Logistics made Simple - Shipping Process
Prior to proceeding further, lets
step back and have an overall look at the entire Shipping Process for Sea
Shipments and understand the different parties involved, their roles and the
stages in the process in which they are involved.
The Players
The four key players amongst
various others involved in any sea shipment are – Shipper, Consignee,
Freight Forwarder and Shipping Line.
The shipper is the party of
shipment at the origin; it can be a factory of a seller who exports.
The consignee is the receiver
of the cargo at the destination.
Freight Forwarder is the
logistics provider the consignee/shipper would be dealing with for the
shipment.
Shipping Line is the company
that would be carrying your cargo from the origin to the destination. Most of the
communication with this line would be via the freight forwarder.
Shipping Process
The movement of goods from
shipper to the consignee is a uniform process which is followed for every shipment.
The steps can be broadly divided into 2 halves – Five Physical Steps & Two
Documentation Steps. Each step in the logistics process involves a cost, which
is borne by either shipper or consignee.
Export Haulage
The process is initiated with the movement of cargo from shippers to the forwarder’s premises. The forwarder’s
premises in case of LCL Shipment is
a consolidation center.
For every shipment leaving a
country, customs checks need to meet the regulatory requirements. Custom
Clearance involves submitting of documents to the authorities, the clearance
can only be done by companies holding valid customs license majorly called as
Custom House Broker.
Origin Handling
The last step from the place of
origin is Origin Handling, it involves complete physical handling and
inspection of cargo from receiving at the origin warehouse till it's loaded on
the vessel. Origin Handling contains multiple steps and can be carried out by
multiple parties as well, it falls under the responsibility of the freight
forwarder.
Ocean Freight
The selection of Shipping Line is
made depending upon the requirement of the shipments as well as various other
factors. Freight forwarder generally has the contract of carriage with shipping
lines for containers.
Import Custom Clearance
Post the cargo arrives at the
destination port, an inspection needs to be done to ensure the cargo complies
with the regulatory norms of the destination. The process is generally done by the freight forwarder or an agent of freight forwarder.
Destination Handling
When the cargo reaches the
destination, it requires to be unloaded from the ship to the shore and further
to the forwarder’s warehouse. In the case of LCL shipments, the process can also
include the unstuffing of the container.
Import Haulage
The last step of the logistics
process is actually delivery of the cargo to the consignee. Import Haulage
includes transportation to a particular last mile and is generally done by the freight forwarder or a local transportation company hired by the consignee.
As freight forwarders, we at MGH
are constantly involved to provide customers logistical expertise of the top
level combined with technological support via our online website – www.myshipment.com to track and trace your
cargo at convenience.
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