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What are the differences between AWB & B/L

Main differences between an air waybill and a bill of lading can be grouped under following articles:

Document of title, issuance time, how many originals and copies issued, mode of transport, applicable incoterms, governing international regulations.

Differences Between Air Waybill and Bill of Lading

Air Waybill(AWB) Bill of Lading(B/L)

Non Negotiable      Negotiable (If issued to order of…)

Air waybill should be issued after the complete consignment has been received  Bill of lading should be issued after consignment has been shipped on board a vessel and the same vessel

Issued in at least 9 copies       Issued in full set (3 originals/3 copies)

Should be used with air shipments Should be used with sea shipments

Should not be used with FAS,FOB,CFR and CIF Incoterms Can be used with all incoterms defined in incoterms 2010 rules

Subject to Warsaw Convention,Hague amendment,Montreal Convention    Subject to Hague Rules,The Hague-Visby Rules and US COGSA (US Carriage of Goods by   Sea Act 1936)

1.Document of Title:

Bill of lading, when issued in negotiable form, represents title to the goods. For this reason at least one original copy of the bill of lading must be surrendered to the carrier's nominated agent at the port of discharge in order to collect the goods.

Air waybill, on the other hand, is always a non-negotiable transport document. Buyers could collect the consignment from the carrier at the airport of destination by simply proving their identities against the company information stated on the consignee part of the air waybill.

2.Issuance Time:

Bill of lading should be issued by the carrier, after the goods shipped on board a vessel and the vessel departures from the port of loading.

Air waybill should be issued by the air cargo carrier, after the complete consignment has been received by the carrier and the aircraft departures from the airport of departure.

3.How Many Originals and Copies Issued:

It is a standard practice in international container transportation to issue bills of lading in full set, 3 originals and 3 copies.

Air waybills, on the other hand, issued by the air cargo carrier in 9 originals.

On below figure, you can find how many air waybills issued per each air shipment and how all these copies will be distributed among the various parties of that particular transaction.

4.Mode of Transport:

Bill of lading should be used with port-to-port sea shipments, whereas air waybill should be used with air shipments.

5.Applicable Incoterms:

Bill of lading is a transport document, which is issued in sea shipments. According to Incoterms 2010 rules all incoterms can be used with sea shipments. On the contrary, air waybill is a transport document, which is issued in air shipments and FAS, FOB, CFR and CIF incoterms cannot be used with air shipments according to Incoterms 2010 rules.

6.Governing International Regulations:

Bill of lading and air waybill are issued subject to different governing international rules.

Governing International Regulations of Air Waybill: Warsaw Convention, Hague amendment, Montreal Convention.

Governing International Regulations of Bill of Lading: Hague Rules, The Hague-Visby Rules and US COGSA (US Carriage of Goods by Sea Act 1936).

Learn more about these rules, AI Logistics will help you solve these problems with the best service and nice shipping quote.

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Definition of the term Not Negotiable

Waybills are non-negotiable documents unlike bills of lading which are negotiable. The words non-negotiable are printed clearly at the top of the air waybill. This means that the air waybill is a contract for transportation only and does not represent (the value of) merchandise mentioned in the box nature and quantity of goods. The ocean bill of lading, if negotiated, may represent (the value of) the goods and must be endorsed by the party ultimately accepting the goods. Although the AWB is a non-negotiable document, it can be used as a means of payment. This can be done only through the intermediary of a bank and only when the carriage is subject to a letter of credit. The air waybill executed according to the terms of a letter of credit allows the shipper to present the original of the air waybill to the bank and collect the billed value of the shipped goods from the bank. The amount paid by the bank to the shipper will be debited to the consignee who ordered the goods. At the destination the carrier will only hand over the goods to the consignee on receipt of a bank release order from the consignee's bankers.

The goods in the air consignment are consigned directly to the party (the consignee) named in the letter of credit (L/C). Unless the goods are consigned to a third party like the issuing bank, the importer can obtain the goods from the carrier at destination without paying the issuing bank or the consignor. Therefore, unless a cash payment has been received by the exporter or the buyer's integrity is unquestionable, consigning goods directly to the importer is risky.

For air consignment to certain destinations, it is possible to arrange payment on a COD (cash on delivery) basis and consign the goods directly to the importer. The goods are released to the importer only after the importer makes the payment and complies with the instructions in the AWB.

In air freight, the exporter (the consignor) often engages a freight forwarder or consolidator to handle the forwarding of goods. The consignor provides a Shipper's Letter of Instructions which authorizes the forwarding agent to sign certain documents (e.g. the AWB) on behalf of the consignor.

