Packing-and-Labeling-of-Goods

Packaging and Labeling of Goods in Export and Import business- Complete Guide 2023

by with No Comment Air ShipmentEXPORTIMPORTOcean ShipmentRail or Truck Shipment

Packaging and labeling of goods is needed in import and export trade because of 2 basic reasons: Marketing and distribution of the goods. The function of marketing is, the packager provides information to the customer about the product, and promotes the product through the use of color, graphics and product quality benefits and description. The distribution function, keeps the product free from damage as it is transported and stored.

Table of Contents

What is Optimal Packaging ?

If we talk about the optimal packaging, we can say it is the one that meets requirements related to service, cost, and convenience.

The package should be designed to provide the most efficient stowage of the product for transportation and storage. Good packaging affects materials handling in terms of load stability and compatibility with different means of mechanization and automation, and it satisfies warehousing needs for stack ability and efficient storage.

The cost of materials and production is of prime importance too. One has to measure warehousing, transportation, and handling costs against packaging costs and all of these against product protection and marketing effectiveness.

To sum up the main factors involved in the design of an export package are transportation handling, climate, pilferage, freight rates, durability, and, most important of all, the requirements of the consignee.

The greater number of times goods are handled or transshipped, the greater is the risk of damage or pilferage.

It is also very important to note that, the export packer must take into consideration the inherent characteristics of the cargo itself. Fragility, shape, temperature withstanding and other inherent characteristics needs to be considered of the cargo.

Let us see some common forms of Export Packaging

Fiberboard Boxes (Cardboard Boxes)

The most common economical packaging is cardboard boxing.

In the packaging shippers seek efficient but inexpensive and lightweight packaging.

The cardboard carton comes closest to fitting the description of the ideal packaging material; it is light in weight and of low cost but able to withstand normal transportation hazards and to protect contents against loss or damage.

Now, how does an exporter decide whether to select cardboard boxes or any other material made boxes?

The shipper should keep in mind the item’s vulnerability, as well as the handling and transportation hazards to be encountered in the export process and whether the cardboard boxes withheld that vulnerability.

The factors the shipper can take into consideration while choosing the quality of the cardboard boxes can be:

  • Resistance to compression
  • Resistance to puncture
  • Strength of the material
  • Resistance to moisture absorption

Nailed Wooden Boxes

The nailed wooden box is mostly used for transportation of moderately heavy commodities in international trade.

Let us see some of the advantages of using nailed wooden boxes:

  • Its ability to support high loads
  • Its ability to take difficult loads without undue distortion or breaking open
  • The protection it affords the contents from damage due to puncture, breakage, or crushing

Crates

Crates are mostly used to carry small machineries. There are 2 types of crates:

  • Open or skeleton crate
  • Fully sheathed or closed crate

Wire-Bound Boxes and Crates

Wire-bound boxes and crates are great use for a large variety of products not affected by minor distortions of the container.

Cleated Plywood Boxes

Cleated plywood panel boxes have many uses in foreign trade. Their lightness and comparative strength particularly recommend them for air freight shipments.

Steel Drums

Steel drums are used mostly to export chemicals and liquid items. It must be taken into note that the drums are not damaged.

Fiberboard Drums

Fiberboard drums used mostly used to carry bulk-purchase food.

Multiwall Shipping Sacks

Multiwall shipping sacks or bags are used for the packaging of powdered, granular and lump materials, particularly dry chemicals.

The Need of Shipping Marks and Symbols in the Packaging and Labeling of Goods

Shipping Marks and symbols are important for the identification of the goods inside the package and also for the identification of the seller and buyer of the goods. On the outside of shipping packages all the details are mentioned that enable the carrier to move it to its ultimate consignee in a safe and responsible manner.

In the packaging marks and symbols, Consignee (identification) marks and port marks showing destination and transfer points should be large, clear, and applied by stencil with waterproof ink.

They should be applied on three faces of the packing container, preferably side, ends and top.

If commodities require special handling or stowage, the packaging should be so marked. Any cautionary markings must be permanent and easy to read.

For the benefit of cargo handlers, the internationally recognized pictographs depicted below should be used.

Palletizing Cargo for Export Shipments

Palletizing is the assembly of one or more packages on a pallet base and the securing of the load to it.

If we palletized packages in export shipments, the benefits we get are enormous in distribution of cargo, handling, stowage, and protection of the products and commodities.

Pallet loads have lots of advantages:

  • Packing and handling cost are significantly reduced.
  • The use of mechanical handling equipment, reduces the manual handling damage hazard
  • Pallet and unit loads eliminate the multiple handling of individual items, further reducing possible damage from manual handling
  • Reduce the opportunity for pilferage and theft and permit the early detection of tampering
  • Speeds up the loading and unloading of boxcars, trailers, intermodal containers, barges, ships, and aircraft
  • Facilitate the application of waterproofing protection to the load; the overwrap applied accompanies the load for the entire journey
  • Reduce the incidence of lost or stray items; and facilitate checking and inventory of shipment.

