience will enable the provision of advice on the
best routing (cheapest, quickest, safest), the best mode of transport (air, sea, road, rail),
Customs requirements, packing, insurance, security issues, and the myriad of regulations that
apply in both the country of destination and the country of origin.
Transportation
Freight forwarders are the link between the seller
and the buyer. They may be contracted to work for
either, and their key function will be to arrange for
the movement of the goods between the two. They
will book space on the ship, aircraft or other
transport mode, call forward the goods at the
appropriate time and collect them. They will liaise
with their agent/office overseas to co-ordinate
delivery to the buyer. These actions may be
influenced by the method of transportation chosen.
Documentation
In all international trade there are documents to be
prepared. A freight forwarder is involved in either
preparing most of these, or giving advice to the
exporter/importer on those documents which they
must prepare. The current trend is, however, to
reduce the number of documents required. In
particular, with the development of a ‘frontier free’
Europe, trade within the EU States has become
much easier with the abolition of Customs borders.
In addition, the growth of e-commerce and internet
technology further reduces the need for paper
documents.
Customs
Importers and exporters have a legal responsibility
to declare and record all goods which enter and
depart the European Union. The preparation of
import and export declarations represents an
important part of the forwarder’s service. Since 1993
Customs clearance has not been required for goods
moving within the EU, although There are
procedures which may require the forwarder’s
involvement: for example, the collection,
preparation and submission of statistical
information (Intrastat). Goods exported to third
countries (all countries outside the EU) are still
subject to customs control, although systems are
constantly being simplified.
Payment of Charges
When a normal trading relationship has been
established between the forwarder and the
customer, the forwarder will accept and pay all
related charges on behalf of the customer. Thus a
trader requiring the services of airlines, shipping
lines and numerous other transportation and
handling organisations will only receive one invoice
from the forwarder. The forwarder can sometimes
arrange to collect the amount of the seller’s invoice,
collecting cash on delivery through overseas agents,
or the carrier.
Packing and Warehousing
The packing of the goods for export is a complex task
to ensure goods are protected against the risks
involved in their handling and the modes of
transportation being used. Consideration needs to
be given to the climates and terrain of the countries
through which the consignments will be travelling.
Too much heavy packing could prove costly for
goods travelling by air, for example. On the other
hand, too little packing might prove a false economy.
Many forwarders provide a packing service for their
customers, and the forwarder’s expertise
can save a customer a great deal of money.
Warehousing and allied functions, such as inventory
control, can often be of value to the trader who may
have limited space of his own. Whether temporary
or longer-term storage, the forwarder will normally
be able to arrange this facility for his customer.
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Insurance
Insurance plays an important part in international
trade. Goods in transit are exposed to many risks
and hazards. The prudent trader will always make
sure that consignments are insured against these
risks. Professional risk takers, known as
underwriters, accept possible financial losses
involved on payment of a premium, subject to terms
and conditions. Freight forwarders, not being the
owner of the goods, do not have an insurable risk in
the cargo and therefore cannot cover the risks to
cargo themselves. In the UK the mediation of
insurance is regulated by the Financial Services
Authority (FSA). Freight forwarders who wish to
provide an insurance service for their customers
have an exemption under the Financial Services
Management Act but exporters and importers
should check with their freight forwarder at the time
of booking the cargo for shipment about insurance
cover. Freight forwarders who offer insurance can
provide cover for their customer’s goods providing
the customer formally instructs the forwarder to do
so in writing.
Security
With ever-increasing levels of security being
introduced to protect goods from criminal activity
and acts of terrorism, it is imperative that freight
forwarders keep themselves up to-date with all the
latest regulatory security requirements so that any
cargo they handle is transported to its end
destination without any possibility of interference.
Forwarders work together with transport providers
and other key operators to ensure that everyone
conforms to the strict cargo handling and processing
procedures which are in place at the time. These
vary, depending on the mode of transport being
used. For example road trucks must be properly
secured, and cargo containers, for goods moving by
sea, must be locked and sealed, whilst in the air
sector, goods are screened before being uplifted.
These days many forwarders invest in expensive
scanning equipment to have cargo checked before it
is dispatched, thus avoiding any unnecessary delays
while the cargo is en route.
Consolidation, Groupage and
Special Services
One of the main advantages in using freight
forwarders lies in their ability to group together
consignments from several exporters and present
them to a shipping company or airline as a single
large consignment. In this way the forwarder can
obtain a much cheaper rate than an individual
company, and is able to offer the customer a
competitive tariff for a small consignment. The
principle of consolidation also enables the forwarder
to offer added value to the customer. For example,
a forwarder consolidating cargo in one country will
dispatch the full load to an agent in the destination
country. The destination agent will de-consolidate,
Customs clear and deliver the goods to the final
consignee. In addition to providing a complete door-
to-door service, the forwarder may be able to hold
consignments at destination
Prior to delivery to await payment from the
importer. This gives an element of security to the
exporter, whilst minimizing delay in delivery.
Consolidation is a term normally applied to air and
sea freight, whilst for road and rail freight the
practice is known as groupage. The forwarder could
be acting on behalf of an importer or exporter. In the
former case, the buyer at the destination may use
the forwarder to collect goods from many different
suppliers in the country of export, thus avoiding the
need to employ a purchasing agency for this
purpose.