The air waybill must indicate that the goods have been accepted for carriage, and it must be signed or authenticated by the carrier or the named agent for or on behalf of the carrier. The signature or

authentication of the carrier must be identified as carrier, and in the case of agent signing or authenticating, the name and the capacity of the carrier on whose behalf the agent signs or authenticates must be indicated.

International air waybills that contain consolidated cargo are called master air waybills (MAWB). MAWBs have additional papers called house air waybills (HAWB). Each HAWB contains information of each individual shipment (consignee, contents, etc.) within the consolidation. International AWBs that are not consolidated (only one shipment in one bill) are called simple AWBs. A house air waybill can also be created by a freight forwarder. When the shipment is booked, the airline issues a MAWB to the forwarder, who in turn issues their own house air waybill to the customer.

House and Master AWBs and BLs

A freight forwarder offering a consolidation service, will issue its own air waybill or bill of lading. From now on AWB will be used to refer to both. This is called a Forwarder's or House AWB with its equivalent House BL. These act as contracts of carriage between the shipper and the forwarder, who in this case becomes a Deemed Carrier. The forwarder in turn enters into contracts with one or more carriers, often using more than one mode of transportation. The contract of carriage between the forwarder and carrier is called a Master Air Way Bill (MAWB or MBL). A House Air Waybill (HAWB) or Bill of Lading (HBL) could act as a multimodal transport document.

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Responsibility for Completion

The air waybill is a contract - an agreement between the shipper and the carrier. The agent only acts as an intermediary between the shipper and carrier. The air waybill is also a contract of good faith.

This means that the shipper will be responsible for the haul also be liable for all the damage suffered by the airline or any person due to irregularity, incorrectness or incompleteness of insertions on the air waybill, even if the air waybill has been completed by an agent or the carrier on his behalf.

When the shipper signs the AWB or issues the letter of instructions he simultaneously confirms his agreement to the conditions of contract.

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Validity

The air waybill is a contract, i.e. an agreement enforceable by law. To become a valid contract it has to be signed by the shipper or his agent and by the carrier or its authorised agent. Although the same individual or organisation may act on behalf of both the carrier and the shipper, the air waybill must be signed twice one each in the respective carrier and shipper boxes. Both signatures may be of the same person. This also implies that the air waybill should be issued immediately upon receipt of the goods and letter in instructions from the shipper.

As long as the air waybill is neither dated nor signed twice, the goods do not fall within the terms of the conditions of contract and therefore the carrier will not accept any responsibility for the goods. .

The validity of the air waybill and thus the contract of carriage expires upon delivery of the shipment to the consignee (or his authorised agent)

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AIR WAYBILL

Description

An air waybill (AWB) or air consignment note is a receipt issued by an international airline for goods and an evidence of the contract of carriage, but it is not a document of title to the goods. Hence, the air waybill is non-negotiable.

The air waybill is the most important document issued by a carrier either directly or through its authorised agent. It is a non-negotiable transport document. It covers transport of cargo from airport to airport. By accepting a shipment an IATA cargo agent is acting on behalf of the carrier whose air waybill is issued.

Air waybills have eleven digit numbers which can be used to make bookings, check the status of delivery, and current position of the shipment.

Air waybills are issued in 8 sets of different colours. The first three copies are classified as originals. The first original, Green in colour, is the Issuing Carrier's copy. The second, coloured Pink, is the Consignee's Copy. The third, coloured Blue, is the Shipper's copy. A fourth Brown copy acts as the Delivery Receipt, or proof of delivery. The other three copies are white.

Functions

There are several purposes that an air waybill serves, but its main functions are:

A. Contract of Carriage

Behind every original of the Air Waybill are conditions of contract for carriage.

B. Evidence of Receipt of Goods

When the shipper delivers goods to be forwarded, he will get a receipt. The receipt is proof that the shipment was handed over in good order and condition and also that the shipping instructions, as contained in the Shipper's Letter of Instructions, are acceptable. After completion, an original copy of the air waybill is given to the shipper as evidence of the acceptance of goods and as proof of contract of carriage

C. Freight Bill

The air waybill may be used as a bill or invoice together with supporting documents since it may indicate charges to be paid by the consignee, charges due to the agent or the carrier. An original copy of the air waybill is used for the carrier's accounting

D. Certificate of Insurance

The air waybill may also serve as an evidence if the carrier is in a position to insure the shipment and is requested to do so by the shipper.

E. Customs declaration

Although customs authorities require various documents like a commercial invoice, packing list, etc. the air waybill too is proof of the freight amount billed for the goods carried and may be needed to be presented for customs clearance.

