Freight Forwarding Explained Key Terms and Practices

This article provides a clear and accessible explanation of freight forwarding concepts such as consolidation, deconsolidation, and merging shipments. It also details the meaning of a bill of lading number with an 'A' suffix and the roles of master and house customs declarations. The aim is to help readers fully understand these freight forwarding terms and improve their freight efficiency. This includes the understanding of 'Consolidation' and 'Deconsolidation' which are key processes in freight forwarding, impacting cost and delivery times.
Freight Forwarding Explained Key Terms and Practices

The world of freight forwarding is filled with specialized terms that can confuse even experienced shippers. Concepts like "co-loading," "house bills," and "consolidation" represent complex customs procedures and operational logistics. Particularly puzzling is the mysterious "A" suffix sometimes found on bill of lading numbers. This guide clarifies these essential concepts to help businesses navigate international shipping more effectively.

Co-Loading: Simplifying Customs Procedures

Imagine a shipment originally assigned a single bill of lading number that needs to be split into multiple customs declarations. This is where co-loading becomes valuable. Essentially, co-loading adds supplementary customs declaration numbers to an existing bill of lading, allowing one shipment to be divided for customs purposes. This approach provides operational flexibility while ensuring smooth customs clearance.

House Bills and Consolidation: Flexible Shipping Solutions

House bills (or split bills) divide one shipment into multiple bills of lading, while consolidation combines multiple shipments into a single bill. These options give shippers the flexibility to adapt to various transportation requirements and operational needs.

The "A" Suffix: Identifying Co-Loaded Shipments

A bill of lading number ending with "A" typically indicates a co-loaded shipment. This simple marker alerts relevant parties to the special handling required during customs declaration processes.

Master and Supplementary Customs Declarations: Working in Tandem

Co-loading involves both master and supplementary customs declarations. The master declaration confirms booking details including vessel schedules, container quantities, and destination ports, while also serving as the primary customs filing. Supplementary declarations focus specifically on customs requirements.

One master declaration can cover multiple containers, but each container can only belong to one master declaration. When multiple companies share container space, sufficient supplementary declarations must be attached to the master declaration. Both declaration types hold equal importance in customs procedures.

LCL Shipping Requirements: Ensuring Compatibility

For multiple companies to share container space (LCL shipping), their shipments must meet these fundamental criteria:

  • Identical port of loading
  • Same vessel name
  • Identical destination port
  • Matching primary consignee

Only when these conditions are met can goods be safely consolidated and transported together to their destination.