identify and state the documents prepared by caption of the ship after the goods are loaded to the ship taking it responsibility ? long answer
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Answer:
The ocean freight industry is (in)famous for its paperwork. Getting to know all of them is tedious enough — getting them right is a task in itself. Any seemingly innocuous error can cause problems and delays that may severely disrupt your supply chain.
By and large, many of these documents contain the same information — buyer, seller, merchandise details, etc. But each document plays a different role and it’s important to not only make sure that the information written on each document is accurate but that it’s consistent across all the documents.
Here are the top 5 ocean freight documents all shippers should be familiar with and how they differ from one another.
1. Bill of Lading
If there were only one shipping document you need to know like the back of your palm, the Bill of Lading would be it.
Types of Bill of Lading
If you’ve booked your shipment with a freight forwarder, you may come across the two different Bill of Ladings: the house B/L and the master B/L. Give our post on the differences between a house and master B/L a thorough read to understand their differences.
Depending on your working relationship with your importer, you may prefer to work with either the Express Release or Telex Release, both of which are variations of the Bill of Lading.
2. Packing list
Just like the Bill of Lading, the packing list is a mandatory document in shipping merchandise via ocean freight. It lists, down to the tiniest of details, information regarding the cargo. This includes weight, volume, and value of not only the overall cargo but also each individual box.
3. Commercial invoice
Any international transaction that involves importing/exporting goods must come with a proof of sale known as the commercial invoice. In large part, it’s similar to a standard invoice. But unlike a standard invoice, it includes details regarding the freight shipment for customs clearance purposes and is one of the most important documents in ocean freight shipping. Detailed information of all parties involved, including the importer, exporter, freight forwarder, banks, shipping lines, etc, must be properly listed on the commercial invoice.
4. Certificate of origin
According to the ICC, the certificate of origin (COO) is ‘an important international trade document that certifies that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country. They also serve as a declaration by the exporter.’
5. Letter of Credit
The letter of credit is a formal, binding agreement of payment between buyer and seller. The international purchase process is a long one, given the long delay from the time the seller ships his cargo off to the time it reaches the safe hands of the buyer. This makes it hard to determine when payment should be made, especially if importers are unable to verify the authenticity of the purchase.
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