The format of the air waybill has been designed by IATA and these can be used for both domestic as well as international transportation. These are available in two forms, viz. the airline logo equipped air waybill and the neutral air waybill. Usually, airline air waybills are distributed to IATA cargo agents by IATA airlines. The air waybills show:

•     the carrier's name

•     its head office address

•     its logo

•     the pre printed eleven digit air waybill number

It is also possible to complete an air waybill through a computerised system. Agents all over the world are now using their own in-house computer systems to issue airlines' and freight forwarders' own air waybills. IATA cargo agents usually hold air waybills of several carriers. However, it gradually became difficult to accommodate these pre-numbered air waybills with the printed identification in the computer system. Therefore, a neutral air waybill was created. Both types of air waybills have the same format and layout. However, the neutral air waybill does not bear any pre-printed individual name, head office address, logo and serial number. Chose AI Logistics, we will provide you the best service with nice shipping price.

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Why Plywood and Other Man-made Boards Are Not Required for Fumigation By Importing Countries?

Usually, importing countries make fumigation compulsory for solid wood / timber and logs. But importing countries don’t require fumigation for plywood, block board, MDF/HDF, OSB, hardboard, particle board and some other man-made boards. Why?

Fumigation is a pesticide treatment using poisonous gases to kill pests within wood. The goal of fumigation is to protect forests from insects within the imported timber.

Solid timber and logs probably have harmful living insects. It’s necessary to fumigate solid timer and logs before their entering importing countries’ markets. Otherwise, those harmful insects probably will cause great damage to the forests in importing countries.

But there won’t be living insects in some man-made boards such as plywood, block board, MDF/HDF, OSB, hardboard, particle board and so on. These man-made boards are produced under high temperature and high pressure. During production, all the insects in these man-made boards will be killed because of high temperature and high pressure.

Because of no insects, so these man-made boards won’t be required to be fumigated by importing countries. AI Logistics will provide you the best service with nice shipping rate.

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FCL International Shipments

To ensure that no expensive delays happen to your international shipping cargo on arrival and to ensure that it is immediately released for onward movement into the country, we recommend that you take the following precautions during the international shipping to Australia and New Zealand:

1.    If using your own or leased internationally shipping container ensure that its exposed timber components have been permanently treated to the international shipping requirements of the Quarantine Authorities and the container is registered with them. Otherwise the internationally shipping containers MUST be fumigated within 21 days prior to the international shipment.

2.    Where possible do not use in your international shipment wood for pallets, packaging, dunnaging or securing materials if you can find suitable alternative arrangements not subject to quarantine regulations, for example: Internationally shipping paper products, hardboard, plastic products, fibreboard, cardboards, metal, clean dry used motor tyres, inflatable dunnage, wood-wool, and metal or plastic strapping.

Chipboards, plywood and particle board are also suitable provided they are new and manufactured in Canada, Europe, Israel, Japan, New Zealand, UK or USA.

Limited internationally shipping timber products are not acceptable, neither are internationally shipping material such as straw, rice hulls, or similar plant materials.

3.    Where wood is used for internationally shipping pallets, packaging, dunnaging or securing material then it must meet quarantine requirements in one of two ways:

i.     Be permanently treated by an approved for international shipping preservative such as copper-chromium-arsenic salts or copper-chromium-boron salts.

ii.    Be temporarily disinfected by one of the approved for international shipping methods below. Timber treated by one of these methods must be packed in a container used in international shipping or shipped within 21 days of treatment.

  *Methyl Bromide fumigation

  *Sulphuryl Fluoride (Vikane)

  *Heat or kiln sterilisation

  *Steaming

  *Immersion in a hot liquid

Further information related to international shipping to Australia or New Zealand may be obtained by consulting the following publications available from your local ACA Containers Office:

•     Internationally shipping Cargo Containers – Quarantine Aspects and Procedures. Australian Quarantine Service.

•     Summary of Australian Plant and Animal Quarantine Requirements in international shipping. Australian Quarantine Service.

•     Requirements for internationally shipping sea freight Containers and Containerised Cargo. Ministry of Agriculture and Fisheries. New Zealand Forest Service.

METHOD: METHYL BROMIDE FUMIGATION

Methyl bromide fumigation is the most practical and economical method of timber treatment in international shipping. Loaded international shipping containers may be fumigated to treat the exposed timber components of the internationally shipping containers, timber packaging or the cargo. ACA International can arrange for your internationally shipping container to be fumigated prior to international shipping if you require this service or on arrival of your internationally shipping cargo if your quarantine documents are not in order.

