Assignment for Module 3: Freight Transportation

I am currently working in one of the largest international freight forwarding and transport organizations in the region. We control a network of agents on the same system throughout the Far East and the strategically located teams of professionals work in close co-operation to meet the logistics needs of customers worldwide. In order to offer a complete package of logistical services, we are part of a Group, which includes associate companies in the areas of airfreight, trucking, railway freight, cargo consolidation, warehousing and distribution.

Export shipments involve more than 80% of the job we handle in our company. In a normal phenomenon, the Shipper will call in and make a booking to us. Then we will make a booking to the Carrier (the choice of carrier depends on the preference of the shipper), and the carrier will send us a Booking Confirmation Document, which is to confirm the booking and will be released to the shipper in order to pick up the empty container in the case of FCL shipment. After stuffing, the shipper has to return the full-loaded container to the terminal before CY closing time. For LCL shipments, we will be responsible for the picking up of empty containers. The empty container will stay at our warehouse and the shipper will bring in their goods via our trucking services or their own trucking. We will then set the loading plan in order to do a groupage shipment.

After the departure of the cargo, the shipper has to confirm the details with us such as container number and seal number. Then we will issue a House Bill of Lading to the shipper, an official legal document issued by forwarder representing ownership of cargo, a negotiable document to receive cargo, and the contract for cargo between the shipper and the carrier. Before we release the HB/L to the shipper, we must receive the Mate’s Receipt, receipt signed by a mate of the vessel, acknowledging receipt of cargo by the vessel. Only with the House B/L will the shipper be able to receive money from the bank against the Letter of Credit, an agreement between the consignee and shipper.

Within 3 days of cargo departure, we have to send a Shipment Advice to our overseas agent, which includes details such as vessel name, voyage and details of customers’ goods on board of the particular vessel. After sending shipment details to the carrier, they will issue a Master Bill of Lading, which is the bill of lading issued by the carrier. We then send it to our overseas agent, and they must present this MB/L to the carrier in order to receive a Delivery Order, against which will the carrier release the cargo. Consignee will be given the DO with the presence of a HB/L for the shipment from our agent. All of these documents, i.e. MB/L, HB/L and invoices must be sent to our agent within 7 days of cargo departure date.

Apparently things will not always go as smooth as planned. There have been a few problems I have encountered throughout my short career. One very common problem in my industry is the lack of space from carrier. Our company policy is to never let our customers down. So basically we will not let any business to slip off from our hands. Sometimes when the shippers call in and ask for booking, even though we may not be able to guarantee a place or a container, we will try our best to get the business. We may try with different carriers, which depends on the shippers’ preferences, some might prefer cheaper rates or some might prefer shorter transit time. We will search in accordance to shippers will and advise them the next possible choice. And if shippers want no alternatives, then we might co-load it to other forwarders which have spaces guaranteed from that particular carrier.

Another problem was once that I released the HB/L to a shipper against the Mate’s Receipt. But then I lost the Mate’s receipt and so the carrier could not release the MB/L to us. I had to make an announcement on a local Hong Kong newspaper for 3 consecutive days. The details included our company name, vessel name and voyage, carrier name, container number and seal number. Then I brought the invoice from the newspaper company and the original newspaper with the announcement to get the MB/L from the carrier.

Our company handle a reasonably large amount of garment goods compare to other forwarders in the region. I once handled a garment shipment, but mistakenly released the HB/L to the shipper without checking whether she had an Electronic Quota License or Transhipment Document for the garment goods. As it turned out the shipper did not have the quota and unfortunately the loaded container had already been returned to the terminal and was ready to be loaded onboard. At the end of the day we had to take the container out from the terminal to our warehouse, unpacked it and took out the garment goods and returned the container back to the terminal since it was a groupage container. That incurred a certain amount of costs such as container lifting cost and trucking cost. Since it was not totally my fault nor the shipper’s fault, so we agreed to share the extra costs.