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FREIGHT FORWARDS: WORKING
WITH INDUSTIRES
For those new to importing and exporting there is no substitute for planning a strategy and obtaining
advice. Most companies who begin to trade internationally will wish to use the services of a third party,
such as a freight forwarder, to advice on the movement of goods.
Choosing a Freight Forwarder
There are thousands of companies who promote
themselves as international freight service providers,
and it is very important to select the right one
Set-up Procedures
The organization within a company to deal with
import/export procedures is important. These will
include the invoicing of orders, the preparation of
documentation and communications, along the
supply chain, such as banks, insurance companies
and, of course, the customer.
Avoid Mistakes
Mistakes must be avoided at all costs as these can
prove expensive. Failure to follow correct
procedures and adopt good practice in international
trade can cause
Problems. Mistakes do not only happen to those
new to importing and exporting. Many experienced
traders would also benefit from a review of
operational procedures to ensure that they are, as
far as possible, eliminating unnecessary risks.
Communication
Always give instructions in writing. Failure to do this
may lead to error and misunderstanding.
Instructions, whether via fax, e-mail or Electronic
Data Interchange should include information on the
following as a minimum.
1. Name and address of shipper and consignee
2. Collection and delivery address if different from 1
above
3. Consignment specifications including weight,
dimensions, contents and value
4. Insurance declaration*
5. Dangerous goods declaration*
6. Terms of shipment (latest edition of Incoterms -
who pays what)
7. Special instructions eg. Letters of credit, payment
terms
*A statement should be made, eg.‘Insurance
required’ / ‘Insurance not required’, or ‘Goods
hazardous’ / ‘Goods not hazardous’.
Terms of Sale When goods are imported or exported
they are normally subject to a contract between a
seller and a buyer. Part of that contract will
determine what the price covers in relation to the
goods and the costs involved in transporting them
between the parties to the contract.
Incoterms
The purpose of Incoterms is to provide a set of
international rules for the most commonly used
terms in foreign trade. Thus the uncertainties of
various interpretations of such terms in different
countries may be avoided or reduced. Frequently
parties to a contract are unaware of the different
trading practices in their respective countries. This
can give rise to misunderstandings, dispute and
possible legal action with all the waste of time and
money that this entails. In order to remedy these
problems the International Chamber of Commerce
(ICC) first published in 1936 a set of international
rules for the interpretation of trade terms. These
rules were known as Incoterms 1936. Amendments
and additions were later made, leading to Incoterms
2010 being the rules in line with current
international trade practices.
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Documentation used in International Transport
Freight forwarders are well known for their knowledge of documentation.
International transport documents can be divided into three sectors:
1. Transport Documents
2. Official Documents
3. Commercial Documents
Incoterms are divided into two
categories as followed
Terms of any Mode or
Modes of Transport
CIP Carriage and
Insurance Paid
CPT Carriage Paid To
DAP Delivery At Place
DAT Delivery At Terminal
DDP Delivery Duty Paid
EXW Ex Works
FCA Free Carrier
Terms for Sea and Inland
Waterway Transport
CFR Cost and Freight
CIF Cost, Insurance
and Freight
FAS Free Alongside
Ship
FOB Free On Board
Transport Documents
Bill of Lading
The bill of lading takes many
forms but, first and foremost, it
is the key transport document
for the carriage of goods by sea
freight. In legal terms it is a
receipt for goods shipped, a
document of title and evidence
of the contract of carriage.
Possession of a negotiable bill of
lading which is properly
completed constitutes effective
control of the goods.
Air Waybill
The primary document for the
carriage of goods by air is the
air waybill. It is the contract
between the shipper and the air
carrier for the carriage of goods,
but it also serves as a receipt of
goods for shipment, a form of
invoicing, and a document for
the import, export and transit
requirements of Customs.
Road Consignment Note
The international carriage of
goods by road is covered by the
CMR Convention, which is a set
of legal articles forming the
contract between the carrier
and the shipper. The CMR
Convention prescribes the issue
of a consignment note as
evidence of the contract of
carriage, the conditions of the
contract and the receipt of the
goods by the carrier.
Official Documents
In addition to the basic
document of carriage,
international freight transport
requires regulatory documents
such as those required by law or
for the declaration of goods at
import and export to Customs
and other regulatory
authorities. Examples of official
documents include Dangerous
Goods Notes, Certificates of
Origin, or licenses.
Commercial Documents
The commercial documents in a
transaction are many and varied
and will depend on the nature
of the consignment, methods of
payment, etc. Examples of
commercial documents will
include invoices, insurance
certificates, letters of credit,
and shipping instructions. This is
not an exhaustive list.
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CFS & PORT OPERATION
The flow Chart above describes the Port Operation Procedures and the process they follow inside the port before
the goods or cargo is been dispatched.
Documents required inside the CFS
Challan:
This is a Bangla Term for a receipt which is handed
over for the Truck driver informing the good has
been dispatched from the factory.
Shipping Order (SO)
: A document used by a business to specify what
items are to be transferred from a storage location
or warehouse to what person and to what new
location. A shipping order typically is sent along with
a shipment of goods so that the person receiving
them can verify that the document correctly reflects
the items that they actually received.
Commercial invoice:
A commercial invoice is a document used in foreign
trade. It is used as a customs declaration provided by
the person or corporation that is exporting an item
across international borders. Although there is no
standard format, the document must include a few
specific pieces of information such as the parties
involved in the shipping transaction, the goods being
transported, the country of manufacture, and the
Harmonized System codes for those goods. A
commercial invoice must also include a statement
certifying that the invoice is true, and a signature
A commercial invoice is used to calculate tariffs,
international commercial terms (like the Cost in a
CIF) and is commonly used for customs purposes.