A fumigation certificate for international shipping to Australia or New Zealand must be completed and signed by the fumigation contractor, who must be able to comply with ACOP (Approved Code of Practice) for the control of substances hazardous to health.

The quarantine declaration section of the Export Cargo International Shipping Instructions must be completed by the international shipper for coding on the manifest (IEF).

Certificates and/or Declaration for internationally shipping timber treatment will be forwarded by international Shipper to Consignee with invoices or international shipping documents.

Where fumigation has been carried out by ACA International or their agent on behalf of the international shipper fumigation certificates will be forwarded centrally. Chose AI Logistics, we will provide you the best service with nice shipping rate.

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LCL INTERNATIONAL SHIPMENTS

LCL containers shipping internationally and carrying goods for delivery to approved break-bulk depots, where normal quarantine inspections of internationally shipping cargo can be undertaken, do not necessarily have to beat any special requirements. However, should evidence of infestation be found in any international shipping wooden crates or cases then fumigation will be undertaken. The cost to the exporter in the shape of treatment charges, delay and inconvenience in such international shipping may well out weigh the small additional shipping costs of using treated timber when making up the internationally shipping crates and cases.

Other Restrictions in international shipping of LCL sea freight containing wood-packing materials:

For your guidance we would also draw your attention to the additional following restrictions on international shipping of LCL sea freight to Australia and New Zealand.

a.     Fumigation of internationally shipping household furniture and personal affects will not permit immediate release of containers. Containers carrying these goods must PASS through an approved depot for unpacking and treatment of internationally shipping goods subject to quarantine.

b.    Internationally shipping containers must be FREE from soil, plant material and contamination from animal products. Thorough cleaning of the inside and outside of internationally shipping containers prior to the international shipment will assist in removing contamination and could alleviate the need for expensive and time consuming quarantine treatment of international shipments in Australia and New Zealand. All contaminated internationally shipping containers detected entering Australia and New Zealand are treated before release.

c.     Any international shipping material of a plant origin or likely to carry any disease or pests of plants is subject to quarantine. Some internationally shipping items are prohibited except by special permit. Internationally shipping FCL sea freight containers of agricultural products emanating from the UK and NW Continent (non Khapra beetle area) must be preceded by a packers certificate of the internationally shipping container cleanliness prior to packing, a fumigation certificate for the empty internationally shipping container (NOT required if container is not lined), and a phytosanitary certificate.

d.    Items such as internationally shipping motor vehicles or internationally shipping agricultural machinery contaminated with soil must be cleaned before they are released. Steam-cleaning prior to international shipment will obviously go a long way to ensuring the internationally shipping cargo will be in an acceptable condition on arrival but this can never be guaranteed.

e.     Phostoxin is the proprietary name for aluminium phosphide. It is applied in solid form, usually as tablets and relies on a reaction with moisture in the air to release phosphine gas. Use is on a limited basis and normally where an internationally shipping commodity is known to have an adverse reaction with methyl bromide. PLEASE NOTE:it can only be used as an internationally shipping commodity fumigant and is NOT an accepted method of timber treatment in international shipments to Australia or New Zealand.

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Australian and New Zealand quarantine regulations (as a sample of wood-packing restrictions in international shipping of sea freight)

Timber bearing insects pose a significant quarantine risk on internationals shipping to Australia and New Zealand and therefore all timber used in FCL containers MUST be treated before the container can be considered for immediate release. This relates also to the exposed timber components of the container itself.

Quarantine's concern does not only relate to timber pests but also to the cleanliness of internationally shipping sea freight containers.

All conditions prescribed for international shipping by the Quarantine and Customs Authorities must be met before any internationally shipping cargo CAN be removed from a terminal or break bulk depot.

GENERAL

The following steps should be taken to ensure prompt delivery of internationally shipping goods in Australia and New Zealand without detention by the Quarantine Authorities:

•     All international shipping ocean freight bills have a code which indicates if wood is used in packing or securing of internationally shipping cargo in a container. If wood is used in international shipping containers to Australia, then all documentation must have a packing declaration with a fumigation certificate of the internationally shipping container or a treatment certificate of the wood used.

•     For FCL containers if the internationally shipping goods themselves are not subject to quarantine inspection and the timber components, such as the floor and linings have been treated by an acceptable method, then the internationally shipping container is free to move anywhere provided packaging meets quarantine requirements and the internationally shipping container is clean.

•     As far as practical, timber should be avoided in international shipping to Australia and New Zealand and alternative material such as cardboard, plastic, new jute or metals used. If timber crates, cases, pallets or dunnage are used in an international shipment, then the timber should have been treated by one of the methods approved by Australia/New Zealand Plant Quarantine.

