/ By tjchinafreight ivy / Shipping

Top 5 Shipping Documents Shippers Need to Know

Top 5 Shipping Documents Shippers Need to Know
Top 5 Shipping Documents Shippers Need to Know

Different countries have different requirements when it comes to shipping documents. The two main world organizations that set rules and guide business organizations on this issue are the World Trade Organization (WTO) and the International Chamber of Commerce (ICC).
Most shipping documents are based on rules and regulations established by these world bodies and the respective country's governing bodies, such as chambers of commerce, customs, trade commissions, etc.

Here are the top 5 shipping documents that all shippers should be familiar with, and the differences between them.

1. Bill of Lading

If there is only one shipping document you need to know that is in the palm of your hand, it is the bill of lading.

A bill of lading, also known as a bill of lading, is a contract of carriage between a shipping company and a cargo owner. This is a document issued by the carrier to confirm receipt of your cargo for shipment on their ship.

Importer and exporter information needs to be listed clearly as the bill of lading is proof of ownership of the goods being carried on board. The information on the bill of lading should also correctly reflect the Incoterms conditions under which the transaction is conducted.

Once the goods arrive at their destination, the bill of lading needs to be presented to the carrier to release the goods, which then serve as a shipping receipt.

2. Packing list

As the name suggests, it is a document that provides details of the packaging of the shipment. The packing slip will show a description of the goods, their individual and collective packaging, dimensions, weight and markings. It may look very similar to an invoice, but it is not a substitute for a pro forma or commercial invoice.

Packing slips help customs, carriers and consignees easily identify individual shipments during inspection or receipt.

Top 5 Shipping Documents Shippers Need to Know
Top 5 Shipping Documents Shippers Need to Know

3. Commercial Invoice

Any international transaction involving import/export of goods must be accompanied by a proof of sale called a commercial invoice. To a large extent, it is similar to a standard invoice. But unlike a standard invoice, it contains details about the purpose of customs clearance of the goods and is one of the most important documents in ocean shipping. Details of all parties involved, including importers, exporters, freight forwarders, banks, shipping lines, etc., must be listed correctly on the commercial invoice.

Even though the information listed on the commercial invoice may be very similar to the information on the packing list, you still need to submit both documents and the information must match. Don't confuse the two as they serve different purposes.

A commercial invoice is a legal document that lists the goods sold and their selling price—that is, what the importer agrees to pay for those goods, and is sent to the party paying for the goods. As mentioned earlier, the packing list details the items in the shipment and serves as evidence in the event of disputes and claims, and is sent to the consignee of the shipment.

4. Letter of Credit

A letter of credit or "letter of credit" is a letter from a bank guaranteeing that payments made by the buyer to the seller will be received on time and in the correct amount. If the buyer is unable to pay for the purchase, the bank will be required to pay the full or remaining amount of the purchase. It is available as a facility.

Due to the nature of international transactions, including factors such as distance, different laws in various countries, and difficulty in personally understanding the parties, the use of letters of credit has become a very important aspect of international trade.

5. Certificate of Origin

According to the International Chamber of Commerce, Certificates of Origin (COO) are "important international trade documents that certify that the goods in a particular export are obtained, produced, manufactured or processed entirely in a particular country. They also serve as an exporter's declaration.

In other words, the COO identifies the country of production of the goods. This document is prepared by the exporter/manufacturer and must be certified to be valid by a government agency such as a chamber of commerce or a consulate.

A Certificate of Origin is required for customs clearance, which determines the amount of duties and taxes to be paid. It also helps determine whether there is a tax exemption in the case of special trade agreements between exporting and importing countries.

The certificate of origin needs to fill in typical information such as exporter, consignee, importer, and description of goods. For each export commodity, a COO must be created.

/ By tjchinafreight ivy / Shipping

The Complete Guide to Air Waybills

The Complete Guide to Air Waybills
The Complete Guide to Air Waybills

What is an air waybill?

