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Secrets of International Trading

With the goods safely loaded aboard
the ship, the shipping agent issues a

"clean" ocean bill of lading

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Rail Transportation

There are three types of railway freight rates:

1. LCL "less than carload lot" this is the most expensive rate and applies to small shipments based on a minimum charge for 100 lb.

2. CL "carload" rate this is the cheapest rate and applies to shipments 30,000 pounds or more.

3. "Pool-car rate" - this is an intermediate rate and involves the combining of shipments from different shippers.

 

Rail transportation is most suitable for this shipment if:

1. The goods are heavy.

2. The distance to be traveled not economical by truck.

3. The rail line is located fairly close to his premises and to the port of shipment for goods destined overseas.

Truck Transportation

Truck transportation between Malaysia, Singapore and Thailand is quite convenient as it permits warehouse-to-warehouse transportation and reduces the handling involved in transshipment.

However, it is more expensive than by freight train for heavy shipments.

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Most exporters, if trucking suits their need, prefer to use commercial trucking companies to transport their goods.
 

Delivery to the Dockside

One way, is to use the service of a freight forwarder.
The shipping company's representative checks the number of items, their condition, shipping marks, weight, and perhaps size, and then issues a "dock receipt".

The exporter keeps this dock receipt until the goods are loaded aboard the ship. After this has been done, the shipping company issues an ocean bill of lading to replace the dock receipt.

Another way to deliver goods to the ship is by rail. Small shipments are delivered to the local railway freight depots where they are consolidated with other shipments for the same port.

Large shipments go by carload lots and are usually loaded at the exporter's premises. At the port, the shipping line has usually leased or has been assigned a shed in which all the box cars containing goods for the particular ship are unloaded.

The railways assume the responsibility for unloading the boxcars, and checking and placing the goods in the warehouse ready for loading abroad ship. The cost involved is included in the railway freight rate.

 

Loading the Goods aboard Ship

When the exporter's goods have been unloaded at the dockside, it is the shipping company's responsibility to ensure that they are properly loaded aboard the correct ship.

Usually, a stevedoring firm does this on behalf of the shipping company and the cost involved is already included in the freight rate paid by the exporter.

With the goods safely loaded aboard the ship, the shipping agent issues a "clean" ocean bill of lading to the exporter so long as no shortages or damaged crates, boxes, etc. have been discovered.

If damage had been noted, the exporter can still obtain a clean bill of lading by signing a letter of indemnity that absolves the shipping line of any responsibility for the damage should insurance claim be made.

The bill of lading, in the required number of copies, is evidence of ownership and is negotiable - it is the key document that is surrendered to the foreign importer upon payment for the goods or acceptance of a time draft as specified in a letter of credit

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"....airfreight charges, airlines uses the
"cube rule" namely every 194 cubic inches
of is considered equivalent to one pound..."

 


How to Develop an Export Market?

How to Conduct Export Research?

How to calculate Costing for Export?

Export Shipment and Transportation
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Export Shipment and Transportation

4 P's of Business Correspondence

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