Ocean freight is the most widely used form of transportation in international trade. It still has the attraction of being a cheap mode of transport for delivering large quantities of goods over long distances.
The procedures for arranging a shipment of goods can be complex. Before goods can be shipped by Sea the exporter or his Shipping or Forwarding Agent must:
i. Find out freight rates
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ii. Select a shipping line and a particular vessel.
iii. Book shipping space
iv. Register cargo on a shipping note and send shipping note to Shipping company
v. Register details on Custom entries forms and send to Customs
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vi. Arrange adequate packing, including shipping marks
vii. Receive calling forward notice from shipping company
viii. Send goods to port with consignment note
ix. Receive Bill of Lading from shipping company
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x. Pay freight bill
xi. Enclose bill of lading and send copies to shipping line and customer, or to the Bank acting as intermediary
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Shipping and Forwarding Agents:
In practice only the largest companies try to handle all the shipping and despatch of their goods overseas themselves. With large quantities of goods to export they can afford to employ their own export staff.
Small exporters find it easier to use the services of Shipping and Forwarding Agents, or freight as they are sometimes called.
They are experts on the availability of the different modes of transport for different markets, on the cost, and on the suitability of each mode.
Their job involves booking space, arranging documentation and in many cases, collecting the goods from the factory and transporting them to the Docks, Airport, Railway station or Road collection point.
Shipping and Forwarding Agents deal with Customs entries and other formalities. They arrange payment of freight charges and insurance, if necessary and handle collection of necessary documents.
They may also help by consolidating or grouping together a number of consignments to make transportation more economic.