So How do we Palletize the Goods?

  • We should assemble the individual unit packages on the pallet base without an overhang.
  • We insert spacers between the rows or layers of irregularly shaped items. Adhesives can be used between cartons in a uniform load.
  • Secure the load tightly and firmly by using horizontal and vertical strapping. Plastic shrink-wrap may be used to stabilize and protect palletized loads.
  • Provide stacking protection to the top of the pallet by using a lumber, plywood, or fiberboard cap.
  • Loads that are susceptible to compression must be supported with vertical framing.

Good packaging makes the distribution of the products in the international trade safe to carry and prevents damage of the goods. The products getting lost is also minimized in the ports and transshipment port because of the good labeling.

From the practical scenario, it is seen that because of poor packaging the goods that are exported when reached to the importer was completely damaged and in no condition to use. For example: once we have seen an exporter exporting ripe tomatoes to Dubai. But when the tomatoes reached the destination port of Dubai, the tomatoes were not in the shape of tomatoes rather it got bruised and smashed to the point of becoming ketchup.

So, it should be kept in mind of the exporter that good and reliable packaging is a must in the international trade. No excuse and discount should be taken for the packaging.

The goal is very clear. In the international trade the end result is exporting an intact product from the exporter end to the final destination.

NO TRADE IS POSSIBLE WITH A DAMAGED PRODUCT

Packaging-and-labeling-of-goods
Packaging and Labeling
Packaging-and-labeling-of-goods
Export Packaging
Moving-Cargo-by-Airlines

Moving Cargo by Airlines in Export: Pros and Cons of Air Shipment 2023

by with No Comment Air ShipmentEXPORTIMPORT

Table of Contents

Advantages of Moving Cargo by Airlines

Let us see the advantages first:

  • Speed: when goods need to move quickly, air freight, being the fastest shipping method, is the best solution.
  • Customer service: being able to deliver products faster enables exporters to serve customers better. This translates into happy customers, leading to repeat business.
  • Stock reduction: delivering faster also means customers have less stock in transit and reduced inventories, leading to improved financial performance.
  • Reliability: air transport provides reliable departure and arrival times.
  • Financing: delivering to customers faster usually translates into faster payments, thus improving the financing costs of doing business overseas.
  • Convenience: due to the large network of destinations covered, one can send cargo by air to almost anywhere in the world.
  • Handling: having generally less-rough handling than ocean freight and faster transit times reduces the risks of cargo damage.
  • Packaging: since the cargo will be subject to less-rough handling and faster transit, it needs less packaging, meaning savings on packaging costs.
  • Security: the high level of security provided by airports reduces the risks of theft.
  • Visibility: being able to track and trace cargo reliably and 24/7 leads to improved visibility, reduction of bottlenecks and improved customer service.

Disadvantages of Moving Cargo by Airlines

  • Cost: air freight is much more expensive than other modes of transport.
  • Payment security mechanism: one cannot hold on to original shipping documents in order to get paid before the goods are released to the consignee.
  • Limited quantities: due to the inherent limited space and capacity of aircraft, one can ship only small or reasonable quantities, particularly on passenger flights.
  • Lack of cargo flights: for larger shipments, there are not many cargo flights out there.
Moving-Cargo-by-Airlines
Moving-Cargo-by-Airlines
Moving-Cargo-by-Airlines
Moving-Cargo-by-Airlines
Ready-for-Carriage

Making Goods “Ready for Carriage” in Air Export: List of things to do ?

by with No Comment Air ShipmentEXPORTIMPORT

To be considered “ready for carriage,” for an export shipment the items outlined below must be provided at the time of acceptance.

If any items are omitted, acceptance of your shipment may be delayed.

Table of Contents

List of Things Shipments Need to have

All shipments must have a:

  • Confirmed booking from origin to destination
  • Volume and weight must match booking at time of acceptance or be adjusted
  • Cargo Freight must be labeled, packed and marked, undamaged and dry
  • The air waybill and other required documents for transport should be accurately completed, including weight, number of pieces, dimensions and all reporting numbers
  • Known or unknown security status must be
  • Freight must be customs cleared for export
  • When applicable, complete HAWB information must be available for manual input or electronic transmission to the airline.

Security Filings

Before loading on the aircraft, the carrier is given “load” or “no load” messages from the governing bodies of the countries of destination.

The carrier relays the messages to the party who did the filing. In some cases, data needs to be corrected; in other cases, a shipment may be banned due to security restrictions.

Cut-Off Times

The cut-off time means the shipment must be “ready for carriage” at the cut-off time.

The Air Waybill

The Air Waybill must be accurate and complete in all respects, including the charges fields, weights, measurements, and description of the goods.

