How to avoid Fraudulent freight forwarders and their scams

fraudulent freight forwarders - shipping and freight resource

The activity of Freight Forwarding has been around for many years and there has been a recent resurgence of the forwarder especially in the form of a digital freight forwarder. Unfortunately fraudulent freight forwarders have permeated this industry as well.

Like any industry, freight forwarding has its good and bad sides and it is quite easy to become a victim of fraud and most of the time, freight forwarders are not associated with the crime or fraud and they may be co-victims just like you.

Here are some of the ways of fraudulent freight forwarders and their scams.

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What are the main causes of Demurrage and Detention

causes of demurrage and detention

In one my previous articles, I explained the Difference between Demurrage and Detention..

After reading this, a few of my readers have asked me to explain the causes of demurrage and detention..

There are several reasons a container(s) can incur demurrage and/or detention or combined demurrage and detention.. Here are some of the major reasons..

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What is a Delivery Order and who issues it..??

Image for Delivery Order post

If you are in the shipping and freight industry, you would have no doubt heard about a Delivery Order..

This article explains in detail all about a Delivery Order – what is it, who issues it, who should it be issued to and its importance..

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Difference between Harbour, Port, Terminal, Berth, Quay, Pier, Jetty

Harbour, Port, Terminal, Berth, Quay, Pier, Jetty - Shipping and Freight Resource

Harbour, Port, Terminal, Berth, Quay, Pier, Jetty – you are not alone if you are confused about these terminologies..

To many of us, these terminologies sounds the same.. It took me also a while to understand the difference when I started out in this industry..

So here’s how it works..

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Do banks verify whether the cargo has actually been loaded on a ship..??

Image for Info

Shippers who deal with documentary credit know that the clause “Shipped on Board” on the bill of lading carries quite a bit of weight and there is often a lot of discussions, disputes and rejections from the side of the bank if there is any discrepancy in bill of lading in terms of the description of goods, customer details, shipped on board date, stamp or signature..

Since they are being so strict with documentation, one would naturally assume that the banks will verify whether the cargo covered in the bill of lading has actually been loaded on board the ship or not..

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Planning to start your own shipping and freight business..?? Read this..

image for stop shipping and freight business

For any business to be successful, one needs to know the business, its model and requirements inside out.. Many businesses start with a great idea..

But there could be big gap between a great idea and a great startup and many people don’t have a clue on how to bridge this gap and may end up spending their life savings to start the business..

Forbes published an article on 10 Reality Checks Before Starting Your Own Business..

    1. Are you ready for the startup lifestyle?
    2. Are there customers with real pain and money?
    3. Is the market opportunity large and growing?
    4. Is this a crowded space already?
    5. Does your solution have hidden dependencies or costs?
    6. Do you have intellectual property to defend against competitors?
    7. Can you build a motivated and qualified team?
    8. Have you looked realistically at the costs?
    9. Do you have stamina and skills?
    10. Going “from” rather than “to”?

 

While the above is good for any business, if you are planning to start your own shipping and freight business, here are 7 reasons why you shouldn’t start your own shipping and freight business..

Yes you are reading it right..

You shouldn’t start your own shipping and freight business if :

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Roles and responsibilities of Classification Societies

classification society

The business of shipping hinges on the collaboration and action of various entities.. Shipping lines, ports, customs, ship owners, ship operators, ports and many more, all work in unison to get the cargo moving around the world..

This collaboration and co-operation is critical to ensure the safety of the ships carrying the cargo and the safety of the crew members operating the ships..

The registration of a ship plays an important role in ensuring safety and security of the ship and significantly contributes towards the protection and preservation of the marine environment..

As per IMO regulations, all ships must be surveyed in order to ensure that the ships under their register/flag are structurally sound and subscribes to design and safety standards and issue certificates which establishes a ship’s seaworthiness..

The Flag State of the vessel is the party responsible for the above survey and inspection.. This is achieved through Ship Classification..

This is achieved through Ship Classification..

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Cause and effect of incorrect hazardous declaration and what needs to be done to avoid it

IMDG Code book

In the IMDG Code, many actions are listed but the responsibility to carry out that action may not be specifically assigned to any particular person.

The IMDG Code does however assign responsibilities to named persons or entities in certain cases, such as;

  1. Shipper: for classification, assigning proper shipping name, packaging, marking, labelling, placarding, dangerous goods declaration
  2. Packer: for packing of CTU and related responsibilities.
  3. Master: of the vessel- responsibilities under SOLAS Chapter VII Part A & MARPOL Annex III
  4. Competent Authorities: for granting exemptions and approvals

No one knows what is inside the box; everyone depends on the dangerous goods declaration.

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All about CSC plate and inspection regimes for shipping containers

CSC plate - shipping and freight resource

The need for safe transportation of goods cannot be overemphasised..

Various incidents that have occurred around the world in terms of maritime disasters, weight misdeclarations and other mishaps bear testament to this important factor in shipping..

You might have seen ships with the SAFETY FIRST phrase emblazoned across the accommodation on the ship..

When we speak about safety especially in container shipping, one of the main items that needs to be considered is the safety aspect of using the shipping container as a Cargo Transporting Unit (CTU)..

Here I explain all about the CSC Plate and Safety Approval and container inspection regimes..

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Can a negotiable bill of lading be telex released..??

telex release - shipping and freight resource

Maybe because it is one of the most important documents in global trade, there always seems to be a degree of uncertainty around a bill of lading and questions such as this..

Many people have doubts regarding which bill of lading to issue, how many to issue..

There are also questions such as what is a Telex Release, how it works and under what circumstances a Telex Release maybe issued..

In this particular post, I will cover the circumstances under which a Telex Release maybe issued and whether a telex release can be actioned on a negotiable bill of lading..

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Help, shipping line won’t pre-date or back date my bill of lading

back dating bill of lading

Pre-Dating or Back Dating is when the shipper requests the shipping line to show the Shipped on Board date on the bill of lading as a date before the actual sailing of the vessel (example : the vessel actually sails on the 2nd of March but shipper wants the line to show the shipped on board date on the bill of lading as 28th of February)..

Why would a shipper want his bill of lading to be pre-dated or back dated and why would a shipping line reject this request..??

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Letter of Indemnity – Dos and Don’ts

loi

Many of you might have heard the term Letter of Indemnity (LOI) in day to day shipping practice..

There have been several arguments, discussions, commercial threats, litigation etc surrounding this LOI..

But many still have doubts on what an LOI is, when it can and should be used, whether it is legally enforceable and whether it is worth the paper it is written on..

I will try to answer these questions in this article..

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