A document issued by or on behalf of the shipper evidencing the contract between the shipper and the carrier for the carriage of goods on the carrier's route

What is the purpose of an air waybill:

  • Documentary evidence of the conclusion of the contract of carriage.
  • Proof of receipt.
  • freight bill.
  • Proof of insurance (if the shipper requires carrier insurance).
  • Directs carrier staff in handling, scheduling and delivering shipments.

What information is included in the air waybill document?

  • Name and address of shipper and consignee
  • 3-letter airport code for origin and destination
  • Shipping value
  • Item description, including quantity, weight, dimensions, and materials used in item and packaging
    any special instructions regarding processing

    Airway bill
    Airway bill

Who issues the AWB?

The cargo air carrier will issue an air waybill for you upon receipt of the cargo after completing the country's export customs formalities.
Shippers do not receive AWB until the goods are delivered to them.
Different from the bill of lading, the individual issues an air waybill, and the goods arrive by air, and the transportation cycle is not as good as by sea.
This is done for immediate reference to terminal shipping and trade-in customs clearance.

Who is responsible for filling out the air waybill?

To be a legal contract or agreement, the carrier or its legal agent must sign with the shipper or agent.
The air waybill must have multiple signatures, although similar organizations or individuals may act on behalf of the shipper and carrier.
Of course, each in their respective carrier and carrier packages.

How to get air waybill?

You can obtain an air waybill through an issuing agency such as the carrier or a representative on behalf of the carrier.

The AWB contains details such as details of suppliers, recipients and shipments, terms and conditions under which exchanges or transactions take place, and other important information.

/ By tjchinafreight ivy / Shipping

Shipping Labal — A Simple Guide

Shipping Labal -- A Simple Guide
Shipping Labal -- A Simple Guide

What is a Shipping Label?

A shipping label, sometimes called a package label, identifies many things about your package: its point of origin, its destination, its weight, the carrier's name, and so on. These labels are used by humans and their machine counterparts to understand where your package came from, where it needs to go, and what stops it may have made along the way.

Without a clear shipping label, packages can be delayed in transit, delivered to the wrong address, or lost completely. Any of these scenarios may lead to either a financial loss or a loss of customer trust, which makes the shipping label extremely important!

Label

The size of the label is important when shipping. It needs to be large enough to contain all the appropriate information the carrier needs to send, including barcodes that must be scannable.
The industry standard size for shipping labels is 4×6.
That means the label is 4 inches wide and 6 inches long.
All major carriers support these shipping labels, so we recommend that you use them for your business.
Depending on the printer, you can buy labels in rolls or fanfold.
Both come in standard 4×6 industrial size.
If you choose roll labels, you will want to use labels with a 1" core to fit properly into your desktop thermal printer.
Folded labels are also a good option, as they are easy to stack behind the printer and fold up after printing for easier cleanup.

How do I create a shipping label?

Shipping labels are usually created during order processing. Carriers have specific requirements for their shipping labels. There is no way to create your own templates or fill in labels manually. To create a shipping label, you must follow the carrier's requirements.

you can:

Visit your local post office and pay the label there
Arrange your own labels

When you buy a label at the post office, you're actually buying postage at the retail price, which is the most expensive pricing tier for shipping labels.
Arranging your own shipping labels has many more advantages, including discounts on postage and arranging a package pickup without having to wait at the post office. There are even ways to automate the process to reduce manual typing as much as possible.

Learn how to arrange your own shipping labels using these 3 methods:

Create Your Labels Online
Create Your Labels Online

1: Create your label online
2: Use Shipping Label Software
3: Fully automated with transport

If you have a large number of orders, the shipping tool can save you time and effort and eliminate the need to fill out labels manually.

When considering means of transportation, consider the following:

Which selling platforms do you need to integrate with (Shopify, Magento, etc.)
how much do you ship per month
Where do you ship to? Do you need international shipping?

/ By tjchinafreight ivy / Shipping

What is the sea waybill in sea freight?