Commercial invoices are in European countries not
normally for payment. The definitive invoice for
payment usually has only the words "invoice". This
invoice can also be used as a commercial invoice if
additional information is disclosed.
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Packing List:
Itemized list of articles usually included in each
shipping package, giving the quantity, description,
and weight of the contents. Prepared by the shipper
and sent to the consignee for accurate tallying of the
delivered goods. Also called bill of parcels, packing
slip, or unpacking note.
Shipping Bill:
Customs document used where drawback is claimed,
such as on goods exported or on dutiable goods
transshipped or re-exported from a bonded
warehouse. It serves basically as a statistical record.
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Different types of Containers:
Dry Storage Container
The Most Commonly used shipping containers; they
come in various dimension standardized by ISO .
They are used for shipping for dry materials and
comes in sized of 20ft, 40ft 40HC ft. and 10ft
Flat Rack Container
With collapsible side, these are like simple storage
shipping containers where the sides can be folded so
as to make a flats rack for shipping of wide varieties
of goods
Open top Container
With a Convertible top that can be completely
removed to make an open top so that materials of
any height can be shipped easily
Tunnel Container
Container Storage units provided with doors on both
ends of the container, they are extremely helpful in
quick loading and unloading of materials.
Open Side Storage Container:
These Storage units are provided with doors that can
change into completely open sides providing a much
wider room for loading of materials
Double Door Container
They are kinds of storage units that are provided
with double doors,making a wider room for loading
and unloading of materials .construction materials
include steel ,iron etc. in standardized size of 20ft
and 40ft
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.
Refrigerated ISO containers
These are temperature regulated shipping
containers that always have a carefully controlled
low temperature. They are exclusively used for
shipment of perishable substances like fruits and
vegetables over long distances.
Insulated or thermal containers
These are the shipping storage containers that come
with a regulated temperature control allowing them
to maintain a higher temperature.
The choice of material is so done to allow them long
life without being damaged by constant exposure to
high temperature. They are most suitable for long
distance transportation of products
.
Tanks
Container storage units used mostly for
transportation of liquid materials, they are used by a
huge proportion of entire shipping industry. They are
mostly made of strong steel or other anti-corrosive
materials providing them with long life and
protection to the materials
.
Cargo storage roll container
A foldable container, this is one of the specialized
container units made for purpose of transporting
sets or stacks of materials. They are made of thick
and strong wire mesh along with rollers that allows
their easy movement. Availability in a range of
colored wire meshes make these shipping container
units a little more cheerful.
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Half height containers
Another kind of shipping containers includes half
height containers. Made mostly of steel, these
containers are half the height of full sized containers.
Used especially for good like coal, stones etc. which
need easy loading and uncork carriers
Car carriers
Are container storage units made especially for
shipment of cars over long distances? They come
with collapsible sides that help a car fit snugly inside
the containers without the risk of being damaged or
moving from the spot. Loading.
Intermediate bulk shift containers
These are specialized storage shipping containers
made solely for the purpose of intermediate
shipping of goods. They are designed to handle large
amounts of materials and made for purpose of
shipping materials to a destination where they can
be further packed and sent off to final spot
Drums
As the name suggests, circular shipping containers,
made from a choice of materials like steel, light
weight metals, fiber, hard plastic etc. they are most
suitable for bulk transport of liquid materials. They
are smaller in size but due to their shape, may need
extra space
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Special purpose containers
Not the ordinary containers, these are the container
units, custom made for specialized purposes. Mostly,
they are used for high profile services like shipment
of weapons and arson. As such, their construction
and material composition depends on the special
purpose they need to cater to. But in most cases,
security remains the top priority.
Swap bodies
They are a special kind of containers used mostly in
Europe. Not made according to the ISO standards,
they are not standardized shipping container units
but extremely useful all the same. They are provided
with a strong bottom and a convertible top making
them suitable for shipping of many types of
products.
Garment on Hanger Container
(GOH)
Garment On Hanger (GOH) (also known in certain
circles as Hangtainer) containers are standard/dry
containers that are converted/outfitted to be able to
safely and conveniently carry garments on hangers –
the same way you see them hanging in all the major
retail stores..
A lot of the shipping lines have their own GOH
containers for which they charge a premium for the
conversion and outfitting.. The retail companies
benefit a lot in terms of time, labour and money by
using GOH for their garment imports as they can
move the garments from the container to the shop
floor DIRECTLY and in a good condition
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What is Air Freight?
Air freight parcel delivery is the transfer and shipment of goods via an air carrier, which may be charter
or commercial. Such shipments travel out of commercial and passenger aviation gateways to anywhere
planes can fly and land.
Advantage of Air Freight Shipping.
High Speed:
The supreme advantage of air transport is its
high speed. It is the fastest mode of transport
and thus it is the most suitable mean where
time is an important factor.
Comfortable and Quick Services:
It provides a regular, comfortable, efficient and
quick service.
No Investment in Construction of
Track:
It does not require huge capital investment in
the construction and maintenance of surface
track.
No Physical Barriers:
It follows the shortest and direct route as seas,
mountains or forests do not come in the way of
air transport.
