In global trade, ocean freight transportation represents a complex yet crucial process involving multiple stages. This comprehensive guide details the main procedures of maritime cargo shipping, helping businesses understand the significance of each step to enhance logistics efficiency.
1. Request for Quotation
As an international freight forwarder, the process begins with handling client inquiries. For ocean freight shipments, the following critical information must be obtained:
- Commodity name: Determine whether it's general cargo or hazardous materials
- Port of loading and destination: Confirm origin and delivery locations
- Package quantity and dimensions: Understand packaging specifications
- Cargo volume and gross weight: Obtain essential details for freight calculation
- Customs clearance and delivery methods: Plan for customs declaration and distribution
Forwarders must maintain thorough knowledge of major shipping routes, current freight rates, partner carriers' schedules, and their own competitive advantages on specific lanes.
2. Client Authorization
After confirming the quotation, the forwarder must verify all details in the client's authorization letter, including:
- Loading date, container type/quantity
- Package count, gross weight, volume
- Product name, packaging method, and customs declaration requirements
This critical step ensures information accuracy for subsequent procedures.
3. Booking with Carriers
Based on client-provided information, forwarders request space reservations from shipping lines. The booking order should maintain consistency with initial details. The "Booking Order" submitted to carriers officially confirms space allocation.
4. Cargo Loading (Trucking or Port Loading)
Containers may be trucked to client warehouses for loading or transported directly to ports. Upon successful booking, carriers issue a booking confirmation or shipping order (S/O). Forwarders then arrange loading and packing according to cargo specifications.
5. Customs Declaration
While most commodities don't require inspection, exceptions include environmentally sensitive, high-security, or advanced technology products like food, cosmetics, and children's toys. Forwarders must alert clients about special regulatory requirements. Clients may handle customs clearance independently or through agents, ensuring all documentation meets deadlines.
6. Bill of Lading Verification
Before customs declaration, verify bill of lading (B/L) details against cargo manifests. For U.S. shipments, provide AMS information; for EU destinations, submit ENS data. All information must match B/L particulars. For letter of credit transactions, repeatedly confirm compliance with LC terms and clarify whether original or electronic B/Ls are required.
7. Bill of Lading Signing
When using original B/Ls, verify all copies contain proper signatures and confirm whether wet signatures are mandatory.
8. Accounting and Payment Settlement
After vessel loading, forwarders prepare invoices including:
- Ocean freight charges
- Trucking fees
- B/L fees
- Port security charges
- Terminal handling fees
- Customs clearance costs
All potential additional charges should be clearly identified.
9. Document Release (Original or Telex Release)
For monthly account clients, release documents after confirmation. New clients or spot transactions require prepayment before document release.
Mastering these procedures enables businesses to optimize international shipping operations, ensuring timely and secure cargo delivery. This systematic approach facilitates better communication with logistics partners and strengthens international trade foundations. This guide serves as a valuable reference for freight forwarding professionals.