A container ship passes beneath a suspension bridge as it departs for Europe.
A container ship passes beneath a suspension bridge as it departs for Europe.

Sea ​​waybill

A sea waybill is a contract of carriage and proof of receipt of the goods for carriage. It is used when the exporter decides to release title to the goods. The goods can be delivered to the claimant identified in the documents. It is also known as the "Express Release Bill of Lading" or "Straight Bill of Lading".
The sea waybill is only for proof and does not confer title to the goods (non-transferable). After loading, the exporter will receive a sea waybill for reference. No other documentation was presented to the carrier; the cargo was released as soon as it arrived at the port.

Negotiable V Non-Negotiable Documents

A negotiable document or instrument allows the holder to transfer title to the goods to a third party. Usually, there are two parties to this assignment - the indorser and the endorsee.
The original bill of lading can be changed hands by endorsement, and the endorser (the original owner of the goods) transfers the ownership of the goods to the endorsee (the new owner of the goods agreed by both parties).
Goods are shipped and delivered to the party holding the original, endorsed bill of lading.
A non-negotiable instrument specifies a single party as the owner, and that ownership cannot be endorsed to a third party. In this case, the goods are shipped to the party originally designated.
An endorsement must be signed by the endorser or bearer on the front or back of the bill to be valid. The transaction is complete when the instrument is delivered to the endorsee in whose name it transfers title.

Inspections at commercial transport dock
Inspections at commercial transport dock

Issue a sea waybill

Ocean bills of lading are usually made in triplicate - the original and the second to the shipper or consignor and the third to the consignee. The consignor sends the original to the consignee for customs clearance and receives the goods to his warehouse.

A sea waybill is a non-negotiable document that is released by telex or courier for easy and fast customs clearance of goods.

How to apply for ocean bill of lading?

If you want to ship your products immediately by ocean service, then it is recommended that you use a sea waybill.
You need to apply for the ocean bill of lading by writing an application.
Some important information must be placed on the app.

Vessel/Container Information
Shipping Port/Unloading Information
cargo description
Shipper Name
Consignee name

You can request a sea waybill by filling in the correct information in the application form.
You need to mention that you understand the terms and conditions of the ocean bill of lading.
You must abide by the terms and conditions.
The most important thing is that Seaway bill is not the title of the file, so you can't transfer the bill to a third
The best thing is that the consignee does not need any documentation at the port of discharge.
The carrier is responsible for customs clearance.

/ By tjchinafreight ivy / Shipping

Packing list – Simple Guide

Aerial view of an International port, Business logistics concept, Cargo Container ship in import export and business logistics, Shipping harbor.
Aerial view of an International port, Business logistics concept, Cargo Container ship in import export and business logistics, Shipping harbor.

What is a packing list?

A packing list is a document used in international trade. It provides exporters, international freight forwarders and final consignees with information about the shipment, including how the shipment was packaged, the dimensions and weight of each package, and the markings and numbers on the outside of the box.

Why do I need a packing list?

A packing slip provides you with information about your shipment and requires your signature upon receipt.

It is only required when the goods being transported are packaged into larger units (for example, containers or aircraft consoles).

packing list
packing list

What is the purpose of a packing list?

It can be said that the packing list is one of the important documents for sending or receiving shipments.
Therefore, it plays a fundamental role in achieving the efficiency of the entire transport process.
The shipping department uses this document to enable them to know the delivery details of the goods.
It allows shippers to ensure that they have included all items in the shipment.
Additionally, recipients or consignees can refer to this document to confirm that each item is included in the shipment.
Also, packing slips help with order management.
It facilitates smooth transition, processing and shipping of orders.
Order management mainly involves managing the life cycle of a product and keeping track of it until it reaches the customer's destination.
As a result, entities can easily check and track the status of product shipments, simplifying the management process.
This is also important when an order arrives in multiple packages.
In this case, what it does is keep track of what has and hasn't arrived.
As a seller, you may also consider using this document as an additional branding opportunity.
Ideally, you can create a design similar to your brand and use microcopy to express your voice.