Documentation

All the necessary documents must be attached to the air waybill.

The set must contain documents required for export, import, or in-transit, which the carrier must present to customs or any other governmental body at origin and destination.

Packing, Marking of Packages and Labeling

Packing, Marking of Packages and Labeling must be correct

Cargo Screening Source

Once the cargo arrives at the airport of departure, it is offloaded from the delivery vehicle and kept in the cargo-handling warehouse, where it is checked.

ULDs are assembled and held until the plane is ready to receive the cargo, shortly before take-off.

Pre-Alert

A pre-alert is issued and all documents (air waybill copies, commercial invoice, packing list and other documents relevant to the shipment) are sent by the freight forwarder to the destination agent.

Ready-for-Carriage
Ready for Carriage
Loading-Cargo-in-Airlines-Container

Loading Cargo in Airlines Container and Pallets (Cargo Stowage) in Export: Complete Guide

by with No Comment Air ShipmentEXPORTIMPORT

Loading cargo in airlines container and pallets (Cargo Stowage) in export and import is done through the process of calculating the loadability of cargo into a container, determining the optimum size of container and cargo load configuration to avoid unused space.

Table of Contents

Determining the Optimum Number of Packages and Loading Configuration in Cargo Stowage

The length and width of the container is divided by the length and width of the packages, to determine the optimum number of packages and loading configuration. It may be that the length of a package is loaded along the length of the container or, alternatively, along the width of the container, whichever provides the best stow.

In some cases, alternating the length of one package with the width of the next package along the length of the container, in short a combination pattern, will achieve the optimal load configuration. This works well when all packages are homogenous.

Case in a Consolidation of the Loading Cargo in Airlines Container

In the case of a consolidation container, the variety of merchandise and cargo sizes makes such stow planning an art form, requiring that each of the types of packages be evaluated for both dimensions and weight distribution. In such cases, a container load plan will be required to calculate the optimum stow.

Container Loading Plan Calculation

In container load planning, we assume that packages must remain upright and, therefore, cannot be loaded on their sides (i.e., their length or width), thus the height value is usually not a variable. In order to determine the maximum number of packages that can be loaded, the user selects the maximum number, one from each column and multiples these to determine how many packages can be loaded.

Let us see the details with a comprehensive example:

Crates to be loaded onto an LD7 pallet:

Dimensions of each crate: Length 110 cm x width 75 cm x height 50 cm Weight of each crate: 100 kg

To determine how many crates can be loaded onto an LD7 lower deck pallet, divide the container dimensions by the crate dimensions: Container dimensions ÷ Crate dimensions:

= (Container Length ÷ Crate Length) × (Container Width÷ Crate Width) × (Container Height÷ Crate Height)

= (318 cm÷110 cm)×(224 cm÷75 cm)×(163 cm÷50 cm)

=2.89×2.99×3.26

=2×2×3

=12

Twelve crates of this size can be loaded onto the LD7 lower deck pallet. We can load them two crates in the length of the pallet, two crates in the width of the pallet, and three rows/layers of crates high.

Is there a more efficient way to load this pallet?

Using the above calculations, we were very close to having three crates in the length and three crates in the width.

By turning the crates as we load them, we may be able to load the pallet more efficiently. Now, the length becomes the width, and the width becomes the length.

Container dimensions: Container dimensions ÷ Crate dimensions:

= (Container Length ÷ Crate Length) × (Container Width÷ Crate Width) × (Container Height÷ Crate Height)

= (318 cm÷75 cm) × (224 cm÷110 cm)× (163 cm÷50 cm)

= 4.24×2.04×3.26

=4×2×3

=24

Loading crates in this manner will allow us to load 24 onto the LD7 lower deck pallet.

We can load them four crates in the length of the pallet and two crates in the width, with three rows/layers of crates high.

So by doing a quick turn of the crates when planning the load, in this particular case, you can be more efficient in your loading.

Container Load Plan

Let us see a very simple example of a container load plan. Such a plan becomes much more useful when you are loading multiple shipments in multiple containers.

Container TypeContainer NumberContainer Max VolumeContainer Max Net WtShipment #1 PiecesShipment #1 VolumeShipment #1 Net Wt
LD7PAP1234DB10.76 m34,490 kg3610.395 m3720 kg

We can see from the container loading plan that the capacity of the container is full (10.395 m3 vs. 10.76 m3), but since the packages are very light, we are not even close to the maximum net weight of the container (720 kg vs. 4,490 kg).

Ensure that you are keeping an accurate count of the number and type of pieces being loaded.

You must ensure the container’s maximum volume and maximum weights are NEVER exceeded!

Rounding-off Numbers for Measurement of Volume and Weight in Cargo Stowage

Rounding-off numbers for measurement of Volume and Weight in Cargo Stowage is very important. Let us see how it is done:

To ensure a consistent method in the “rounding-off” of numbers, IATA has developed a set of standards.