•     It is essential that the internationally shipping container is clean and free from soil or plant and animal contaminants such as grains, flour, meat, bones, hides and skin.

•     Straw packing, rice hulls and similar plant materials are prohibited for international shipping and therefore should not be used as packing for any international shipments. Alternative material such as shredded paper, wood-wool or synthetic materials are acceptable for international shipping provided they are not contaminated with material which could be a quarantine risk.

Whenever possible in international shipping of FCL containers to Australia and New Zealand are cleared through quarantine on documentation but a number of them are inspected at importer's premises to verify this international shipping documentation. Where infringements of quarantine requirements are found all subsequent consignments from that exporter may be directed to a depot for clearance. Apart from the delay all the possible prejudice to subsequent international shipping cost for remedial action will be charged to the consignee.

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Is a fumigation certificate required for my international sea freight shipment?

At a glance the ISPM15 international shipping rules may appear quite complicated. I order to make it simpler we would suggest to international shippers using common sense to understand these rules:

Usually, in international shipping of sea freight, importing countries make fumigation compulsory for wood-packing materials that contain solid wood / timber and logs. But importing countries do not require fumigation for cardboard boxes, plywood, blockboard, MDF/HDF (wood-based products obtained by pressing wood fibres), OSB (a competitor for plywood), hardboard, particle board and some other man-made boards.

Why? Because solid timber and logs that are shipping internationally, probably have harmful living insects. It is necessary to fumigate solid timer and logs before international shipping overseas. Otherwise, those harmful insects probably will cause great damage to the forests in importing countries.

The goal of fumigation is to protect forests of destination countries from insects that may reside inside of internationally shipping timber. The fumigation is a pesticide treatment using poisonous gases to kill pests inside of international shipping wood.

But there will NOT be living insects in some internationally shipping "man-made" wood-packing materials SUCH AS: cardboard boxes, plywood, blockboard (wood-based products obtained by gluing blocks of wood together and sandwiching them between 2 veneers), MDF/HDF (wood-based products obtained by pressing wood fibres), OSB (a competitor for plywood), hardboard (high-density fiberboard), particle board and so on. These "man-made" wood-packing materials are produced under high temperature and high pressure. During production, all the insects in these "man-made" wood-packing materials will be killed because of high temperature and high pressure.

Because of no insects, then these "man-made" wood-packing materials will NOT require to be fumigated during the international shipping. I.e. NO fumigation certificate is required for your sea freight international shipment that contain these "man-made" wood-packing materials listed above.

Currently, in the international shipping industry, using alternative packing materials such plastic packing materials (plastic pallets, crates etc) has become more and more popular due to its full compliance with the ISM 15 rules. 

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Fumigation certificate in international shipping

IS A FUMIGATION CERTIFICATE REQUIRED FOR MY INTERNATIONAL SEA FREIGHT SHIPMENT?

AUSTRALIAN AND NEW ZEALAND QUARANTINE REGULATIONS (AS A SAMPLE OF WOOD-PACKING RESTRICTIONS IN INTERNATIONAL SHIPPING OF SEA FREIGHT)

Fumigation for "LCL INTERNATIONAL SHIPMENTS"

Fumigation for "FCL INTERNATIONAL SHIPMENTS"

Why Plywood And Other Man-made Boards Are Not Required For Fumigation By Importing Countries?

The Fumigation Certificate, in respect of international shipping of sea freight, also referred to as a 'pest control certificate' is the proof that wooden packing materials used in international sea freight.

shipping e.g. wooden pallets and crates, wood, wool etc have been fumigated or sterilized prior the international shipment. Fumigation certificates in international shipping usually contain details such as purpose of treatment, the articles in question, temperature range used, chemicals and concentration used, etc.

The fumigation certificate as an international sea freight shipping document is NOT a mandatory international shipping export document. However, it assists in quarantine clearance of an international sea freight shipment upon the arrival to the destination.

The fumigation for international shipping using a sea freight services should be completed by a certified vender prior the international shipment will be submitted to an international sea freight carriers shipping facility in the country of origin of the international shipment. If not completed and fully documented at origin, then the fumigation may be done at the destination upon arrival of international sea freight shipment to the country of destination; OR for international shipments with transshipments at a time of transshipment, i.e. at a time when cargo will be reloaded form one container/vessel to another in order to be shipped to the final destination.

If a fumigation certificate in international sea freight shipping is required but not presented or incomplete, then additional shipping costs related to fumigation of the international sea freight shipment may occur upon arrival of the international shipment to the destination. Noncompliance WILL RESULT in wooden packing materials and wooden pallets being destroyed by the destination country port authorities at consignee's cost and may result in delayed customs clearance. Shippers/Consignees will bear the cost of the fumigation and/or delayed customs clearance due to this noncompliance on the international shipping procedures related to international shipping of sea freight containing wooden packing materials.

