Sea Freight

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8 Most Common Shipping Container Types
  1. Dry Containers are available in sizes of 10, 20, and 40 feet.
  2. Flat Rack containers have sides that can be folded down to accommodate heavy loads, over-sized cargo, construction equipment, building supplies, or heavy machinery.
  3. Open Top containers have a completely removable, convertible top that allows for access to goods from the top of the container and is primarily used for over-height cargo.
  4. Tunnel Container Tunnel containers are similar to a dry goods container. However due to having openings on both ends, this container type makes loading and unloading easier.
  5. Side Open Storage Container open on the side (as opposed to the ends) to facilitate specific loading and unloading needs.
  6. Refrigerated ISO Containers (also called reefer containers) regulate the temperature to preserve temperature sensitive goods such as produce or seafood.
  7. Insulated or Thermal Containers come with a regulated temperature control which allows them to withstand a higher temperature.
  8. Tanks are the container type used for the transportation of liquid materials and are used by a huge proportion of the shipping industry.
What is a Shipper’s Letter of Instructions (SLI)?
Shipper’s Letter of Instructions (SLI) is a document which provides shipping instructions to the shipper’s freight forwarder to ensure accurate and correct movement of their products across borders. Often SLI will include billing terms regarding the freight and other charges as well as documentation preparation instructions in cases where the shipper is not providing those documents. In some cases product distribution instructions are also included. The SLI should provide the basic data elements that allow a forwarder to proceed the export process
Type of Kastam Form?
  1. K1 – Use for the importation of goods into the country or Import for dutiable and non-dutiable goods.
  2. K1A – Applicable upon importation of goods value > RM 10,000.00
  3. K2 – Use for export of goods from the country or Export for dutiable and non-dutiable goods
  4. K3 – Transportation of Goods Between Peninsular Malaysia, Sabah & Sarawak and transportation within the same territory. Import & Export of dutiable and non-dutiable goods within Malaysia
  5. Customs No. 3 form is required for the following circumstances
    (a)Transportation of goods between territories
    (b)Transportation of goods within the same territory
    (c)Transportation via air and sea only
    The use of Customs No. 3 form are as follows:
    (a)Duty paid goods including local goods
    (b)Export of dutiable goods
    (c)Goods prohibited on export
    (d)Goods under Customs (Restrictions of Movements) Order 2000
    (e)Excisable goods
  6. K4 – Inward Manifest
  7. K5 – Outward Manifest
  8. K6 – Transhipment
  9. K8 – Declaration of duty not paid goods. Declares for the container truck into bonded warehouse
  10. K9 – Clear dutiable cargo slowly out from bonded warehouse. Clears the cargo partial by partial out from the warehouse probably due to high duty charges.

a) By rail – Pasir Gudang declared K8 to rail the containers from Pasir Gudang to Port Klang without paying the duty. Port Klang declared K1 to clear the containers by paying duty. (Dutiable cargo)

b) Transhipment – From one port tranship from another port. K8 can move container from Westport to Northport and vice versa without paying duty.

Important Note: Supporting documents for the declaration forms are as follows:

1. Delivery order
2. Packing list
3. Original invoice
4. Bill of lading
5. Certificate of origin
6. Import licenses which may be required by a proper officer of customs