Why is a packing list important in shipping?

  • Physical proof of the item shipped
  • Check and Cross Check
  • Identification of lost or damaged goods
  • Strengthen business relationships
  • Allow customs to estimate the value of goods
  • Express freight booking

Is there a legal requirement to provide a packing list in international shipments?

Different countries have different policies on the need for import orders.
In some countries, a packing list is a mandatory requirement for any type of imported product.
Essentially, this document is always required by the customs authorities of these countries to clear the goods
On the other hand, some countries only require packing lists for certain imported products.
Simply put, there are certain products that can only be cleared at customs after submitting a packing list.
In short, the legality of this document is based on whether it is mandatory or not, depending on the specific country.

/ By tjchinafreight ivy / Shipping

Proforma vs. Commercial Invoice: What’s the Difference?

Proforma vs. Commercial Invoice: What's the Difference?
Proforma vs. Commercial Invoice: What's the Difference?

Tell me about the pro forma invoice.

"Proforma" means "Proforma," a term used to estimate the price of services or invoices for goods prior to shipment or delivery. In situations where you can't provide your customers with an exact price, you can post pro forma information, but you can still give them a rough idea of ​​the costs involved.
If you import goods as part of your business, you can use a proforma to estimate their customs clearance value, but you still need to provide a commercial invoice within 180 days.

When do I use commercial invoices?

Because a commercial invoice is a document issued after the shipment or delivery of goods, it serves as a legal record of the transaction once the sale is completed.
This type of invoice also contains more details than a pro forma invoice, including information about the buyer and seller, the place of purchase and a full description of the goods. Also, if you are in your business dealing with international shipments, you actually need to use a commercial invoice.

Purpose of Proforma Invoices and Commercial Invoices

The purpose of a pro forma invoice is to give the customer a clear idea of ​​what to expect. This is a bona fide estimate that shows what can be known ahead of time, such as price and terms, and the average billable amount for the type of item requested. Customers can also use pro forma invoices to decide whether to place an order.
The purpose of a commercial invoice is to request payment for an item actually sold by showing the amount actually due.

Format of Proforma Invoices and Commercial Invoices

A pro forma invoice may look almost identical to a commercial invoice. However, it should be clearly marked "form" or use other language to reflect the fact that this is only an estimate and should not be paid until the work is completed and the final invoice is issued.

Proforma vs. Commercial Invoice: 3 Key Differences

In conclusion, although pro forma invoices and commercial invoices look very similar, there are three main differences between the two documents:

1. When will it be released

When a company receives an inquiry from a potential international customer for one or more of its products, it issues a pro forma invoice as a quotation, which lists not only the cost of the goods, but also the terms of sale. Potential buyers can accept the price and terms listed in the pro forma invoice, or make a counter-offer to negotiate.

2. What do they include

While the type of information that appears on both invoices may be similar, the commercial invoice should represent the final agreed transaction details, including any necessary additional import and export control information.

In the absence of a formally negotiated and agreed sales contract, pro forma invoices and commercial invoices are part of the written record containing the contract between the buyer and the seller. Check out the free webinar, create an international sales contract, and learn more details about the Battle of Forms.

3. How to use them

As mentioned above, buyers and sellers use pro forma invoices to negotiate prices and terms of sale. The buyer can also use it to obtain any necessary import licenses, overcome any potential import restrictions and arrange a letter of credit or some other payment process.

Commercial invoices are not only a collection tool, they are also used by customs agencies to determine appropriate duties, taxes and other import charges and to ensure compliance with export requirements. It also provides the necessary information to transfer the goods from the seller to the buyer.

/ By tjchinafreight ivy / Shipping

About inspection certificate

A container ship passes beneath a suspension bridge as it departs for Europe.
A container ship passes beneath a suspension bridge as it departs for Europe.

What is an inspection certificate?