Dimensions:

Round-off dimensions BEFORE any multiplication takes place.

Centimeters: Round-UP OR round-DOWN to the NEAREST WHOLE centimeter

15.01 cm = 15.0 cm

15.5 cm = 16.0 cm

15.81 cm = 16.0 cm

Example: 1 box @ 25.2 cm x 15.5 cm x 15.8 cm = 25 cm x 16 cm x 16 cm x 1 box

WEIGHTS Round-off weights AFTER any multiplication takes place.

Kilograms: Round-UP to the next HIGHER half or whole kilogram

10.01 kg = 10.5 kg

10.5 kg = 10.5 kg

10.71 kg = 11.0 kg

Example: 4 boxes @ 5.3 kg each = 5.3 kg x 4 boxes = 21.2 kg = 21.5 kg total actual weight

It is to note that: While rounding off to determine chargeable weight is acceptable, the shipping agent must determine if the goods can be accommodated on the planned aircraft PRIOR to rounding off the dimensions.

For example, a crate 64.2 in high will not fit in a 767 passenger aircraft, which can accommodate shipments 64 in high. Rounding off the 64.2 in height of the crate to 64 in will only cause delays and additional costs if the shipment is tendered to the airline.

Loading-Cargo-in-Airlines-Container
Cargo-Stowage
Incoterms-for-Import-Export

Incoterms for Shipping in Import & Export: Top 11 Explained

by with No Comment Air ShipmentEXPORTIMPORTOcean ShipmentRail or Truck Shipment

The eleven Incoterms for Shipping are:

EXW, FCA, CPT, CIP, DAT, DAP, DDP, FAS, FOB, CFR and CIF

The seven Incoterms (EXW, FCA, CPT, CIP, DAT, DAP and DDP) can be used even if there is no maritime transport and where a ship is used for part of the carriage.

The four Incoterms (FAS, FOB, CFR and CIF) have the point of delivery and the place to which the goods are carried to the buyer as ports; these are, therefore, rules for sea and inland waterway transportation.

Table of Contents

Need of the Incoterms for Shipping

Why the shipping incoterms are needed in the international trade?

Shipping incoterms are used between buyer and seller to clarify and define the responsibilities of the two parties in a contract of sale.

When trade terms are clear, such issues as risk of ownership, payment of freight charges, documentation requirements, etc. are also clear.
When terms of trade are poorly defined, these same issues can become contentious between the buyer and the seller.

For a term of trade to be appropriate, it must address two important issues:

  • At what specific point of the transaction does the risk of ownership pass from seller to buyer
  • At what specific point in time do the responsibilities for payment of freight and other charges pass from seller to buyer

The Incoterms rules provide an important negotiating tool for buyers and sellers. International traders who understand the terms thoroughly can use them to negotiate a competitive advantage. The rules are simple and their purpose is evident.

The Incoterms rules are designed to:

  • Avoid uncertainties of different interpretations of terms in different countries and cultures
  • Eliminate any possibility of misunderstandings between buyers and sellers as to their rights and obligations

EXW (Ex Works)

“Ex Works” means that the seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place (e. g., works factory, warehouse, etc.).

The seller does not need to load the goods on any collecting vehicle, nor does he need to clear the goods for export, where such clearance is applicable.

FCA (Free Carrier)

“Free Carrier” means that the seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place.

The parties are well advised to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.

If the parties intend to deliver the goods to the seller’s premises, they should identify the address of those premises as the named place of delivery. If, on the other hand, the parties intend the goods to be delivered to another place, they must identify a different specific place of delivery.

CPT (Carriage Paid To)

“Carriage Paid To” means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between the parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.
When CPT, CIP, CFR, or CIF are used, the seller fulfills his/her obligation to deliver when it hands the goods over to the carrier and not when the goods reach the place of destination.

DAT (Delivered At Terminal)

“Delivered At Terminal” means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination.

“Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal.

The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.

DAP (Delivered At Place)

“Delivered At Place” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.

DDP (Delivered Duty Paid)

“Delivered Duty Paid” means that the seller delivers the goods when the goods are placed at the disposal of the buyer, cleared of import on the arriving means of transport, ready for unloading at the named place of destination.

The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.

DDP represents the maximum obligation for the seller.

Rules for sea and inland waterway transport

FAS (Free Alongside Ship)

“Free Alongside Ship” means that the seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment.

The risk of loss of or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from that moment onwards.

FOB (Free On Board)

“Free On Board” means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered.

The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.

CFR (Cost and Freight)

“Cost and Freight” means that the seller delivers the goods on board the vessel or procures the goods already so delivered.

The risk of loss of or damage to the goods passes when the goods are on board the vessel.