Glossary Of International Shipping Terms
Documents
Bill of Lading (B/L)
The official legal document representing ownership of cargo. It is a negotiable document confirming the receipt of cargoes, and the contract for the carriage of cargoes between the shipper and the carrier.
Ocean Bill of Lading (Ocean B/L)
A bill of lading issued by the ocean-going carriers.
House Bill of Lading (House B/L)
Bill of lading issued by a forwarder or an NVOCC operator
Manifest
A document that lists in detail all the bills of lading issued by a vessel or its agent or master, i.e., a detailed summary of the total cargoes or containers loaded in a vessel. Used principally for customs purposes. It is also called summary of Bills of Lading.
Export Declaration
A government document permitting designated goods to be shipped out of the country
Import Permit
Usually required for items that might affect the public health, morals, animal life,
vegetation, etc. Examples include foodstuffs, feedstuffs, pharmaceuticals (human and veterinary), medical equipment, seeds, plants and various written material (including tapes, cassettes, movies, TV tapes or TV movies). In some countries an import permit is the same as an import license
Certificate of Origin
Document certifying the country of origin of goods which is normally issued or signed by the relevant Government Department of the exporting country, or Chamber of Commerce or Embassy.
Connecting Carrier Agreement (CCA)
An Agreement of freight rates for connections between feeder ports and the ports of call of vessels.
Customs-Trade Partnership Against Terrorism (C-TPAT)
A joint government and trade community initiative in developing, enhancing and maintaining effective security processes throughout the global supply chain.
Customs Bonded Warehouse / Bonded Warehouse
A public or privately owned warehouse where dutiable goods are stored pending payment of duty or removal under bond. The storage or delivery of goods are under the supervision of customs officers and if the warehouse is privately owned the keeper has to enter into a bond as indemnity in respect of the goods deposited, which may not be delivered without a release from the customs.
Break-bulk Cargo
Goods shipped loose in the vessel hold and not in a container.
Bulk Carriers
A vessel carrying dry, liquid, grain, not packaged, bundled or bottled cargo, and is loaded without marks and number or count.
Broken Stowage
The spare volume of a container or the cargo hold of a vessel where no cargoes are stowed. It is a reflection of the bad stowage of the container or the vessel.
Customs Valuation
The determination of the value of imported goods for the purpose of collecting ad valorem duties.
Bull Rings
Cargo-securing devices mounted in the floor of containers which allow lashing and
securing of cargoes.
Containers
Consolidator
A person or firm performing a consolidation service of small lots of cargoes for shippers
Consolidated Cargo
Cargo containing shipments of two or more shippers, usually shipped by a firm called a
consolidator. The consolidator takes advantage of lower FCL rates, and savings are passed on to shippers
Consolidation
The combination of many small shipments into one container.
Collect (Cash) on Delivery (COD)
Carried on Docket (pricing); Change of Destination
Consortium
A group of carriers pooling resources, normally container vessels, in a trade lane to maximize their resources efficiently.
High Cube (HC or HQ)
Any container which exceeds 8 feet 6 inches (102 inches) in height, usually 9 feet 6 inches.
Container Load Plan (CLP)
A document prepared to show all details of cargoes loaded in a container, e.g. weight (individual and total), measurement, markings, shippers, consignees, the origin and destination of goods, and location of cargo within the container. A Container Load Plan is either prepared by the cargo consolidator or the shipper which ships its cargoes on FCL terms.
Container Size
The length of a container i.e. 20′, 40′ and 45′ (feet)
Container Type
Containers are classified under different types, e.g., dry cargo, reefer, open top, flat-rack, open-side, etc.
Reefer
In the industry, it is the generic name for a temperature-controlled container. The containers, which are insulated, are specially designed to allow temperature controlled air
circulation within the container. A refrigeration plant is built into the rear of the container.
Chassis
A wheeled flat – bed constructed to accommodate containers moved over the road. Also termed as “Trailers”.
Dangerous and Hazardous (D & H) / Dangerous Goods
The term used by I.M.C.O. for hazardous materials which are capable of posing a significant risk to health, safety or property while being transported.
FEU
Forty foot (40’) Equivalent Unit. Commonly describes a 40-foot container (40′ or 2TEUs
TEU
Twenty-Foot (20’) Equivalent Unit. Commonly describes a 20-foot container
CBM (CM)
Cubic metre
Less than Container Load. (L.C.L)
Cargo in quantity less than required for the application of a container load rate.
Full Container Load (FCL)
It is an arrangement whereby the shipper packs cargoes into a container provided by the carrier or the forwarder before delivering to the container terminal.
Carriers Owned Containers (COC)