Easy Access:
Air transport can be used to carry goods and
people to the areas which are not accessible by
other means of transport.
Emergency Services:
It can operate even when all other means of
transport cannot be operated due to the floods
or other natural calamities. Thus, at that time, it
is the only mode of transport which can be
employed to do the relief work and provide the
essential commodities of life.
Quick Clearance:
In air transport, custom formalities can be very
quickly complied with and thus it avoids delay in
obtaining clearance.
Most Suitable for Carrying Light
Goods of High Value:
It is most suitable for carrying goods of
perishable nature which require quick delivery
and light goods of high value such as diamonds,
bullion etc. over long distances.
National Defense:
Air transport plays a very important role in the
defense of a country. Modern wars have been
fought mainly by airplanes. It has upper hand in
destroying the enemy in a very short period of
time. It also supports over wings of defense of a
country.
Space Exploration:
Air transport has helped the world in the
exploration of space.
Disadvantage of Air Freight
Shipping.
In spite of many advantages, air transport has
the following limitations:
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Very Costly:
It is the costliest means of transport. The fares
of air transport are so high that it is beyond the
reach of the common man.
Small Carrying Capacity:
Its carrying capacity is very small and hence it is
not suitable to carry cheap and bulky goods.
Uncertain and Unreliable:
Air transport is uncertain and unreliable as it is
controlled to a great extent by weather
conditions. Unfavourable weather such as fog,
snow or heavy rain etc. may cause cancellation
of scheduled flights and suspension of air
service.
Breakdowns and Accidents:
The chances of breakdowns and accidents are
high as compared to other modes of transport.
Hence, it involves comparatively greater risk.
Large Investment:
It requires a large amount of capital investment
in the construction and maintenance of
airplanes. Further, very trained and skilled
persons are required for operating air service.
Specialized Skill:
Air transport requires a specialized skill and high
degree of training for its operation.
Unsuitable for Cheap and Bulky
Goods:
Air transport is unsuitable for carrying cheap,
bulky and heavy goods because of its limited
capacity and high cost.
Legal Restrictions:
There are many legal restrictions imposed by
various countries in the interest of their own
national unity and peace.
Different types of plates and
container in Airfreight
Common designation: LD-1
IATA ULD code: AKC contoured container
Also known as: AVC, AVD, AVK, AVJ, and forkable AVY
Rate class: Type 8
Description: Half-width lower hold container with one
angled side.
Door is either canvas or solid.
Suitable for: 747, 767, 777, 787, MD-11 lower hold
Door opening: 58 x 61-in (147 x 155-cm)
Maximum gross weight: 1,588 kg (3,501 lb)
Tare weight: 70 to 170-kg (155 to 375-lb)
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AS1825 volume: 5.0 m3 (175 ft3)
Boeing volume: 5.0 m3 (175 ft3)
Common designation: LD-2
IATA ULD code: DPE contoured container
Also known as: APA, DPA, and forkable
DPN Rate class: Type 8D
Description: Half-width lower hold container with one
angled side.
Door is either canvas or solid.
Suitable for: 747, 767, 777, 787 lower hold
Door opening: 44 x 60-in (112 x 152-cm)
Maximum gross weight: 1,225 kg (2,700 lb)
Tare weight: 92 kg (203 lb)
AS1825 volume: 3.5 m3 (124 ft3)
Boeing volume: 3.5 m3 (124 ft3)
Common designation: LD-3
IATA ULD code: AKE contoured container
Also known as: AKE, AVA, AVB, AVC, AVK, DVA, DVE,
DVP, XKS, XKG, and
forkable AKN, AVN, DKN, DVN, and XKN
Rate class: Type 8
Description: Half-width lower hold container with
one angled side.
Door is either canvas or solid.
Suitable for: 747, 767, 777, 787, DC-10, MD-11
lower hold
Door opening: 58 x 61-in (147 x 155-cm)
Maximum gross weight: 1,588 cm (3,500 lb)
Tare weight: 82 kg (181 lb)
AS1825 volume: 4.5 m3 (159 ft3)
Boeing volume: 4.5 m3 (160 ft3)
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Common designation: LD-3 Reefer
IATA ULD code: RKN contoured cool container
Also known as: RVN
Rate class: Type 8
Description: Half-width lower hold insulated
container with one angled end.
Door is solid. Most examples are forkable.
Suitable for: 747, 767, 777, 787, DC-10, MD-11
lower hold
Door opening: 54 x 55-in (137 x 140-cm)
Maximum gross weight: 1,588 cm (3,500 lb)
Tare weight: 210 kg (463 lb)
AS1825 volume: 4.5 m3 (159 ft3) plus internal
volume (as is)
Common designation: Half pallet
IATA ULD code: PNA 767 half pallet with net
Also known as: PQP, FQF, and PPC
Rate class: Type 8
Description: Half pallet squared off for 767 lower hold
Suitable for: 767, 787 lower hold
Maximum gross weight: 2,449 kg (5,399 lb)
Tare weight: 83 kg (183 lb)
AS1825 volume: 5.5 m3 (194 ft3
Common designation: Half pallet
IATA ULD code: PLA half pallet with net
Also known as: PLB, FLA, P9A, P9B, P9P, P9R, and P9S
Rate class: Type 6
Description: Half pallet is contoured for lower hold and
main deck.