The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

CIF (Cost, Insurance and Freight)

“Cost, Insurance and Freight” means that the seller delivers the goods on board the vessel or procures the goods already so delivered.

The risk of loss of or damage to the goods passes when the goods are on board the vessel.

The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

Incoterms-for-Shipping
Incoterms-for-Shipping
Important-parties-to-work

Important Parties to Work with in Import & Export Trade: 2023

by with No Comment Air ShipmentEXPORTIMPORTOcean ShipmentRail or Truck Shipment

There are at least 7 important parties to work with in the international trade (import & export) for the movement of goods, documents and money.

  1. The exporter
  2. The importer
  3. The freight forwarder/shipping agent
  4. The carrier
  5. The customs broker
  6. The bank(s)
  7. The government(s).

Different participants play different roles at different times in the process of an international trade transaction.

Table of Contents

1st in Important Parties to Work: The Exporter

The exporter’s primary function is to sell his/her goods in international markets.

Exporter need to have right mix of price, product, place and promotion (4P’s) to make the goods competitive in the new international marketplace.

The exporter is responsible for determining the selling price, the product development, the distribution and the promotion to make the product demandable in the international market.

As exporting companies create jobs, bring wealth into a country, and help with the balance of payments, all governments look favorably on exports and assist their exporters in the international trade.

The Importer

The role of the importer is to find goods and services that are needed or wanted by domestic consumers and industry, and bring them to market in good order.

There are three types of importers:

  • Those that provide finished industrial and consumer goods to individuals and to other wholesalers and retailers.
  • Those that provide intermediate (semi-finished) goods required to complete the manufacture of the finished product.
  • Those that provide raw materials used in either semi-finished or finished products.

The Freight Forwarder/Shipping Agent

If we see most international shipments, we can see it involve more than one mode of transport and it would be nearly impossible for an individual exporter or importer to arrange with the various carriers, to pick up, document, insure, transport, report to customs and deliver the goods to destination.

A freight forwarder acts as a single touch point and is capable of providing the exporter or importer with a single document covering the multiple modes of transportation that may be required to move the goods.

The freight forwarder takes all the responsibility of the transportation of the goods across borders allowing the importer and exporter to focus on the sales of the product and increase their core business.

The Carrier

The Carrier actually owns the vehicles, planes, ships, railcars and trucks that carry the goods.

Each shipment accepted for carriage by the carrier must be documented.

Only shipments that are properly packaged, packed, labeled and documented are accepted for shipment. For these reasons, carriers prefer to deal with international freight forwarders who ensure the goods are “ready for carriage.”

The Customs Broker

Customs brokers clear goods through customs, and account for shipments, assessing duty and taxes on behalf of their clients. The customs broker works on behalf of the importer and exporter in the release of goods and work with all customs procedures to release the goods.

The Bank(s)

In import & export trade, a major issue is that of payment to the exporter (seller) by the importer (buyer).

Often the exporter does not want to commit the goods to shipment unless it has some guarantee that payment will be made. Equally, the importer would not wish to pay for the goods unless he/she receives some guarantee that the goods have actually been shipped.

This is where a third party, the bank, enters the picture to mitigate the risk.

Governments

Governments have a strong involvement in the international trade.

The government of the exporting country will have export-reporting requirements. If the goods travel through a third or fourth country on their journey from seller to buyer, the governments of each of those “transit” countries will have regulations that must be met and obliged.

Finally, the government of the importing nation has something to say about the types and quantities of goods that enter its country and the duties and taxes that must be paid, safety and security regulations that must be followed, data collection and delivery laws that must be obeyed.

Important-parties-to-work
7-Important-parties
Prevent-Loss-Damage-Theft -Cargo

How to Prevent Damage and Theft of Cargo in Export & Import ? Complete Guide 2023

by with No Comment Air ShipmentEXPORTIMPORTOcean ShipmentRail or Truck Shipment

To prevent damage and theft of cargo, we analyze the ways of how the sea and air cargo shipments get lost, damage and stolen in the origin port, transshipment port, destination port or in the process of transit.

We can summarize the reason of the sea and air cargo shipments getting lost, damage and stolen in the below 3 ways.

  1. Handling and storage of the goods in a careless way for which the goods get lost.
  2. Theft or pilferage of cargo
  3. Water damage or damage of goods because of poor packaging

Let us analyze the ways of how can we prevent Loss, Damage and Theft of Sea & Air Cargo Export.