The containers used for the transportation of cargoes belonging to the property of the carriers.
Insulated Tank Container
The frame of a container constructed to hold one or more thermally insulated tanks for liquids
Lift-On/Lift-Off (LO-LO)
A container ship onto which containers are lifted by crane
Roll-On/Roll-Off (Ro/Ro)
A feature designed in a specially constructed vessel in both the loading and discharging ports
Controlled Atmosphere (CA)
An atmosphere in which oxygen, carbon dioxide and nitrogen concentrations are regulated, as well as temperature and humidity
Container Yard (CY)
A facility inside or outside the Container Terminal which accepts laden export containers from shippers or laden import containers for delivery to consignees.
CY/CY
Cargo loaded by the shipper in a full container at origin and delivered to the carrier’s terminal at destination for pick-up intact by consignee.
Lashing
Support for cargoes inside a container or a cargo hold to ensure that they are secured and will not be subject to rolling during the voyage from origin to destination.
Free Storage Period (FSP)
A carrier offers a period of time, normally three to five days, at destinations whereby imported containers or cargoes are allowed to be taken delivery by consignees free of any storage charge. After the FSP, there will be an overtime storage charge or demurrage levied by the carriers to the consignee. When bulk shipments are involved, the carriers are prepared to negotiate a longer FSP with the consignees.
Devanning
The removal of cargo from a container. Also known as unstuffing, unloading or stripping
Container Freight Station (CFS or C.F.S.)
Consolidation depots where parcels of cargo are grouped and loaded into containers. Alternatively, inbound cargoes in a container are devanned for deliveries to consignees as LCLs.
Dry Cargo
Cargo that does not require temperature control.
CY/CFS
Cargo loaded in a full container by a shipper at origin, delivered to a CFS facility at destination, and then devanned by the carrier for loose pick-up.
Charges
Detention (Demurrage)
Charges raised by the carrier or the forwarder for detaining container/trailer at customer premises for a period longer than that provided in the Tariff of the carrier or the forwarder.
Currency Adjustment Factor (CAF)
An ancillary charge on ocean freight to compensate for exchange rate fluctuations.
Delivered Duty Unpaid (DDU)
In DDU, shipper clears the goods for export and is responsible for making them available to the buyer at the named place of destination, not cleared for import.
Delivered Duty Paid (DDP)
In DDP, shipper clears the goods for export and is responsible for making them available to the buyer at the named place of destination, cleared for import, paid duty and tax
Destination Delivery Charge (DDC)
A charge assessed by the carrier for the handling of a full container at destinations. The term is more commonly used in the U.S.A. trade.
Bunker Surcharge (BAF, BSC)
Bunker Adjustment Factor (BAF), or Bunker Surcharge (BSC) are surcharges assessed by the carrier to freight rates to reflect current cost of bunker.
Terminal Handling Charge (THC)
A charge of carriers for recovering the costs of handling FCLs at container terminals at origin or destination.
Divert
The route of a shipment changed in transit from that shown on the original billing. Used interchangeably with reconsign.
Vessel / Port Terminal
In Transit
In passage from one place to another.
Transit Port
A port where cargoes received are merely en route and from which they have to be transferred and dispatched to their ultimate destination by coasters, barge and so on. Also called “Transshipment Port”.
On Board
Cargoes or containers landed onto the cargo hold or the cells of carriers.
Feeder Vessel
A vessel employed in normally short-sea routes to fetch or carry cargoes and containers to and from ocean-going vessels from the principle port hubs in a region to the minor ports.
Port of Loading (P.O.L.)
The port at which cargoes or containers are loaded onto vessels.
Port of Discharge (P.O.D.)
The port at which cargoes or containers are discharged from vessel. When transshipment is needed, there can be a number of PODs during the course of shipment until it reaches the final POD.
ETD
Estimated time of departure
ETA
Estimated time of arrival
Closing / Cut-off Time
The published deadline for export cargoes or containers to be accepted for a sailing of the carrier. CY Closing is applicable to FCLs and CFS Closing is applicable to LCLs. Normally, CFS Closing is around 24 hours ahead of CY Closing, depending of the complexities of export customs clearance formalities at the country. Latest possible time the cargo or container may be delivered to the vessel or designated point.
Non-vessel Owning / Operating Common Carrier (N.V.O.C.C.)
(a) A cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for or performing containerization functions at the port. (b) A carrier issuing bill of lading for carriage of goods on vessel which he neither owns nor operates
Double Stack Train (DST)
Rail or train capable of carrying two 40′ containers, one on top of the other
Dock
(a) The water alongside a pier or wharf. (b) Loading or unloading platform at an industrial location or carrier terminal