Booking Process and Requirements
The following guide will navigate you how to create a booking for freight services as well as the requirements needed.
To begin with, what exactly are shipment bookings? Reserving shipping space involves exporters securing space aboard a shipping vessel from the shipping line for a suitable departure date. The shipping company devises an optimal shipping plan based on factors such as available capacity, cargo volume, and specific load characteristics for the particular booking, subsequently issuing a booking form for the reserved space.
When arranging shipping space, exporters typically have two options: dealing directly with shipping lines or enlisting the assistance of a freight forwarder. Presently, owing to the intricate nature of the shipping booking procedure, exporters commonly rely on freight forwarders to handle the reservation of shipping space.
Now that we understand the nature of shipment booking, We must understand the process and requirements involved in the process.
Behind the Scenes
Before we are contacted, we understand that behind the scenes you have your own understanding with your supplier when it comes to payment method, communication methods and other specifics. This is important to understand since not everyone has the same understanding with their own supplier, which might chance some things to the booking process.
Confirm Cargo Information
Prior to initiating your booking process, it's essential to thoroughly evaluate detailed cargo information, including cargo type, volume, and whether it will be transported by air or sea. This assessment determines the number and type of containers (e.g., 20-foot standard, 40-foot high cube, or 40-foot general purpose) you'll need to book.
If you have an established contract with shipping lines, opting to book directly with them ensures access to the best pricing and flexible route options. However, if you lack such a contract, collaborating with a freight forwarder is a strategic decision. Most freight forwarders offer comprehensive end-to-end services, alleviating the burden of logistics management. Your primary responsibility is to cover the costs, while they handle the seamless transportation of cargo from the factory to its destination.
Booking Shipping Space
Once you've confirmed the cargo details, the next step is to select a reputable shipping company for booking. Establish communication with the shipping company to finalize specifics such as the sailing date, vessel class, route, and expected arrival date.
The shipping company will devise a well-considered shipping plan, taking into account factors such as cargo weight, cargo hold capacity, departure date, and other relevant characteristics. Upon confirmation of the booking, the shipping company will issue a Ship Order (SO) complete with a seal. Typically, the SO can be obtained on the following day after the booking has been made.
Confirm Freight Booking and Contracts
Booking is made via the carrier's website or through email communication. Once the carrier and shipping lines have mutually agreed upon the shipping routes and departure date, the shipper will provide a shipping confirmation to the exporter.
The booking confirmation, typically issued by the freight forwarder, serves as a comprehensive document detailing essential shipment information such as cargo type, total price, cargo weight, etc. These booking confirmation documents play a crucial role in facilitating transactions between parties, including the consignee, shipper, and buyer, particularly concerning dealings with financial institutions. Furthermore, the booking confirmation number often serves as the primary shipment tracking code for reference purposes.
Additionally, at Prime Freight Logistic, we send to customers different quotes on a bi-weekly rate for the routes that they are interested in. These quotes, however, contain both prime freight rates as well as agent rates.
The primary distinction between spot and contract freight lies in the payment structure. Shippers settle spot freights on a one-time basis, whereas pricing for contract freight is the result of negotiations between shippers and carriers.
When deliberating between contract and spot rates, it's crucial to assess shipping needs comprehensively. This entails considering factors such as the nature of the goods being shipped, the distance and route of transportation, as well as the urgency, volume, and budget of the shipment. A meticulous evaluation of these aspects enables an informed decision regarding the preferred option.
Arrange Transportation
Verify whether the goods are packed at the factory or at the port. Inform the logistics company to transport the goods to the seaport. Arrange for transportation of the goods to the shipping company's warehouse prior to finalizing the order and coordinating the loading of cargo onto the vessel.
Declare at Customs
Compile the customs declaration documents, ensuring accuracy and completeness of the goods information and accompanying paperwork. Submit the prepared documents to the customs broker for thorough review and processing.
Fulfilling the Order
After the cargo is allowed to pass, the cargo shall be loaded on board and a formal bill of lading shall be issued.
Requirements for Bookings
Firstly, bookings usually need to be made at least two weeks in advance. The shipping company typically opens its warehouse one week prior to the ship's departure. However, during holiday seasons or special periods, the warehouse may open a month in advance. Consequently, it's essential to plan ahead when exporting cargo during holiday periods.
Moreover, the power of attorney should contain comprehensive details, including specifics such as the weight of the goods. Some shipping routes may have weight restrictions imposed by the shipping company. If the cargo exceeds these limits, it may not be transportable, or additional fees may be incurred. Therefore, it is crucial for the cargo owner to provide the freight forwarder with approximate cargo weight information to ensure smooth processing and avoid potential issues.
Finally, The transportation of dangerous cargo necessitates strict adherence to accurate declaration documents and information. Any errors discovered in these documents could result in customs detaining the goods. Therefore, it is imperative to ensure the correctness and precision of all documentation related to the transportation of hazardous cargo.
Important documents needed for Ocean/Air freight
Various modes of shipping, including ocean (sea) and air freight, have distinct characteristics and regulatory requirements, necessitating specific documentation tailored to each mode.
Such documentation for Ocean (Sea) freight include the bill of landing (B/L), the packing list, the commercial invoice, the certificate of origin, as well as the insurance details.
As for Air freight, documentation include air waybill (AWB), commercial invoice, the packing list, certificate of origin and the insurance certificate.
When using a Freight Forwarder, the documentation needed is mostly the same with some additional paperwork.
Commercial Invoice
Packing List
Bill of Landing (B/L) or Air Waybill (AWB)
Certificate of Origin
Insurance Certificate
Booking Confirmation
Shipper's Letter of Instruction (SLI)