What is a letter of credit, how it works and who needs it..
Many of you would have come across the term Letter of Credit (L/C)..
If you are a shipping line, you would have heard this term from various customers asking you to expedite the draft bill of lading for checking by the bank or for the release of the bill of lading to be expedited because the shipment is under L/C..
If you a freight forwarder or agent, you may have been put under pressure by the BCO to get all the documents required by the L/C sent to them in time..
If you are a BCO, you may have been told by your bank that the documents submitted do not match the requirements of the L/C and some of the documentation may need to be redone..
So what exactly is a Letter of Credit, what is the need for a letter of credit, who issues it and how does it work..
Questions related to shipping and freight you always wanted to ask
If you have any questions you have always wanted to ask or things you always wanted to know about Shipping, Freight, Maritime, Logistics, Supply Chain and Trade but never got a chance or didn’t know where and who to ask, here is your opportunity..
What is a Manifest Corrector and why is it required..??
A manifest is one of the key documents in the process of shipping..
A manifest lists all bills of lading issued for cargo loaded on a specific ship.. Kind of a summary if you wish..
A manifest lists the details of the cargo, the shipper, consignee, weight, measurement, packing.. There are different types of manifests:
- Cargo Manifest – lists all information relating to the cargo excluding the freight charges..
- Freight Manifest – lists all information relating to the cargo including the freight charges.. All charges as indicated in the manifest are either to be paid by the shipper or consignee..
- Dangerous Cargo Manifest – a manifest that details the dangerous/hazardous cargoes on board the ship covering the Class, UN No., Description of Goods, EMS/MFAG etc..
- Out of Gauge Manifest – a manifest that details the out of gauge (abnormal sized) cargoes on board the ship including the out of gauge details of the cargo.
- Reefer Manifest – a manifest that details the reefer cargoes on board the ship including the temperature settings, humidity, which containers require monitoring on board – like cold treatment containers.
So what is a manifest correct and why is it required..??
This article explains what is a manifest corrector, its uses, where it can and cannot be used and how the process works..
What does it mean by duly discharged in terms of bill of lading..??
Cargo covered by a bill of lading may only be released to the entity to whom it is consigned..
The shipping line and/or their agents at the destination must take cognisance of the type of bill of lading issued, the endorsements required on the bill of lading for the type of bill of lading before releasing the cargo..
Some lines are releasing cargo without the endorsement , some are strictly following above, some are content with releasing cargo to whoever is in possession of the bill of lading and are not seeking any endorsement or authorisation letter (in the case of release to an agent)..
What is your viewpoint on this issue and let us take a vote to see how strictly these endorsement requirements are followed..
5 points to consider before packing your cargo
If you are an exporter and especially if you are exporting for the first time, you should have a checklist of points to consider before packing your cargo..
Here are 5 main points you should consider before packing your cargo..
Is there a connection between Incoterms and the shipping line..??
Is there a connection between Incoterms and the shipping line..?? Are Shipping Lines concerned with Incoterms®..??
What is distressed cargo and when does it occur..??
What is distressed cargo and when does it occur..?? As those in the shipping industry are aware and those who are new to the industry may be experiencing or those who are not in the industry may have realised, shipping and freight industry is a crucible of many different jargons, abbreviations and trite phrases to say the least.. 🙂 Here … Read more here..
Cargo types and packing method in containers
Why is the containerised trade considered the most versatile among the shipping trades..?? Because of the sheer variety of cargo that is transported around the world in containers..
Using the various container sizes, types and dimensions available in the trade today, one can transport almost all types of cargoes around the world..
What do the markings on a container mean..??
All of you may have seen the markings on a container, specially the door when it comes to your warehouse for packing or unpacking..
Each of these markings plays a very significant role in the transportation of the container and provides vital information to all entities in the supply chain relating to the monitoring and safety of the container and cargo during its carriage..
Let us look at each of these markings individually based on the image below showing the various markings..
Shipper vs Agent – A case study
Article discussing a dispute between a shipper and his agent relating to the shipment of the goods, ETA and freight..
This maybe an eye opener for several other people who maybe in this predicament or situation and need to know these intimate details of shipping..