Suitable for: 747, 777, 787 lower hold; 707F, 727F, 737F
main deck with contoured load
Maximum gross weight: 3,175 kg (6,999 lb)
Tare weight: 91 kg (200 lb)
AS1825 volume: 7.1 m3 (250 ft3)
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Common designation: LD-4
IATA ULD code: ALP rectangular container
Also known as: ALD, AWD, AWZ, DLP, and forkable ALB,
ALC, AWB, and AWC
Rate class: Type 8
Description: Full-width lower hold container.
Door is canvas with built-in door straps.
Suitable for: 767, 777, 787 lower hold
Door opening: 92 x 61-in (234 x 155-cm)
Maximum gross weight: 2,449 kg (5,399 lb)
Tare weight: 120 kg (264 lb)
AS1825 volume: 5.7 m3 (200 ft3)
Boeing volume: 5.5 m3 (195 ft3)
Common designation: LD-6
IATA ULD code: ALF contoured container
Also known as: AWA, AWF, and forkable AWC
Rate class: Type 6W
Description: Full-width lower hold container with angled
ends.
Door is canvas with built-in door straps.
Suitable for: 747, 777, 787, DC-10, MD-11 lower hold
Door opening: 120 x 60-in (305 x 152-cm)
Maximum gross weight: 3,175 kg (7,000 lb)
Tare weight: 230 kg (507 lb)
AS1825 volume: 9.1 m3 (322 ft3)
Boeing volume: 8.9 m3 (316 ft3)
Common designation: LD-7
IATA ULD code: P1P flat pallet with net
Also known as: PAA, PAG, PAJ, PAP, PAX, P1A, P1C, P1D, and
P1G
Rate class: Type 5
Description: Universal general-purpose flat pallet for lower
holds and main decks.
Suitable for: Widebody: All aircraft lower holds and main decks
Standard-body: 707F, 727F, 737F, 757F, DC8F, DC9F main decks
Maximum gross weight: 4,626 kg (10,198 lb)
Tare weight: 105 kg (231 lb)
AS1825 volume: 10.5 m3 (370 ft3)
Boeing volume: 10.7 m3 (379 ft3)
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Common designation: LD-7
IATA ULD code: PAD P1P pallet with folding wings and net
Also known as: PAX and P1X
Rate class: Type 5
Description: P1P base with folding wings for overhang.
Suitable for: 747, 777, 787, DC-10, MD-11 lower holds
Maximum gross weight: 5,000 kg (11,023 lb)
Tare weight: 152 kg (335 lb)
AS1825 volume: 14.0 m3 (495 ft3)
Common designation: LD-7
IATA ULD code: XAW P1P pallet with fixed-angle wings and
net
Rate class: Type 5
Description: P1P base with fixed wings for overhang.
Suitable for: 747, 777, 787, DC-10, MD-11 lower holds
Maximum gross weight: 5,000 kg (11,023 lb)
Tare weight: 170 kg (375 lb)
AS1825 volume: 14.0 m3 (495 ft3)
Common designation: LD-8
IATA ULD code: DQF
Also known as: ALE, ALN, DLE, DLF, DQP, and MQP
Rate class: Type 6A
Description: Full-width lower hold container angled at
both ends.
Door is canvas with built-in door straps.
Suitable for: 767, 787 lower hold
Door opening: 92 x 62-in (234 x 157-cm)
Maximum gross weight: 2,450 kg (5,401 lb)
Tare weight: 127 kg (280 lb)
AS1825 volume: 7.1 m3 (252 ft3)
Boeing volume: 6.9 m3 (245 ft3)
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Common designation: LD-9
IATA ULD code: AAP enclosed pallet on P1P base
Rate class: Type 5
Description: General-purpose enclosed container fitted
to P1P base.
Door is canvas with built-in net door straps, or solid.
Suitable for: 747, 767, 777, 787, DC-10, MD-11 lower
hold
Door opening: 118 x 58 in (300 x 147-cm)
Maximum gross weight: Lower hold, 4,624 kg (10,194
lb); main deck, 6,000 kg (13,227 lb)
Tare weight: Canvas door, 215 kg (473 lb); solid door,
270 kg (595 lb)
AS1825 volume: 10.8 m3 (381 ft3)
Boeing volume: 10.8 m3 (381 ft3)
Common designation: LD-9 Reefer
IATA ULD code: RAP cool container on P1P base
Rate class: Type 5 Description: Insulated container with
solid door.
Suitable for: 747, 767, 777, 787, DC-10, MD-11 lower
hold
Door opening: 85 x 58-in (216 x 147-cm)
Maximum gross weight: Lower hold, 4,626 kg (10,198
lb); main deck, 6,000 kg (13,227 lb)
Tare weight: 400 kg (882 lb)
Internal volume: 9.6 m3 (339 ft3)
Common designation: LD-11
IATA ULD code: ALP rectangular container
Also known as: ALD, AW2, AWB, AWD, AWZ, DLP, DWB,
and MWB.
Refrigerated version: RWB, RWD, and RWZ.
Rate class: Type 6 Description: Full-width lower hold
container.
Door is canvas. Center post swings clear for loading.
Refrigerated version has solid door.
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Suitable for: 747, 777, 787, DC-10, MD-11 lower hold
Door opening: 120 x 61-in (305 x 155-cm)
Maximum gross weight: 3,176 kg (7,002 lb)
Tare weight: 185 kg (408 lb)
AS1825 volume: 7.4 m3 (262 ft3)
Boeing volume: 7.2 m3 (256 ft3)
Common designation: LD-26
IATA ULD code: AAF contoured container on P1P base
Rate class: Type 5
Description: Full-width lower hold container angled at
both ends.