Note: Obtaining of fumigation certificate for international cargo shipping is SHIPPER'S responsibility. A Fumigation Certificate, in respect of international shipping of sea freight (if required), can be obtained by international shipper from a local fumigation company. If you consider that a fumigation certificate is required for your international sea freight shipment, then search the internet or refer to your local Yellow Pages in order to find a nearest fumigation company in your area that specialized in fumigation of cargo for the international shipping.

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VGM Declaration–Verified Gross Mass-SOLAS

Misdeclaration of cargo weight is a major hazard which often results in cargo claims, structural damages to vessels and also poses a significant risk to the lives of staff. It is also related to the shipping price.

The International Maritime Organization (IMO) has amended the SOLAS (Safety of Life at Sea) convention under regulation 2 of chapter VI which mandates the declaration of the Verified Gross Mass (VGM) of a packed container before loading on board vessels within a prescribed cut-off date / time to the shipping line and / or port terminal authorities.

Effective July 1, 2016, SOLAS regulations for weighing containers allow two ways for weighing packed containers in order to obtain the Verified Gross Mass (VGM) for each container by the shipper:

Method 1

Total Weight of Container – Truck Tractor/Fuel = Loaded Weight

Real weight of the container including tare after the cargo is packed/loaded into the container.

Method 2

Addition of the whole cargo including packing and the tare weight of the container.

Requires weighing all the cargo and contents of the container and adding those weights to the container’s tare weight as indicated on the door end of the container.

VGM has to be indicated on the packing list and should be submitted on or before the document cutoff date. Each carrier has different requirements on when VGM must be submitted.

If shipper does not provide VGM, several possible outcomes may occur, such as, but not limited to the following:

•     container would be rejected at the terminal

•     additional costs may incur for the time spent outside the terminal awaiting submission of the VGM

•     demurrage and/or detention may apply when a container is sitting idle at the terminal awaiting for VGM submission

•     per diem if container is rejected and booking is rolled

•     penalties which will be determined by the SOLAS enforcing authority

SOLAS STATEMENT:

Customer/Shipper acknowledges that it is required to provide verified weights obtained on calibrated, certified equipment of all cargo that is to be tendered to steamship lines and represents that Company is entitled to rely on the accuracy of such weights and to counter-sign or endorse it as agent of Customer in order to provide the certified weight to the steamship lines. The Customer/Shipper agrees that it shall indemnify and hold the Company harmless from any and all claims, losses, penalties or other costs resulting from any incorrect or questionable statements of the weight provided by the Customer/Shipper or its agent or contractor on which the Company relies. 

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Methods of shipping from China（2）

Project Shipping (For Over-Sized and Overweight Cargo)

(a) OOG (OUT OF GAUGE)

OOG (OUT OF GAUGE) is short for out of gauge container or out of standards containers; OOG containers could be divided into Open Top Container and Flat Rack Container, and Flat Rack Container is shorted as FR. Open Top Container is used to carry heavy and/or bulky finished products, which handling and loading can only be performed with a crane or a rolling bridge.

And Flat Rack Container is dedicated for the carriage of heavy, bulky as well as over height and/ or over width items. To those items that are over length, over width, over height and overweight, break bulk (2 OR MORE FLAT RACKS as bed = BREAK BULK, that is BB CARGO) is the suitable way for delivery.

(b) Break Bulk Vessel Services

Break bulk cargo is defined as general cargo or goods that do not fit in or utilize standard shipping containers or cargo bins. Break bulk is also different from bulk shipping, which is used for cargo such as petroleum products or grain. Instead, break bulk cargo is transported individually, oftentimes on a skid or pallet or in a crate.

Break bulk from China by below main product

Steel products: seamless steel tube, Steel pipe, Casing, steel coli, steel section, steel plate, steel rod, big steel constructions and special steel materials.

Mechanical Equipment: concrete mixer, Excavating machinery, Crane, Pile driving machinery, road construction machinery, Port machinery, Petroleum equipment, Coal machinery, Numerical control machine, Compressor, LNG equipment, Engineering vehicle, Production Line etcs.

(c) RO RO Vessel Services

Ro Ro (Roll-on/roll-off) ships are vessels designed to carry wheeled cargo such as automobiles, trucks, semi-trailer trucks, trailers or railroad cars that are driven or towed on and off the ship on their own wheels. This ships “Roll-on” and “Roll-off” its cargo through its built-in ramps. The ramps could be located at the stern or/and on at the bow. Some ships have ramps installed on the port side of the hull.