  1. Usage of only new, well-constructed packing for the goods to export. Do not use flimsy or previously used fiberboard boxes, wood crates, or bags for the package. Good packaging will prevent theft and damage of the goods.
  2. Usage of consolidation methods – i.e., larger boxes, crates, etc. – for smaller, multiple, or non-uniform parcels. Unitizing, palletizing, and containerization will help keep shipments together and discourage the thief and loss of the small items.
  3. Use of cautionary markings in English and if necessary in the language of the country of destination is important. The use of international handling symbols provides added effectiveness.
  4. Rain, high humidity, condensation, and seawater (separately or in combination) can reduce otherwise stable cargo into a ruin of soggy, stained, mildewed or rusty merchandise. We need to apply preservatives, corrosion inhibitors, or waterproof wrapping directly to the item being shipped to prevent the exported products from getting ruined.
  5. Inspection of the container to ensure proper accommodation and protection of the cargo is important to prevent damage of the cargo.
  6. The stowing (stuffing) and securing of goods in the container needs to be carefully done and also the unloading of the cargo need to be cautious to prevent damage to the goods in the unloading stage.
  7. Need to have clear documentation of the cargo that is exported, to keep in track of the number of goods exported from the shipper to the buyer.
  8. It is good to handle the cargo with mechanical handling equipment, as a result reducing exposure to the inherently rougher manual-handling techniques. So it is wise to unitize, palletize, or assemble cargo into the largest practical unit.
Prevent-Damage-and-Theft-of-Cargo
Prevent Damage of Cargo
Prepare-Cargo-for-Carriage-Airlines

How to Prepare Cargo for Carriage in Airlines Transport in Export ? Complete Guide 2023

by with No Comment Air ShipmentEXPORT

Let us see the key points to consider while preparing cargo for carriage in airlines transport:

Table of Contents

Packing

The contents of each consignment must be properly packed to withstand all normal transportation incidents.

Furthermore, dangerous goods (hazardous goods) must be packed in accordance with the applicable IATA/ICAO Dangerous Goods Regulations.

Goods must be packaged in such a way that they will not deteriorate or damage other goods during transportation.

They must, furthermore, be packaged to ensure safe transportation with ordinary care in handling.

Each package or piece of property must be legibly and durably marked, to identify the name and full address of the shipper and the consignee.

Labelling and Marking

The labeling and marking of packages is a very important factor in the preparation of an air freight shipment.

The risk of a split shipment is so much higher with air freight than with any other mode of transport, because package weight is such a vital factor for aircraft loading, overall weight and balance.

The size of the aircraft hold or of the container (ULD) can also cause a shipment to be split during loading.

Likewise, a few extra (unexpected) passengers with extra luggage on an aircraft can mean that some of the cargo has to be pulled out at the last minute (after those extra passengers have already boarded the plane) to readjust the permitted take-off weight for the aircraft.

These examples of how cargo may potentially be split show the necessity of labelling each package clearly and legibly.

A label similar to the one below (although perhaps differently configured) is recommended by the carriers.

Note that the weight may be shown in either LB or KG.

 “Transfer Station(s)” are any airport(s) through which the shipment may have to pass en route to its final destination.

AWB:
DESTINATION:
TOTAL NO OF PIECES:
WEIGHT THIS PIECE:
TOTAL WEIGHT THIS CONSIGNMENT:
TRANSFER STATIONS(S):
HANDLING INFORMATION:
HAWB NO:
Labelling and Marking

Marking of Packages

All packages in every consignment must be marked in one of the two following ways:

  • EITHER all the packages show the same consignee’s name, street and city address as on the air waybill OR
  • This information is shown on one or more of the packages, if all other packages are suitably identified as being part of that consignment.

The appropriate labels must also be attached next to the consignee’s address.

If commodities require special handling or stowage, the packaging should be so marked.

Examples of internationally recognized pictographs for such markings are below.

Markings

Payment in Cargo for Carriage in Airlines Transport

Unless otherwise arranged, charges are payable by the shipper (i.e., “charges prepaid”).

A consignment may be accepted “charges collect” (i.e., payable by the consignee), provided the following conditions are fulfilled:

The consignee is not the same as the shipper, nor a government agency (except when shipped by a government agency presenting proper credentials).

The consignment does not consist of or contain:

  • Human remains
  • Live animals (including birds, fish, insects, livestock, pets, and shellfish)
  • Perishables (discretionary by airline)
  • Personal effects or household goods used and not for resale
  • Newspapers or stuffed trophy fish (discretionary by airline)

In addition, when:

  • The resale value of the goods is not less than the charges to be collected
  • Currency regulations of the country of destination and of the delivering carrier do permit collection of charges from the consignee
Cargo-for-Carriage-in-Airlines-Transport
Cargo for Carriage
Export-any-Goods-by-Railway-Transportation

How to Export any Goods by Railway Transportation: A Complete Guide-2023

by with No Comment EXPORTIMPORTRail or Truck Shipment

Most of the land border countries, local, interprovincial transportation of goods and freight is done by railways. Railway transportation is fast and comparatively cheap.

To export any goods by Railway Transportation it is very important to obtain correct cargo measurements and weights in order to ensure that adequate transport equipment is used and that any exceptions and/or special requirements are taken into account (permits, routes, handling equipment, special equipment, etc.).