A certificate of inspection is a document used to indicate that the shipped goods have been inspected to demonstrate that they comply with the terms specified in the sales contract. There are only requirements for certain commodities, such as industrial equipment, perishables, and meat.

The inspection certificate can be provided directly to the buyer, the buyer's government, or directly to the buyer's bank. In the case of submission to the buyer's bank, it was facilitated by a letter of credit payment transaction request indicating that the certificate needs to be checked in order to fulfill the payment obligation. Usually, the manufacturer provides a certificate or report.

What does the inspection certificate do?

A certificate of inspection indicates that the goods in the goods have been inspected by the competent authority and certify that they comply with the terms specified in the sales contract. It verifies that the goods meet all specifications related to quality, quantity, import eligibility, tariff classification and price.

qualified

There are two types of inspection certificates:

1. Official inspection certificate

Customs authorities in some countries require official inspection certificates to handle the clearance of goods. It helps the authorities to check and confirm whether the goods in the goods meet the various specifications mentioned in the sales contract. This includes compliance with specifications related to the quality, quantity, tariff classification, import eligibility and price of goods.

2. Commodity inspection certificate/report

A commercial inspection certificate or report is a pre-shipment inspection that must be done before a batch of goods is produced. Send the certificate/report to the buyer to determine whether the various specifications of the intended shipment match the sales contract and other specific provisions.

If the batch does not meet the contract terms, it is deemed to have failed the inspection. In this case, the buyer may take any appropriate measures before the goods leave the factory. However, if the batch passes inspection, the buyer can use the report as proof that the product is of good quality and packaged correctly.

Countries requiring Pre-Shipment Inspection (PSI)

The countries that require or require a Pre-Shipment Inspection Certificate (PSI) vary from year to year and are based on shipments exceeding a certain value. However, in some countries an inspection certificate is required regardless of value, so be sure to check. Export.gov maintains a list of countries to check:

Angola, Bangladesh, Benin, Bolivia, Burkina Faso, Burundi, Cambodia, Cameroon, Central African Republic, Comoros, Republic of Congo (Brazzaville), Democratic Republic of Congo (Kinshasa), Côte d’Ivoire, Ecuador , Ethiopia, Ghana, Guinea, India, Indonesia, Iran, Kenya, Kuwait, Liberia, Madagascar, Malawi, Mali, Mauritania, Mexico, Moldova, Mauritania, Mozambique, Niger, Nigeria, Peru, Russia, Rwanda, Saudi Arabia, Senegal, Sierra Leone, Tanzania, Togo, Uzbekistan, Venezuela, Zanzibar and Zimbabwe.

What should I do if there is a certification inspection dispute?

If there is any disagreement on the results of the inspection process, it should be resolved through consultation with the inspection company. In some cases, the exporter and inspection company can work together to solve the problem.

/ By tjchinafreight ivy / Shipping

“HAIAN CITY” collided with tanker “ORION EXPRESS”

On April 14, about 15 nautical miles south of Chittagong, Bangladesh, a 1400TEU container ship "HAIAN CITY" collided with the oil tanker "ORION EXPRESS", both ships were damaged, the details are unknown, but the container ship has stability problems .

"HAIAN CITY" collided with tanker "ORION EXPRESS"
"HAIAN CITY" collided with tanker "ORION EXPRESS"

The Vietnamese-flagged container ship MV Haian City left Chattogram port for Singapore in the morning and was involved in an accident near Kutubia, about 14 nautical miles from Patenga Naval Base, around 10.30am.

The ship was hit by an inbound tanker named Orion Express, causing Hai'an to lose one or more containers into the sea, they added that the container ship was partially damaged by the accident.

Port officials said the container ship needed to repair the damage before it could resume sailing, and both ships were asked not to sail until claims were resolved.

The Chittagong Port Authority had deployed its salvage tug Kadari-11 along with pilots on duty and pollution control vessels to salvage the drowning containers, but work was interrupted due to rough seas.