Why use Ro Ro Shipping from China

.      The safest and most inexpensive way to handle and transport oversized or special project cargo.

.      Shipments often move as one piece using specialized trailers from origin to port to destination.

.      Less physical handling and there is no need for costly dismantling and reassembly.

.      There is no exposure to water or the elements because the cargo is always secured in Ro Ro/Containership's garage decks for the entire voyage.

(d) Heavy-lift Shipping

Heavy lift ships, with cranes with a combined lift capacity of hundreds of tons, can easily lift super heavy cargoes and carry super long cargoes up to 100 meters on the main deck. The box-shape hold can be adjusted to multiple decks. The ships are regarded as the right carriers for whole set of equipment and project cargoes.

Heavy Lift Vessels are specifically designed to carry heavy or oversized cargo. These vessels meet the rising demand for block or modular transportation for fully assembled plants and/or equipment. Most of the heavy lift ships are self-sustaining diversified cargo handlers. They can be equipped with gantry or telescopic auxiliary cranes for the conventional load-on/ load-off ramps for Ro-Ro movements, and have semi-submersible capabilities to accommodate float-on/float-off operations. In some instance, operators extend their activities to cover inland transit with multi-wheeled self-propelling transporters enabling carriage of cargo from the point of manufacture to final destination.

The term "heavy lift ship" is ambiguous. By one definition, a heavy lift ship is an ocean-going vessel capable of submerging its large open deck to well below the water's surface, thus allowing another vessel to be floated over it and landed on a dry-dock-build mounted on the heavy lift ship's deck. The heavy lift ship then rises out of the water by pumping out its ballast tanks in a process very similar to the operation of a floating dry-dock. The transported vessel then rides on the deck of the heavy lift ship for the voyage to its destination. This type of ship is also known more precisely as a Float-On / Float-Off [ FLO-FLO] Ship.

Please contact us, we will provide you the best service and most suitable shipping price.

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The most common shipping way

Sea Freight (Cost saving)

Almost 90% of the products in the world are shipped by sea.

Full Container Load (FCL) or Less than a Container Load (LCL)

Before finalizing the procedures for your sea freight transportation, you will have to choose between a Full Container Load or a Less than a Container Load.

Full Container Load (FCL) will allow you to use a container just for your cargo, without sharing it. This is especially suitable if the cargo volume lets you fill up a 20 or 40-foot container, because each container can carry a total of 33cbm per 20 feet container, 67cbm per 40 feet container, 76 CBM per 40 feet high cute container or 86cbm per 45 feet container, details please find the container dimensions.

In that way, you will take more advantage of the transportation cost, as FCL shipping begins to be more profitable when you fill up more than half of a container; besides, you will also benefit from a Full Container Load if you want to avoid any damage or contamination in case of sharing a container with other traders.

In other situations, less than a Container Load (LCL) -sharing a container- will let you save on shipping costs, in case the volume you need is not enough to fill up a container or you are not concerned about the risks associated to sharing the container. This way involves sharing the container with other goods belonging to other traders, but you pay only for the space used by your cargo, with great savings on your shipping price.

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Methods of shipping from China（1）

Shipping cost and Transit Time vary depending on product, gross weight, volume, location and shipping method. Please find the different way to shipping your product.

1.    Courier (The easiest way)

Courier service also known as “express service” is basically a “door to door” service, where the courier company will get your goods from A (your suppliers in origin country) to B (Your delivery address in destination country). It’s the good option to move your goods which one less than 100 kg.

The Courier companies will manage all the processes required in getting the goods from A to B, also including local pick-up & delivery, customs clearing at both port, payment of taxes & duties (To bill you for this bit separately), etc.

The most famous courier companies are Fedex, DHL, TNT & UPS. But why you need to select an origin freight agent to handle your products, As the origin freight agent can act as your agent to provide the following services instead of the courier companies.

(1)   Collect your small products from different suppliers to avoid Min charges per bill.

(2)   Collect your products (Sample), and arrange the courier one by one according to your instruction.

(3)   Communicate with your suppliers and reporting the cargo status.

(4)   Settle the small product payment to different suppliers to avoid international bank charges.

2.    Air Freight(The fastest way)

Air freight is the fastest way to move your goods. Air freight delivery is the transfer the shipment of goods via an airline, which may be charter or commercial. Such shipments travel out of commercial and passenger aviation gateways to anywhere planes can fly and land.