Door is canvas with built-in net door straps.
Suitable for: 747, 777, 787, DC-10, MD-11 lower hold
Door opening: 120 x 60-in (305 x 152-cm)
Maximum gross weight: 6,033 kg (13,300 lb)
Tare weight: 250 kg (551 lb)
AS1825 volume: 13.3 m3 (470 ft3)
Common designation: LD-29
IATA ULD code: AAU contoured container on P1P base
Rate class: Type 5
Description: Full-width lower hold container angled at
both ends.
Door is canvas with built-in net door straps.
Suitable for: 747 lower hold
Door opening: 118 x 60-in (300 x 152-cm)
Maximum gross weight: 6,033 kg (13,300 lb)
Tare weight: 265 kg (584 lb)
AS1825 volume: 14.4 m3 (510 ft3)
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Common designation: LD-29
IATA ULD code: RAU contoured cool container on P1P
base.
Rate class: Type 5
Description: Full-width lower hold container angled at
both ends.
Refrigerated version of AAU has solid door.
Suitable for: 747 lower hold
Door opening: 118 x 60-in (300 x 152-cm)
Maximum gross weight: 6,033 kg (13,300 lb)
Tare weight: 450 kg (992 lb)
Internal volume: 11.1 m3 (392 ft3)
Common designation: LD-39
IATA ULD code: AMU contoured container on P6P base
Rate class: Type 2BG
Description: Full-width lower hold container angled at both
ends.
Door is canvas with built-in net door straps.
Suitable for: 747 lower hold
Door opening: 120 x 60-in (305 x 152-cm)
Maximum gross weight: 5,035 kg (11,100 lb)
Tare weight: 290 kg (639 lb)
AS1825 volume: 15.9 m3 (560 ft3)
Common designation: P6P pallet
IATA ULD code: P6P 10-ft flat pallet with net
Rate class: Type 2BG
Description: Universal general-purpose flat pallet for
lower holds and main decks.
Suitable for: 747, 767, 777, 787, DC-10, MD-11
Tare weight: 120 kg (265 lb)
AS1825 volume: H 162.6 cm (64 in), 11.5 m3 (407 ft3) H
243.8 cm (96 in), 17.0 m3 (600 ft3) H 299.7 cm (118 in),
21.2 m3 (750 ft3)
Boeing volume: H 162.2 cm (64 in), 11.7 m3 (415 ft3) H
243.8 cm (96 in), 17.0 m3 (600 ft3) H 299.7 cm (118 in),
21.2 m3 (750 ft3)
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Common designation: Demi
IATA ULD code: AYY contoured container on half
pallet base.
Rate class: Type 7
Description: Half-width main deck container with
top contour
Suitable for: 727F, 737F, 757F main deck 747F, 767F,
777F, DC-10F, MD-11F main deck
Maximum gross weight: 3,016 kg (6,649 lb)
Tare weight: 80 kg (176 lb)
AS1825 volume: 5.8 m3 (206 ft3)
Common designation: Type A pen
IATA ULD code: KMA sheep and goat pens on P1P base
with net
Rate class: Type 3
Description: Triple-deck sheep and goat pens
Suitable for: Main deck 747F, 767F, 777F, DC-10F, MD-11F
Tare weight: Triple deck, 610 kg (1,344 lb);
AS1825 volume: 15.9 m3 (560 ft3)
Common designation: HMA stall
IATA ULD code: HMA horse box on P6P pallet base
Rate class: Type 2
Description: P6P base with IATA-specified horse box stalls
attached.
Available with canvas top or solid roof.
Some further modified versions available with position for
escort.
Suitable for: Main deck 747F, 767F, 777F, DC-10F, MD-11F
Maximum gross weight: 3,500 kg (7,716 lb)
Tare weight: 1,310 kg (2,888 lb)
AS1825 volume: 18.4 m3 (653 ft3)
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Common designation: M-1
IATA ULD code: AMA rectangular container on P6P base
Rate class: Type 2
Also known as: AMF, AMG, AMK, AMP, AQA, AQD, and AQ6
Description: Main-deck container. Door is canvas with built-
in net door straps.
Suitable for: 747F, 747 Combi 777F center loading only
Maximum gross weight: 6,804 cm (15,000 lb)
Tare weight: 350 kg (772 lb),
AS1825 volume: 17.6 m3 (623 ft3)
Common designation: M1H
IATA ULD code: AMD contoured
Rate class: Type 2H
Description: Main-deck upper contoured container.
Door is canvas with built-in net door straps.
Suitable for: 747F, 747 Combi 777F center loading only
Maximum gross weight: 6,800 kg (14,491 lb)
Tare weight: 370 kg (816 lb)
AS1825 volume: 21.2 m3 (750 ft3)
Common designation: Main deck pallet (MDP)
IATA ULD code: PRA 16-ft pallet with net
Rate class: Type 1P
Also known as: PMA, P4A, P4M, and PZA
Description: Main-deck pallet with net Suitable for: 747F, 747
Combi, 777F
Maximum gross weight: 11,300 kg (24,911 lb)
Tare weight: 410 kg (904 lb)
AS1825 volume: 27.6 m3 (974 ft3)
Common designation: M-6
IATA ULD code: PRA 16-ft flat pallet with twin car racks as VRA
Rate class: Type 1P
Also known as: PMA, P4A, P4M, and PZA
Description: Main-deck pallet with special moulding for car rack attachments.