The exporter is responsible to provide accurate cargo measurements and weights to the freight forwarder/carrier; this information is usually included in the commercial documentation like (commercial invoice and/or packing list).

When the cargo is shipped as a part-load (less-than-truck load (LTL), less-than-car load (LCL)), the forwarder has the possibility to have it measured and weighed at the receiving terminal and make adjustments accordingly.

Table of Contents

Rail Equipment

Well Cars

Well Cars are designed to transport double-stacked containers. The bottom container sits in a depressed “well” between the trucks (“truck” is the wheel/bogie assembly on which the car rides).

By sitting between the trucks, the bottom container rides low and a second container can be stacked on top of it and remain within the clearance envelope.

The car may be designed to handle only double-stacked containers, or it can be a dual-purpose car that can handle either double-stacked containers or trailers.

Spine Cars

The container (or trailer) sits above the trucks. Due to the height of the platform above rail, there is insufficient clearance to handle double-stacked containers. 

The car may be designed to handle single-stacked containers or trailers.

What is Over-Dimensional Cargo ?

Over-dimensional cargo, also called out-of-gauge cargo, oversize cargo or dimensional cargo, is freight that exceeds the legal standard-size criteria of carriers based on the mode of transport, the area and the itinerary.

When moving over-dimensional freight, the forwarder must always keep in mind rail clearances for any tunnels or bridges that the cargo might pass over or through while en route.

The railways have specially trained personnel, qualified in handling and itinerary planning for the movement of a heavy-lift or oversized piece of equipment.

How the Railways Freight Quotation is provided ?

The railways freight is quoted based on the type of service required, origin and destination, equipment needed, time frame, volume, commodity and class, cargo specifications (type of packaging, weights and sizes), perishability, risk of damage and other relevant details.

Rail rates are generally expressed in lump sum per railcar, with ancillary and surcharges for fuel, currency, demurrage and switching.

Documents need in Export any Goods by Railway Transportation

To complete the railways shipment execution process, every shipment requires three types of documentation:

  1. Commercial documentation
  2. Financial documentation
  3. Transportation documentation

Commercial Documentation:

  1. The packing list is a detailed list of contents of the shipment
  2. A pro-forma invoice is sometimes required to confirm the order before shipping and to enable the importer to open letter of credit.
  3. The commercial invoice documents what the buyer must pay the seller and provides information to the countries of export, import and transit.
  4. The certificate of origin certifies the origin of the merchandise.

Financial Documentation:

Depending on the terms of the contract between the seller and the buyer and the method of payment agreed to (e.g., open account, advance payment, documentary credit or documentary collections), various financial documents are required, like the letter of credit advice and confirmation (if applicable), the draft, the promissory note, the bill of exchange, as required by financial institutions.

Transportation Documentation:

The main document here is the bill of lading issued by the carrier in here it is the rail bill of lading.

This rail bill of lading serves as the receipt for the goods, a contract of carriage and, in some cases, for ocean freight, a transferable title of ownership.

What to do after goods arrive in destination ?

When the shipment arrives at destination, the proper parties like importer and importer’s agent are notified, delivery appointments are made and the shipment is delivered according to instructions and against payment of applicable charges to the customs clearance.

What are the Advantages and Disadvantages of Rail Transportation ?

Advantages:

  1. For bulk products, railways transportation is very advantageous for carriage. Exporters of bulk products such as paper, lumber, grain, chemicals, metal products, etc. use rail transportation if connected by rail route from origin to destination. These advantages include lower freight rates, capacity to handle such loads and simpler documentation.
  2. There are a wide variety of railcars available to meet the individual requirements of every exporter.

Disadvantages:

  1. Rail transportation can be slow for some destinations in compare to trucking.
  2. Frequent shunting and switching in rail transportation exposes shipments to impacts that can damage the products being shipped in railways.
Export-any-Goods-by-Railway-Transportation
Railway Transportation
Export-any-Goods-by-Railway-Transportation
Railway Transportation
Total-cost-of-Sea-&-Air-Freight

How to calculate the total cost of Sea & Air Freight in Export? Complete Guide 2023

by with No Comment Air ShipmentEXPORTIMPORTOcean Shipment

Let us know the process to calculate the total cost of Sea & Air Freight in Export:

Table of Contents

Sea Freight

Sea freight is measured per cubic meter or 1,000 kilograms (1MT), whichever is higher.

In sea freight most general cargo tends to pay freight by the volume but calculating the weight/volume ratio is an important factor in export goods.

For example, when you export heavy metals in containers the weight is heavier than proportionate volume measurement. So the shipping agent will charge in weight ratio to the supplier in MT rather than volume.

The volume cubic measurement of a package is determined by multiplying the three extreme dimensions, i.e., the greatest height, width and length of each individual package or piece of cargo.