The Advantages of Air Freight Shipping

The shipping options of air freight make it a valuable option for coordinating time sensitive shipments to almost anywhere in the world. This can be particularly advantageous for all the companies as it allows them to participate in international trade in an expeditious and effective manner. Shipping by air also offers the advantage of a high level of security as airport controls over cargo are tightly managed.

Managing Air Freight with an origin freight agent

Origin freight agent can determine the most reliable and cost-effective means for using air freight options to coordinate corporate, individual parcel or shipment deliveries. An Origin freight agent can negotiate the vast array of options and determine the most applicable means to ensure expedient and on-time delivery.

As with all international shipping, customs clearance procedures must always be anticipated and properly Shipping documents. Working with an Origin freight agent for your air shipping ensures that all aspects of your freight management are covered, from expedited service through customs clearance and shipment delivery.

We suggest if the chargeable weight is over 100kg, you can try to choose air freight. We will also give you a nice shipping price.

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Top 3 Tips when shipping from China

Running a business can feel like herding cats. A lot of fun but exhausting, too. Having a good origin shipping partner to handle shipping and logistics can be a big help because it lets you focus on growing your business – whether it's an online startup or a breakthrough product launch.

There are massive product suppliers in China, but there is a strategy you need to follow for importing success. It doesn’t matter if you’re a middle-size companies, or a start-up looking to make an impact – in both cases what is most critical to your success is the need to find the right shipping solution for your different products and quantity, of course, a suitable shipping rate is also important.

If you want to avoid the risk between Seller and Buyer, you should well know the Incoterms 2010.

Top 3 tips guideline for shipping from China as below.

1. How to Select the Best Shipping Method?

2. How to Reduce your shipping Cost?

3. China Port location Map

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Insurance

I cannot find a single good reason to not buy an insurance. Many suppliers use cheap and substandard export packaging, and few buyers bother to set any specific quality requirements – or even check the packing prior to shipment. Without an insurance, no compensation is paid by the forwarder, in case the cargo is damaged during transportation.

Most forwarders use PingAn to insure cargo, which charge 0.02%, based on 110% of the FOB price. Assuming you buy goods worth US$50,000, the insurance will only set you back a mere US$110. That’s a fair deal if you ask me. Based on my experience, compensation claims are fairly simple to make, and the insurance company is usually satisfied with photos and a protocol listing the quantity and value of the damaged goods.

Document Delivery

As always, the buyer is expected to pay for any ‘additional shipping costs’ arising, including delivery of the Bill of Lading, Commercial Invoice, Packing List and other documents required, such as a Form A or Country of Origin Certificate. A FedEx or DHL delivery of the mentioned documents will set you back another US$40 to US$50.

Local Charges (Port of Destination)

The local charges often come as an extremely unpleasant surprise to first time importers. As previously mentioned, the practice of kickback rates among freight forwarders enables suppliers to offer shipping at extremely low prices, while the real profits are made upon arrival in the Port of Destination. When shipping FCL, the local charges are set per container, rather than per cubic meters. I don’t have price data for each and every port, but the charges tend to range between US$500 to US$1000 per container.

However, that’s only for FCL. When shipping LCL, the local charges are calculated based on the volume, set in cubic meters. The price increase logarithmically, to the point where an LCL shipment of 15 to 17 cubic meters is just as costly as an FCL 20’’ shipment, the latter offering a total volume of 29 cubic meters.

Customs Bond / Clearance (US Only)

US companies importing from China, or anywhere else for that matter, must obtain a customs bond before arrival in the Port of Destination. Kathy Rinetti, Customs Manager of Flexport.com, explained the basics in an interview we published in October 2014:

“Also, prior to importing, importers will need to have a Customs bond on file prior to their shipment’s departure if their goods are valued over $2,500. If the value is less than that, then they can import under an informal entry and without a Customs bond, but this process would require them to manually submit paperwork. They can also import under a formal entry (with a Customs bond) even if their shipment value is less than $2,500.

You can obtain a Customs bond through most Customs brokerages, which typically have the ability to purchase bonds on your behalf through surety companies. There are two types – single entry and continuous entry Customs bonds. Single entry bonds are for a one-time use and continuous entry bonds cover all your shipments over the course of a year.”

A single entry Customs bond can be purchased for around US$100 – US$200, while a continuous entry customs bond costs US$250 – US$450. The latter makes sense for importers importing multiple shipments on a yearly basis.

Domestic Transportation (Port of Destination to Final Address)

Last, is the transportation from the Port of Destination, to your warehouse. The final delivery can be made by truck, rail or a combination of the two. The shipping price depends entirely on your proximity to the warehouse, and on the country, so I cannot offer any price estimation.