Rafique Uddin, head of Intermodal Pvt Ltd, a local agent for the container ship, said, "Our surveyors were unable to reach the ship due to bad weather, so we were unable to assess the damage. Our maintenance crews were also unable to get close to the ship."

It is reported that the container ship "HAIAN CITY" is a feeder ship between Singapore and Chittagong, flying the Vietnamese flag and operated by Samudera Shipping Line Ltd.

/ By tjchinafreight ivy / Shipping

CMA CGM container ship catches fire

CMA CGM container ship catches fire
CMA CGM container ship catches fire

It is reported that on April 16, CMA CGM LISA MARIE, a large container ship owned by CMA CGM, encountered a container fire in the waters of Banda Aceh Sabang in the west of Sumatra Island.

The fully loaded vessel was on its way from Jeddah to Port Klang at the time of the incident. Basarnas Banda Acehs head Budiono said one of the containers caught fire when the ship arrived in Sabang waters, suspected to be caused by a short circuit.

The crew reportedly managed to put out the fire by their own means, with ships and tugboats in Banda Aceh district pouring water over containers at the fire site to cool them as a precaution. CMA CGM LISA MARIE resumes sailing after confirming fire safety.

At the time of the incident, the ship's voyage was "0BXBLW1MA", which may involve multiple shipping companies sharing cabins: CMA CGM, COSCO, Evergreen, OOCL, APL, ANL and CNC.

In addition, it should be noted that the next voyage of the ship is "0BXC7W1MA". The scheduled sailing date is to depart from Busan Port on April 26, and then call at Shanghai Port (April 27-28) and Ningbo Port (April 29). Japan-30), Xiamen Port (May 1-2) and Shekou Port (May 3), please pay attention to whether there will be delays in the subsequent shipping schedules.

/ By tjchinafreight ivy / Shipping

Stranded Evergreen container ship escapes trouble

After more than a month of salvage work, the container ship "EVER FORWARD" (long-haul ship) finally got out of trouble.

Evergreen Marine's Ever Forward container ship ran aground over the past month as it passed under the Chesapeake Bay Bridge after clearing from mud off the channel near Pasadena, Maryland.
Evergreen Marine's Ever Forward container ship ran aground over the past month as it passed under the Chesapeake Bay Bridge after clearing from mud off the channel near Pasadena, Maryland.

Rescue operations

On March 13, the long-haul ship deployed on the Evergreen Asia-US East AUE route ran aground in the Chesapeake Bay. After multiple salvage failures, the salvage team unloaded more than 500 containers from the vessel and successfully towed the vessel away from shore using high tide on Sunday morning.

According to the Wall Street Journal, the long-distance ferry has become a local tourist attraction in the past few weeks. Tourists drove miles to a small park on the Maryland coast to watch the stranded container ship and its rescue efforts.

Ever Forward will be towed to Annapolis Anchorage for inspection, the release said. There, it will reload containers offloaded from the hull and continue on to its next port of call, Norfolk, Virginia.

How do you view this event?

"The breadth and complexity of this response is historic because an event like the Forever Forward stranding is rare in its type and duration," said Capt. David O'Connell, commander of the Coast Guard in the National Capital Region of Maryland. Say. "It was the collaboration of each response agency, Evergreen Marine Corporation and dedicated responders that allowed Ever Forward to successfully refloat while keeping the public and responders safe, reducing the potential for contamination, and minimizing economic impact
ring. "

Evergreen issued a thank you announcement

On April 17, Evergreen issued an announcement that "the long-distance wheel was successfully rescued". The announcement stated:

Evergreen expressed its sincere thanks to the rescue team, the U.S. Coast Guard, the Maryland State Government and all walks of life for their assistance and concern. After more than a month of hard work, they finally overcome all difficulties and the freighter successfully escaped.

In addition, Evergreen has declared general average for this stranding accident. The owner of the cargo on the ship and the joint operating partner using the space must provide the necessary guarantees and documents to the general average adjustment company in accordance with the general average adjustment rules, so that the delivery of the goods can be smoothly handled after the goods arrive at the port.