The support racks are available in pairs as IATA ULD code VRA.
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Suitable for: 747F, 747 Combi, 777F (center loading only)
Maximum gross weight: 8,900 kg (19,621 lb),
vehicle for upper rack must not exceed 1,800 kg (3,968 lb)
Tare weight: 400 kg (882 lb)
Car supports weight: 130 kg (286 lb) per pair Note:
The same system is available for longer vehicles on 20-ft pallet.
The only increase in weight is the pallet tare weight: 500 kg (1,102
lb).
Common designation: M-6
IATA ULD code: PGA 20-ft flat pallet with net
Rate class: Type 1
Also known as: PGA, PGE, PGF, PSA, PSG, P7E, P7F, and P7G
Description: Main-deck pallet squared off to 244 cm (96 in)
high.
Suitable for: 747F, 747 Combi, 777F
Maximum gross weight: 11,340 kg (25,000 lb)
Tare weight: 500 kg (1,102 lb)
AS1825 volume: 33.7 m3 (1,190 ft3)
Common designation: M-2
IATA ULD code: AGA 20-ft box container
Rate class: Type 1
Also known as: ASE Description: Main-deck container.
Door is solid.
Suitable for: 747F, 747 Combi 777F center loading only
Maximum gross weight: 11,340 kg (25,000 lb)
Tare weight: 1,000 kg (2,204 lb)
AS1825 volume: 33.7 m3 (1,190 ft3)
Common designation: M-6
IATA ULD code: PGA 10-ft high, 20-ft flat pallet with net
Rate class: Type 1
Also known as: PGA, PGE, PGF, PSA, PSG, P7A, P7E, P7F, and P7G
Description: Main-deck pallet squared off to 299.7 cm (118 in) high.
Suitable for: 747 Combi, 777F 747F through side cargo door only
Maximum gross weight: 11,340 kg (25,000 lb)
Tare weight: 500 kg (1,102 lb)
AS1825 volume: 39.6 m3 (1,400 ft3)
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Names of Container Ship Liners:
MAERSK LINE:
Maersk line is the global container division and the largest operating unit of Maersk Group which is a
Danish Business Conglomerate. It is the world’s largest container shipping companies which have
customers through 374 offices in 166 countries and approximately 7,000 sea farers and 25,000
approximately based people. Maersk Line operates over 600 vessel and has a capacity of 2.6 million TEU
This company was founded in 1928, The CEO of the company is Soren Skou .
Hapag Lloyd:
Is a German Chilean Transportation Company comprising a cargo container shipping line,Hapag Lloyd
AG, which in turn owned other subsidiaries such as Hapag-Lloyd Cruises. Hapag –Llyod AG is the world’s
fifth largest container carrier in terms of vessel capacity. The company was formed in 1970 as a merger
of two 19th
century companies. Hapag, which dated from 1847 and Norddeutscher Lloyd (NDL) or (NGL),
which was formed in 1856. Hapag-Lloyd was acquired in 1998 by TUI AG (Hanover) and became its fully
owned subsidiary in 2002.
HAPAG: the Hamburg-Amerikanische-Paketfahrt-Aktien-Gesellschaft for shipping acoss the Atlantic
Ocean was founded in Hamburg.
North German Lloyd: Norddeutscher Lloyd (NDL) was formed in 1856 in the city –state of Bremen ,
offering passenger and cargo transportation between Bremen and New York .
Hanjin Shipping:
Hanjin Shipping Co.ltd is South Korea’s Largest and one of the world’s top ten container carriers in terms
of capacity .Hanjin Shipping operates some 60 liner and tramper services around the globe transporting
over 100 million tons of cargo annually. Its fleet consists of some 200 containerships,bulk and LNG
Carriers Hanjin Shipping Has its Own Subsidiaries dedicated to ocean transportation and terminal
operation and it has 230 branch offices in 60 different countries . Hanjin Shipping was founded in 1977
in South Korea
OOCL: Orient Overseas Container Line
OOCL is a Hong Kong – based container shipping and logistics Services Company. OOCL is one of the
world’s largest integrated international container transportation, logistics and terminal companies with
more than 320 offices in 70 countries around the world providing 78 services covering international
trading market with a fleet of more than 300 ship including line vessels, feeder and OOCL-owned and
operated vessels OOCL has vessels of different classes wth capacity varying from 2,500 twenty foot
equivalent units (TEU) to 13,000 TEU and ice class vessels for extreme weather conditions . OOCL was
founded 1969 .
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HMM:Hyundai Merchant Marine
Hyundai Merchant Marine (HMM) is a South Korean integrated logistics and containerized freight
Transport Company. With more than 50 sea routes, over 100 ports of call and operating about 138
vessels. HMM provides worldwide global service network, diverse logistics facilities ,leading IT shipping
related systems, a professional highly trained staff and continual effort to provide premiere
transportation . HMM begin with 3 VLCCs in 1976 . when the company was founded .
NYK LINE
Nippon Yusen Kabushiki Kaisha is a Japan Mail Shipping Line or NYK Line is one of the oldest and Largest
Shipping Companies in the world .It is a member of the Mitsunishi UFJ FInacial Group Keirestu.The
Company has its Headquarters in Chiyoda,Tokyo,Japan . it was founded in Tokyo on September 29,1885.
