Ocean Shipping Procedure

Bigger export firm have a traffic department will take care of overseas shipping.
With smaller firm, this task is usually delegated on a fee basis, to freight
forwarder. The following steps are involved in a typical overseas shipping
procedure.

1. The Freight Forwarder is advised of the export order.

2. The terms of sale are examined to determine the exporter's shipping

responsibility and ability to fill the order.

3. If letter of credit is involved, it must also be carefully examined to insure that

any shipping conditions (such as shipping date, no partial shipments, discharge
port, transshipment restrictions, etc.) are met or, if impossible to meet,
arrangements be made for the letter of credit to be amended.

4. Quotations on freight rates sought from different shipping agents.

5. A shipping line and vessel are selected.

6. Space is booked as early as possible (as shipping space is not easily available
to all destinations) through a shipping agent. The space should be on a ship with
an acceptable loading port and acceptable estimated time of arrival (or ETA) at
the required port of destination.

The choice of loading port must be balanced against the preferred date of
sailing. Information about sailing schedules is available in specialized shipping
publications and in the business sections of the major newspapers.

The agent that represents the shipping line will, in booking the space, requires
full details of the shipment, including weight, size, contents value, ports of
shipment and destination. This is recorded by the exporter onto a shipping note
that is sent to the steamship office.

The shipping agent then sends the exporter a contract number and an
engagement note showing the details of the shipment, including name of the ship,
destination, loading port, loading date, arrival date, and the shipping rate.

The exporter may cancel the space that has been reserved if the export order
falls through. However, it should let the shipping company know as soon as
possible so that the space can be allocated to someone else. Otherwise the
shipping company will invoice the exporter for the unused space.

7. Customs forms are filled out for the country of destination.

8. The shipment is appropriately packaged and marked.

9. Wait for the "calling forward" notice from the shipping company.

10. The shipment is dispatched to the port with a consignment note.

11. A bill of lading is obtained from the shipping company and freight charges are
paid.
12. The bill of lading and other required documents are delivered to the bank for
collection.

Next page 4/5 5/5 "...you can still obtain a 'clean bill of lading' by signing a
letter of indemnity..."