An exporter or importer when needs to ship goods, reaches out to shipping agent/freight forwarder to know the freight rates to export the goods.

Let us see how a freight forwarder does the costing analysis in sales to the individual exporter or importer.

The freight forwarder buys the space at a “wholesale” price form the shipping & air lines and sells it at a “retail” price. This applies to FCL shipments as well as to LCL shipments handed over to a consolidator.

In addition to the freight charges there are other charges an importer or exporter has to pay to the freight forwarder for performing services related to the movement of the goods like:

  • Stuffing and de-stuffing
  • Local cartage
  • Packaging
  • Services that are a regular part of a shipment, such as documentation preparation, HBL fees, etc.

Apart from the above costs other services you can take from a freight forwarder and the cost can include like:

Let us see how per Metric Ton (MT) rates are given to traders from shipping agent for a 40ft std. container in Metric Ton (MT) where Weight is higher than proportionate Volume:

Items Rates in $
Ocean Freight(40ft std. Cont)$                      1,000.00
Empty pickup$                         100.00
Loading$                         300.00
Dunnage Material$                            30.00
Total Cost$                      1,430.00
Freight forwarder’s profit margin$                         200.00
Total(Cost+Profit)$                      1,630.00
Average Capacity of 40ft std. Cont in Tons(MT) 50 MT
Average Rate per MT $ 33

The importer or exporter buys the $33/MT rate from the freight forwarder to ship the goods from the origin to the destination.

If the volume of the goods is higher than the proportionate weight then the rates are given in CBM.

For example in the export of the garments, the volume is way higher than the weight. Then the rate is given in CBM.

Items Rates in $
Ocean Freight(40ft std. Cont)$                      1,000.00
Empty pickup$                         100.00
Loading$                         300.00
Dunnage Material$                            30.00
Total Cost$                      1,430.00
Freight forwarder’s profit margin$                         200.00
Total(Cost+Profit)$                      1,630.00
Average Volume in CBM 54
Average Rate per CBM $30

The importer or exporter buys the $30/CBM rate from the freight forwarder to ship the goods from the origin to the destination.

Air Freight

In air freight, it is 1 kg/6,000 cm3, whichever is higher.

In an air shipment, airfreight charge is calculated on the basis of actual weight or volume weight, whichever is higher.

So how do we determine which weight will be charged, which will be the chargeable weight?

Let us explain with an example.

If a shipper exports cotton, the actual weight of cotton is very low but occupies a large amount of space as a volume. In this case, if airfreight is charges on the basis of actual weight of cargo, the said shipper needs to pay a very nominal airfreight compared to a shipper who exports iron plates.

So here the importance of volume weight arises by considering volume of cargo and actual weight of cargo at an equilibrium point.

It is to be noted that in order to find volume weight of cargo you need to have measurement of package of goods. If the cargo measurement are in centimeters, the total volume of cm3 to be divided with 6000.

If the volume is in cubic meter (CBM), the said volume in m3 to be divided with 0.006.

Air carriers charge airfreight on the basis of volume weight or actual gross weight whichever is higher.

Shipment 1:

Gross weight =700kgs

Measurement of cargo = 150cm X 100cm X 116cm = 1 box

88cm X 67cm X 113cm = 3 boxes

Total volume = 1740000+(666248X3) = 3738744 cubic centimeter

Total volume weight = 3738744 / 6000 = 623.124kgs

Here in shipment No: 1, the gross weight is 700kgs and volume weight is 623.124kgs. Hence, Chargeable weight is 700 kgs which is also gross weight, 700kgs (which is greater)

Shipment 2:

Gross weight = 600kgs

Measurement of cargo = 100cm X 110cm X 105cm = 4 boxes

Total volume = 4620000 cubic centimeter

Total volume weight = 4620000 / 6000 = 770kgs

Here in shipment No:2, the gross weight is 600kgs and volume weight is 770kgs. Hence, airfreight is charged on the basis of volume weight, 770kgs.  Here, the chargeable weight is 770kgs.

Why would a shipper choose to give his cargo to a forwarder, rather than directly to the airline?

Shipper does so because he is better off, in terms of both rate and service he is getting from the forwarder, doing it this way.

The principles we discussed in ocean freight consolidations apply as well in air cargo movements. The forwarder is a large client to the airline, whereas Citizen Y is likely not! Citizen Y’s cargo may well be left on the station to make room for the box belonging to the air freight forwarder, the regular client.

The air freight forwarder usually offers lower-than-airline rates for the same level of service provided by the carrier as the forwarder buys the space in bulk from the air lines to get competitive rate compare to the rate the airlines will give to the shipper.

Total-cost-of-Sea-&-Air-Freight
Cost Calculation
Total-cost-of-Sea-&-Air-Freight
Cost Calculation