Shipping Industry Faces Risks in Customs and Cargo Handling

Container transportation involves multiple parties. This article addresses common issues in freight forwarding consolidation, such as the use of special containers, customs inspection, route selection, HS codes, bill of lading header, customs weight verification, and special delivery methods. The aim is to help freight forwarding companies mitigate risks and ensure the safe and efficient transportation of goods. It provides insights into navigating these complexities and avoiding potential problems during the shipping process.
Shipping Industry Faces Risks in Customs and Cargo Handling

A bill of lading may appear as a simple document connecting shippers, freight forwarders, shipping lines, and customs authorities, but beneath the surface of container transportation lies a web of complexities. Recent issues in the freight forwarding and consolidation sector have drawn widespread industry attention. How can stakeholders mitigate risks while ensuring secure and efficient cargo delivery?

Special Container Usage: Shipping Line Confirmation is Crucial

When using specialized containers, thorough communication with shipping lines before container pickup is essential. Forwarders must verify why specific containers were selected and, most critically, obtain written confirmation from the shipping line authorizing the use of specialized equipment. This prevents potential issues when returning containers at destination ports. Proper sealing procedures should also be clarified with carriers. While choosing between new or used containers doesn't directly impact transportation, selecting appropriate container types remains vital for cargo safety.

Customs Inspection Procedures: Differences Between Yangshan and Outer Ports

Customs examination processes vary between Yangshan Port and outer ports. Typically, Yangshan Port conducts inspections without formal notification documents, while outer ports issue inspection notices. For consolidated shipments handled through separate customs declarations, tracking clearance status requires using declaration numbers (rather than bill of lading numbers) through customs online systems.

Route Selection and Heavy Cargo: Carrier Verification Matters

Shipping routes vary significantly by carrier, requiring case-by-case evaluation. For heavy cargo shipments, forwarders must confirm carrier acceptance policies and whether overweight containers are required. When shipping to remote ports, verifying destination crane capacity becomes critical—failure to do so may result in undeliverable cargo being returned at substantial cost. Large vessels present higher risks of cargo rollovers for heavy shipments, making stable, high-capacity vessels the preferable choice.

HS Code Interpretation: International Standards vs. National Variations

The first six digits of Harmonized System (HS) codes maintain international consistency, while subsequent digits reflect national customs regulations. Understanding HS code structures facilitates accurate declarations and prevents compliance issues.

Bill of Lading Ownership: The Significance of House Bills

Cargo ownership rights are determined by house bills rather than master bills. If a party holds a house bill under their name, they maintain ownership rights over the specified cargo, with the issuing company assuming corresponding responsibilities.

Customs Weight Verification: Managing Allowable Variances

When customs inspections include weight verification, cargo must undergo weighing. While gross weight tolerances exist within defined limits, exceeding these ranges requires negotiation with customs brokers during weighing—a process carrying inherent uncertainties.

Special Delivery Arrangements: The Role of Carrier Relationships

Certain clients benefit from exceptional delivery methods not because of bill of lading provisions, but through their forwarders' established relationships with shipping lines, granting access to privileged delivery channels.

Container shipping involves numerous interconnected processes, each presenting potential risks. Forwarders must strengthen coordination with carriers and customs authorities, master operational procedures, and develop flexible response strategies to ensure secure and efficient cargo movement.