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Names of Airfreight Companies:
Singapore Airlines Cargo: (SIA CARGO)
Is a Cargo airline based in Singapore .it is a subsidiary of Singapore Airlines and was incorporated in
2001.SIA Cargo operates nine freighters and manages the belly hold of all Singapore Airlines and Scoot
Aircraft. SIA Cargo’s warehouse in Singapore, dubbed SIA super hub 1, was opened in 1995.This
warehouse is capable of handling up to 450,000 tons of goods a year . in 2001 Super hub 2 was opened
which increased the capacity to over 1,200,000 Tonnes per year .
Etihad Cargo:
Etihad Cargo, formerly Etihad Crystal Cargo, operates three Boeing B777F,one Boeing 747-
400F(operated by Atlas Air in Etihad Colours) and three Airbus A330-200F.Ethihad Cargo has one
additional Airbus A330 -200F freighter Scheduled for Delivery in 2014 Etihad Cargo delivered 368,000
tonnes of cargo in 2012, a tonnage growth of 19 per cent on the back of a capacity increase of 14 per
cent in available tonnage kilometers.
Qatar Airways Cargo:
the airline's freight branch, is the world's third largest international cargo carrier.[109] It has ordered
three Boeing 777F.[110] The first Boeing 777F was delivered to the airline in on May 14, 2010, and has
freight facilities able to handle 750,000 tonnes of cargo per annum during its first development phase.
The Boeing 777F will be used primarily on Qatar Airways' Far East and European routes and will be
supplemented by Airbus A300-600F freighters operating on regional routes feeding the airline's hub.
Dedicated cargo flights to Cairo International Airport were launched in June 2009 complementing the
passenger services already operated. On August 18, 2010, the airline launched its first US dedicated
cargo service from its hub in Doha to Chicago-O'Hare with a stop-over in Amsterdam, Netherlands using
Boeing 777 freighter aircraft. On March 13, 2013, Qatar Airways Cargo first of three A330F was delivered
provided on lease from BOC aviation replacing A300-600F.Global Supply Systems operated three Boeing
747-8F aircraft under a wet lease arrangement for British Airways World Cargo until BA terminated the
contract early on January 17, 2014.[115] An agreement with Qatar Airways to operate flights for IAG
Cargo using Boeing 777F was announced on the same day. On March 18, 2015, Qatar Airways Cargo
announced that starting April 4, 2015 will launch a twice-weekly Boeing 777 Freighter service to Los
Angeles which will become Qatar Airways Cargo’s fourth US freighter destination alongside Houston,
Chicago and Atlanta.
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Lufthansa:
Lufthansa Cargo AG is a German cargo airline and a wholly owned subsidiary of Lufthansa. It operates
worldwide air freight and logistics services and is headquartered at Frankfurt Airport, the main hub of
Lufthansa. Besides operating dedicated cargo planes; the company also has access to cargo capacities of
350 passenger aircraft of the Lufthansa Group. Lufthansa was Founded 1977 as German Cargo
Lufthansa name was founded in 1993.
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SAFE TRANSPORT OF
CONTAINERS BY SEA
Overview
It is of the utmost importance to recognize that
actions taken when containers are stuffed may
have direct implications for the stability and
safety of containerships, the lives of seafarers
on board and the safety of others throughout
the transport chain. It is particularly important
for all involved to understand the high degree
of physical risk presented by the marine
environment, the extreme forces to which a
ship is exposed at sea, and the extent to which
these risks are greatly increased by any failure
to stuff containers correctly. This point cannot
be over emphasised. It is vital to adhere to
weight restrictions, and correct procedures for
loading and securing cargo, to ensure the safe
distribution of weight and that cargoes inside
containers do not move or shift when at sea,
compromising the safety of the ship. The
IMO/ILO/UNECE Guidelines on the Packing of
Cargo Transport Units provides a common
global resource for information on container
stuffing.
Key Requirements
The following requirements must be adhered to
during container stuffing/unstuffing, in addition
to the more specific observations elsewhere in
this leaflet:
• Subject to booking request, select the most
suitable container type to accommodate the
cargo;
• Prepare a pre-stow plan before commencing
stuffing so that weight/volume considerations
are covered and point loading limits are
observed;
• Never load by weight above the payload
limits of the container, i.e. the cargo and
container net weight must not exceed the
container’s gross safe working load;
• Never load by weight above the road
regulations applicable on the transit;
• Distribute the weight of the cargo evenly over
the floor of the container. Never stow heavy
items in one section and light items in another.
The weight of the cargo should not exceed the
’60% within half the length rule’;
• Do not stow heavy goods on top of light
goods;
• Stow and secure all cargo tightly;
• Observe all the handling instructions on cargo
such as “Do not drop” or “This side up”;
• Stow goods with sharp corners separate from
other softer merchandise. Use dividers and
separating material as appropriate;
• Where possible with mixed loads, place
packages containing liquid cargo on the bottom
tiers with dry cargo on top;
• Use cargo liners for obnoxious cargo such as
hides and carbon black;
• Do not use clamps or other loading devices
unless the goods can withstand them;
• When loading Dangerous Goods, ensure that
the IMDG Code packaging requirements are
always observed;
• Do not load goods in a container with
damaged packaging;
• Do not stow wet and damp goods with dry
goods;